GLOBALIZATION AND

ENVIRONMENTAL
SUSTAINABILITY

Challenges to Strategic
Management
Not too long ago, a business corporation
could be successful by focusing only on
making and selling goods and services within
its
national
boundaries.
International
considerations were minimal.
Similarly, until the later part of the 20th century,
a business firm could be very successful
without being environmentally sensitive.

IMPACT OF GLOBALIZATION
Today, everything has changed. Globalization,
the integrated internationalization of markets
and corporations, has changed the way
modern corporations do business.
The worldwide availability of the Internet and
supply-chain logistical improvements, such as
containerized shipping, mean that companies
can now locate anywhere and work with
multiple partners to serve any market.

IMPACT OF GLOBALIZATION
Instead of using one international division to
manage everything outside the home country,
large corporations are now using matrix
structures in which product units are interwoven
with country or regional units.
As more industries become global. Strategic
management is becoming an increasingly
important way to keep track of international
developments and position a company for long
term competitive advantage.

IMPACT OF GLOBALIZATION
The formation of regional trade
associations and agreements, such
as the European Union. NAFTA,
Mercosur, Andean Community,
CAFTA and ASEAN, is changing how
international business is being
conducted.