GLOBALISATION

WHAT IS A GLOBALISATION

A SET OF PROCESSES LEADING TO THE INTEGRATION

OF ECONOMIC, CULTURAL, POLITICAL AND SOCIAL

SYSTEMS GEOGRAPHICAL BOUNDARIES

WHAT IS A GLOBALISATION

AS PER IMFIMF GLOBALISATION REFERS TO “ THE

GROWING ECONOMIC INTERDEPENDENCE OF

COUNTRIES WORLDWIDE THROUGH INCREASING

VOLUME AND VARIETY OF CROSS BORDER

TRANSACTIONS IN GOODS AND SERVICE AND OF

INTERNATIONAL CAPITAL FLOWS, AND THROUGH

THE MORE RAPID AND WIDESPREAD DIFFUSION OF

TECHNOLOGY”

GLOBALISATION (OCCURS AT 2 LEVELS )

MACRO LEVEL

( i.e., GLOBALISATION OF THE

WORLD ECONOMY )

MICRO LEVEL

(i.e., GLOBALISATION OF THE

BUSINESS AND THE FIRM)

GLOBALISATION AT MACRO LEVEL

GLOBALISATION AT MACRO LEVEL MEANS INTEGRATION OF OUR

ECONOMY WITH REST OF THE WORLD. IT FOCUSES ON :

INTERNATIONAL COMPETITION

FREE MOVEMENT OF GOODS FROM ONE COUNTRY TO THE

OTHER

FREE FLOW OF CAPITAL AND TECHNOLOGY FROM ONE COUNTRY

TO THE OTHER

GLOBALISATION AT MICRO LEVEL

GLOBALISATION AT MICRO LEVEL IS IN FACT IS A WAY OF CORPORATE LIFE

NECESSITATED, FACILITATED AND NOURISHED BY THE TRANSNATIONAL OF

THE WORLD ECONOMY AND DEVELOPMENT OF CORPORATE STRATEGIES:

DOING OR PLANNING TO EXPAND, BUSINESS GLOBALLY.

DEVELOPMENT A GLOBAL OUTLOOK OF THE BUSINESS i.e., THROUGH MAKING

GLOBAL ORIENTATION OF ORGANIZATION STRUCTURE AND MANAGEMENT

CULTURE.

GLOBAL SOURCING OF FACTORS OF PRODUCTION.

PRODUCT DEVELOPMENT AND PRODUCTION PLANNING ON THE BASIS OF GLOBAL

BUSINESS DYNAMICS.

MACRO LEVEL AND MICRO LEVEL

• MANAGERIAL IMPLICATIONS

• THE NEED FOR ATTITUDINAL CHANGE

• CUSTOMER DRIVEN PHILOSOPHY

• QUALITY STANDARDS

• CORE COMPETENCE

MACRO LEVEL AND MICRO LEVEL

ACCORDING TO

MAGSAYSAY. STRATEGIC

ALLIANCES ON BASIS OF

STRUCTURED CAN BE

EQUITY BASED JOINT

VENTURES) OR NON-

EQUITY BASED

DRIVING FORCES OF THE GLOBALISATION PROCESS(ADAPTED FROM GLOBAL OPERATORS AND LOGISTICS PHILIPPE – PUIRE DERNIER, RECORDO

ERNST, MICHEL FENDER, PANOS KOUVELIES)

• GLOBAL MARKET FORCES

• TECHNOLOGICAL FORCES

• GLOBAL COST FORCES

• POLITICAL AND MACROECONOMIC FORCES

COUNTRY EVALUATION

1. COUNTRY IDENTIFICATION

2. PRELIMINARY SCREENING

3. IN-DEPTH SCREENING

• MARKET SIZE

• GROWTH RATE

• COMPETITIVE INTENSITY

• TRADE BARRIERS

4. FINAL SELECTION

COMPETITOR ANALYSIS

• STRENGTHS AND WEAKNESSES

– BRAND RECOGNITION/REPUTATION

– DISTRIBUTION CHANNELS AND RELATIONSHIPS

– KNOWLEDGE OF DOMESTIC MARKET

– GOVERNMENT PROTECTION

• SIGNALING

THE DIMENSIONS OF A GC

MARKETING STRATEGY

STRUCTURE

CULTURE

CORPORATE STRATEGY

VISIONARY LEADERSHIP

MANAGERIAL PROCESSES

ENTRY STRATEGIES

• EXPORTING

• JOINT VENTURING

• LICENSING

• FRANCHISING

• CONTRACT MANUFACTURING

• MANAGEMENT CONTRACT

ENTRY STRATEGIES

• ASSEMBLY OPERATIONS

• FULLY OWNED MANUFACTURING FACILITIES

• COUNTER TRADE

• MERGERS AND ACQUISITIONS

• STRATEGIC ALLIANCE

• THIRD COUNTRY LOCATION

INDIA AND GLOBALISATION

NEW ECONOMIC POLICY OF INDIANEW ECONOMIC POLICY OF INDIA

• TO REDUCTION OF FISCAL DEFICITS

• TO WIPE OUT DEFICITS IN THE CURRENT ACCOUNT

• TO CUT DOWN THE GOVERNMENT EXPENDITURE

• TO RATIONAL OF SUBSIDIES

• TO CONTROL OF INFLATION

• TO ALLEVIATE POVERTY AND

• TO ACHIEVEMENT OF SOCIAL EQUITY

INDIA AND GLOBALISATION

POLICIES AND REFORMSPOLICIES AND REFORMS

• REMOVAL OF LICENSING ON EXPORT ITEMS.

• CHANGES IN TAX POLICIES

• ABOLISHMENT OF FERAFERA AND INTRODUCTION OF FEMAFEMA

• ABOLISHMENT OF INDUSTRIAL LICENSING

• INTRODUCTIONS OF FINANCIAL SECTORS REFORMS

• INTRODUCTION OF PRIVATIZATION CONCEPT

FACTOR AGAINST THE INDIAN BUSINESS

• GOVERNMENT POLICY AND PROCEDURE

• HIGH COST

• POOR INFRASTRUCTURE

• OBSOLESCENCE

• RESISTANCE TO CHANGE

• POOR QUALITY IMAGE

FACTOR AGAINST THE INDIAN BUSINESS

• SUPPLY PROBLEM

• SUPPLY PROBLEM

• SMALL SIZE

• LACK OF EXPERIENCE

• LIMITED R & D AND MARKET RESEARCH

• GROWING COMPETITION

• TRADE BARRIERS

FACTOR IN FAVOUR OF THE INDIAN BUSINESS

• HUMAN RESOURCES

• WIDE BASE

• GROWING ENTREPRENEURSHIP

• GROWING DOMESTIC MARKET

• NICHE MARKETS

FACTOR IN FAVOUR OF THE INDIAN BUSINESS

• EXPANDING MARKETS

• TRANSNATIONALISATION OF WORLD ECONOMY

• NRI’s

• ECONOMIC LIBERALIZATION

• COMPETITION