Effect On The Organizations In Globalization
Organizational environment refers to the set of pressures and forces surrounding an organization that can make an impact to it. Forces made up opportunities and threats. Organizations dose not exist in isolation. It works with the overall environment.
Organizational environment is divided into two main parts: Internal environment and external environment.
Organizations internal environment refers to the elements within the organization. Internally, an organization can be viewed as a resource conversion machine that takes inputs (labor, money, materials and equipment) from the external environment (i.e., the outside world), converts them into useful products, goods, and services, and makes them available to customers as outputs: Employees. management. trade, unions, and share holders.
External environment consists of all the outside institutions and forces that have an actual or potential interest or impact on the organization's ability to achieve its objectives: Competitive, technological, political, and legal.
Researchers divided environmental factors into two main parts as: specific and general environment. The different between them is a level of directness of impacts. “Specific environment include: suppliers, customers, distributers, competitors, union, and government. General environment consists some forces as: economic, technological, environmental, cultural, political, and international. (Jones 2010)”.
All the above forces may cause uncertainty for organization. These forces affect the complexity, dynamism, and richness of the organizational environment. The environmental complexity refers to complex relations between forces that organizations should manage. The environmental dynamism refers to changing speed of forces that affects to organizations. The environmental richness refers to amount of resources that supports organizations. The three kind of forces exist together, mutually relate and their level of linking create a uncertainty for organizations.
Globalization: Challenges and Opportunities for Organizations
The transformation into the XXI century is viewed as a “big change". We are living in the world without clear borders, where everything is almost ready in anywhere. With the disruption of national boundaries, it is estimated that global trade will increase as long as 1600% within 40 years and speed of innovation as well as increased levels of products are outside the any imagination: Sony launches three new products each hour and Disney is making a new product every 5 minutes.
Nowadays there is an era of information or "instant exchanges". With explosion of media, whatever happens anywhere in the world had known almost immediately in a corner of the world. E-commerce is developing 30% per month and doubling every 100 days. Estimate, the volume of knowledge available in the world is doubling every two years, creating pressure to organizations and corporations. They must compete on knowledge and the "ambiguity" as the exchange capacity, capability of thinking, and creative spirit.
Today the world is led by business. Scientific research ever placed under the control of the governments is now almost completely switched to the business world.
The process of globalization can bring the following results: Reduce state control. Now, the process of exchange, innovation, production and rapid spread occurred to the extent the state agency can only regulate and control them after they have spread in society. Because of creating individualism and the growing material wealth as well as understanding is widespread, along with the decline of traditional values, people increasingly have to decide their own lives.
The gap between rich and poor people were carved deep as leading to social unrest, increased conflict: from international level, social levels to individuals. Today, the cause of death not by war but by stress, as well as the disease resulted from the excessive consumption. Stress is known as the "epidemic" of the XXI century and are killing many people, not least of tobacco addiction, high blood pressure, increased cholesterol disease or obese victims.
However, the process of globalization can bring the opportunities: Applying the scientific achievements: Today everyone can selectively provide scientific solutions in the most successful in the world and deploy them in the context of culture and their own needs. With the rise of psychology and quantum physics, the field of scientific research has expanded a lot of scope remains to include the human mind and find out how knowledge affects our response and our success. The human development in all areas increasingly highlight the personality development, the leaders now encourage individual thinking, self awareness, openness and exchange creative minds.
Honor human potential, empowerment of individuals: For reasons no one can predict the future so this also means that every individual on this planet are capable of actively participating in its creation. There should be two main qualities: self-esteem with an open attitude and inquisitive.
Organizations in the globalization era : With real world changes, new organizational models are now appearing all over the world is dominated by the trend of globalization and the economic and social conditions unpredictable. These models built around integrity is improved learning ability, thinking, interaction and self-change. Humans have become the foundation assets and a key role. These models are applied to all business organizations as well as governments, educational institutions and research organizations.
Thanks to the work of generations of researchers, it is now recognized organizations as a whole, like a living body in which each individual has a vital role, rather than a structure hierarchy has authority from above. This model appears along with the discovery in the field of medicine that helps us understand the human body can be viewed as a live birth in the regular variation condition, in which each cell is an autonomy in decision making. The study of brain also allows us to describe it as a joint force of organic change, evolve and grow. The same models were applied in the fields of physics, astrophysics can, biological as well as in the social sciences, education and management. All the models share a common viewpoint: acknowledge the influence of each component in the overall operation. An organization is seen as an organic body, as a result of the components interacting and are ordered from a unique brain.
A new model of society in which the rigid control structure is now replaced by the "interdependence" has been applied in the majority of corporations and national synergistic talents, plus cooperation and collaboration. The results were great: stimulate productivity, learning, creativity, improved relationships, a significant reduction of conflict and the level of conduct contrary, increasing the life of the individual comfort.
Vietnamese organizations in the globalization
Vietnam is also one of the many countries directly affected by globalization. Globalization has been influential companies in Vietnam. Many Vietnamese companies were forced to bankruptcy under the impact of globalization. On the other hand, the companies that met the opportunities of globalization, has grown spectacularly. FPT corporation (Finance Promotion Technology) is a typical example.
FPT – the leader of Vietnamese software corporation was established in 1988. After 6 years FPT was chosen as the official distribution agent for IBM products in Vietnam. Since 1996, FPT became leader among Information technology company in Vietnam.
Since 1997 when the Internet was first introduced to Vietnam and foreign software companies began to invest in Vietnam, FPT suffered a great pressure. Instead of seeing globalization as an challenge, the FPT managers have treated it as an opportunity. There is a chance to expand the field activities, to acquire advanced technology, and to develop the global market. And especially the opportunity to compete, rubbing, applying the strategic management and new business.
A series of important strategies to meet the opportunities of globalization networking has been deployed by the FPT managers:
Acquire new technologies, and become a distributor and technological developer of the world’s leading companies. The leading information technology companies in the world are found in the FPT a major important partner in penetrating into Vietnam’s market. On the other hand FPT can also learn new technologies, gradually develop the technology for himself:
In 1998, FPT became the official distributor of Oracle products in Vietnam
In 2000, FPT became the official distributor of Samsung mobile phones in Vietnam
In 2002, FPT became a partner of HP in Vietnam
In 2004, FPT became Cisco’s first Gold Partner in Indochina and the official distributor of Nokia mobile phones in Vietnam
In 2005, FPT became Microsoft Gold Partner
In 2007, FPT became the top level authorized distributor of Microsoft products in Vietnam
The first mobile phones was launched by FPT on May, 2010 named the F99 is a remarkable progress in the development technology. FPT expanded its business activities and become a multi-industry company. FPT expanded its activities into new areas such as mobile phones, securities, real estate, … Especially, FPT penetrated a very potential market in Vietnam - the media and telecommunication market:
In 1996, FPT established the first Wide Area Network in Vietnam: "Vietnam Intelligence Competition"
In 1998, FPT became one of the first Internet Service Providers and Internet Content Providers (ISP/ICP) in Vietnam
In 2001, FPT brought the e-news site VnExpress into operation
In 2008, FPT Telecom was officially accepted as a member of the Asia - American Gateway (AAG), and jointly invested in the AAG's international optical cable line under the Pacific Ocean.
Globalization has made the gap between nations increasingly smaller. Do not just stop at the Vietnam market, FPT expanded its operations into other markets around the world:
In 2005, FPT established the FPT Japan Software Company in Tokyo
In 2007, FPT set up Asia Pacific FPT Software Company Ltd in Singapore
In 2008, FPT Software expanded to Malaysia, France, the US and Australia
Nowadays, FPT is a leader partner of Japan's software outsourcing in Vietnam
In the course of its development, to improve competitiveness with rivals, FPT constantly improve their technology management as well as innovate company structure, hierarchy:
In 2001, FPT received ISO 9001:2000 certification
In 2002, FPT became a joint-stock company
In 2006, FPT received CMMi-5 certification – the top certification in software industry
In 2007, FPT Information System, FPT Software Solutions, and ERP Service Center merged to form FPT Information System Company
In 2007, FPT set up 9 subsidiary and associate companies
FPT is a fast developing company. Development scale of the company is about 30% per year. The demand for human resources is very large for FPT. To be able to meet the human resources demand for fast development, FPT has participated directly in the training market. Nowadays, FPT has more than 10,000 employees in Vietnam and abroad.
In 1999, FPT established the FPT-Aptech Center, training computer programmers at international standard
In 2006, FPT established the FPT University
In the end of 2008, FPT officially announced it had reached one billion USD in revenue, confirming its position as the leading IT and telecom company in Vietnam. FPT's success is explained by the successful applying thoroughly opportunities of globalization. FPT has been developed in the key fields of technology and business in the world. FPT has the right business strategy and corporate development strategies appropriate to meet the increasing demands of global market.
Globalization is an inevitable process in the history of this world. It is a process natural, certainly, and irreversible. Globalization is affecting all areas of human life. Globalization changed the way we live, the way we think and the way we act. Globalization also has a direct impact to the organizations, companies and countries. It creates new challenges but also creates new opportunities. However, globalization creates more opportunities than challenges. The managers of an organization in an era of globalization need to grasp the opportunities of globalization and to apply them to the development of the organization. This is a great and equality opportunity for organizations to develop and to success. The success of FPT as mentioned above is a typical example.
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