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.