Globalization has led to increased complexity and diversity in the business environment. It has integrated economies globally through the free flow of goods, services, information, knowledge and labor across borders. While globalization expands markets and increases productivity, it also increases competition and can lead to issues like adverse trade balances, unemployment and concentration of economic power. It changes the nature of work and introduces demographic and social challenges for businesses. To deal with this complex and diverse environment caused by globalization, businesses must be open, emphasize their values, pursue initiatives that demonstrate their purpose, and foster diversity to encourage creativity, innovation, richer decision making and better consumer understanding.

1. Complexity and Diversity of Business
Environment due to Globalization
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Mahendra Kumar Ghadoliya

2. Meaning of Globalisation
• Globalisation is generally termed as ‘ an increase
in economic integration among nations’.
• WTO says, “Unrestricted cross border movements
of goods and services and the labour force”.
• Thus, free flow of goods and services,
information, knowledge and people across
boundaries results in socio-economic integration
is the globalisation.

3. Advantages of Globalisation
• Economic Enhancements- Expands market
• Natural Advantages- produce more those
commodities which we may produce at a
competitive advantage
• Out sourcing- low cost of labour, Equipment
• Increase in labour productivity – remove
inefficiencies
• Growth of industries, banking, insurance and
financial markets

4. Globalisation in business
• Globalization in Business increases competition-
• Globalisation leads to Mergers and Acquisitions
• Changing nature of work- industry shift,
technological advancement, flexible work
arrangement.
• Demographic and social issues- workforce
composition, availability, ageing population,
knowledge workers, women in work force, family
structure
• Effect of Terrorism.

5. Disadvantages of Globalisation
• Imports rise at a faster rate
• Balance of Trade is adverse
• Unemployment
• Poverty
• Concentration of economic power
• Threat to agriculture from developed
countries.

6. Complexity and diversity of Business
environment due to Globalisation
• Facing Uncertainty in Business-Competitive
pressure Industry consolidation, political shift
• 1. Talk openly about companies values with many
audience, customers and outside stake holders
• 2. Emphasize larger meaning and purpose that is
outside routine activities and transactions
• 3. Pursue initiatives that demonstrate company
values. These may not yield immediate business
gains but are created to show what organisation
stands for and how it will endure.

7. What is complexity
• Complexity is a property of open systems that consists
of a large number of diverse interacting components,
often called agents.
• Connectivity- more connectivity more complex
• Autonomy- increase in autonomy increase complexity
• Emergent behaviour
• Non-equilibrium- subject to change
• Non linearity- relations are non-linear
• Self organisation- adaptation
• Co-evolution

8. • Facing complexity- Build circle of influence,
• Leaders don’t tightly control decisions instead
they encourage people to network, empower,
facilitate innovations.
• Facing Diversity- employees bring vast array of
perspectives, preferences, work styles, and
cultural traditions such diversity can be
organised strength and source of conflict.

9. Define Diversity
• With the ever-changing business environment,
business owners are adapting diversity
policies and strategies that appeal to their
employees, clients, vendors and suppliers.
Diversity in the workplace brings with it a host
of potential benefits, as well as potential
conflicts for business owners to manage.

10. Five Key Benefits of Fostering
Diversity in the Workplace.
• Increased Creativity -A company made up of
employees from diverse ethnic backgrounds,
generations, genders, races and religions (just to
name a few) has more creative energy to harness
than one with a more homogenized workforce.
• Foster Innovation
• Better Consumer Understanding
• Richer Brainstorming
• Better Decision Making