Business Strategy in a Global Environment Essay - 1

Business Strategy in a Global Environment - Essay Example The new business scenario opens new vista for growth for all corporates. There are deeper challenges before them. The task before entrepreneurs is to make use of the wider growth potential and face challenges more comprehensively. In this scenario, companies have to devise a new approach for growth and give shape global strategy to face the competition and face challenges ahead. Knowledge management, risk management, strategic management, and resource management are some of the new terms in this global business scenario. Companies need to taken into consideration market information in other parts of the country and purchasing and behaving patterns of people in potential markets before devising strategies and roadmaps for growth. International trade is termed as exchange of products and services across boundaries of countries and continents. From the beginning of human history there had been some kind of trade between individuals and communities. Exchange of service and trade had been a voluntary action among individuals and communities in the beginning. They first communities shared their excess resources and additional services to co habitants without expecting any monitory benefits. At that resources were abundant and majority of people were involved in agriculture. But as the civilizations emerged and people have settled in particular area, some kind of economics introduced to the exchange of good and services. People have traveled around the world searching better prospects. Europeans and Chinese travelers had sailed and find out new routes and destinations. They sourced products from Asia, Northern America and Europe and sell in other markets. This can be considered as the first step of cross continent and national trade. Later trade has emerged as a major area for most of the countries around the world. Most of the wars fought were on the trade interest. Emperors sailed and traveled world over searching of larger trade prospective. It was in the colonial period that globalization in its actual concept was evolved. The Europeans had conquered countries in Asia, Africa and North America with larger trade interest. They find it easy to source products and human power to improve trade prospects. The companies in Europe had entered into these markets and expanded their products and services. Later the colonialists could not carry the huge burden of this undeveloped area and population as the freedom struggle got intensified. So they left these colonies and most of them got independence. Western companies had also left these newly independent countries. The trade policies of these newly formed countries were more inward looking and there were some kind of xenophobia. But in the second half of the 20th century, many of these countries realized the necessity of technology, new products and services. The cold war had seen some kind of polarization even in the trade scenario. The so called socialist countries had grouped with former United States of Socialist Republic or Soviet Union. Europeans countries and United States had formed another alliance of developed countries. The international trade during that time was also highly polarized. It was British, European and Americans, who had started the trend of entering overseas markets seeking better