Due to the recent economic crisis, it is time to rethink corporate strategy, especially as it applies to the global environment. In 2009, the value of international trade was expected to decline by as much as 9%. Foreign Direct investment fell 15% in 2008 and another 40% in 2009. This article is predicting a rough decade to come with weak global growth, pressures from overcapacity, persistently high unemployment, volatility in the financial markets, costlier capital, a greatly expanded role from governments, a much larger burden of regulation and taxation for all, and maybe even increased protectionism. (Ghemawat 56) These are exactly the types of things the business world must begin to play closer attention to. This may even mean a greater focus on home markets than in recent years. Losing focus on the global economy is almost guaranteed to hurt in the long run, especially as emerging markets continue to solidify their positions as global economic powers. In 2009, it was predicted that China would account for 66% of global growth in GDP, India for 11%, and Indonesia for 4%. (56) This trend is not looking like it will subside any time soon. Chinese and Indian per capita incomes are expected to continue to be between one-half and one-third that of more advanced economies even up until 2050. This will provide huge growth potential in these sorts of developing countries for many decades to come. (56) This article focuses on five strategic changes including strategy and competition, markets and products, operations and innovations, organization and people, and identity and reputation.
Current global strategies are focused on integration and on treating the world as a singular unit. This, however, needs to change to reflect national ...
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... and managing cultural differences will allow companies to continue to be greater than the sum of their parts. It is also important to note that the reputation of businesses in general is lower because of the recent economic crisis. Moving forward it will be important to shift public opinion into a more positive mindset.
I do believe that this article focuses too much on protectionism. If governments begin to take protectionist stances, they will do nothing more than hinder the growth of their respective nations and globalization becomes the key to all long-term, large-scale growth. Overall this was a very interesting article. Globalization will continue, and thinking globally is quickly becoming an absolute must. This of course explains the new focus of the school of business on global thinking and the fact that the title of our senior seminar is global strategy.
The term 'globalization' has been subjected to a variety of interpretations. Though at its simplest it can be seen as how the world has become integrated economically, politcally, socially and culturally through the advances of technology, communication and transport John Baylis et al. (2011).
Fulcher, James. "Globalisation, the Nation-state and Global Society." The Sociological Review 48.4 (2000): 522-43. Print.
For Caterpillar Inc. to explore new geographic markets particularly in Asia, it has to have a good strategy at the corporate level. At this level, decisions such as resource allocation, which markets to explore, and which products or services to develop are made. With regard to resource allocation, the focus needs to be on aspects such as how equipment, staffing, and cash will be distributed in the indentified markets. In addition to these, the corporate level also has the mandate or responsibility of deciding whether new services or products need to be added to the exi...
...each into the international community. This is evident in the types of nationalism I’ve explored, both new nationalism and cosmopolitanism. They are opposing views of what nationalism is or can become in the future, but both have qualities that allow smaller nations to continue their existence in the international society. I have inadvertently expressed my opinion that nations are structurally political and that it is in the interest of their leaders to appeal to their unique traditions in order to maintain their power. Either way, the choice between these two approaches rests on the hands of the nation and its relationship with the international society. Globalization does not hinder the existence of the nation but rather helps it establish a place in the structure of power in a world which is still dominated by politically and economically dominant super powers.
Hill, C., Wee, C. and Udayasankar, K. 2012.International Business:An Asian Perspective. 8th ed. Singapore: McGraw-Hill.
We say that we are heading toward a more global economy because of the fact that competition in today’s markets is global. This means that corporations in the United States can compete in foreign markets and vice versa, therefore U.S. corporations and foreign corporations become interdependent and thrive off each other. This can have a good impact on the United States because it allows U.S. corporations to seek materials and labor outside of the U.S. in countries such as China, India, and Mexico, where workers are paid a lot less money than U.S. workers, thus allowing them to sell their products for significantly cheaper than if they were produced in the U.S.; however, the tradeoff is that many American workers in the industrial sector lose jobs due to this shift of labor to overseas. In the long run this will be beneficial for the U.S. and although some percentage of workers are losing work, new jobs in the services sector, in fields such as computer technology, telecommunications, and language skills are opening up and experiencing growth because of this change.
Globalisation can be construed in many ways. Many sociologists describe it as an era in which national sovereignty is disappearing as a result of a technological revolution, causing space and time to be virtually irrelevant. It is an economic revolution, which Roland Robertson refers to in his book ‘Globalisation’ 1992 pg 8, as “the compression of the world and the intensification of consciousness of the world as a whole”. It is argued that globalisation allows the world to become increasingly more united, with people more conscious of ethnic, societal, civilizational and individual aspects of their lives.
Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
“The world is a global village”, is a metaphor that was coined by the Canadian scholar Marshall McLuhan to describe the perceived experience of a smaller world resulting from the effects of modern technology, faster communication and improved transportation, despite geographical boundaries (1). The various processes that have produced this phenomenon can be called globalization. There are many definitions of the term globalization; Delbruck 1993 defined globalization as "a process of denationalization of markets, laws and politics, in the sense of interlacing people and individuals for the sake of common good"(2). Fidler 1996 aptly described globalization as a complex process of, “political and economic intercourse between different sovereign states” on the premise that such interdependence will result in states being better off and as such building stability, peace and order in the international scenario(3). Globalization has resulted in a gradual erosion of the traditional distinction of national and international activities through political, social and economic interaction between different countries, leading to a fusion or overlap of domestic and foreign policies(4). However, globalization differs from internationalization, the latter referring to a process where each country attempts to fulfil their national interest by co-operating with other countries in areas where they are incapable of achieving desired outcomes on their own(3) . Its key points are co-operation between states, while preserving sovereignty. Globalization on the other hand entails co-operation and undermines the sovereignty of nations.
... policies. People will continue to suffer in silence because of the world’s greed. So, while we enjoy our cheaply made goods and over consume the planet into demise, we never know of choose not to know the pain that went into the productions of those goods. Globalization may be championed as a gateway to financial growth for all nations, but only certain nations benefit from it. Global trading and integration has a negative effect on undeveloped nations and developed nations in many ways including; political systems, sovereignty, economy, way of life and much more. Earlier in the essay I asked ‘do the pros outweigh the cons when it comes to globalization’ and from my research I don’t see any real benefit. I don’t believe we should eliminate global business, but better the already lacking regulations and probably increase the standard of living equally for the world.
Global knowledge is the world’s leading form of knowledge to support and prepare students, teachers, leaders, parents and many others as they adapt to various transformations around the world. Global knowledge is presented and introduced by various means and resources. Various programs are designed to help students, leaders, parents, teachers and many others to function in a global knowledge society. Global knowledge is effective when it is delivered by qualified, knowledgeable and caring instructors. Once a qualified leader is in charge of a team or group he / she will deliver continuous learning, support, public training, workshops, private trainings, etc. the process will be in place.
“Education is what remains after one has forgotten what one has learned in school” this quote by Albert Einstein states the importance of education, its influence on our daily lives and its power over all other devices. My teacher once asked me what’s easier, to remember or to forget? I answered confidently “to forget” but he made me realize I was wrong, I can never forget the alphabet “a” for example even if I try erasing it from my memory; moral of the story is that education will stay with you for the rest of your life.
India is a nation that is on the move towards becoming one of the leaders in the global economy. While the country still has a long way to go, it is making significant strides towards competition with nations such as the United States and England. Indian leaders have been moving towards "a five-point agenda that includes improving the investment climate; developing a comprehensive WTO strategy; reforming agriculture, food processing, and small-scale industry; eliminating red tape; and instituting better corporate governance" (Cateora & Graham p. 56, 2007). These steps are geared to begin India's transformation from a third world nation into a global economic leader. The current marketing environment in India is in transition, with both similarities and differences in comparison to the marketing environment in the US.
Although we all enjoy the advantages that globalization has made way for, we cannot disregard the negative effects it has had on the world. It’s easy to understand how businesses may benefit from a global market in some ways, but to me it is far more important that jobs not be loss as a result of globalization. Many different factors contribute to the exploitation of developing countries and has caused many issues for them economically. In spite of the fact that free trade increases opportunities for trade internationally, it also increases the risk of failing for small companies in undeveloped countries that cannot compete on an international level. I cannot definitively say that globalization itself is completely good or completely bad, however I do believe it has caused great losses for the poor and middle class.
Baylis, Smith and Patricia Owens. 2014. The globalization of World Politics: An introduction to international relations. London. Oxford University Press.