Strategy A View From the Top By: Kluyver & Pearce. Chapter 3: Analyzing the External Strategic Environment. Globalization.
Chapter 3: Analyzing the External Strategic Environment
Globalization as a political, economic, social, and technological force, seems unstoppable. In this era the lines between countries has been broken and the flow of information is being shared at and incredibly fast pace.
Globalization centers on the flow of high technology and real-time information as defining traits of the modern world economics.
3 Primary Reasons for Globalization
Some analysts view regionalism as the stepping stone to a global economy. But others view that it will create more tension between as like countries and societies forge economic and political structures.
Study done by the Penn State Center for Global Business Studies
-Refers to the developing trends in technology, nature, and society slowly revolutionize the business environment, much like the Earths tectonic plates shifting the ground.
The project identified 12 global trends that are likely to present the most significant challenges for the companies in the next 30 years.
1. Population Trends
Across the planet, demographics trends are transforming societies, changing patterns of economic activity, creating new economic and social dependencies, and altering the geopolitical landscape
Migration from rural to urban areas is rapidly becoming a major challenge. Today less than half of the worlds population live in cities, by 2030 this number is suppose to increase 60%
These trends offer large opportunities for business
3. The Spread of Infectious Disease
4. Recourse Management
5. Environmental Degradation
6. Economic Integration
8. Information Technology
We must be able to assess the degree of uncertainty associated with relevant events, the speed with which changes are likely to occur, and the possible outcomes they foreshadow.
Size means Scrutiny
Cutting cost raises compliance risk
Strategy must involve society
Reducing risks means building trust
Satisfying shareholders means satisfying stakeholders
Global growth requires global gains
Productivity requires sustainability
Differentiation relies on representation
Good governance needs good representation