The globalization of economies is at the heart of many economic and social debates. The rapidly changing political environment, economic and social development, increased trade in goods, services, and information currently concern all developed countries. This movement is not without any impact on the company and generates the global convergence of professional conduct and management of the company.
It is necessarily a global business strategy. The concept of globalization not only refers to the enlargement of markets and competitors but also globalization of English term reflecting a unique phase of the process of internationalization of companies and products where the material form of economic activity is subject to the abstract logic exchange of the capital and information.
Globalization of capital markets also face: that of professional investors who manage the portfolios of pension funds, insurance or savings. The importance of this phenomenon on the strategies and business organization must be raised. Deciding a strategy is to make a choice on the portfolio of activities and address issues of resource allocation between different areas and organizing the establishment of the process that guides the groups and their structuring activities.
How these phenomena affect the globalization strategies and the organization of businesses? Are the financial strategies likely to reduce the autonomy of the decisions of the leaders? Structuring and coordinating groups have changed her nature? Globalization requires changes not only on financial policies and competitive strategies but also on the structures and systems of management companies (problematic).
We will discuss at first the diversity of the phenomenon of globalization on development and control of business by highlighting the new financial constraints and the new competitive rules. Then we will see the types of organization and management systems that will come up as a result.
Financial strategies reflect the fact that the mode of movement of capital in financial markets is seamless to the effect of giving priority to financial factors. Refocusing on the main market to reach critical mass, buying market share, the option of external growth are systematically privileged at the expense of endogenous growth of the organization. Strategies for equity, mergers and acquisitions dominate the industrial strategies.
In a context of re-legitimization of the interests of shareholders, investors will give precedence to the logic of portfolio management: they expect that each firm maximizes its profitability and it simultaneously reduces the economic risk by conquering a strong position in its markets.
The liberation of international capital flows and the homogenization of financial markets have facilitated the rise of investment funds, portfolio funds or pension funds. Although it is difficult to prove empirically that their presence alters the behavior of leaders, it is legitimate to assume their influence under the weight held by these funds in the capital of undertakings.
Tags: enterprises facing globalization, globalization of economies, globalization of capital markets
[...] Competition is no longer about a single link (either research or production, etc . ) but the concept developed by Porter's value chain, that is to say the firm's ability to integrate all these variables in global solutions, thus relativizing the intrinsic role of the product in the creation of added value. Strategies for multi-nationalization of the company are part of a dynamic comprising several stages, causing an increasingly strong intensity of the multinational. Strategies or a multinational? The functions of a business are even more if as the firm is important. [...]
[...] Concepts such as "client" or "quality" are those who gather in general the most. It is also essential to have an assessment system of economic performance, and homogeneous management control which is well adapted to local conditions. Temporary exchanges of personnel between the world headquarters and local units can be disseminated through training and information values. All these elements need to relay coordination to achieve the whole enterprise. The committees are permanent bodies of coordination that operate in the form of more or less regular meetings that are intended to inform those responsible for policy guidance and to make joint decisions concerning the implementation of these decisions. [...]
[...] Depending on whether an international group is multi-domestic or global, the strategy will be more or less decentralized. IBM, for example, is based on four geographic divisions: IBM USA, IBM-Europe-Middle East-Africa-Asia Pacific IBM and IBM-America. Within each zone, the consistency of production is ensured by a plant specialization. Recently, the group turned to relief units and more partnerships with other companies. Since 1995 Ford has adopted a truly global structure divided into five main geographical industry clusters, each responsible for developing one or more product lines. [...]
[...] Four stages are usually identified in the development process: - the occasional sale (locally or abroad) - export via a network - export through a commercial subsidiary - on-site production The sequence between the four sequential stages is usually based on the risk and profitability of each choice. To the global enterprise Globalization has emerged as the ultimate form of internationalization of the company. In this case, the firm considers the world market as a single market, whose integration is especially thorough. Globalization can then be defined as the expansion of business activities to produce and sell goods on a larger number of markets. [...]
[...] Regarding liabilities, again, the firm has many solutions to internationalize. It can, first, to diversify the origin of its equity, placing its securities in other markets in a capital increase, or by scoring them on other financial denominations, which will lead to the gradual internationalization of its shareholders probably faster than if the company remained listed only on its home market and was aimed primarily at domestic investors. Meanwhile, the company will seek to diversify its debt by borrowing in different currencies or by entering into multi- currency credits. [...]
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