The document discusses the managerial implications of globalization. It defines globalization as increased movement of people, capital, goods, and ideas due to greater economic integration and trade. Globalization allows managers to gain from economies of scale, innovation, and international standards. It benefits businesses through larger global markets, investments, and strategic alliances. Managers can expand investment and production, improve quality standards, and make strategic decisions based on globalization trends in their industry to ensure competitiveness and profitability.

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Subject: Managerial implications of the globalization process
Based on the rate at which globalization has taken place in particular industries, senior managers
are discovering that the behaviors and needs of customers across the world are increasingly
homogenized (Aurifeille, et al 2007). The objective of this presentation is to analyze managerial
implications of the globalization process.
What is globalization and its implication on managers?
Globalization has been given several definitions, but most of them tend to acknowledge the
presence of increased movement of people, capital, goods and ideas as a result of greater
economic integration which also enhance more trade and investment (Rao, 2001). World
economic order is unified through elimination of international trade barriers such as tariffs,
import quotas, and export fees. The impacts of globalization tend to differ from one industry to
another, implying that managers must make strategic decisions based on the evolving conditions.
Global orientation enables managers to gain from economies of scale, crucial value-creating
activities and manage their companies according to international standards.
Importance of globalization to a business
Globalization plays a significant role when it comes to competitiveness and profitability of a
business. First, the business gains from global strategies such as transfer of technological
innovations, increased size of global market, huge investments, and development of strategic
alliance. Since globalization has spread in several if not all countries in the world, governments
are gradually eliminating barriers to trade such as tariffs, quotas and duties (Aurifeille, et al
2007). This implies that companies can sell their products in international market with minimal
additional costs. This leads to less reduced wastage in terms of production, which in turn reduces
expenses and increases revenue.
How managers deal with globalization
Depending on the way the impacts of globalization have been interpreted by managers, there are
several mechanisms which can be adopted which will effectively impact on their decisions and
organizational strategies. For instance, globalization opens up national borders thus increasing
the market size, technological flow and increased flow of foreign exchange. In such a situation,
managers can expand the amount of organizational investment, enhance quality assurance to

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meet international standards and increase production so as to improve the bottom-line of
financial performance (Rao, 2001). This globalization can lead to unfair competitive
environment which can lead to collapse of local strategic industries.
Globalization is an evolving phenomenon whose impacts are being felt the world over. We have
seen that there are several advantages and disadvantages of globalization, implying that
managers must analyze its impacts on a specific industry. Global orientation has led to increase
in market size and technological flow. Managers need to make strategic decisions depending on
the globalization trends so as to ensure that long-term policies do not become obsolete due to
innovation.

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References:
Aurifeille, J., Svizzero, S., & Tisdell, C. A. (2007). Globalization and Partnerships: Features of
Business Alliances and International Cooperation. New York: Nova Publishers
Rao, C. P. (2001). Globalization and its managerial implications. Westport, CT: Greenwood
Publishing Group.