Revision

It is my last blog of this term. I would like to discuss what management theories we have learnt in this term. Let me introduce those theories first. We have learnt some methods for anglicizing the organization; the globalization; some types of organization structures. In this essay, I would mainly focus on the analysis of organization and globalization.

First of all, one of the analysis method, which is Porter five forces, there is a direction for us to analyze the micro environment of the organization. It means there are 5 forces would affect an organization- Threat of Substitute Products, threat of New Entrants, Bargaining Power of Suppliers and Bargaining Power of Buyers (Customers). The other method for analysis external environment of organization, which is PESTLE, it provides a quick and visual representation of the external pressures facing an organization and their possible constraints on strategy. PESTLE analysis includes 6 parts, which are political, economic, social, technical, legal and environmental. SWOT analysis also is very useful for the managers to find suitable plans between internal capabilities and external changes. It is a method for the management department to know the company’s saturation and set up the strategy. That includes Strengths of the organization, Weaknesses of the organization, Opportunities in the external environment and Threats in the external environment. Moreover, CSR is a good method to analyze a company which is a responsible organization or not.

 On the other hand, let me talk about the globalization. How to make an organization become global business? There are lots of methods. I would like to separate two parts to discuss- internal strategies and external strategies. Firstly, let me talk about what things the companies can do by their own. Exporting means selling goods or products to the other countries without establishing operation overseas. The company may promote their products through the internet, which called E- commerce. Also, the companies can do investment directly. It means setting up operations in other countries. This is a fast way but expensive. If the company wants to use this method, it must have a lot of resources. Let me move on to external strategies. Joint venture, which means two or more firms sharing the investment costs, risks and returns by creating a new business in another country, is a lower cost method for investment. Strategic alliance means two or more companies have cooperation with benefit on a project, such as human resource and financial resource. They can save the development cost in different countries because they share the resource. Franchising, which is fast way to make the companies, trade under its name, using its products, image, for example McDonald’s. Merger means two or more business amalgamate as a business. Acquisitions are similar advantages as a merger.

What may stop globalization? That’s tax, tariff, bans, quotas, subsidies, etc. Those causes almost are because of the local government. The government wants to protect the local companies. Avoiding increasing the competitive for the local companies.