How Globalisation Complicates the Process of Business Management and Essay

How Globalisation Complicates the Process of Business Management and Yet Increases Profitability - Essay Example On the other hand, globalisation is inevitably associated with the changes in competitive dynamics, which necessitate the creation and implementation of new business strategies and lead to profound shifts in management consciousness at a global scale. How globalisation drives profitability and complicates business management in international banking is a difficult question. The current state of research into the effects and implications of globalisation for business management and profitability is rather scarce. The main goal of this research is to analyse primary and secondary information in regards to the changes in profitability and business practices as a result of globalisation and internationalisation in the banking sector. Research aims and objectives The main research question is â€Å"how globalisation complicates global banking business and yet increases overall profitability for stakeholders and promoters for global banking enterprises†. ... of globalisation on business management practices; Understand how globalisation raises profitability; Estimate the mechanisms behind globalisation, profitability, and management practices in the banking sector. Literature review The current state of research provides a wealth of information about globalisation and its implications for various economic processes. Much of what was written and said about globalisation revolves around the topic of macroeconomic policies, financial internationalisation, and the shifts in competitive dynamics. However, contemporary scholars display increased interest toward the issues of globalisation and its effects on profitability and business management in organisations. Recent studies and research findings provide useful information about how globalisation affects businesses and decision-making processes in the new, global reality. The significance of the relationship between globalisation and management practices cannot be underestimated. More often than not, globalisation in management reflects through the development and implementation of the universal global standards of professional decision-making. In this context, international accounting and financial standards are among the most frequently discussed topics in professional literature. Beke (2010) suggests that the adoption of international financial standards by firms leads to better profitability and improved quality of accounting practices and decisions in organisations. Furthermore, harmonisation and standardisation of management practices are the most regular consequences of using international financial standards by firms (Beke 2010). Ultimately, it is due to the use of international financial/ accounting standards that businesses spend less time and money managing their