ESSAY WEEK 3

Globalization is a process of interaction and integration among the people, companies, and
governments of different nations, a process driven by international trade and investment
and aided by information technology. This process has effects on the environment, on
culture, on political systems, on economic development and prosperity, and on human
physical well-being in societies around the world. (The Levin Institute - The State
University of New York, 2015)
Beginning for the meaning of globalization we can introduce to business. Some
organizations have presence all around the world, such as Apple and Samsung. And they all
face the global environment. This is a set of global forces and conditions that operate
beyond an organizations boundaries but affect a managers ability to acquire and utilize
resources.
In a second order of ideas, organizations can be affected in two levels, the first one has a
direct relation with the corporation, and it is related to the diversity employees, customers,
and suppliers; Task Environment is the set of forces and conditions that originate with
suppliers, distributors, customers, and competitors and affect an organizations ability to
obtain inputs and dispose of its outputs because they influence managers daily. (Garret R.
Jones, 2015). The main problem could be a hostile environment which interrupt the
activities and the roles of each member in the organization.
Diversity makes reference to the differences between people like age, gender, race, sexual
orientation, physical appearance, and etcetera. If there is not ethic the problems can be
related to the variances of every person, activities like jokes are potentially insane for the
organization and the self-esteem of the members.

The second level is called general environment. This means, global forces.
The global forces which affect business

Technological forces: Changes in the technology that companys use to design,

produce, distribute, and promote, services or merchandises.
Sociocultural forces: Society problems affect organizations because the pressure
from the structure of the society or may be, of a country impact the national
culture.
Demographic forces: Demographics can significantly affect but still
demographics provide important data about the population, social values and
these data can be translate in to numbers for business implications.
Political and legal forces: Laws frame what organizations can o can not do, this
means challenges. By the other hand, changes in government can have a
significant impact on the overall economy.
Economic forces: It is one of the most important forces because economy is
always changing and can affect permanently the business situation. Current

economic conditions clearly can affect the demand for products and the costs of
producing them. Economic activity tends to move in cycles, so it is important to
understand that specific industry cycles can be more or less pronounced than the
general economic cycle of the country. (Scott, 2014)
Now days we face harder problems that business do not realize at all. According to the
Expect the unexpected (Sustainable business network, 2014) study, the business world must
think about new global forces which will impact in the coming two decades, these are all
related to sustainability issues: climate change, population grown, food scarcity, energy,
fuel, material resource scarcity, deforestation. It is necessary to implement programs which
care about the planet.
Mexico is well known for his fertile ground, this characteristic has helped the Mexican
economy. This nature gift admitted us to star business processing fruits, vegetables, seeds,
etcetera.
Jose Arteaga Campos founded the company named La Huerta, this company started
operations in Aguascalientes in 1957. La Huerta Mexican company with world-class. It is
also leader in the national market of frozen fruits and vegetables. La Huerta exports its
product to United States, England, Japan, Canada, Korea and Taiwan. (La Huerta, 2014)
This company can be affected for global forces. Technological forces because La Huerta
needs to distribute its products maintaining a quality standard and fighting against to the
new technologies which are trying to implement the Genetically Organisms Modified
(GOM).
Legal forces are very important for every company, in this case, there are more than one
national and international laws for food production, exportation and distribution. Each
business depends on the global economy, La Huerta needs to invest money in new
productions every season, it is necessary to do a right calculation basing on the necessities
and the global money situation to reduce any impact.
The reason I chose La Huerta is because I want to emphasise the importance of the
sustainable forces. The climate changes will have a huge impact on this kind of business
(food companies). We can see how bad this can be with a simple equation:
Climate changes + water scarcity + deforestation = Food scarcity.
If we add the population grown it is obvious that in two decades the world is going to be a
disaster.
Companies like La Huerta will be seriously damage. In simple words, they will have to stop
productions.

References
Garret R. Jones, J. M. (2015). Chapter 3. En Essentials of contemporary
Management. New York: MacGraw-Hill.
KPMG. (16 de September de 2014). Sustainable business network. Obtenido de
http://sustainable.org.nz/sustainability-news/news-from-the-world-10global-mega-forces-that-will-affect-your-business
La Huerta. (2014). Obtenido de http://www.lahuerta.com.mx/compania.php
Scott, T. (2014, December 24). Business Model Hub. Retrieved from
http://businessmodelhub.com/profiles/blogs/forces-in-the-generalenvironment-that-impact-business-strategy
The Levin Institute - The State University of New York. (2015). Globalization
101. Obtenido de http://www.globalization101.org/what-is-globalization/
York, T. L.-T. (2015). Globalization 101. Obtenido de
http://www.globalization101.org/what-is-globalization/