Globalization has become a central factor that many businesses have to take into account when carrying out their business. However, businesses are faced with the challenge of how to respond to the ever changing competitive business environment. Accordingly, many companies are forced to look beyond their traditional measures of performance such as company’s core capabilities and the structure of the industry in which the company competes. The success in the current global business environment is significantly affected by the external factors and the management of the companies or business enterprises is forced to gain a deeper understanding of the external forces and trends that affect the business operations. That is why many companies operating in this global sphere are now faced with the option of adapting or potentially losing any competitive advantage. This has forced many businesses to look through technological innovations.
Managing global organizations has been a business challenge for centuries. But the nature of the task is changing with the accelerating shift of economic activity from Europe and North America to markets in Africa, Asia, and Latin America. McKinsey Global Institute research suggests that 400 midsize emerging-market cities, many unfamiliar in the West, will generate nearly 40 percent of global growth over the next 15 years. The International Monetary Fund confirms that the ten fastest-growing economies during the years ahead will all be in emerging markets. Against this backdrop, continuing innovations and idea generations in varied areas have made possible new forms of international coordination within global companies and potential new ways for them to flourish in these fast-growing markets for which challenges and opportunities are required to ascertained and worked upon.