GLOBALIZATION & INNOVATION

Globalization and Innovation

Executive Summary

This paper aims to appraise the role of globalization and innovation to develop and expand the businesses. I have tried to elaborate the functionality of globalization and innovation separately and then have merged the two to best analyze their implications on a business. Business model is not a new concept but as for today it tends to focus comparatively more than early years. Today the companies know that if they wish to live and sustain their functionality in the market then they have to acquire the support of innovation in their corporate approaches, products and services. R&D departments have taken the lead role in rendering companies with utmost creativity which can differentiate them form others. Although before entering the international markets, one has to appraise the present geographic strategic location, industrial classification, social grouping and other active forces. Globalization is not an easy concept to materialize. There are numerous hindrances that hamper the viability of the businesses. Analyses like SWOT and pestle tend to establish purposeful findings to understand the market to operate or expand. Multi-national Enterprises or MNEs have profoundly taken their R&D operations to the international locations. This shift has positively influenced their supply chain budgets and the innovation of their production cycle and procedures.

There are two kinds of innovations that work at firms; internal innovation and external innovations. At times, companies select either of the aspect to generate their revenues. Internal revenues pertain to the creativity in the management of the workforce and decision making. Leadership becomes crucial theme of the internal innovation. In the context of operating globally, it is quite significant to take internal factors on-board. While operating internationally the distinguishing line between internal and external innovation gets noticeably thin. You have to manage people belonging to different cultures and beliefs. Decision making regarding anything from resources allocation to mergers will require a thorough evaluation of the available opportunities. Not every opportunity is worth availing. At times, your resources are too thin to avail the prevailing opportunity in the market. However, there are again ways which on the basis of innovation and creativity support the organizational goals of the company. Your accumulated resources are the determinants of you initiative to enter into Globalization and innovation. Companies like Nokia, Dell, IBM, P&G etc. have entered and sustained in globalized corporate world due to their prompt innovation.

The paper also discusses the business models that help the companies define their present and future functionality. E-business has become a quite popular term in the market which has got noticeable boost due to the expanded intervention of internet and technology in our lives. Internet alone has given the needed support for making sure of meaningful communication globally. The world has been squeezed into a small ball where the next door opens into another country. However, to be globalized you have to understand the cultures in which you wish to operate or else sooner or later you will receive ample amount of ...