B.E Global is at Ion New
Transcript of B.E Global is at Ion New
-
8/8/2019 B.E Global is at Ion New
1/26
GLOBALISATIONGLOBALISATION
SUBMITTED BYSUBMITTED BY
MANISHAMANISHA
MEHAKMEHAK
LOVEPREETLOVEPREET
-
8/8/2019 B.E Global is at Ion New
2/26
CONTENTSCONTENTS
MEANINGMEANING
DEFINITIONDEFINITION
IMPORTANCEIMPORTANCEDRIVERSDRIVERS
-
8/8/2019 B.E Global is at Ion New
3/26
MEANINGMEANING
GLOBALISATIONGLOBALISATION is the system ofis the system of
interaction among the countries of theinteraction among the countries of the
world in order to develop the globalworld in order to develop the global
economy.economy.
It refers to the integration of economicsIt refers to the integration of economics
and societies all over the world.and societies all over the world.
-
8/8/2019 B.E Global is at Ion New
4/26
G lo b a l is a t io n
ec o n o m ic s o c i a l cu lt u ra l tec h n o lo g ica
-
8/8/2019 B.E Global is at Ion New
5/26
DefinitionDefinition
A process in whichA process in which geographic distancegeographic distance
becomes a factor ofbecomes a factor ofdiminishingdiminishing
importanceimportance in the establishment andin the establishment and
maintenance ofmaintenance ofcross border economic,cross border economic,
political and socio-cultural relationspolitical and socio-cultural relations(Lubbers, R)(Lubbers, R)
-
8/8/2019 B.E Global is at Ion New
6/26
Quotes from business andQuotes from business and
GovernmentGovernment ""Globalisation is irreversible andGlobalisation is irreversible and
irresistible."irresistible."Tony Blair (1999)Tony Blair (1999)
"Globalisation is not a policy choice, it is a"Globalisation is not a policy choice, it is afact."fact."Bill Clinton (1999)Bill Clinton (1999)
-
8/8/2019 B.E Global is at Ion New
7/26
IMPORTANCEIMPORTANCE
Economic GrowthEconomic Growth
Free International tradesFree International trades
Reduces cultural barriersReduces cultural barriersPermitting the investors to invest.Permitting the investors to invest.
Communication networksCommunication networks
Possibility of war reduces.Possibility of war reduces.Smooth and speedy transportation.Smooth and speedy transportation.
Environmental protectionEnvironmental protection..
-
8/8/2019 B.E Global is at Ion New
8/26
Mutual interdependence among nation-Mutual interdependence among nation-
states.states.
Flexibility of corporationsFlexibility of corporations
-
8/8/2019 B.E Global is at Ion New
9/26
FacebookFacebook
Reduces global boundariesReduces global boundariesSpeak to people around the worldSpeak to people around the worldGlobalisation of social communicationGlobalisation of social communication
Facts about Facebook usageFacts about Facebook usageMore than 250 million active usersMore than 250 million active usersMore than 120 million users log on to Facebook atMore than 120 million users log on to Facebook at
least once each dayleast once each day
The fastest growing demographic is those 35The fastest growing demographic is those 35years old and olderyears old and olderAbout 70% of Facebook users are outside theAbout 70% of Facebook users are outside the
United StatesUnited States
-
8/8/2019 B.E Global is at Ion New
10/26
What drives globalisation?What drives globalisation?
Increase of information.Increase of information. Better communicationsBetter communications Ease of travelEase of travel Increase of knowledge sharingIncrease of knowledge sharing: Internet.: Internet. Opening of the markets:Opening of the markets: Free trade agreements,Free trade agreements,
World trade organisation.World trade organisation. Reduction of tariffs on importsReduction of tariffs on imports
Attraction of foreign investmentAttraction of foreign investment
-
8/8/2019 B.E Global is at Ion New
11/26
Globalization DriversGlobalization Drivers
Market DriversMarket Drivers
Competitive DriversCompetitive Drivers
Cost DriversCost DriversGovernment DriversGovernment Drivers
Low
Multi-domestic
High
Global
-
8/8/2019 B.E Global is at Ion New
12/26
-
8/8/2019 B.E Global is at Ion New
13/26
Market DriversMarket Drivers
-
8/8/2019 B.E Global is at Ion New
14/26
-
8/8/2019 B.E Global is at Ion New
15/26
Common customer needs : products and: products and
technology is transferred with its culturaltechnology is transferred with its cultural
baggage to other countries with similar needs.baggage to other countries with similar needs.
e.g Coca Cola , McDonald, K.F.Ce.g Coca Cola , McDonald, K.F.C
Global channels:: Global channels have
emerged with free trade as free trade enabledcompanies to distribute goods and provide
services internationally.
e.g Wal-Mart have developed global channels to
distribute products.
-
8/8/2019 B.E Global is at Ion New
16/26
Marketing Transfers and Global Branding: IBM, Toyota,: IBM, Toyota,Kodak have become household names throughout theKodak have become household names throughout theworldworld
Lead Countries: Countries have developed a name for: Countries have developed a name forsome productssome products
e.g. Japan for consumer electronics,e.g. Japan for consumer electronics,
Switzerland for watches,Switzerland for watches,USA for computer software, etc.USA for computer software, etc.
-
8/8/2019 B.E Global is at Ion New
17/26
Competitive DriversCompetitive Drivers
-
8/8/2019 B.E Global is at Ion New
18/26
Competitive Drivers
Competing with imports and other global rivalsCompeting with imports and other global rivals
have placed increasing pressures on bothhave placed increasing pressures on bothdomestic and international companies to bedomestic and international companies to be
competitive in national and internationalcompetitive in national and international
markets.markets.
-
8/8/2019 B.E Global is at Ion New
19/26
Cost DriversCost Drivers
-
8/8/2019 B.E Global is at Ion New
20/26
-
8/8/2019 B.E Global is at Ion New
21/26
Economies of scaleEconomies of scale: expensive to set up: expensive to set up
production but they can rope in huge profitsproduction but they can rope in huge profits
by targeting multiple markets.by targeting multiple markets.
Steep Experience CurvesSteep Experience Curves: knowledge and: knowledge and
technology intensive sectors: aircrafttechnology intensive sectors: aircraft
Low Cost ProductionLow Cost Production: low cost labor (: low cost labor (textiles)textiles)
Favorable LogisticsFavorable Logistics: transportation costs: transportation costs
important as we decide where to produce:important as we decide where to produce:
lumber, non-specialty chemicalslumber, non-specialty chemicals
-
8/8/2019 B.E Global is at Ion New
22/26
New Product Development CostsNew Product Development Costs: are rising: are rising
due to short life of their products that requiredue to short life of their products that require
higher return on their investment (airlines,higher return on their investment (airlines,
telecommunications, chips,telecommunications, chips,pharmaceuticals )pharmaceuticals )
-
8/8/2019 B.E Global is at Ion New
23/26
Government DriversGovernment Drivers
-
8/8/2019 B.E Global is at Ion New
24/26
Government DriversGovernment Drivers
United Nations, and its agencies likeUnited Nations, and its agencies like
IMF,IMF,
World BankWorld Bank
WTO: free trade,privatization . \WTO: free trade,privatization . \
E.g.E.g.
Greece has debt/GDP is 12.7% (whereas EUGreece has debt/GDP is 12.7% (whereas EUrules require something closer to 3%)rules require something closer to 3%)
-
8/8/2019 B.E Global is at Ion New
25/26
KEY POINTSKEY POINTS Globalization drivers can be based on market, cost,Globalization drivers can be based on market, cost,
competitor, or government factors.competitor, or government factors.
Companies prepare for globalization by assessingCompanies prepare for globalization by assessing
corporate competencies, supply chains, leadershipcorporate competencies, supply chains, leadership
capabilities, and corporate cultures.capabilities, and corporate cultures.
Globalizing corporate cultures involves defining andGlobalizing corporate cultures involves defining andcritically examining organizational relationships,critically examining organizational relationships,
communication patterns, and employee behaviors.communication patterns, and employee behaviors.
-
8/8/2019 B.E Global is at Ion New
26/26
THANKSTHANKS