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Question: Explain the role of Proximity and Globality in effectiveness
1. Executive summary
The aim of this assignment was to explain the effect that proximity and globality has on an organizations' ability to be effective and competitive in its operating environment.
Effectiveness is defined a "to have an effect on" (Concise Oxford dictionary)
According to the Oxford dictionary "Proximity" is defined as "the closeness, near neighborhood or approach' to a subject. In business proximity is defined as the environment in which the organization is operating in.
The environment consists of the macro environment and the Competitive environment. The macro-environment consists of the following factors: legal, political, economical, technical, demographic, social and natural factors. The competitive environment is composed of the following: the firm, its competitors, suppliers, customers, new entrances and substitutes.
A organization, according to Chester I. Barnard (Kretner and Kinickki), is "a system of consciously coordinated activities or forces of two or more persons" Embodied in the term "consciously coordinated" are four factors common to all organizations; coordination of effort, a common goal, division of labor and a hierarchy of authority.
The figure below shows the external environment of an organization/firm. (Bateman and Snell)
According to the Oxford dictionary "Globality" is defined as the worldwide embracing, the totality of a group of items and categories.
The liberalization of international trade coupled with the phenomenal speed and volume of international information transfer through the Internet and other communication systems has ...