This week Learning Team D discussion will revolve around the effect of global competition on an organization's strategies for maximizing profits. Also we will analyze the effect of global competition on the relationship between management and labor.
Global competition can be defined as the existence of competing organizations that serve international customers. Many businesses today choose to go global in order to help maximize their profits. If they branch out to other countries, then they are branching out with the potential to gain more clients and new customers. The global environment forces companies, regardless of their location, to consider the rest of the world when it comes to their competitive strategies. Companies are choosing to go global with the help of Supply-chain Management (SCM). For example, a particular company can be founded in the United States, manufacture their goods in China, and sell their products in France. Companies can maximize their profits in a global market by taking advantage of the most beneficial labor markets, by considering the legal and tax structure of each country of operation, and by filling positions with locals to maximize efficiency. I did not struggle with this week’s topics; they were interesting to learn about.
This week I learned about the ways that companies in competitive environments have to deal with changes and how these changes can effect the market these companies are in. I also learned about innovation and new technology and its positive and negative effects of businesses, and our economy as a whole. There are many different types of markets and depending on the type of innovation may depend on how that market does with making money. If the innovation is positive and helps make money, or if it hinders the process and causes the industry to have to spend more money. In all during week 5 I saw that regardless of what is going on economics is controlled by the flow of money in a certain area....