After reading the “New Frontier: Transformation of Management for the New Millennium” by Michael A. Hitt, identify two or three of the key concepts presented by the author. Based on the key concepts you identified from the article, offer an objective observation that his view of the future, stated in 2000, may or may not apply today. ?In addition, you are to respond to two other postings that builds on or stems from what the learner posted to this forum. The quality of your response is what builds community on the forum.
The first concept I would like to discuss is globalization. The author states that companies are becoming borderless and stateless in order to transform themselves into a global business. This causes an interdependence of national economies, thus transforming individual markets into a global financial market. I think that although globalization has been necessary for firms to hold onto a competitive edge, it does have disadvantages and we are feeling them today in what we have labeled as a ‘global economic downturn’.
The globalization of businesses may have a positive effect in some economies, but the effect felt in the United States has not been completely positive. Many of the manufacturing jobs and other jobs as well have been outsourced to foreign nations. This has a detrimental effect on Americans that can no longer find jobs or find a job paying a livable wage. It also is difficult for small and local businesses to remain competitive. It is very troubling to think of businesses in each particular market or specialty competing and eliminating each other one by one.
This creates industry ‘giants’. Without competition, greed ran run rampant. It seems like globalization has greatly contributed to the rich getting richer and the poor getting poorer. The second concept I would like to discuss is the impermanence of success. The two examples the author gives about Mitsubishi and Levi Strauss are a very real possibility especially in today’s market as technology and globalization are more prevalent than ever.
Management style and company values need to adapt and be flexible to allow for new ideas and changes to remain competitive. The author used Barnes and Noble as an example of a company that didn’t foresee ecommerce as being a strong factor in the way business needed to change. Amazon. com saw the potential of ecommerce and became very successful at leading the industry as an online bookstore. Today, Barnes and Noble has become competitive once again, recognizing and adapting to the changes in technology and consumer demand.