Sustainability and Globalization Essay Sample

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Introduction of TOPIC

Sustainability and Globalization


            The term sustainability is used in different field to imply varied meanings but the general impression of the word can be attributed the actions of meeting the current needs without comprising the needs in the future. In the corporate understanding, the term sustainability imply the operating of business in a manner that is not likely to compromise with the long term social and environmental needs of the community in which the company is operating (Lenssen, 2006). Therefore, it is an important factor to consider in business because it is likely to enable the business to stay relevant at the current times also in the future times, with an aim of enhancing continuity. Sustainability signifies the possibility of the company being profitable in the long-run, that will enable the company to stay in business.

            The attempt for the corporation to ensure sustainability can be perceived as a strategy that is meant to enable continuity in the company’s operations and this follows from the fact that companies are meant to serve the needs of the community. Therefore, companies should ensure that their operations are certain to change with respect to the  changes in the community needs either in the short-run or in the long-run. The failure for the companies to consider the community needs is certain to cause the company losses because the products or services that are to be provided by the company to the community are likely to have a low demand following from consumer dissatisfaction. Corporate sustainability if therefore enhanced by the company ensuring consumer satisfaction at the current times and making the necessary adjustments in meeting the future changes in the needs. Thus, it is a tool for ensuring the prosperity and continuity of the organization either in the short-run or in long-run.

  1. ii) Globalization

            The term globalization implies the practice of transforming something that was initially local into a global one (Stiglitz, 2007). The term is also used to imply the process by which the world people are integrated to work together as one large entity. Globalization in the economic context implies the integration of the national economies into an international economy that is characterized by less restrictions to trade. This is enhanced through activities like the foreign direct investment, migration, the importation of technology and the capital flows across the borders.

            From the perspective of a company, globalization imply the extension of the company’s operations to other countries in the world. It is an important factor in an organization because it enhances the company to extend its market size by venturing in foreign countries. Globalization enable  companies to extend their operations to foreign markets with an aim of both expanding their markets and profitability levels. For the company to benefit form globalization, that is, going from local to international, the company is expected to have a competitive advantage that will enable the company to compete favourably in the international market.

A competitive advantage is enhanced through the company’s competence in the international market in terms of customer satisfaction and the offering of  products or services at a competitive market price. The company can only ensure competitive advantage by  consistently encouraging inventions and innovations within the company operations that are meant to enable the company to produce its goods and services at a lower costs than the competitors, and also the supplying of customers with goods and services that are certain to meet  their desires. Innovations and inventions can only be realized if the companies engage in investing in research and development. Meaningful innovations should be guided by the desires of potential customers and the need to reduce the operating costs of the company. Therefore, for a company to go global it must first develop its competitive advantage that is meant to enable it to compete effectively with the other competitors in the world market in one given industry, otherwise, the company’s operations are likely to remain local.

            For a company to go global, it requires the company first to have a local competitive advantage  that will enable it compete favorably even when operating in the international market. The local competitive advantage in enhanced in the scenario when the local demand is high that provide the company with an incentive to innovate in meeting the local demand. The innovations that are developed as a result of the company trying to meet its local demand leads to the company’s competitive advantage both locally and internationally.

Analysis of the companies

            In conjunction to the significance of globalization and Sustainability in companies, various companies normally take various steps that are meant to ensure sustainability and in the long-run enable them to go global. The paper has used the analysis three Germany companies in explaining the varied ways in which different companies attempt to enhance sustainability. The companies undertake various strategies to enhance sustainability depending on the nature of the industry in which a company is operating and the objectives of the company. This follows from the fact that various industries have varied requirements that are meant to enable sustainability. The companies that have been considered in the study include Daimler, MVV Energie and the University of Kaiserslautern all located in Germany. The paper has provided an overview about the characteristics of each company and then it follows an analysis of each after the characteristics in explaining the various ways in which respective companies are trying to enhance sustainability. They discuss is as follows

Company informations

  1. i) Daimler corporation

            Daimler corporation engage in the manufacturing business of Mercedes-Benz cars. The company also engages in the manufacture of Daimler Trucks, Mercedes-Benz Vans and Daimler  Business. The company holds the record as being the leader in the manufacturing of commercial vehicles and also the premium passenger cars. The company reaches all the markets in the world with facilities in all the five continents. The company offers financial services that include the financing of vehicles, providing of insurance services, the management of fleet and also the leasing business. The company was founded by Gottlieb Daimler and Carl Benz. Through their effort, they enhanced a series of inventions. The founders of the company advocated for the need to act responsibly toward the society and also protecting the environment. The aim of the founders of the company was to enhance high quality products and a sustainable mobility. The company is aimed at attaining a sustainable growth  and ensuring profit maximization.

Daimler Analysis

            From the characteristic provided above concerning Daimler corporation, Daimler corporation is engaged in the automotive industry and it involves itself in the manufacture of a wide

range of products and the provision of various supportive services. The wide range of products that

are produced by the company can be perceived as a strategy for enhancing sustainability because Daimpler is likely to meet the desires of their customers much more than when it was to produce a limited range of products. The wide range of products cater for the desires of the customers following their varied needs, that is, the products are likely to meet the needs of customers that range from vehicles for personal use to commercial use and with varied sizes. This strategy of manufacturing a wide range of products is certain to enable sustainability in the company following the  the possibility of the company satisfying the varied needs of their customers. The production of varied products with different characteristics will also enable the company to be competitive enough in the automotive industry that will make the company to go global hence globalization.

            The company own facilities in five continents and this can be perceived as being a strategy for enabling sustainability of the company. The having of operations in various parts of the world imply that the company is likely to face different market elasticities. The location of the facilities in different places in the world can be perceived as a risk management strategy. The company is likely to face market failures in some locations at a particular period of time, therefore, it will have to survive in the market following the earning from the other markets that are not affected, thus it is a strategy for ensuring sustainability. The company also offers financial services that include insurance, fleet management and leasing business. The services can be perceived as being reinforcing to the company’s operations in enabling sustainability.

            The company has also been engaging in consistent inventions all through since its establishment. The inventions have been aiming at making of company’s products to be of high quality in meeting the desires of the customers and also reflecting the economic value of the products. The consistent inventions within the organization can be perceived as being a strategy for enhancing sustainability through the meeting of the society’s needs. The inventions are governed by considering the society’s needs and also the protection of the environment. The protection of the environment enables the company to avoid the possibility of conflicting with the environmental authorities in various places of operation in the world.

This intervention of the environmental authorities to the company’s operations on claims of environmental pollution is certain to affect the company’s profits negatively following the restrictions that are likely to be imposed on the company. Therefore, the issue of environmental protection can be perceived as a  strategy for enabling corporate sustainability on the reasons that the corporate is less likely to logger heads with the environmental authorizes. Environmental protection is observed right from the production process to the use of the products by the ultimate consumers. The need for environmental protection, follows from the nature of the products, that is, automotive. Automotive are likely to pollute the environment exceeding the recommended level following from the emissions that are emitted when the engines are run. Therefore, a company is required to apply the technology that is likely to reduce the amount of emissions, hence the need for environmental protection on enhancing sustainability.

  1. ii) MVV Energie

            The MVV Energie is a service providing company that engages in the distribution of electricity, heat, gas and water. The distribution of this items is done with high technology level that is enhanced through an in depth technological know how about the items. The company’s performance is enhanced through the establishment of a strong customer loyalty. The company also rely so much in innovations and in providing customized solutions to their clients as a strategy for enhancing business. The reinforcing factor for the company in ensuring business growth is through the successful groups efficiency measures

MVV Energie company Analysis

            The strategies that are adapted by MVV Energie in ensuring sustainability are unique compared to the ones adapted for example by Daimler. They are unique following the nature of the industry in which they are operating. MVV Energie is a service provider and most of the company’s clients are the households. The items that they supply seem to be easily accessible by most people and can be supplied with much easy. The company has taken a strategy of distributing the items with a high technical know how. The high technical know provides the company with a competitive advantage that enables its sustainability in the market. The high technical know how is certain to ensure customer satisfaction in addressing their needs, hence an avenue over which the company enables a reasonable market share.

            The company relies so much in creating customer loyalty as a strategy for establishing a stable market share. Creating of customer Loyalty Company is certain to enable the company to supply their retained customers in the short-run and also in the long-run. Therefore, the company is using customer loyalty as a strategy for ensuring sustainability because the future flow of incomes are enhanced following from the customers that the company has retained. The company has reinforced the factor of creating customer loyalty through the innovations and also the providing of customized services. The innovations ensure that the company’s products are redesigned time after time in meeting the changing desires of the customers in enabling customer satisfaction. The customer satisfaction that is enhanced through innovations leads to an increase of  customer loyalties, hence a strategy for enhancing sustainability. The providing of customized services to the customers also enable the company to enhance customer satisfaction following the varied desires of the customers. This can be perceived also as a strategy for enhancing customer loyalties that is meant to promote sustainability.

            The groups that form the company are also devoted members that ensure prosperity of the company. The company is comprised of four groups that are specialized various tasks but work in a coordinated manner. The devotion of the groups and the effective coordination among the groups ensure efficiency that is reflected in customer satisfaction. The customer satisfaction following the improved efficiency due to effective groups of the company enhance the company to create customer loyalties, hence enabling sustainability.

iii) University of Kaiserslautern (Kaiserslautern)

            The University of Kaiserslautern was established in 1970 as an independent institution from the twin university Trier. It started by offering the faculties in mathematics, physics and Technology. The faculty of Technology was divided into two parts, that is, the mechanical engineering and electrical engineering as one part, and Architecture, educational science and environmental planning as the second part. The university had also introduced biology and chemistry. The university later introduced some faculties that strengthened the scientific structure of the university. The faculties that were introduced include electro- technology, electro and computer science technology, computer science, engineering, mechanical and process engineering, and social and economic studies.

            Currently the university is focused at offering the future oriented courses. The courses that are currently offered by the university are also practical oriented and concerned with the modern infrastructure. The university is able to produce prospective engineers and also natural scientists. The university also exposes the students to the practical experience of what they learn by enhancing internships that are done in companies. The students of the university also benefit from the university’s research institutes that are located at the campus, this follows from the fact that applied research projects are done in conjunction with the university. The current student population is 10,500, which is a population that is easily manageable in the sense that the students are able to develop a close relationship with their lecturers. The learning facilities of the university are also to standard, that is, the libraries, laboratories, computer center among other facilities. The accommodation for the university students is excellent and located near the university. The student access the Internet freely. The university is also rich of culture (

Analysis of the University.

            Following the operations of the university, the university can be perceived as being technologically oriented, that is, the kind of the courses that are offered are technologically related. This situation makes the university relevant in addressing the needs of the society following the current accelerating technological era and its applications in solving the needs of the society. The university is dedicated to offer future oriented courses that makes the university relevant both in the current times and also in the future. Therefore, the kind of courses that the university is offering can be perceived as being a strategy for ensuring sustainability, that is, holding the university’s relevance both in the current times and the future.

            The university has also enhanced some incentive that are meant to promote the quality of services that are provided by the university. For example, the exposing of the students to the practical part of their training in college improves their capability once in practice. The good learning facilities and the close relationship between  the students and their lecturers also promotes the quality of education. All these incentives among others that are provided by the university are meant to portray the university as an institution of excellence, hence promoting the public image of the university that will have an impact of enhancing sustainability.


            Sustainability and Globalization can be perceived as being related in enhancing prosperity of some company. For a company to attain sustainability it requires to take undertake various strategies that are dependent on the nature of the industry and the objectives of the company. To attain sustainability, the company’s operations are supposed to be guided by the needs of the society and it should adjust its operations accordingly in meeting the changing needs with time. For a company to go global, the company needs to develop its competitive advantage.


Lenssen G., 2006, Corporate Responsibility and Competitiveness, Emarald Group Publishing,   pp 56

MVV Energie, 2008, company Profile, Retrieved from:

Stiglitz J., 2007, Making Global Work, Norton and company Limited, pp 12

Technische Universitat Kaiserslautern, 2008, History, Retrieved on 5th August 2008 from:

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