The Importance Of Globalization

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As stated in Johnson et al (2008) there has been an increase in globalisation and cross-country global trading and this can be seen as a source of conflicting views. Johnson et al (2008) says that many think that globalisation is making the world a worse place as it is an exploiting process. While Johnson et al (2008) also says that others believe in the ‘myth of globalisation’ where even though organisations like coco cola are in many countries they have adapted their products to suit the culture that they are trying to sell in. According to Ghemawat (2011) for globalisation to be an effective strategy there needs to be emphasis placed on networks available to the organisation either formal or informal which can link the company to the outside world. Friedman (2007) also points out that increase in globalisation can be linked to the increase use of internet, mobiles and other methods that have made communication around the world easier. Johnson et al (2008) states that when an organisation makes the decision to go global they must have good strategies in place to be successful.

International strategy According to Johnson et al (2008) explains that international strategy is a kind of diversification by organisation into different geographical markets, this can depend on the external factors and the internal capabilities. Portor (2008) states that it is useful for managers can employ the five forces to identify opportunities and risks in the external environment. While