Globalisation and Terrorism
Globalisation and Terrorism:
Impact on Global Business Environment
_____________________________________________
Table of Contents EXECUTIVE SUMMARY 4 1.0 INTRODUCTION 6 2.0 CAUSE-AND-EFFECT BETWEEN GLOBALISATION & TERRORISM 7 2.1 Economic Inequality 7 2.2 Cultural Homogeneity 8 2.3 Digitization of Money 8 2.4 Volume of International Trade 9 2.5 Larger Victim Base 9 3.0 IMPACT OF TERORISM ON GLOBAL BUSINESS ENVIRONMENT 10 3.1 Movement of goods 10 3.2 Movement of people 10 3.3 Movement of money 10 3.4 Movement of information 11 4.0 OPERATIONAL RESILENCE BY INTERNATIONAL BUSINESSES 12 4.1 Management’s Role: Decentralisation of company’s operations 12 4.2 Operation’s Role: Building an Agile Supply Chain 12 4.2.1 Greater transparency 12 4.2.2 Alternative vendors and distribution centres 13 4.2.3 Enhanced collaboration 13 4.3 Human Resource’s Role: Education and Evacuation 13 4.4 Marketing’s Role: Market Selection and Contingency Marketing Plan 13 5.0 CONCLUSION 14
EXECUTIVE SUMMARY
Globalisation started with the rise of civilisation. Centuries down the road, we are the results of this global phenomenon. However, the 21st century globalisation undergoes a paradigm shift with a new reality created by the September-11 attacks. While terrorism is not new, the internationalisation of terror group and their activities has now ruled the world by fear. An unfair global equilibrium, cultural homogeneity created by globalisation (or ‘western capitalism’) gives rise to the animosity of radical groups against the western power. Boosted by the ease which terror attacks can be carried out using technology has made the world and global business environment very susceptible.
With new economy sanctions and security measures introduced to counter terrorism, businesses are required to dedicate more time and resources in meeting these new regulations. On top of that, businesses have to deal with a potential disruption in
Impact on Global Business Environment
_____________________________________________
Table of Contents EXECUTIVE SUMMARY 4 1.0 INTRODUCTION 6 2.0 CAUSE-AND-EFFECT BETWEEN GLOBALISATION & TERRORISM 7 2.1 Economic Inequality 7 2.2 Cultural Homogeneity 8 2.3 Digitization of Money 8 2.4 Volume of International Trade 9 2.5 Larger Victim Base 9 3.0 IMPACT OF TERORISM ON GLOBAL BUSINESS ENVIRONMENT 10 3.1 Movement of goods 10 3.2 Movement of people 10 3.3 Movement of money 10 3.4 Movement of information 11 4.0 OPERATIONAL RESILENCE BY INTERNATIONAL BUSINESSES 12 4.1 Management’s Role: Decentralisation of company’s operations 12 4.2 Operation’s Role: Building an Agile Supply Chain 12 4.2.1 Greater transparency 12 4.2.2 Alternative vendors and distribution centres 13 4.2.3 Enhanced collaboration 13 4.3 Human Resource’s Role: Education and Evacuation 13 4.4 Marketing’s Role: Market Selection and Contingency Marketing Plan 13 5.0 CONCLUSION 14
EXECUTIVE SUMMARY
Globalisation started with the rise of civilisation. Centuries down the road, we are the results of this global phenomenon. However, the 21st century globalisation undergoes a paradigm shift with a new reality created by the September-11 attacks. While terrorism is not new, the internationalisation of terror group and their activities has now ruled the world by fear. An unfair global equilibrium, cultural homogeneity created by globalisation (or ‘western capitalism’) gives rise to the animosity of radical groups against the western power. Boosted by the ease which terror attacks can be carried out using technology has made the world and global business environment very susceptible.
With new economy sanctions and security measures introduced to counter terrorism, businesses are required to dedicate more time and resources in meeting these new regulations. On top of that, businesses have to deal with a potential disruption in
References: Filbeck, G, Gorman, R, Greenlee, T & Speh, T, 2005, ‘The stock price reaction to supply chain management advertisements and company value’, Journal of business logistics, vol. 26, no. 1, pp. 199-216. United States National Counterterrorism Centre, 2009, 2008 Report on Terrorism, (M Leiter, Director), National Counterterrorism Center, Washington Vlcek, W 2008, ‘Development vs