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AMITY INTERNATIONAL BUSINESS SCHOOL
Dr. Namrata Pancholi Vinayak
MBA Sem- I
Introduction to Global Business Management
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Learning Objectives
To discuss the Changing Business Environment
Role of Globalization and Changing work places of
today
Role of Global Events and ctivities in governing the
economy of a country
To learn the principles! guidelines and practices of
Global Business "anagement#
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Students should be able to learn and
$nderstand the %mpact of Globalization on
Governments! Businesses and Consumers#
They should be able to trace the evolution of the
%nternational geo&political and economic system
ppraise the role of %nternational %nstitutions and
Regional %ntegration in %nternational Business
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Changing Business Environment
'#(iberalisation
)#*rivatisation
+#Globalisation
,#Technology
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-globalizationmust be taken for granted#
There will be only one standard for corporate
success. international market share# /inning
corporations will win by finding markets all
over the world#
&0ack /elch
CE1! GE
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)2T3Century
%nternal organizational focus
4omestic market orientation
Competitive advantage
5ustainable competitiveadvantage
Competing for today6smarkets
)'stCentury
7ocus on comp8titiveenviron ment
%nternational focus!collaborative advantage
3yper&comp8tition! constantre&invention of advantage
Creating tomorrow6s market
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echnology and !ork Places
&9irtual "anagement
Challenges of keeping employee accountability and
motivation
&%T %ndustry
a# %T 5ervices
b# B*1Contribution to G4* is :#;< 7=)2'+
& >#;< by )2)2
'2< of total 74% funding in %ndia# 7
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Traditional Role Transformational Role
Back 1ffice and Business *artner RoleCost Cutting
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BPO Industr
-*resence in :2 countries
&:;< of 7ortune ;22 companies as clients
&?'2'billion industry today
&?+'2 billion by )2)2
&employment of )#> millions directly
&''#: millions indirect#
&Transforming public services&&&& $%4
&Transforming gri! local farmers! weather forecasting
etc# 9
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Indian E!onom'#%n the past years! the %ndian rupee has been loosing
momentum continuously #
)# /hile a weak rupee may be good for certain sectors!
it certainly is bad for the %ndian economy on the
whole#
+# The rupee&dollar e@change rate A
,# Rupee depreciation is makinga# %mports e@pensive
b# ot helping e@ports because of global economic
slow down#
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To some e@tent! depreciation can be good for
the economy as this will help to increase our
e@port competitiveness and discourage
imports#
There are many sectors which are regaining
competitiveness in e@port markets as a result
of the fall in the e@change rate.(Source:Business Standard.Dec.2013)
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The three key risks arising from longer durationslowdown would be .
a# the sharp rise in non&performing assets in banking
system!
b# challenges in managing fiscal deficit and
c# the e@ternal funding risks would remain high#
*" ddress
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"ACTORS A""ECTIN# THE RUPEE
MO$EMENT
%& "is!a' de(i!itof a country is an important
factor that drives the currency of that nation#
a.3uge import of gold
b# Rise in prices of crude oil
c# nd recently of coal
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%mport of Gold.
&4emand for yr#)2'+ &&&&D;2 tonnes#
%mport is only ,22 tonnesRest through smuggling#
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)&*o''ar *emand+Su,,'
Rising oil prices mean more dollars are
reuired by %ndian oil companies to import
crude oil since oil price is uoted in the $5
dollar in the international market#
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"ACTORS A""ECTIN# THE RUPEE MO$EMENT-!ont.&
/& #'o0a' "a!tors
&&&&/ar in %ra
The crisis in the Euro zone triggered& political uncertainty in Greece and current debt crisis
& the election results in 7rance and Germany are pointing towardsnegative sentiments for austerity measures taken by thegovernment#
& 1verall! there may be more bad news coming from the Eurozone# 3ence! the dollar is getting stronger against othercurrencies! including the rupee
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G &)2 committed to fight the global slowdown and
achieve global economic stability! sustainable growth
e@t meeting in Brisbane in ovember )2', under
the ustralian *residency
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TheFth BR%C5 summit held in Brazil#
7ortaleza! the northeastern coastal city of Brazil
3e will be meeting leaders from the four nations
and it is e@pected that the blueprint for a
development bank and reforms of $nited
ations and international financial
organizations#
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1h go g'o0a'
%nternational Business& Comprises a large and growing portion of the world6s total
business#
& Today! global events and competition affect almost allcompanies#
& ot all companies operate globally but cannot avoid pressuresfrom around the world#
&5"E65 contribute to D;< of business in sia *acific region ! ,2&;2< of trade activities#
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7actors for growth in %nternational "arkets
*rofit *(C 5tage Competition
E@cess Capacity Geographic 4iversification %ncrease in "arket 5ize %CT and transportation facilities
%ncome Growth (ower trade barriers 4esire for new productsconsumesH and new
marketsmarketersH
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IPLC Con!e,t
%nnovation
1verseas %nnovation
"aturity
/orld&wide imitation
4ecline
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Evo'ution o( Internationa'
Business
*omesti!market e@tensionI Ethnocentric
"ulti&domesti!market I *olycentricGlobal mar2etingI Regiocentric J
Geocentric
Transnational mar2etingI "i@ed
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4omestic "arketing
Mar2et "o!us *omesti!
1rientation Ethnocentric
"arketing "i@ 4ecisions 7ocused on 4omesticCustomers
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E@port "arketing
Market Focus
"arket 7ocus 1verseas Targeting and Entering7oreign "arketsH
1rientation Ethnocentric
"arketing "i@ 4ecisions 7ocused on 4omestic Customers1verseas "arketing&Generally
e@tension of 4omestic "arketing4ecisions made at 3eaduarters
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%nternational "arketing
Mar2et "o!us Caters to specific needs of afew overseas market
1rientation *olycentric 1rientation
"arketing "i@ 4ecisions *roducts manufactured in homecountry with separate productadaptations for different markets*roduct 4ecisions made byindividual subsidiaries
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"ultinational "arketing
Market Focus DomesticMar2et "o!us Conso'idation o( o,erations onregiona' 0asis
#ains (rom E!onomies o( S!a'e
1rientation Regio!entri!
"arketing "i@ 4ecisions *roduct 5tandardization withinregions but not beyond them1n regional basis
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Geocentric
Mar2et "o!us Consolidating firms operations onGlobal Basis
1rientation Geocentric
"arketing "i@ 4ecisions Globalization of marketing mi@decisions with local variations0oint decision making across firmsglobal operations
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Thank =ou
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