BUSINESS

Business

Business

Key Factors Driving Business Toward Global Operations

For business-to-consumer global operations, the Web has become the dominant pipeline. Global operations is not just about buying and selling things over the Internet but also the electronic exchange of business data between two or more organizations' computer systems. Global operations includes buying and selling any item over the Internet, electronic fund transfer, smart cards, and all other methods of conducting business over digital networks. A good example is Amazon.com. The company offers lots of books and merchandise for sale on its Web site. Consumers find what they like, type in their credit card number and unpack the books or merchandise a few days later. Their website even makes recommendations based on items similar to what other consumers had purchased and spending patterns. Conducting individual stock trades, moving money from checking to savings or tracking an overnight package delivery via the Internet are other examples. (Adler, Ghadar, 2002, 21)

Business-to-business global operations takes many forms, some of which have been around for years. Electronic data interchange (EDI) is a format for exchanging business information over private networks. It was created to automate and speed the exchange of information between companies that regularly did business together. EDI is still used, and there are many other mechanisms for business interaction, such as electronic catalogs and electronic payment systems. The Web plays an expanding role just as it does in consumer global operations. (Adler, Bartholomew, 2002, 52)

Today, the business environment is becoming borderless and organizations are exploring newer markets in which to expand their businesses. In the process of expanding their market presence, businesses are going internationally thus influencing and getting influenced by local cultures of different nations. Business organizations have now realized that to be successful at the international level, they need to have an understanding of people of different countries at the local level. They need to understand and adopt local culture. (Adler, Ghadar, 2003, 12) National issues have greater impacts on the success of businesses on a international scale. As more and more organizations are expanding their scope of business, the study of such international HRM issues is becoming equally important. No longer is it sufficient to understand only the local context but the international vision also needs to be wider.

Development Of Critical Perspectives And Analytical Skills

The opportunity to engage in international global operations provides many companies with great opportunities to expand their market. B2B opportunities enable businesses to join ventures, collaborate effectively and save costs by reengineering administration and business processes. Businesses are able to join international trading e-market spaces, and exchanges in their prospective industry, buyers, and sellers are easily matched which saves time and cost. Furthermore, the improvement of supply channels, work processes, and collaborative design enable businesses to share information effectively and to manufacture products anywhere. Moreover, Educational Institutions and Governments are able to deliver information, training, and do business internationally anytime and anywhere around the clock. (Banai, 2002, 143) Through Telemedicine health organizations are able to collaborate and share ...