Spreading business worldwide is the necessity in today’s modern world. The business cannot be limited to one or two countries. But with the expansion of business the need to remain in the market is also necessary. There is a fast and vast competition among many companies worldwide. Only those companies can survive who provide the basic wants of consumers. But to expand the business globally is also difficult. The risk factor is always in the business. One has to calculate the loses if occurred. And along with the new invention in the markets, the competition for the induction of new ideas is also present in the market. One with new ideas and new gestures can ensure long period of availability of the product in the market. So the competition in today’s world is not only expanding a company word wide, but the competition is how to create new ideas to remain in the market. New innovations are also necessary. Expanding the business world wide and managing globally has many sided plus points. The modern era is the era where people are coming closer to one another through internet, through social media. So the todays’ world is a global village. And the need is to extend the company globally. So the company that is ready to face such challenges is the successful company. Global impact on any business is good as when the company was just doing its business at a national level, when the company starts internationally, the profit margin also increases. The products are subject to competition in international market and as a result the quality of product is also improved. Globalization has a greater advantage from economic point of view also (Dr Christoph Luetge, 18- JAN-2013). When the products are produced and sold globally, the raw materials are available at low prices, the cost per production decreases and the profit increases and at the same time the consumer gets product at low prices. When supply is increased the prices come down. Let’s take an example of China and US business. After the fall of Soviet States, the doors for the investment for China were opened in the international markets. The China emerged as biggest world global market and at the same time many labor went to US, and thus the labor cost decreased in US with the greater supply.
Same is the impact of technology on any corporation or company. As the technology is improving and getting better day by day, same is the impact on businesses. Whatever the size of a company is, but if the company is using advance technology, the company can get better results in the form of sales. The use of technology can reduce the operational costs, can reduce the labor costs and also reduce the raw material costs. So with the use of modern technology the business of any company can flourish.
Above were the brief introduction about the impact of globalization and technology on any company or corporation operating in the world. Now let us explain the impacts by discussing any one company in detail.
Siemens is the company with more than a century experience certificate. This company was started by a single person in UK. Later on the expansion is a history. Till today, this company has worked in the field of automobiles, communication, many transport activities, providing facilities and operational appliances to the medical field. The Siemens Company in the year 1990’s started producing and operating globally. Globalization was adopted by this company and they succeeded. The company started competing with international market and products. The company stressed on higher growth with the motive of proper planning of production. Asia and its neighboring countries were taken for the business. This company increased its production by employing many workers and at the same time the production units were also increased. The era of 1990 was witnessed by the larger production of computer accessories, and computer hardware by the company in Britain as well as in Asia.
Industrial organization model applies to see how industry works in relation to the outer environment. The company modifies its strategy, and works on that strategy and monitor the competition as well. Where as in resource based model, a company sees it’s above average returns by analyzing the internal capital, the available skills, and the available finance system. While analyzing these internal facts the company then records that how much they can gain. The Siemens Company believes in resource based model and it has earned above average by this method. According to the company, the competition in the market can be faced through the internal resources. And this strategy worked for the company.
The Siemens Company has adopted the new technology and globalization to provide the fastest technology to the world. This company has its vision as well mission and these both are contributing to the success of a company.
The vision and the mission of this company are:
Each category of stake holder affects the overall success of the Siemens Company. According to the reports and surveys the economy, environment, consumers, producers, social and geographical factors all are contributing to the success of the company (Thomas Clarke, 24-June- 2009.).
If we analyze the overall progress and growth of the company, we can say that this company since 1990’s, changed and improved the overall production. Globalization and technology has made a positive impact on its progress. In US, the company achieved higher power generation profile in late 90’s. Even in the start of 2000, the company focused on diversifying activities. The company also paid attention on the workers and employees. The company raised the wages, provided better facilities and encouraged the employees. These all resulted in the progress of the company. And thus the company from national level rises to international level. Providing better and good quality products to the consumer and at the same time the company emerged as one of the top companies of the world.
Dr Christoph Luetge, P. K. (18- JAN-2013). Globalisation and Business Ethics. Ashgate Publishing, Ltd.
Thomas Clarke, J.-F. C. (24-June- 2009.). European Corporate Governance. Routledge.