Globalisation - challenges for ceos and solutions Essay

Globalisation - challenges for ceos and solutions - Essay ExampleGlobalization has been a part of human evolution over the centuries. The low phase of globalization occurred from the 1870s to World War I, this was accompanied by industrialization and increase in global trade. The second phase is said to have begun with the oddment of the Cold war 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, information technology, joint ventures, mergers and acquisitions and other cerebrate activities. (Phua 2004 ). It is essential to understand the scope and dimensions of globalization to enable business benefit from the opportunities for produce as well as the perils. The role of a CEO in the integrated World of tomorrow is all historic. However the exact dimensions of the challenges faced by CEOs and their role thereof in the global environment have not been fully defined. Globalization is also taking place in diverse environments geographically, politically and socially, thus the challenges faced by the CEOs are varied. It is therefore essential that we assure 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 today 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 outside(a) 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 trade share was important for growth for which globaliza tion provided the ideal vehicle. (NIST Survey 1998). The challenge of globalization for companies is to harmonize local sensitivities to the harsh realties of competitive business in the international arena. (Duncan 2002). Globalization is also driving competition and hence creating new opportunities. These acquire to be seized and companies should position themselves to take advantage of the situation. (Parrett 2005). Globalization also creates complexness, this creates a need for the CEOs to explain and manage 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 creation in say mainland China with low-cost manufacturing which has kept inflation low. (Parrett 2005).Role of CEOsThe CEO has a major role to play in sustaining corporate continuity in a gummy manner to include intangible facets as customer satisfaction, product and service qua lity, ethical conduct and reputation, operational performance, and employee commitment. (Parrett 2005). The CEO has to transact 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 analysis would damage the corporation 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 guidance of the company, its external involvement as well as the government. (Global Corporate Citizenship 2003). Nearly 80 percent of CEOs say they have made reducing unnecessary complexity a personal priority. Their primary focus areas are information