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External Factors Globalization

In: Business and Management

Submitted By Kimmy2
Words 328
Pages 2
The main objective of every firm is to gain profit. Globalization has provided scope for the companies to expand their business in other countries. But it is not as easy as it looks. Before entering into the new market, the manager should have proper knowledge of that market, so that, they can prepare them self, before they enter into new market. The company can go for joint venture, when they start operations globally. The main advantage of joint venture is that, it gives company, easy entry into the global market and the risk is also shared between the partners.
The internal factors that will affect the global organization, when they do business in global organization are
 Remuneration
 Maintain quality expectations
 Ability to cope with external environment
 Budget
The external factors include
 Currency rates
 Political factors
 Culture
 Economic environment
 Legal environment
 Technology
When an international organization goes for recruitment, it need to make sure that, they recruit the right person. The person should have knowledge of culture of the company. For e.g., US companies, which are working in developing countries like china and India, needs, a person, who do have good knowledge of English. He should be ready to work in night shifts etc. The person should also need to have proper qualifications. Many times, it has been seen that, people has only bookish knowledge and no practical knowledge. Stability is also very important. Many people keep on changing jobs, which affect the performance of company.
To form cross border team, company need to make sure that, only those people are included in the team, who are responsible and can handle the pressure. The team member should have team sprit; they should not concentrate only on personnel goals. The people, which are included in the team, need to have proper knowledge and expertise of the concerned subject. Everyone in the team, need to have knowledge of English, so that, they can communicate with other, without any barrier.

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