The aim of this essay is to provide a review of a company which is familiar to me, and outlining the challenges it faces following the Global Financial Crises in 2007-2008. Furthermore, I will discuss how these challenges are linked to the globalization debate, and provide some policy recommendations as to how this company can internally reverse the situation.

Company Overview
XYZ is a multinational computer technology and IT consulting organisation, with a continuous history dating back to the 19th century. XYZ manufactures and sells computer hardware and software, and offers infrastructure services, technology services, and business consulting services to help forward-thinking enterprises, institutions and people solve their most complex problems.
.
XYZ has an industry wide reputation as one of the world's largest computer companies and systems integrator. With over 433,362 (2012) employees worldwide, XYZ is one of the largest and most profitable information technology employers in the world. XYZ holds more patents than any other U.S. based technology company, and has eleven research laboratories worldwide. The company employs scientists, engineers, consultants, and sales professionals in over 170 countries and has earned five Nobel Prizes.

In Australia, XYZ has been operating for over eighty years and has significantly invested in the local economy. With natural resources, digital transformation, and sustainable cities at the forefront of the national agenda, XYZ’s global expertise and innovation is helping Australia compete in the world economy.

Introduction
It could be argued that the Australian economy changed profoundly at the time of the Global Financial Crisis (GFC) in 2007-2008. Over the five years leading up to the GFC, the Australian economy added 1.4 million jobs (Pomfret, 2009a). These jobs were added to 18 of the 19 sectors that comprise ¬the economy (AIGM, 2008). In the five years since the GFC, it’s a different story. Net job growth has contracted to 700,000; some sectors today offer fewer jobs than in 2008 whereas others have flourished (AIGM, 2008; Pomfret, 2009a). Shrinking sectors included: manufacturing, down 82,000 jobs over the five years to November 2013; information, media and technology, down 41,000 jobs; and agriculture and forestry, down 33,000 jobs (Eslake, 2009; Pomfret, 2009a).

The underlying forces shaping the Australian economy since the GFC include the effects of globalisation which are diminishing the manufacturing workforce, the rise of technology, economies of scale and an ageing population (which is driving the surge in health budgets) (Eslake, 2009; Gable, 2009).

Globalization is the idea that people are now more connected across the globe than ever before (Gable, 2009). The goal of globalization is to provide organizations a superior competitive position with lower operating costs, to gain greater numbers of products, services and consumers (Gable, 2009). This approach to competition is gained via diversification of resources, the creation and development of new investment opportunities by opening up additional markets, and accessing new raw materials and resources (Pol, 2009). Diversification of resources is a business strategy that increases the variety of business products and services within various organizations (Pol, 2009). Diversification strengthens institutions by lowering organizational risk factors, spreading interests in different areas, taking advantage of market opportunities, and acquiring companies both horizontal and vertical in nature (Pol, 2009; Pomfret, 2009).

Those who support globalization say that it creates jobs by making companies more competitive (Eslake, 2009). This results in lower prices for consumers. Others support globalization because it brings capital and technologies to impoverished countries (Voogt, 2011) . Globalization increases the number of decisions that are made on a worldwide level, resulting in a merging of politics and decisions that are made for the good of people all over the world (Voogt, 2011). The cultural intermingling that occurs also promotes greater equality and acceptance of others, especially since different people can share the same financial interests (Eslake, 2009).

The GFC
The GFC is commonly believed to have begun in July 2007, when a loss of confidence by US investors in the value of sub-prime mortgages caused a liquidity crisis (Eslake, 2009). This, in turn, resulted in the US Federal Bank injecting a large amount of capital into financial markets (Eslake, 2009). By September 2008, the crisis had worsened as stock markets around the globe crashed and became highly volatile. Consumer confidence hit rock bottom as everyone tightened their belts in fear of what could lie ahead (Voogt, 2011).

The collapse of Lehman Brothers on September 14, 2008 marked the beginning of a new phase in the GFC. Governments around the world struggled to rescue giant financial institutions as the fallout from the housing and stock market collapse worsened (Eslake, 2009). Many financial institutions continued to face serious liquidity issues. The U.S. government proposed a $700 billion rescue plan, which subsequently failed to pass because some members of US Congress objected to the use of such a massive amount of taxpayer money being spent to bail out Wall Street investment (Lim, Chua, Claus and Tsiaplias 2009). By September and October of 2008, people began investing heavily in gold, bonds and US dollar or Euro currency as it was seen as a safer alternative to the ailing housing or stock market (Lim et al; 1009).

Australia’s then-Prime Minister, Kevin Rudd, and then-Treasurer Wayne Swan delivered their first budget in response to the GFC, with the main objective being to fight inflation – a major problem in the local economy at the time (Pomfret, 2009a). In October 2008, the Rudd government announced that it would guarantee bank deposits. With the economy facing a recession, an economic stimulus package worth $10.4 billion was announced (Pomfret, 2009a). This included payments to seniors, carers and families. The payments were made in December 2008, just in time for Christmas spending, and retailers predominantly reported strong sales (AIGM, 2008). A second, even larger economic stimulus package was announced by the Australian government in February 2009, with $47 billion allocated to help boost the economy (Pomfret, 2009a).

XYZ and the GFC
At a global level, XYZ tends to divide country-based markets into two types: major markets, which tend to be well-established mature markets like Europe and the US, and growth markets, such as China and India (XYZ, 2010). Interestingly, Australia and New Zealand are classified as growth markets, rather than mature markets, as a number of local market characteristics – strong GDP growth, a history of good IT growth, proximity to major Asian economies, and even skills shortages relative to the US or Europe – align more closely to the make XYZ fit better growth markets category XYZ, 2010). As a result, growth targets tend to be more aggressive than those in XYZ’s major markets (XYZ, 2010).
When the GFC hit in late 2008, there were no changes made to XYZ’s local growth targets for 2009 (XYZ, 2010). Basically, in a company with the range of products and services XYZ had, some sectors will be more impacted than others, so what XYZ did was to utilise their strategic strengths (XYZ, 2010). What this meant in practice was that, while hardware sales were down as customers deferred some capital expenditures, the services business was very strong. This was because customers were looking to XYZ to help them transform their own businesses, take out cost, and generally streamline their business processes (XYZ, 2010). As a result, some units were virtually stalled, while others were booming.
XYZ applied a proactive approach towards the GFC. Notable for large-scale redundancies during a previous recession, XYZ in Australia had this time avoided redundancies (Wilson, 2010; XYZ, 2010). Significantly, it had maintained its commitment to programs such as graduate recruitment and leadership development, believing that these were vital investments in the future (Wilson, 2010). Its approach to dealing with the impact of the GFC was explained at the 2009 Leadership Conference held by the AAA in 2009. Mr B., XYZ’s Director of XX, described the company’s response as comprising the following four stages (as cited in Wilson, 2010):

1. Go where the growth is. XYZ studied new trends in buying behaviors and client needs. It also used the downturn as an opportunity to retrain employees in specific areas

2. Act with urgency. The idea of waiting to see what happened, how bad it was, how long it lasted, was not an option. XYZ decided to accept the financial facts and set out to engage the business with its response.

3. Trim down and work out. The general approach was 'trim, but don’t cut'. Discretionary spending budgets were all reviewed, as were all 'big ticket' items. Funding was based mainly on the item’s degree of contribution towards revenue. Long-term change and growth opportunities were researched. The reward and remuneration system was redesigned and no executives received pay reviews.

4. Make adjustments along the way. An important lesson XYZ learnt from previous recessions was to make minor adjustments regularly, rather than wait for major events. As a result, the business is better prepared when downturns arrive.

Furthermore, Mr B. said that strategies to reduce turnover and increase retention are not taps to be turned on or off, so programs such as graduate recruitment have continued in place (Wilson, 2010). Mr B. added that such programs should override immediate needs because they maintain business vitality (Wilson, 2010). He also stated that the GFC was a good time to be hiring talented employees, including those who were currently employed but nervous about the future of their present employers (Wilson, 2010). Similarly, there were no cuts to leadership and management training and development. Mr B. described this as an important source of revenue generation (Wilson, 2010). Globalization and the IT Industry
The main trends in the IT industry are mass customization, which means a result in a faster response to a shift in demand for particular software and components than usual product lines (O’Driscoll, 2009a). Outsourcing means companies are offshoring work to low cost countries in a bid to reduce cost. E- commerce activities means it helps in increasing the demand for customization, compare prices online and to make changes to products (O’Driscoll, 2009a). These trends have a relevant effect on the both XYZ and the computer industry. Post GFC, there has been a shift in the IT industry, which now dictates demand dynamics, market and distribution trends, new business plans, new technology and product directions (O’Driscoll, 2009a).

Policy Recommendations
Whilst this essay outlines that XYZ actually survived the fallout of the GFC, it is worth putting forward several key recommendations to ensure the company remains in a competitive market, in competitive times.
1. Capability: Review of XYZ’s outsourcing program to ensure that any outsourcing is undertaken by countries who have skilled workers and can fulfil demand.
2. Flexibility: Maintaining connectedness as well as vitality, the latter via investments in new graduates and increasing diversity, backed by extensive training and development.
3. Possibility: Providing open and visible opportunities, challenges and career planning. The aim is to maximise discretionary effort and, again, attraction and retention.

4. Direction/vision: Leadership and management training is treated as a mantra and never dropped, so leadership remains strong, plus there is a compelling vision and purpose. The clarity this provides increases engagement.
Conclusion
Globalization of both XYZ and IT industry as a whole, is motivated by two factors. Firstly to reduce costs in a highly priced globalised world and secondly, the ability to reach the global market. Due to globalization of the IT industry, there is more competition on the open market and a greater expectation of clients for cheaper rates, leading edge technology and faster service (XYZ, 2010). Globalization has helped to maintain a competitive and creative industry environment by focusing on core capabilities and also help in achieving economies of scale.