B.E Global is at Ion New

8/8/2019 B.E Global is at Ion New

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GLOBALISATIONGLOBALISATION

SUBMITTED BYSUBMITTED BY

MANISHAMANISHA

MEHAKMEHAK

LOVEPREETLOVEPREET


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CONTENTSCONTENTS

MEANINGMEANING

DEFINITIONDEFINITION

IMPORTANCEIMPORTANCEDRIVERSDRIVERS


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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.


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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


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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)


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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)


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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..


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Mutual interdependence among nation-Mutual interdependence among nation-

states.states.

Flexibility of corporationsFlexibility of corporations


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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


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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


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Globalization DriversGlobalization Drivers

Market DriversMarket Drivers

Competitive DriversCompetitive Drivers

Cost DriversCost DriversGovernment DriversGovernment Drivers

Low

Multi-domestic

High

Global


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Market DriversMarket Drivers


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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.


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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.


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Competitive DriversCompetitive Drivers


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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.


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Cost DriversCost Drivers


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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


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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 )


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Government DriversGovernment Drivers


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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%)


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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.


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THANKSTHANKS

B.E Global is at Ion New

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