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Effect of Globalization

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Effect of Globalization

Effect of Globalization


Effect of Globalization on Organizations Value Chains

With the origin of globalization, businesses have a fundamentalist change in their ways, raw materials and relationships with their suppliers. However, this appears to be an effective opportunity, but it also demands the operation with the global value chain (primary and support activities). It has its own professional and cons of managing it with the complexities involved. In the past, the set of these activities by firms was useful for developing value for their clients, but now most of these activities have been outsourced. This depends more on a firm in return because there is less control over different primary and auxiliary activities.

If the operation of a company is in its control, then all information for management should be effective, and timely decision making becomes easy. Outsourcing, on the other hand, has directed businesses to have less information available with them at different levels of production. In this regard, managing various global primary and auxiliary activities becomes important. Regarding this, firms need to manage some of their most important primary and auxiliary activities rather than outsourcing. With less outsourcing management tracking, tracing and monitoring levels of your level, management will make it easy to reduce costs.

Based on this, it can be said that it is important to consider various business aspects such as competitive advantage, financial status, technical development, human resources, cultural aspects, political and economic environment for a firm while operating the global value chain, Corporate social responsibility etc. With the consideration of all these business aspects, it will be easier for a business to manage its value chain activities according to its internal series as well as external conditions. These ideas will help firms recognize how they can work effectively on the global level by making the right decision about managing important activities on their own and managing business activities related to outsourcing.


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