The Impact Of Globalization On The Business Environment

1356 WordsSep 9, 20166 Pages
“No one company any where in the world is big or strong enough to do everything on its own. – Drucker (1996) The world is changing: the business operational environment is now characterized by high volatilities and uncertainties than it ever had. Globalization has become the order of the day and a reality to all players both on the domestic and international scene. Those firms that has become oblivious of the global economy are destined to the archives of business history. Corporate strategist are kept busy constructing and coining new strategies to cope with the changing environment. The business environment has become increasingly uncertain and highly competitive (Visvanathan & Percy, 2009). Kirzner (1997) and Machorec (1995) pointed out that firms must seek new knowledge in order to survive and prosper. Ahmad (2014) argued that firms are required to innovate constantly to differentiate their products and services in order to encounter the pressure of foreign competition. Consequently, organizations are expected to exploit their strategic abilities, adapt and seek improvements in every area of the business, building on awareness and understanding of current strategies. They must be able to quickly act in response to opportunities and barriers (Papulova & Papulova, 2006). This turbulence has made several firms come to rely on alliances as strategic necessities for sustaining competitive advantage and creating customers value (Dyer, 2002). Strategic alliances are
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