全球化與新的價值遷移（更經濟有效的商業設計）為機遇打開了更多的大門。文獻回顧分為5個部分：第一，由于全球化，將有收入重組導致更多的客戶連接/段重組。具有更好的分割能力和新的商業模式，新的機會可以被騎上，并滿足獨特的要求。其次，細分市場需要對每個新的市場進行定制，有效的管理包括平衡定制率和業務設計段，以獲得響應速度/成本結構的正確組合。第三，在基段上增加增長導致企業家接受低成本設計，但最終高利潤將吸引他們到溢價段。高級玩家還將迎戰新的低成本商業設計。組織必須抵御市場接管，這會導致領先的競爭/風險。第四，重新定義創新對于創造高影響力的成功活動很重要。在創新投資之外必須有平衡的產品/過程，為投資者/客戶創造價值，如聯盟和全球人才采購。最后，將客戶與創新聯系起來的獨特的信息鏈對于組織創建專有信息以通過部署其獨特的信息/應用系統來獲得先導是很重要的。必須有風險管理系統來應對新潮流的趨勢/風險。

 

Globalization with new value migration (more economically effective business design) has opens up more doors to opportunities. The literature review is broken into 5 parts: Firstly due to globalization, there will be restructuring in income resulting in more customer connections/segments restructure. With better segmenting capability and new business models, new opportunities can be ride on and unique requirements be met. Secondly, expansion of segment requires customization for each new market and effective management involves balancing between custom ratio and business design segment to get right combination of response rate/cost structure. Thirdly, increasing growth at base segment leads to entrepreneurs catering low-cost design, but eventually high profitability will attract them to premium segment. Premium players will counter attack by also catering new low cost business design. Organization must defend against market takeover which creates lead increased competition/risk. Fourthly, redefining innovation is important to create high impact success activities. There must be balance in investment in innovation beyond product/processes that create values for investors/customers like alliance and global talent sourcing. Lastly, unique information chain that connects customer to innovation is important for organization to create proprietary information to gain head start by deploying its unique information/application system. To end off, there must be risk management system to respond to new waves of trend/risk.

 

Rational for Selection

Globalization is inevitable, ever-changing, shape competition and waits for no one. In this technology-fueled global environment, businesses must stay ahead these trends to remain competitive. I want to have better understanding of Globalization as it is the stepping stone for International Business by giving rise to international commercial transactions.#p#分頁標題#e#

 

Analysis and Viewpoints

Positive Aspects of the Article: Slywotzky et al (2006) identifies the significance of having appropriate business models due to consumer pressure and income restructuring induced by globalization. I agree that when operating abroad, global competitive strategy must be adopted for different foreign conditions. Daniels et al (2011) support this and evaluates that organization must have different market responses in order to be global to compete, response to foreign opportunities and learn from each other. Hence, altering business models by investing on R&D, source worldwide to work more efficiently in innovation/products is essential to meet the demand of global customers. Example: To gain global focus, two Brazilian firms alter business model and merge to form BRF-Brazil. Slywotzky et al (2006) also gave reason that globalization will drive organization to be innovative in creating its own proprietary information for success. Daniels et al (2011) and Davis et al (2007) concur by stating that foreign companies are the source for domestic companies to stay innovative and create own unique business models. Globalization provides the stepping stone for multinational transactions because of technology expansion, liberalization of cross-trade, increase demand in foreign product and opportunity for global cooperation. Example: Foreign firm will bring in new technology and better skilled workers. Also, increasing international competition will induce local firms to add skilled workers to handle new technology. This will help companies to explore innovative means of more efficient production which cut cost and increase production. Pursing international sales usually increase potential markets, helps acquire resources at lower cost, better/new products and additional operating knowledge to gain competitive advantage. These helps to build better global branding resulting in more profit due to higher exports demanded.

 

Negative Aspects of the Article: Slywotzky et al (2006) comment that globalization has induced more effective low-cost business design, more customer connections and segments which organization can exploit. But I feel that this article fails to cover many negative pitfalls like social and environmental problems. Kumenit (2008) and Daniels et al (2011) argue that low cost strategy brings about negative effects and profit/income disproportionate. Recent shift in manufacturing job from US to China has help China to grow faster and reduced US real wage growth. We see that in US's garment industry, where it is cheaper to produce in China. This would mean a mass migration of work and many US citizens would be jobless. Globalization in this sense is good for organization as they can capitalize on cheaper labor, but bad for US citizens especially if they are lowly skilled. Those lowly skilled will be stuck in underground economy leading to political instability which undermine international trade/investment. In developing countries, globalization/multinational investment leads to environmental degradation and generates pressure for cheaper labour to retain competitiveness. Hence, it erodes values of social justice and increase inequalities. Small enterprises in developing areas will face complexity in taking advantage of globalization and poverty persists. Global restructuring also dramatically affects rights of workers in developing countries. Example: Development of China as a world factory due to its cheap labour is causing worker suicides problem. Due to poor working condition/low salary, emotional health of China's migrant workers is on the down toll. Nine employee deaths at global electronics manufacturer Foxconn, Apple's main supplier of iPhones revealed some harsh social aspects (The Straits Times, 2010).#p#分頁標題#e#

 

Conclusion

In order to enjoy the full benefits of globalization, organization must have the right global business design, global operation strategy, global focus, customization, organizational structure, customer connection activities, innovation, proprietary information and risk management system in place. Though there are viewpoints on optimizing its benefits, the article failed to explore issues in relation to human rights, environmental matters, political instability and inequalities. These are common global concerns which have to be respected and since international business transactions have connection to these concerns, it is crucial for laws of international business transactions have to be in a position to promote guidelines to regulate global concerns which will in turn benefit businesses.