Research Business Organizations Today And Globalism

Globalism
Student’s Name
Institution
Globalism
Business organizations today operate in an environment that is characterized by an increasing intensity of globalism. As a result of globalization, businesses operate and face challenges from a wider market. Therefore, the formulation of effective business strategies is an essential practice for organizations wishing to succeed in the market filled with uncertainties.
An essential strategy for organizations in the wake of globalization is the analysis of institutional contexts of countries. According to Khanna, Palepu, & Sinha (2005), as organizations seek to expand into new markets, they have to examine the social and political systems, openness to investment, capital markets, labor markets, and product markets. Such analysis helps firms understand the different risks that are present in the global market. Therefore, firms can find ways of combating the institutional weaknesses of each market it plans to expand into. In this regard, the firm can modify its business model to adapt to the different market conditions. Khanna, Palepu, & Sinha (2005) point out that the modification should allow the business to preserve its competitive advantage.
Globalization brings a number of challenges for the organization. How they approach these challenges, determine whether or not they succeed. According to Scherer, Palazzo, & Matten (2009), globalization erodes the already established ideas about the business position in the society. As such, businesses have the challenge of establishing new roles that are consistent with the demands of the society. For example, it is essential for business today to practice social responsibility.
Despite the challenges that come with it, globalization presents organizations with an opportunity to grow. Firms can easily explore and supply pr...