Full Answer Section

• Improved innovation: Globalization gives companies access to new ideas and technologies from around the world. This can lead to improved innovation and the development of new products and services.

Negative impacts of globalization on strategic planning:

• Increased competition: Globalization has led to increased competition from companies all over the world. This can make it more difficult for companies to compete and to maintain their market share.
• Increased uncertainty: Globalization has created a more uncertain business environment. This can make it more difficult for companies to plan for the future.
• Increased complexity: Globalization has made the business world more complex. Companies need to be able to manage operations in multiple countries and cultures. They also need to be able to respond to changes in global economic and political conditions.

How to mitigate the negative impacts of globalization on strategic planning:

• Develop a global strategy: Companies need to develop a global strategy that takes into account the opportunities and challenges of globalization. This strategy should be flexible and adaptable to changes in the global business environment.
• Invest in research and development: Companies need to invest in research and development to create new products and services that can compete in the global marketplace.
• Develop a global team: Companies need to develop a global team of employees with the skills and experience to operate in multiple countries and cultures.

Conclusion

Globalization has a significant impact on strategic planning. Companies need to be aware of the both the positive and negative impacts of globalization and develop strategies to mitigate the negative impacts. By developing a global strategy, investing in research and development, and developing a global team, companies can successfully compete in the global marketplace.

Reference:

Mintzberg, H., Lampel, J., Ghoshal, S., & Quinn, J. B. (2014). Strategy Process: Concepts, Contexts, Cases (5th ed.). Philadelphia, PA: Trans-Atlantic Publications.