The Global Integration of Business Functions

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The world has continuously changed for improvements and innovations. The earth is not huge enough to limit human interactions. People are shifting from a world in which national economies were isolated from each other by barriers and cultures to cross border trade and investments. Nowadays, people around the world are more connected to each other than ever before. The revolution of sciences and technologies has gradually improved human livings. It is much easier for people to travel, communicate and do business internationally. As a result, demand for expanding economy to countries urges the foundation of globalization. Integrating into the global economy offers multinational companies not only opportunities to disperse their industries…show more content…
For instance, the first business function, R&D is the method to prepare a new launch of a company, such as developing a new products, improving services and researching for a new territory. Moreover, new technology inventions are generated from initiatives picking up from R&D. On the other hand, gaining positive results in R&D requires a lot of communication to collect and share information as well as ideas. Therefore, both information-based and people-based integrating modes are considered as the most effective contributors for R&D function. However, R&D is a flexible process of creativity which cannot follow any official and structured forms and innovations cannot be restrained by personal factors. That is the reason for inappropriateness of formulization-based and centralizing decisions-making modes (331).
Especially, the main motivation of multinational business corporation is to shape their reputations and increasing revenue from products and services they provide. One of the most credible method to expand a company’s position all over the world is making marketing strategies which help that company catch up with customer interests and expectations, so that company may take advantage in international competitions. Thus, people- and information-based integrating modes become powerful forces which help companies observe and changed behaviors of customers. Due to different tastes of
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