Mgmt 5000 - Globalization

Globalization

Alfredo Brioli

Indiana Wesleyan University

Applied Management Theory

MGMT 5000

Dr. Okere

August 17, 2016

Globalization

As president/CEO of thyssenkrupp Bilstein of America for the last eight years, Fabian Schmahl has no doubt globalization has created opportunities for his community, business, and personal development.  Bilstein, which produces the world’s most technologically advanced shock absorbers in the world, has been a wholly owned subsidiary of TK since 2005, giving Bilstein the power of a company with over 500 locations in 80 countries behind them.  This benefit is at the heart of globalization, the ability to harness views, ideas, and cultures from around the world to improve processes, technologies, and knowledge.  

Voted the “Top Workplaces” four years straight (http://www.topworkplaces.com/ frontend.php/regional-list/company/cincinnati/thyssenkrupp-bilstein-of-america), TKB uses its enormous global network to create a company and environment that attracts the region’s top talent, building a team of people of various ages, backgrounds, and qualifications to develop their highly sophisticated shock absorbers.  Bilstein also works to benefit the community positively with its Built2GiveBack initiative and team up with the Butler County Board of Developmental Disabilities.  Mr. Schmahl attributes this culture to the “leadership team and the worldwide network of best practices, training, and support” (F. Schmahl, personal communication, August 12, 2016).

Personally, Mr. Schmahl has had opportunities around the world, including the Canada, Spain, and Germany.  Globalization has provided him with these opportunities, as well as the opportunity to view himself and his operations with a more global perspective.  While globalization provides him a worldwide network of information, nobody just gives information to Fabian.  He must still create a network of resources self-reliantly, thus creating of transfer of information and ideas across the world (F. Schmahl, personal communication, August 12, 2016).

Although most will see globalization as positive, Mr. Schmahl also identifies the challenges globalization presents.  Information now travels faster than ever; what one customer sees or experiences in one part of the world becomes the next big thing to everyone else.  The accelerated exchange of information creates perceived delays to customers who want new products in markets where they are not yet available.  While this may not be necessarily a bad thing, remarks Schmahl, it puts the pressure on companies to be more attentive to what the market wants and provide more global release strategies.

Ron Lipps of Advics Manufacturing of Ohio, identifies the positive effect globalization has had on the Lebanon/Mason area of Cincinnati.  As president and CEO of Warren County’s largest employer, Lipps explains that “Growth is seen not only in the number of positions available, but the types of positions available” (R. Lipps, personal communication, August 16, 2016).  Lipps has been with ADSMO for 19 years and has seen the company and the community grow together.  The company is committed to its motto: “Manufacture the highest quality, most competitive brake system components in the world” ("ADVICS," n.d.)  Globalization has provided them with a diverse workforce who want desire to work for a fast-paced, dynamic company where their ideas and commitment to providing the highest quality products to our customers are valued” ("ADVICS," n.d.).

Advics now employs over 11,000 people worldwide and produces products across the world.  Globalization has helped positively impact this growth by allowing the exchange of ideas and strategies that take advantage of purchasing and sourcing materials globally (R. Lipps, personal communication, August 16, 2016).  The recovery of the supply chain after the 2011 earthquake that killed nearly 20,000 people and decimated 1.2 million buildings (Olcott & Oliver, 2014, p. 5-6) displays the positive effect globalization has had on Japanese companies like Advics.  Social capital or goodwill within a community, along with sensemaking and situational awareness provide a foundation that propelled production to more than 95% within six months (Olcott & Oliver, 2014, p. 7-11).  Globalization enables manufacturers and suppliers, like Advics, to network and work together to provide solutions that enabled all parties involved to succeed and recover, together.

Lipps attributes globalization to enhancing his professional career.  Previous strategies of Advics had the organization being headed by Japanese members only.  Due to globalization, the top management of sites across the corporation are made up of local managers and executives, thus providing career paths for local talent within the organization.

References

ADVICS Manufacturing Ohio, Inc. (n.d.). Retrieved from http://www.advics-ohio.com/index.htm

Olcott, G., & Oliver, N. (2014). Social Capital, Sensemaking, and Recovery: JAPANESE COMPANIES AND THE 2011 EARTHQUAKE. California Management Review, 56(2), 5-22. http://dx.doi.org/doi:10.1525/cmr.2014.56.2.5