UNDERSTANDING THE WORLD AT LARGE 93
GLOBALISATION
The world continues to shrink due to computer and communication technologies, dereg-
ulation of exchange rate controls, softer regulations affecting capital flows, reduced
tariffs on trade, deregulation of national financial industries, the quest for international
harmony, and the arguable success of regional and international bodies including the EU
(European Union), UN (United Nations), World Bank, and even the many standards asso-
ciations including ISO (International Organization for Standardization). It’s odds on that
you will wake up tomorrow and find a new competitor from overseas in your physical or
virtual backyard. How will you respond?
TECHNOLOGY AND THE INTERNET
Technological developments – including communications, computers and biotechnology
– are causing the most rapid and dramatic changes ever in business. This exerts internal
and external pressures.
Every company, whether in the new economy or not, has to consider the threat of the
Internet. New competitors from any part of the globe can arise at any moment. Many are
already there, awaiting their chance. As more businesses and consumers worldwide take to
online purchasing, the industrial status quo and market shares could change significantly.
Companies that do not have effective information technology will not be able to pro-
cess orders or understand their businesses efficiently and effectively enough to compete.
Outmoded production techniques prevent the necessary customisation of products or
speed to market with new products. Step changes, such as the progressions from vacuum
tubes to transistors to integrated circuits, displace leading companies almost overnight.
Where do you stand in all this? Are you using information technology to your advantage?
Does your employee training keep you abreast (or ahead) of development? Could you
introduce disruptive technology, which would change the way things work in your indus-
try and put you in front of your competitors?
I don’t know what you’re talking about
A few years ago, when Asian long horn beetles were found munching trees in New
York, the US authorities banned untreated wood packing crates from China. Just
weeks before the deadline, a trade official with a top state-owned export company
in Beijing was asked what steps his company was taking to comply with the ban.
‘I don’t know what you are talking about,’ he said. You can see how easily this
situation could arise. It is easy to miss developments in this world of information
overload. Could something similar happen to you?
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