Create a 10 page essay paper that discusses Globalisation.
Globalization has been a part of human evolution over the centuries. The first phase of globalization occurred from the 1870s to World War I, this was accompanied by industrialization and increase in global trade. The second phase is said to have begun with the end of the Cold war in the 1990’s. Technology and communications have been the drivers of this phase. (Parrett: 2005). “Globalization” implies economic integration of nations through trade, investment, production, flow of capital, information technology, joint ventures, mergers and acquisitions and other related activities. (Phua : 2004 ). It is essential to understand the scope and dimensions of globalization to enable business benefit from the opportunities for growth as well as the perils. The role of a CEO in the integrated World of tomorrow is all important. However the exact dimensions of the challenges faced by CEOs and their role thereof in the global environment have not been fully defined. Globalization is also taking place in diverse environments geographically, politically and socially, thus the challenges faced by the CEOs are varied. It is therefore essential that we undertake an analysis of this essential facet as it will define the social as well business environment of the future. (Napolitano: 2006)The role of globalization in the growth of business has been well recognized in recent times. Globalization today is driven by policy changes where governments have reduced the obstacles for trade, thereby making it a tool for development. (Bhagwati : 2004). In a survey of CEOs carried out in the United States, over 75 percent of the CEOs identified international customers, consumers and employees as more important and approximately 70 percent determined reduction in the role of labor unions. With growth opportunities limited at home, it was also identified that expansion of market share was important for growth for which globalization provided the ideal vehicle. (NIST Survey :1998). The challenge of globalization for companies is to harmonize local sensitivities to the harsh realties of competitive business in the international arena. (Duncan: 2002). Globalization is also driving competition and hence creating new opportunities. These need to be seized and companies should position themselves to take advantage of the situation. (Parrett: 2005). Globalization also creates complexity, this creates a need for the CEOs to explain and manage this complexity successfully. (CEO Survey). Globalization has created economies of scale at an international level creating beneficiaries from variations in inflation. savings, competition, and job creation in say China with low-cost manufacturing which has kept inflation low. (Parrett: 2005).
Role of CEOs
The CEO has a major role to play in sustaining corporate continuity in a cohesive manner to include intangible facets as customer satisfaction, product and service quality, ethical conduct and reputation, operational performance, and employee commitment. (Parrett: 2005). The CEO has to transact with the society as a whole and particularly its three major constituents, other companies, government, and civil society. (Napolitano: 2006). The CEO has to seamlessly link the organization globally and locally by synergizing its goals and aspirations in both the dimensions. (Napolitano: 2006). A CEO should be sensitive to ensure that the organizations goals and operations are not creating resentment in society which in the final analysis would damage the company in the longer run. (Napolitano: 2006).
A CEOs role is perceived as a partner rather than a leader. It has a lot to do with effective management of the company, its external involvement as well as the government. (Global Corporate Citizenship : 2003). Nearly 80 percent of CEOs say they have made reducing unnecessary complexity a personal priority. Their primary focus areas are information
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