The Framework Of Globalization

Globalization is a stage in the general process of political, economical and cultural development of mankind. A few decades ago, Marshall McLuhan spoke about “the world wide village”, synthesizing with this expression the essence of the phenomenon; he also mentioned the nowadays technology that makes communication easier, accessible, reduces distances, enhance integration of the financial and commercial markets, the globalization of manufacture processes, the development of transnational identities. Globalization and consequently, the growing competition, are becoming obvious on all the markets of the world, and therefore it stimulates all the organizations to be flexible and adopt adequate structures for each and every market. Under these terms, the success of an organization is the result of a thorough understanding of the environment to which it belongs and of a successful implementation of these strategies and organizational structures that suit this situation. When it comes to the multinational companies, the concrete establishing of the organizational structure can be done only if we take into account specific details and if we analyze the parameters that influence them, such as: the environment dynamics, the diversification range of the business and the business expansion in foreign countries through the number of branches abroad. The size of a company is no longer considered an advantage; therefore the strong point of a firm will be ‘the adequate size in order to handle successfully the competitors’ and the latest progresses/successes achieved by the small firms sustain this statement.