How globalization has affected international business operations

Apple Inc. is one of the most valuable companies in the world. Furthermore, the corporation is well regarded and respected in the commercial sector. The business began operations in the United States of America, with its headquarters in California, but gradually expanded to become an international brand. For a firm to be as successful as Apple, the management must be both industrious and intelligent.

Throughout the organization, decision making encompasses all personnel at various levels, and nothing is overlooked. The choice to open branches in different countries has considerably aided the business in terms of revenue generation and seamless functioning. The millions of dollars that the company generates regarding revenue in a financial year is clear evidence that the organization is doing very well. (Scott, 2015)

However, much of the success is owed to the late Steve Jobs who was the co-founder of the company. His great ideas and vision for the future have propelled the company to greater heights. Apple products users have grown in large numbers over the years due to the high quality of the products that are offered on the market. Apple has been able to reach out to most of the world’s population through their marketing strategy and advertisement of their products.

One great unique thing about the organization’s advertisements and products is their simplicity. They are not sophisticated in any manner but rather easy to understand and use which is something that attracts customers. Provision of services in the many branches that they have worldwide is great. The organization values the customers’ opinions and suggestions which they later review for better customer care. Through this, the customers are directly involved in decision making which is something that keeps off their competitors in the technology sector.

Cost reduction through the use of economies of scale.

An organization’s operations not only locally but also globally must have guidelines which are correctly drafted for its success over a period. In my research, I have noticed that the economy of Apple as an organization is the one that helps to plan for its operations in numerous ways. Some factors should consider in the market, in this case, Apple is a technology company so that it may fare well in the technology sector.

First of all, the reduction of costs should be put into consideration. Cost reduction could be achieved through the economies of scale. Economies of scale come into the picture when the relationship between the quantity that is produced and the cost of a single unit is inverse. Economies of scale can only help an organization that produces products in bulk to minimize the cost of production while getting maximum profits.

When products are produced in smaller quantities, the cost of production is very high compared to when they are produced in larger quantities. Since there are many Apple products in the market such as mobile phones, computers, and the alternative accessories, new production should only be limited to only one product at a time. (Koren, 2010)

When it’s time to produce mobile phones they should be produced at once in large quantities rather than many products at once in smaller quantities to minimize cost. When the input cost is lower, the output that is profit and revenue will be greater.

For a large organization like Apple, the capital required is much lower than when the organization is small because when it comes to borrowing, the rates are much lower hence faster growth is guaranteed over a short period. However, if the organization becomes very large, the cost of management becomes higher so the growth should be monitored closely.

How globalization has affected international business operations

Furthermore, globalization can affect operations of business internationally. Globalization has brought togetherness in markets worldwide through the provision of awareness of business opportunities and fostering communication. This is something that is great news to Apple as an organization. Globalization has provided a great opportunity to investors who can now be able to view and study markets which are new or upcoming in areas across the globe.

Profit opportunities and risks in businesses are now within reach due to advancement and better communication across the globe. Apple Company can now be able to expand greatly since they are well equipped with the right information about new opportunities where they can put up investments. The company’s products have been made available not only in America but also in other continents. (Mazzucato, 2015)

These new opportunities have not only benefited the company but also employees and other workers who have been involved either directly or indirectly in the market through earning income which was not available. Global markets have provided investors and the public with power just like in international stock markets where other organizations or individuals can have a stake in a particular market in exchange for their funds.

Globalization has created competition as organizations or businesses try to stay competitive for customers in the process broadening their wings across the globe. Apple has significantly benefited in greater ways making it famous around the world boosting their sales to the peak. Apple did great to manufacture its products from Asian countries while their designs were made in America. That was a great business move regarding its expansion. Globalization thus helps to transform the economy increasing activity.

Comparative advantage and the gains from trade

Comparative advantage regarding gaining from trade activities is also something that is very influential in the business world. Apple has shown great comparative advantage in terms technology such that they have become very good in mobile phone manufacturer. In the process, they have also made their competitors good at what they because they try their best to what Apple Company does to make quality designs and products.

Having a comparative advantage in trade increases the profits while reducing the cost of production in great ways. This makes an organization gain trust from its customers who require quality products at all times.. Having a comparative advantage in the business world does not necessarily mean that one is the best in that field but provides an additional benefit in terms of marketing.

Trade, however, makes sure that each organization or business is specialized according to comparative advantage. This makes them gain a lot more than they can produce. Trade in the market helps interested parties to gain what the other does not have hence benefiting both. This mostly is similar to barter trade when one obtains what they require in exchange for what they have which is required by someone else. (Schwienbacher & Larralde, 2010)

Apple in its operations apparently requires various products from other companies so that they may use to manufacture their final products. By doing so, they get what they exactly need at fair prices. Comparative advantage is the main proprietor of specialization. Organizations such as Apple have to specialize in one field such as technology hence cannot be a Jack of all trades. An organization’s involvement in one type of consumer goods provides for better management and smooth running of operations.

Integrating business operations in open or closed economies

Integration of business operations in open or closed economies is another factor that should be considered. Business operations integration in merging of information technology, business objectives, technology alignment and culture in business with strategy and goals in business. Business integration will have an impact on the Chief Information Officer who will be forced to take up additional roles and responsibilities in addition to their work.

Earlier in the days, the Chief Information Officer was only involved in the process of Information Technology only, but nowadays they have to be directly involved in business operations. As technology takes Centre stage in the business world, it is predicted that shortly this technology will be placed under leaders in business instead of technology experts and play a key role in business. (Provost, 2013)

In a closed economy there many limitations in business as opposed to an open economy. These restrictions affect the organization’s operations thus affecting business. Its confinement to itself only limits the options of expansion to other economies. Since the export of products is not allowed, they ought to produce and manufacture goods which can only be used by people in that economy only. (Posner, 2014)

An open economy is considered the best place to carry out business operations since the production and manufacture of goods is not limited. Employees from other countries can also work in the organization thus providing a platform for new ideas and innovations hence the growth of the business empire. Since Apple mostly operates in an open economy, its operations have expanded worldwide. A closed economy is not suitable for an organization which has no limits regarding expansion (Florida, 2014)

Recommendations.

As an economic consultant, I have come up suggestions and recommendations from my research on economic variables and policies in trade and the business world at large. From the obvious point of view there I no doubt that this organization is large regarding its growth and operations. Despite its success, there are some flaws which ought to be corrected for maximum exhaustion in business. (Sekaran & Bougie, 2016)

Technology has taken the world by storm since its inception into the world a couple of years back in the French Revolution. As much as the organization uses its technology in the produce and manufacture of products, there is no harm in upgrading to the current technology for better results so as not be left behind. Most of the work goes to the Chief Information Officer who has to keep his/her eyes and ears open throughout. He/she should be able to gather information on the best technology available then present it to the board for investigation.

The management of the organization ought to be comprised of people who are well equipped with the tools for better management. The board members should often meet to discuss the progress of the organization. The board should also come up with visions and a mission for the organization which is attainable. All employees should be educated on the importance of their work so that they may feel comfortable in their places of work. (Fayol, 2016)

Communication in the organization is core. Without communication, nothing would go to plan. Communication is not only among employees and the management but also between the team and their customers. If the communication is excellent the operations of the organization are very smooth, and progress is imminent. Customer feedback should also be valued because it makes it easier for upgrades. (Kaplan & A. M., 2010)

Financial regulations should also be considered. Finances should be managed well since without good management the organization can collapse at any time. Proper financial management ensures that all costs are catered for that is operating fees, legal fees, production costs and so much more. All the funds that are used in the organization should be accounted for to prevent fraud and corruption. (Gitman & J., 2015)

Conclusion.

Every successful organization should have core values that are followed to the letter by anyone involved. Every problem that occurs within the organization should be dealt with accordingly and within a short time so as not to prevent the operations of the organizations. The recommendations above will be of much help to the executives and management of the organization without a doubt.

References.

Gitman, L. J., Juchau, R., & Flanagan, J. (2015). Principles of managerial finance. Pearson Higher Education AU.

Fayol, H. (2016). General and industrial management. Ravenio Books.

Florida, R. (2014). The Rise of the Creative Class--Revisited: Revised and Expanded. Basic Books (AZ).

Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business horizons, 53(1), 59-68.

Koren, Y. (2010). The global manufacturing revolution: product-process-business integration and reconfigurable systems (Vol. 80). John Wiley & Sons.

Mazzucato, M. (2015). The entrepreneurial state: Debunking public vs. private sector myths (Vol. 1). Anthem Press.

Posner, R. A. (2014). Economic analysis of law. Wolters Kluwer Law & Business.

Provost, F., & Fawcett, T. (2013). Data science and its relationship to big data and data-driven decision making. Big Data, 1(1), 51-59.

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & Sons.

Schwienbacher, A., & Larralde, B. (2010). Crowdfunding of small entrepreneurial ventures

Scott, W. R., & Davis, G. F. (2015). Organizations and organizing: Rational, natural and open systems perspectives. Routledge.