The Promise of Global Business
With the obvious growth of technology in what seems to be a shrinking proverbial planetary topography, it would appear as though we already live in a world dominated by global business. To some extent, this is true; however, the general population fails to realize, whether it be due to its own naiveté or credulity, that the business world is only at the brink of realizing the new capacities in which all undertakings may be handled more efficiently or cost effectively if it is done with a global perspective. As with all new potential work systems, there are many obstacles to be hurdled. These are challenges that will not only be faced by business leaders and corporations, but also by the self-employed, entrepreneurs, and free-lance workers.
Businesses have faced a great challenge over the course of the last decade – keeping up with the internet. Just in the U.S., major retailers have found themselves competing in the ever growing online market. While online sales still don’t outshine their in-store sells on the income statement, they are at risk of losing their grasps on the market as online retailers like Amazon sell more online than its next 12 biggest competitors combined (Banjo). As online retailers continue to branch out to international markets, U.S. based retailers will face new challenges to maintain their relevancy in online commerce. However, “it’s useful to ask ourselves, ‘Just how global are we?’ before we think about where we go from here”, says economist Panjak Ghemawat. And the answer to that for now is only slightly. Nevertheless, for businesses who were passed in the last decade to reach the internet goldmines, it can be expected that reaching new international markets will happ...
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...y benefit others (those who reside in the areas that allow them to offer cheaper services).
Because of examples like this, I personally believe Ghemawat and Friedman were both correct in their assertions. Ghemawat discusses that while yes we are indeed globalized, it is at a very limited capacity. Friedman counters this stating we are more globalized than we realize, and it is only going to grow as time passes (Bricklin). As discussed in this essay, individuals and corporations who already have access to the technological advances and know-how to expand globally are doing so this very moment. They will continue to do so over the next decade and will meet great challenges, as well as rewards, while doing so. It may be a smaller percentage of the world than we realize that is undertaking globalization, but they’re doing so at a rate faster than ever anticipated.
Currently majority revenue is generated by store sales but online sales from the stores’ websites are increasing. With US dollar getting weaker, international sales from these US based websites are increasing too. This creates significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
Here and there individuals allude to globalization as a path for huge partnerships to command and impact the world economy. Globalization has a tendency to take away exceptional social assorted qualities by regularly driving western world values and plans on everybody. It additionally has lead to outsourcing in a few nations (the USA has seen this with organizations like Apple and Nike). Indeed the spread of AIDS and different dieses could be faulted for globalization.
To globalize means to “to extend to other or all parts of the globe; make worldwide” (Dictionary.com, 2010). While globalization is a fairly ‘new’ term, it is actually as old as our ancestors. The process was longer back then but, as they were discovering new foreign lands, they were bringing commerce and culture with them. Silks, spices and crops were traded along trade routes and opened new worlds of luxury and taste. Today, globalization has influenced our modern world far beyond those predecessors’ wildest dreams. The Western culture has infiltrated almost every corner of the globe. Its capital, infrastructures, knowledge, and talent can be found all over. It has a dramatic impact on India and China. These countries in turn, have also passed on their influence to other countries. It is a never-ending domino effect that circumvents the globe. Some of the Western influence has been intentional and negative but the overall effects are positive on countries economies and cultures.
Colgate toothpaste in Asia 1. What is the difference between a. and a. Identify the major strategic and ethical issues faced by Colgate in its partnership with Hawley and Hazel. In 1985, Colgate purchased a fifty percent ownership of the company Hawley and Hazel, a leading manufacturer of toothpaste in Singapore, Taiwan, China, Malaysia, and Thailand, in order to gain a foothold in the Asian market. This was an important business decision as Colgate felt Hawley and Hazel had valuable strategic assets, such as brand loyalty, customer relationships, distribution systems, and production systems (Hill, 2014, p. 224). It was easier and less of a capital risk for Colgate to acquire the firm in order to establish a presence in Asia without having to spend the resources to build their own manufacturing plant.
Globalization has several definitions, as Andrew McGrew underlines it. He uses four different ones in order to get a more complete definition. In this way globalization is defined as ‘the intensification of worldwide social relations which link distant localities in such a way that local happenings are shared by events occurring many miles away and vice versa’, ‘the integration of the world-economy’, the ‘de-territorialisation – or growth of supraterritorial relations between people’ and finally as ‘time-space compression’ (Giddens, 1990, p. 21, Gilpin, 2001, p. 364, Scholte, 2000, p. 46, Harvey, 1989, cited in Mc...
Based on these concerns, retailers in the international marketplace have their work cut out for them. But through proper education of consumers, and the ever-expanding growth of the infrastructure in many countries, the future seems to be leaning heavily towards using the Internet for many needs.
In the text Redefining Global Strategy, Pankaj Ghemawat discusses a method of indentifying the various differences that can exist between two countries, and that must be addressed when considering cross-border operations. This method is called the CAGE Framework. CAGE is an acronym used to describe the cultural, administrative, geographic, and economic distances that can exist between multiple countries. While methods of measuring physical and psychic distance have been already been incorporated over the last three decades, “… the CAGE framework takes a much broader view of distance, and has a much more solid empirical base.” (Ghemawat, 41) By exploring these four dimensions, a company can better plan their strategy when considering international expansion.
As recently as August 1999, the Boston Consulting Group stated that on-line retailing in Latin America will reach $77 million in 1999. This figure represents web sales earned by Latin American based e-tailers. The same report states that an additional $90 million in revenues will be earned by U.S.-based online merchants this year. This results in a total of $167 million in domestic and international ecommerce r...
Management in all business activities is portrayed as the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. This is done through effective planning, organizing, staffing, leading and directing plus controlling of an organization. (Business Maters, 2013). Whereas globalization of business depicts the change in a business from a company associated with a single country to one that operates in multiple countries while globalization is the changes in the world where one moves away from self-contained countries toward a more integrated country. (Study, 2003). As managers integrate into a wider and more globalized business environment comes the impact as explained herein.
Internationally the share of online sales in retail is growing, driven by the increased sales in existing online retailers as well as by the market entry and expansion by traditional bricks-and-mortar retailers into eCommerce (Hübner, Holzapfel & Kuhn 2016:256). Conversely, online retailers are accelerating their expansion into bricks-and-mortar retailing. One such example is the merger between Amazon and Whole Foods Markets, a $13.7bn agreement under which Amazon will acquire Whole Foods Markets in an all cash transaction. This deal accelerates Amazon’s establishment of a bricks-and-mortar footprint, allowing it to reduce delivery lead times and last mile delivery costs (Retailanalysis 2017).
There is no argument to fact that world is leading towards Globalization and the countries are becoming compatible to each other for resources. In real has world really become flat? Do international boundaries have been ignorable? The answer to this question is not easy. Soon after the book was realized it has received lot of criticisms The Washington Post called the book an "engrossing tour" and an "enthralling read". Nobel Prize-winning economist Joseph Stiglitz has criticized about Friedman in his book Making Globalization
One of the biggest challenges that a manager finds during globalization is to select the best way to identify a global demographic (Cuterla, 2012). The process of moving from a localized product to an international product is difficult. Environmental concerns are also a huge challenge for organizations. They have to make sure that they minimize the damage done to the environment while using their energy-creating resources. In addition to the benefits derived from tariff reductions, few small companies are able to afford the required finances to acquire these technological advances to continue in the twentieth century. Technological developments have made it possible to outsource services as well, big companies will send their manufacturing and to cheaper labouring countries. This forces major competition for smaller companies in less developed countries. Companies that are unable to do outsourcing will have to find cheap labour force which will burden the company‘s finances. They are faced by trade
What does “globalization” mean and how is the concept important to our understanding of a shrinking world? In his book, Global Transformations, Professor David Held delves beyond the basic expansion of interconnectedness one thinks of when discussing
First of all, Friedman talks about the different levels of globalization. There are 3 different time periods in which the society has differed and changed, bringing us to where we are today. Globalization 1.0, which took place from 1492 to 1800, was the first step to making the world flatter. The coming to America, and the industrial drive that came along with this is what most characterized globalization 1.0. The industry drive was about things such as manpower and horsepower, and how well we could utilize these in the world market. This caused the world to “shrink” a little bit, and become flatter. With the discovery of a new world, it broadened the area in which business was conducted, but the commonality of rule and trade caused the distance to be spanned more frequently. I think Friedman’s notions regarding globalization 1.0 is very accurate. The world in our terms began in 1492 with the discovery of North America. Once the area began to be inhabited and settled, there was much more worldwide interaction. Communications and trade between the American colonies and England increased, and this began a more stable business of worldwide association. I believe that Friedman’s theory is true, because the discovery of a land across the ocean for th...
Globalisation is a very complex term with various definitions, in business terms, “globalization describes the increasingly global nature of markets, the tendency for transnational businesses to configure their business activities on a worldwide basis, and to co-ordinate and integrate their strategies and operations across national boundaries” (Stonehouse, Campbell, Hamill and Purdie, 2004, p. 5).