WINNING STRATEGIES IN GLOBALIZATION

Submitted by:

Abhishek Kumar

Batch: 2021-26, BBA.LLB

DIVISION - A

PRN: 21010224005

Symbiosis Law School, NOIDA

Symbiosis International (Deemed University), Pune

In

August, 2023

Under the Guidance of

Dr. Vijay Kumar Pandey

Assistant Professor

Symbiosis Law School NOIDA

Email: -Vijay@symlaw.edu.in
 INDEX

SL NO. PARTICULARS PAGE NO.

1. Introduction 1

2. Research Question & Research Objective 2

3. Literature Review 3

4. Conclusion 5

5. Bibliography 7
INTRODUCTION

Individual cust0mers, c0mpany managers, wh0le 0rganisati0ns, and the nati0ns engaged in
internati0nal c0mmerce are significantly impacted by gl 0balisati0n. Many different
stakeh0lders are impacted by gl0balisati0n in b0th the h0me c0untry and the h0st c0untry. A
gl0bal c0rp0rati0n establishes its 0perati0ns and is inc0rp0rated in its h0me c0untry. F0r
instance, T0y0ta is headquartered in Japan, Apple is headquartered in the US, Huawei is
headquartered in China, while AstraZeneca is headquartered in the UK.

The f0reign nati0n where a multinati0nal c0rp0rati0n establishes its subsequent activities as it
expands w0rldwide is kn0wn as the h0st c0untry. The use 0f gl0balisati0n as a c0rp0rate
gr0wth strategy has b0th advantages and disadvantages. This expanded internati 0nal trade
results in 0pp0rtunities like new market, cheaper lab 0ur, increment in ch0ices, higher
efficiency, l0wer prices, multiculturalism, increased investment, and much m 0re. H0wever,
the h0st nati0n's firms face challenges as a result 0f the rising integrati0n and
interc0nnectedness 0f the w0rld's ec0n0mies int0 a single gl0bal ec0n0my. This gives rise t0
the need t0 devise strategies in 0rder t0 win this time 0f gl0balizati0n.

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RESEARCH OBJECTIVE

 T0 study the impact 0f gl0balizati0n 0n the strategies 0f 0rganisati0ns.

 T0 study the different strategies f 0r different 0rganizati0ns in this era 0f
gl0balizati0n.

RESEARCH QUESTION?

 What are the impacts 0f gl0balizati0n 0n the strategies 0f 0rganisati0ns?

 What are the different strategies ad0pted by vari0us in 0rder t0 win in this
era 0f gl0balizati0n?

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LITERATURE REVIEW

The terrible w0rldwide pandemic caused by the C 0vid-19 virus that hit the earth in 2020
immediately affected pe0ple and businesses all ar0und the w0rld. C0untries have
implemented restricti0ns and c0ntr0ls in an eff0rt t0 regulate and restrict the spread 0f the
virus, which has led t0 variati0ns in l0ckd0wns, business regulati0ns, and human behavi0ur.
Multinati0nal c0mpanies' (MNCs) strategy and business 0perati0ns m0st likely t0 be affected
0ver the l0ng run. This uncertainty was made w0rse by 0ther c0ncerns. F0r instance, huge
fires and fl00ding that affected br0ad areas 0ccurred in Eur0pe and the US in the summer 0f
2021. The UN IPCC rep0rt, which stressed that climate change is real, that it is a pr 0blem,
and that f0ssil fuels are t0 blame, was als0 published at the same time. In additi 0n t0 causing
human misery, the climate crisis is anticipated t 0 have an impact 0n gl0bal value chains and
h0w MNCs manage them (WIR, 2020).

In the past, gl0balisati0n has typically been br0ken d0wn int0 waves and stages, and even
bef0re the pandemic, there were f 0rces like nati0nalism and pr0tecti0nism that hinted t0 a
reducti0n in interdependence between nati0ns (Ar0ra-J0nss0n, Bl0mkvist, and Schmuck,
2021). The gl0bal trend 0f increasing 0bstacles t0 internati0nal trade and decreasing
facilitat0rs is 0ne illustrati0n 0f this (Antrás, 2020). The c0nsequences 0f these f0rces have
been magnified by the pandemic and climate crises, requiring key players in the gl 0bal
ec0n0my t0 resp0nd quickly (WIR, 2020). There are increased pressures 0n gl0bal
interc0nnectedness as a result 0f shifting trade patterns, MNC activities, and nati 0n-state
legislati0n.

Acc0rding t0 WIR (2005), MNCs c0ntr0l between 50 and 70 percent 0f w0rldwide c0rp0rate
research and devel0pment, making them imp0rtant players 0n the internati0nal stage. The
strategy and activities 0f MNCs, n0tably the rec0nfigurati0n 0f value chains, are hence
variables that t0gether shape gl0balisati0n. Particularly in a small and 0pen nati0n like
Sweden, h0w these c0mpanies decide t0 plan and c00rdinate their business 0perati0ns in
terms 0f l0cati0n and c0nnectivity is crucial f0r nati0nal c0mpetitiveness and the gr0wth 0f
value-added activities (Cavusgil, Knight, and Riesenberger, 2020). F 0ll0wing the pandemic,
value chains were disrupted, and this had a significant impact 0n internati0nal c0mmerce and
investments (L0renzen, Mudambi, and Sch0tter, 2020). These critical difficulties may affect
h0w future gl0balisati0n will be 0rchestrated.

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A c0mpany's strategy is its plan f0r achieving its 0bjectives in a given situati0n. An effective
strategy acts as a guide f 0r all areas 0f 0perating the business, fr0m creating a p0sitive
c0rp0rate culture t0 defining planning and f0ll0w-up pr0cedures t0 putting in place the right
0rganisati0nal structure. T0gether, these structures and pr0cesses play a key r0le in the
devel0pment and applicati0n 0f strategies (see, f0r instance, Malmi and Br0wn, 2008).

G0al c0ngruence is increased when the strategy is in line with the l 0ng-term visi0n 0f the
c0mpany. All 0f this build’s c0mpetitiveness f0r the n0w and the future. F0r instance, the
German aut0maker Daimler bases b0th its c0rp0rate strategy and its c0mmercial 0bjectives
0n sustainability. The aim 0f 0ne 0f its divisi0ns, Mercedes Benz vehicles, is t 0 "build the
w0rld's m0st c0veted cars." (2020 Daimler, p. 28) C 0rp0rate strategy f0r large, gl0bal
c0mpanies pertains t0 the entire 0rganisati0n and the value it creates f0r stakeh0lders
including shareh0lders, clients, w0rkers, and s0ciety at large. C0rp0rate strategy has
hist0rically defined the wh0le business 0f such huge, frequently diverse c 0rp0rati0ns. As a
result, c0rp0rate strategy pr0vides the framew0rk f0r seni0r management's judgements 0n
which c0mpanies t0 engage in and h0w the c0mbinati0n 0f th0se businesses makes the wh0le
0rganisati0n str0nger than the sum 0f its parts (P0rter, 1987).

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CONCLUSION

Gl0balizati0n's envir0nment is ev0lving. Acc0rding t0 the first rep0rt fr0m the partnership
research pr0ject between Uppsala University and SEB (Ar 0ra-J0nss0n, Bl0mkvist, and
Schmuck, 2021) significant drivers 0f these devel0pments include techn0l0gy, p0litics, and
sustainability. The g0al 0f the current research, which expands 0n the first rep0rt's findings, is
t0 examine p0tential MNC strategy adjustments in resp0nse t0 changes in ec0n0mic
gl0balisati0n. F0ll0wing are the 0bservati0ns that can be deduced: -

1. Many c0mpanies are 0rienting their 0perati0ns with the g0al 0f 0ffering sustainable
g00ds and services. Based 0n a lengthy hist0ry 0f successful devel0pment 0f
inn0vative techn0l0gy, they view themselves as w0rldwide leaders in their sect0r.
2. Gl0bal firms 0bvi0usly face p0litical risks. F0r instance, the symbi0tic c0nnecti0ns
between the US, the EU, and China have changed t 0 m0re c0mpetitive 0nes 0ver
time. Additi0nally, there is pr00f that businesses are acutely aware 0f the dangers
related t0 interrupti0ns in their value chains. As a result, resilience is valued, and
businesses appear t0 be well-prepared thanks t0 their l0ng hist0ry 0f decentralised
decisi0n-making. S0me businesses expl0re creating multiple sets 0f value chains.
Such parallelism is th0ught t0 make it easier f0r areas t0 dec0uple fr0m 0ne an0ther
and reduce the dangers br0ught 0n by external sh0cks.
3. The pandemic has had a significant impact 0n businesses since it has tested their
activity strategy. Firms are n 0w acutely aware 0f the strengths and sh0rtc0mings in
their strategic 0rientati0n, particularly their activity plans, as a result 0f the past 20
m0nths. Firm resilience, h0wever, seems t0 be typically high. There are reas 0ns t0
think that successful perf0rmance was aided by the high degree 0f decentralised
decisi0n-making prevalent in many 0rganisati0ns. Few c0mpanies claim that the
epidemic will have an impact 0n MNC plans in the l0ng run.
4. There are gr0unds f0r anticipating that p0litical and sustainability c0ncerns w0uld
impact value chain strategy 0ver the l0ng run. F0r instance, businesses are w0rried
ab0ut water sh0rtages, severe weather, and h0w transp0rtati0n impacts the
envir0nment. Future techn0l0gy advancement may p0tentially change where value is
pr0duced thr0ugh0ut the value chain, but c0rp0rati0ns are n0t currently planning f0r

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 it. In 0rder t0 deliver c0mpetitive g00ds and services, businesses als0 state a desire t0
stay in c0nstant c0ntact with their clients. The placement and management 0f value
chains may als0 be impacted by the desire t 0 stay in cl0se c0ntact with c0nsumers. It
appears that there is a desire t 0 maintain imp0rtant techn0l0gy f0r pr0ducts and
services and t0 av0id sharing inf0rmati0n 0utside the c0mpany.

Due t0 the significant inequalities and asymmetries that exist between the many nati 0ns 0f
the gl0be, a gl0bal ec0n0my that is centred 0n the w0rld is unsustainable. The w0rld
ec0n0my has been c0ntinu0usly deflati0nary f0r the past 20 years, n0twithstanding the
capitalism system's 0ng0ing rise t0 hegem0ny. Large investments and hegem0nic interests in
the imperial gl0be are at risk because 0f this. Capitalists are under pressure t 0 retain a leading
edge that enables them t0 accelerate capital accumulati0n since they are already in tensi 0n
and c0nflict 0ver a l0cus 0f p0wer.

In the market, the l0gic 0f a gl0bal ec0n0my rules, while in the p0litical system, the l0gic 0f a
state rules. G0vernment has ad0pted the nati0n state's general dual l0gic in a gl0bal ec0n0my.
R0bins0n (2000). Stiglitz (2002) views the present gl0balisati0n trend as an all-enc0mpassing
management system dev0id 0f a w0rld g0vernment. A system 0f gl0bal administrati0n is
c0mprised 0f 0rganisati0ns like the W0rld Trade 0rganisati0n, IMF, the W0rld Bank, and
0thers, but this is n0t a gl0bal g0vernment and d0es n0t have a dem0cratic system 0f
acc0untability.

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 BIBLIOGRAPHY

 WIR (2020). “World Investment Report 2020: International Production beyond the
Pandemic. New York and Geneve: UNCTAD, United Nations
 Ar0ra-J0nss0n, S., Bl0mkvist, K., and Schmuck, A. (2021). Trumpism, Brexit,
Industry 4.0, and C0VID19: What is happening t0 gl0balizati0n? A review 0f the
literature 0n ec0n0mic gl0balizati0n. Uppsala University, Department 0f Business
Studies
 Antràs, P. (2020). De-gl0balisati0n? Gl0bal value chains in the p0st-C0VID-19 Age.
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