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Marylynn Huggins

BUS 1050 10 AM
Roger Lee
April 20, 2014
Individual Paper

Why Global Awareness Is Essential for Business Survival Today


The key to understanding this statement requires one to acknowledge that globalization is
happening and its taking place very rapidly thanks to the improvement of technology, the
faster communication as well as the fast travel possibilities via cars, ships and aircraft.
(Herrmann, 2012) Combining this fact with the ever increasing expansion of internet based
companies, especially those businesses whose locations really dont matter anymore when it
comes to servicing their target market, means customers can literally span the globe which has a
direct impact on marketing and competition. Adding to the effects of globalization, many
companies are outsourcing production to more cost effective locations in other countries and
there is a growing trend for most companies to put greater emphasis on hiring employees with
multilingual capabilities.

Among the questions facing business leaders of today involves knowing how to successfully do
business in a global marketplace. One area of training that is becoming more valuable is
learning to be more aware of diverse cultures. Understanding both what and how a culture and
people think will directly impact the success and profitability of a company integrating their

business globally. According to Wilson Learnings Global Awareness program, If firms are to
prosper, they must develop people who can successfully formulate and implement multinational
strategies, invent and utilize global technology, and create and coordinate information within
cross-cultural teams across the globe. (Ireland) Whether dealing with an expanding customer
base or establishing a positive work environment for employees in other countries, smart
business leaders will want to acquire the necessary skills and train their personnel to
communicate effectively throughout the company.

Another concept businesses need to adopt is sustainable development which means adopting
business strategies and activities today that will lead to more success in a global economic
environment by protecting, sustaining and enhancing the human and natural resources that will
be needed in the future. (IISD, 1992) How a company plans their strategy and moves forward
can vary but in my reading it seems clear that there are certain steps needed to truly have success
and build a competitive advantage within a global economy. A brief description of just three
steps includes:
Rebalancing of Countries
We live in challenging and rapidly changing times. There is a rebalancing of the global
economy taking place as nations around the world are shifting and changing places
relative to their former positions (PricewaterhouseCoopers, LLP, 2011). Like pieces on a
chess board, there is a delicate balance that needs to be maintained. There are many who
hold to a belief that the U.S. will no longer hold onto the role of driver in global

economic growth. That belief is leading to changes in international investing, and more
governmental regulations around the world to manage risk.

Innovation
For any business to remain on top an increase in innovation is imperative. With the
ultimate goal being a competitive advantage, businesses in the U.S. must bring to market
unique goods and services that their competitors cannot easily replicate. One area of
focus when it comes to new ideas is information technology. Currently there is a trend
among businesses to focus the bulk of their IT budget towards ongoing maintenance with
little going to innovation (PricewaterhouseCoopers, LLP, 2011). As with all facets of
interactions online there comes a level of risk to the security of information and
unintentional leaking of new ideas. In an effort to counter the risk of leaks employers
need to spend more in managing and training their workforce.

Recalibrating the Workforce


A clear sign of a successful company that will emerge as a leader in the global economy
is the ability to manage and capitalize on the talent within as well as having a strategic
plan for their human resource department in the acquisition of new talent. A key part of
attracting and maintaining a skilled workforce will include providing distinctive work
environments, above standard benefits and incentives, as well as taking a fresh look at
pensions and healthcare packages (PricewaterhouseCoopers, LLP, 2011). By including
human resources on business strategy they will be better equipped in the role of
motivating and building morale among the workforce.

Although sustainable development is a concept that hasnt reached a level of overall popularity
among businesses, its important to understand that the concept is fluid, and changes over time
in response to increased information and societys evolving priorities. (IISD, 1992)

As you can see, there is a direct connection with how successful a company is over time and
their awareness of how globalization affects their bottom line. By taking a step back, looking at
the bigger picture, and being open to new ideas a company will have a better idea of just where
they need to make adjustments for sustained productivity throughout the years. They will be
able to see if adjustments need to take place in production procedures, possibly relocating
operations to a more cost effective site, adopting and adapting trainings to be more effective
within the cultures of all personnel thereby protecting their valuable resource of human capital.
Recognizing that people are ultimately behind any success a business may achieve, whether as
employees or customers, as well as total awareness of the global climate, is what will set the
successful businesses apart from their competition when it comes to survival in this global
economy we all live in.

Works Cited
Herrmann, A. (2012). Globalization and its Effect on International Business. Retrieved April 5, 2014, from
orgs.bloomu.edu: http://orgs.bloomu.edu/gasi/2012%20Proceedings%20PDFs/Herrmann201206%20Globalization%20and%20its%20Effect%20on%20International%20Business%20%20Publication.pdf
IISD. (1992). Business Strategy for Sustainable Development. Retrieved March 2014, from iisd.org:
http://www.iisd.org/business/pdf/business_strategy.pdf
Ireland, W. L. (n.d.). Global Awareness. Retrieved from wilsonireland.com:
http://www.wilsonireland.com/glg2.html
PricewaterhouseCoopers, LLP. (2011). Retrieved March 15, 2014, from pwc.com:
http://www.pwc.com/us/en/corporate-governance/assets/building-a-comp-advantage-CDD2011.pdf