Globalization and Its Impact on Companies Essay

Submitted By krkmz1912
Words: 1908
Pages: 8

Globalization and its Impact on Companies

Company transformations have been recognized throughout the world now more than ever due to globalization. This factor is at its peak in these years as it has never been so high in the past. To take this fact into consideration and to analyze various companies with different backgrounds, we first have to figure out the true meaning of globalization. In this essay globalization will be defined thoroughly and different companies will be analyzed to show that all of these 3 companies have one reason to go global and that is of course to minimize costs and maximize profit.

What is Globalization? Globalization in its definition is growth to a global or worldwide scale (Wordnet). Globalization is countries all over the globe getting together and becoming a unity on the basis of economy, politics and communication. Globalization is the definition moving from economy to politics, social politics to culture and basically any change that occurs in any field around the globe. With that being said the one thing we can all agree on is that the only thing that never changes in this world is the fact that there is always change and in this case the change is Globalization.

There are a variety of factors that push Globalization into effect. These include technology improvements, economic reasons, new products, and ideology.

Technology improvements ever since the late 80s have made our lives a lot easier. The information technologies that have been improving or being created newly have made the whole world a smaller place. It has erased the term ‘too far” in the world and has connected everyone together. This factor has taken growth exponentially and immensely to the factor that everyone in the world can connect and do business together. Of course technology is not one factor alone in the cause of globalization but it is a factor that must be there. All these technological improvements can be considered the platform of globalization.

This new technology brings us to new products. New merchandise that is being made that makes everything more simple and easy to use. New mobile and smart-phones, faster and more reliant ways of transportation, Internet and its everyday improvements have made the world connect better and faster. Of course with all that, new technology have made it possible and easier for companies to grow with less cost and more profit.

Another effect of globalization is economy and the politics it brings. The world has changed dramatically according to economy. Economy has connected all the countries of the world together in a way that they have to work together to expand and thrive. One country has cheaper labor and one country has better product. One country can provide a certain unique merchandise and another country can work with that merchandise better than anyone. Of course this brings the factor of collaboration, which sometimes can result with a negative output. For example if Russia stops the gas pipes towards Turkey and Iran, than both those countries and the rest of Europe go into downfall. If there is no problem then all those countries can benefit off of each other. In this way all of the countries that work together need to be politically on the same page as one another and have to tolerate each other.

McDonald’s as we know today started from one small store locally. This store was designed for great quality so it did not have a big variety of products. It offered burgers, fries and drinks and so since the product size was small the quality was in great measure. It was started and run by two brothers. This restaurant was being run by Dick and Mac McDonalds and they were doing a great job at their business. Then one man came in the picture and with his great vision and his entrepreneurship skills he made this small restaurant into the multinational brand it is today. This man was Ray Krock. Ray came from a…