CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Globalization has emerged as a transformative force shaping the landscape of contemporary business strategy and competition. The interconnectedness of economies, facilitated by advancements in technology, communication, and transportation, has ushered in a new era where businesses operate on a global scale. As companies expand their operations across borders, they encounter both opportunities and challenges that demand a reevaluation of traditional business strategies. This shift in the global business environment has profound implications for how organizations formulate and execute their strategies to remain competitive in an increasingly interconnected world. Doh, J. P., & Rodrigues, S. B. (2007).
One significant impact of globalization on business strategy is the heightened level of competition. The removal of barriers to trade and the opening of new markets create a more competitive playing field, requiring companies to adopt innovative and dynamic strategies to gain a competitive advantage. Furthermore, the global market introduces diverse consumer preferences, cultural nuances, and regulatory environments that necessitate businesses to tailor their strategies to local contexts. To effectively navigate this complex landscape, organizations must develop a keen understanding of the global market dynamics and align their strategies accordingly Porter, M. E. (1986).
The integration of global supply chains is another critical aspect influenced by globalization. Companies now source inputs, components, and services from various corners of the world, resulting in increased efficiency but also heightened vulnerability to disruptions. Consequently, businesses must design resilient and flexible supply chain strategies that can adapt to unforeseen challenges. The strategic choices made in the context of supply chain management can significantly impact a company's competitiveness and ability to meet customer demands in an increasingly interconnected global market. Rugman, A. M., & Verbeke, A. (2004).Top of Form
Bottom of Form
1.2 Statement of the Problem
The impact of globalization on business strategy and competition presents a multifaceted problem that necessitates a comprehensive examination. As companies increasingly expand their operations across borders, they face the challenge of navigating diverse market environments characterized by varying consumer behaviors, cultural nuances, and regulatory landscapes. This heterogeneity poses a significant obstacle for businesses attempting to formulate effective strategies that resonate with local contexts while maintaining global consistency. The challenge lies in striking the right balance between adaptation and standardization in strategies, as failure to address these complexities may lead to suboptimal market positioning and decreased competitiveness. Doh, J. P., & Rodrigues, S. B. (2007).
Additionally, the globalization-driven integration of supply chains introduces a new dimension to the problem. While interconnected supply chains enhance efficiency and cost-effectiveness, they also expose businesses to heightened risks and vulnerabilities. Disruptions in one part of the world can have cascading effects on global operations, requiring organizations to develop robust supply chain strategies that ensure resilience in the face of unforeseen challenges. The dynamic nature of global markets and the evolving geopolitical landscape further exacerbate the complexity of this problem, as businesses grapple with uncertainties in trade policies, geopolitical tensions, and the potential for regulatory changes that can significantly impact their strategic planning and competitive positioning. Porter, M. E. (1986).Top of Form
Bottom of Form
1.3 Objectives of the Study
The main objective of the study is to examine the impact of globalization on business strategy and competition. Specific objectives of the study are:
- To analyze how globalization has fostered a new breed of competitors in emerging markets, who utilize unique strategies and advantages to challenge established players.
- To examine how advancements in digital technologies like AI, cloud computing, and e-commerce have shifted the dynamics of global competition.
- To investigate the tension between business growth and environmental and social sustainability in a globalized environment.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- How do emerging market firms leverage local knowledge, cultural understanding, and cost-efficiency to compete against multinationals?
- How has the adoption of technology democratized access to global markets and disrupted traditional industry hierarchies?
- How do global production chains and sourcing practices contribute to environmental damage and labor exploitation?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between globalization on business strategy and competition.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Business Admin. Sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to MTN Nigeria. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
REFERENCES
Doh, J. P., & Rodrigues, S. B. (2007). Coping with liability of foreignness: Different learning engagements of entrant firms. Journal of International Business Studies, 38(4), 522-540.
Porter, M. E. (1986). Competition in Global Industries: A Conceptual Framework. In M. E. Porter (Ed.), Competition in Global Industries (pp. 15-60). Boston, MA: Harvard Business School Press.
Rugman, A. M., & Verbeke, A. (2004). A perspective on regional and global strategies of multinational enterprises. Journal of International Business Studies, 35(1), 3-18.
Ghemawat, P. (2007). Redefining global strategy: Crossing borders in a world where differences still matter. Harvard Business Review Press.
Hill, C. W. L. (2009). International Business: Competing in the Global Marketplace. McGraw-Hill Education.
