ROLE AND IMPACT OF GLOBALIZATION ON OPERRATION

1. ROLE AND IMPACT OF GLOBALIZATION ON OPERRATION Name : Mohammad Khameis I.D :5409093 Supervised By : Dr. Nagwa

2. Globalisation – What Does It Mean ? • In a general sense, the increasing worldwide integration of economic, cultural, political, religious, and social systems. Economic globalization is the process by which the whole world becomes a single market. This means that goods and services, capital, and labour are traded on a worldwide basis, and information and the results of research flow readily between countries.

3. But globalisation has many dimensions worth considering, because all of them influence and shape our organisations: • Socio-cultural dimensions: language, culture, value systems • Political dimensions: rules of national and international governance • Legal dimensions: international commercial law, patents, intellectual property recognition. • Financial dimensions: currency controls, financial regulations, capital flows.

4. Globalisation – When did it Begin? • Some analysts view globalisation as a process beginning at the end of WWII. This period saw a significant expansion in the flow of investment capital, and the emergence of multinational corporations – looking to produce and sell in domestic markets in many countries around the world. • Those with a more immediate time horizon, see globalisation’s direct origins gaining momentum at one of the following points: • 1980: Japan begins its ascendancy as host nation to a number of significant multinational corporations. • 1989: The fall of the Berlin Wall & the collapse of Communism: The apparent triumph of Western capitalism, entrepreneurship, and the concept of creative destruction. • The 1990s: The dawning of the information age: personal computers, widespread digitisation of information, the rise of Microsoft and the ubiquity of its products.

5. GLOBLIZATION DRIVERS Market driver: companies consider the various market toinvest- shift of open market economicscost driver: companies consider the various lifestyle of the country before considering the price of the product and services to rendered

6. technology driver: increasing technologysystem, transportation, advancing in the level of world trade systemgovernment driver: • reducing trade tariffs and non trade tariffs, reducing the role of political policies)competition driver • organization becoming a global center, shift in open market system

7. Creation of Global Village • Thirty years ago, national borders acted to insulate most firms from foreign competitive pressures. • Capitalism is replacing the government control and now organizations are no longer constrained by national borders.

8. Globalisation – Advantages & Challenges • Proponents of the globalisation of world trade argue that intellectual, cultural and economic progress is dependent upon the relatively free flow of commercial activity. • They argue that globalised trade and investment has the potential to raise the standards of living of all those involved in the process; providing poorer countries with access to superior infrastructure and living standards; cleaner water, better education, improved literacy levels, and better medical care. • Proponents of globalisation also argue that globalisation as a process is misunderstood by those who oppose it, often dismissing the protesters as a loose coalition of misguided loony left radicals . • Many proponents further argue that globalisation is here to stay, and that those protesting against it are simply wasting their time and disrupting sensible debate with their civil disobedience.

9. Impact of globalization on operation in EGYPT • The findings can be summarized as follow : • My findings demonstrate that some industries are more involved in EXPECTING change in operation activity than other as a result of globalization (e.g. engineering , chemical , food industry ) • Also the manufacturing companies expecting changes in their operation activity as a result of globalization embraced with a marketing strategy combination of make to order and make to stock products • There is also strong evidence that that there is a vital congruence between production mangers and expectations of operation activity change

10. It is expected that globalization will create sever competition between manufactures on quality bases , thus the Egyptian firms should formulate the relevant strategies for continues improving in the quality of product and service • The findings of the study enhanced understanding of the impact of globalization on capacity planning and control in manufacture firms • In this regard police maker in the Egyptian industrial sector should augment the capacity of the firms through increasing funding and grants. • in order to be able to response to any unexpected increase in demand as a result of globalization .