Globalisation - challenges for ceos and solutions Essay

Globalisation - challenges for ceos and solutions - Essay ExampleGlobalization has been a part of tender-hearted evolution over the centuries. The first phase of sphericization occurred from the 1870s to terra firma War I, this was accompanied by industrialisation and increase in global trade. The second phase is said to have begun with the end of the Cold fight in the 1990s. Technology and communications have been the drivers of this phase. (Parrett 2005). Globalization implies economic integration of nations through trade, investment, production, flow of capital, study technology, joint ventures, mergers and acquisitions and other related activities. (Phua 2004 ). It is inwrought to understand the scope and dimensions of globalization to enable business gain ground from the opportunities for growth as well as the perils. The billet of a chief operating officer in the integrated World of tomorrow is all big. However the exact dimensions of the challenges faced by CEOs and t heir component part thereof in the global environment have not been fully defined. Globalization is also taking place in different environments geographically, politically and socially, thus the challenges faced by the CEOs are varied. It is therefore essential that we undertake an analysis of this essential facet as it will define the social as well business environment of the future. (Napolitano 2006)The role of globalization in the growth of business has been well recognized in recent times. Globalization immediately is driven by policy changes where governments have reduced the obstacles for trade, thereby making it a tool for development. (Bhagwati 2004). In a survey of CEOs carried out in the United States, over 75 percent of the CEOs identified world(prenominal) customers, consumers and employees as more important and approximately 70 percent determined reduction in the role of labor unions. With growth opportunities limited at home, it was also identified that expansion of market share was important for growth for which globalization provided the ideal vehicle. (NIST Survey 1998). The challenge of globalization for companies is to harmonize local sensitivities to the harsh realties of combative business in the international arena. (Duncan 2002). Globalization is also driving competition and hence creating new opportunities. These rent to be seized and companies should position themselves to take advantage of the situation. (Parrett 2005). Globalization also creates complexity, this creates a need for the CEOs to explain and do it this complexity successfully. (CEO Survey). Globalization has created economies of scale at an international level creating beneficiaries from variations in inflation savings, competition, and job reality in say China with low-cost manufacturing which has kept inflation low. (Parrett 2005).Role of CEOsThe CEO has a study role to play in sustaining corporate continuity in a cohesive manner to imply intangible facets as customer satisfaction, product and service quality, ethical conduct and reputation, operational performance, and employee commitment. (Parrett 2005). The CEO has to achieve with the society as a whole and particularly its three major constituents, other companies, government, and civil society. (Napolitano 2006). The CEO has to seamlessly link the organization globally and locally by synergizing its goals and aspirations in both the dimensions. (Napolitano 2006). A CEO should be sensitive to ensure that the organizations goals and operations are not creating resentment in society which in the final exam analysis would damage the company in the longer run. (Napolitano 2006).A CEOs role is perceived as a partner rather than a leader. It has a lot to do with effective management of the company, its external link as well as the government. (Global Corporate Citizenship 2003). Nearly 80 percent of CEOs say they have do reducing unnecessary complexity a personal priority. Their pri mary focus areas are information