...At the roots of globalization there are a lot of mechanisms conected with economies of scale. The higher border of demand and bigger problems with knowledge and capital using in high developed countries went far towards some solutions for easier entries to different markets. That is why countries deleted administrative and economic borders limiting competition. Free flow of information, ideas through the world, caused that some values, lifestyles, consumption models are common for some nations. That is why customers needs are higher and higher and similar (unified) – califionisation of needs. It means that consumers have a lot of information about level and style of life in the richest countries, they want the same in their mother country. That is why we have some global products for every customer (coca cola, pampers, cars). General results of globalization 1. New division of the world; - information revolution and very fast technical development, create new opportunities for developing countries, economies, companies, and people. But not every country is able to use these opportunities on the same level. It depends on the level of social-economic country’s development. It is called Triad Power: bigger technological, economic, social and cultural integration is present among three most developed regions of the world: North America, west of Europe, east and south-east Asia.- it is a center of the world. (highly educated people, good organization of their work, capital) ...
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...popularization of globalization, more firms prefer to enter the emerging markets, like China, to search for the higher return. However, resulted from the studies segment, there is not an exact theory or study can be regarded as guidelines for these internationalizing firms. Overall, Michael Porter’s theory on national completive advantage is a better theory to be adopted by the international firms which want to select a better country for new entry. The dominance of Porter’s theory are its comprehensiveness, the dynamic Diamond theoretical system and analysis form both inductive and deductive sides. Meanwhile, it is at a disadvantage in its assumption. Thus, this essay will explore both sides of Porter’s theory. Porter's model includes four key elements. The Diamond model is depicted as figure 1, where the four forces jointly constitute a firm's global competitiveness in a given industry ( Porter,1990) Source: Porter (1990) The Competitive Advantage of Nations. The first element of the model is known as factor endowments, which is the centre of the Heckscher-Ohlin theory (Hill, 2013).Porter subdivided factors into basic factors (e.g. natural resources and location) and advance ones (e.g. technology infrastructure and skilled labor). Although the limited basic factors can cause an initial disadvantage, more advanced factor conditions in the home market will positively...
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...Lesotho Case Study “Market and Mountain Kingdom” Bob Terry 10/8/2012 Wk 7Assignment Globalization & Regionalization Globalization is international integration of cultures, people, products, beliefs, and much more. Globalization makes goods and services available to locations that originally wouldn’t have them. Some of my favorite restaurants are Brazilian Steakhouses like Texas de Brazil and Fogo de Ciao. These restaurants would not be offered in Denver Colorado without globalization. Globalization has increased greatly over the past century due to advancements in technology, particularly in transportation and knowledge sharing (internet). These technologies have ingrained globalization in the modern era. Regionalization is the economic integration of countries. Some good examples of these are the North Atlantic Free Trade Organization (NAFTA) and the European Union (EU). Both of these agreements take countries that are in similar regions and in certain economic ways. All countries in the EU have the same currency which creates certain benefits but has also created economic disaster for many countries involved. The goal of regionalization is to benefit all countries involved and become stronger globally as a whole. These two forces have had tremendous impact on the small African nation of Lesotho. Foreign influences have shaped Lesotho throughout history and currently determine their economic factors today. Most recently trade agreements have made Lesotho dependent...
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...billion people which is expected to reach 10 billion by 2050 according to the latest projections prepared by the United Nations. Global wealth is increasing and this is reflected in higher demand. Increasing affluence and commercial dynamism has seen nations across Asia, Central and Eastern Europe emerge as high growth economies. Increasing affluence and demand simply means that consumers will actively seek choice, with the result that globally competition is intensifying as companies compete to win the battle for disposable income. Population growth and increased affluence together have helped create a ‘global youth culture’ – teenagers now account for 30 per cent of the population globally. In many countries, more than half the population is pre-adult, creating one of the world’s biggest single markets, the youth market. Everywhere adolescents project worldwide cultural icons, Nike, Coke, Gap and Sony Walkman, as well as Sega, Nintendo and the Sony Playstation. When ‘virtual reality’ is commonplace, the one-world youth culture market will exceed all others as a premier global market segment. Parochial, local and ethnic growth products may face difficult times. Older consumers are also increasingly non-national in their identity, if not in their personal identity then from the perspective of the consumable fabric of their lives. They drive international cars, take foreign holidays, watch international programmes on television, use international...
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...success. These forces in “the environment of business” differ among nations and over time, continually confronting the firm with new issues that require modifications in strategies and management practices. Managing in the context of turbulence has become an ongoing reality. Readers will learn how to modify their strategies and management practices and adapt to this new reality. SOCIAL FORCES The subject of ethical codes and CSR crystallizes many social challenges. At the one extreme are those who, like Milton Friedman (1970/2001), advocate the guiding principle of shareholder value maximization as the sole determinant of managerial decisions. At the other extreme are those who expound an altruistic philanthropy based on philosophical beliefs concerning universal ethics, such as those related to human rights. Within this range of perspectives, many authors offer distinct typologies for analyzing social forces and for developing appropriate firm responses to each set of social forces. Meanwhile, the rise of activist groups who threaten public criticism and boycotts means that even Friedman’s dictum of maximizing shareholder value now requires a wide range of CSR strategies. Some analysts, such as Porter and Kramer (2006), believe that each firm should create a competitive advantage through appropriate CSR strategies. From this perspective, CSR morphs into political strategies through which a firm’s reactions can be designed in order to achieve desirable government decisions....
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...Organizational Change management for competitiveness edge in Safaricom Kenya limited Introduction: In today’s uncertain economic climate, many organizations are forced to make changes in order to survive. They are needed to react quickly to the global revolution while at a local and national level have to keep up with new technology and competition if they want to stay ahead of the game. In an ever-changing global economy, Johnson and Scholes (2003) notes that organizations must find ways for operating by developing new competences as the old advantage and competences gained is quickly eroded owing to environmental changes. Because of the fact that changes are a necessity in private as well as public sector, every organization must change with the environment otherwise, it would become irrelevant. Kotter (2007,p 101) observes that changes in the service institutions arise out of the need for efficiency, economy, effectiveness, performance evaluation ethics and market concerns. Rising demand for services and expectations of quality of those services have placed extreme pressure on managers and their organizations, depicting change as a continuous episode in the life of corporations. This implies that an organization that fails to introduce their planned change successfully pays a high price. Failure leads to loss of market position and credibility with stakeholders as well as decreased morale among management and staff resulting in a de-motivated workforce...
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...“Creativity plays an important role in economic competitiveness of advanced economies” Introduction This report will look at how the concept of creativity and innovation are significant to Asos and what stimulates Asos to implement creativity and innovation into their operations. The report will also discuss challenges that the business is facing to sustain a competitive edge and how Asos organizational culture foster creativity and innovation in the workplace. To finalize the report a comprehensive conclusion will be discussed whether creativity and innovation play an important role in economic competitiveness of advanced economies. “ASOS is a global online fashion and beauty retailer and offers on the ASOS.com website over 50,000 branded and own label product lines across womenswear, menswear, footwear, accessories, jewellery and beauty with approximately 1,500 new product lines being introduced each week.” (1) Managing change in organizations Businesses within the 21st century are faced with constant change which affects the traditional organisational structure and the way people work, which forces companies to be highly adaptable to unforeseen changes. For example change within Asos helps them to identify the areas of their strong and weak points, which enhances their productivity and efficiency. Change aids to predict challenges that could affect Asos operations by reacting to it effectively in terms of how big and radical the change is and how many parts of...
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...to discuss and evaluate the attractiveness of the food retail industry in India. Research on the Indian food retail industry will be executed to construct an analysis of the overall competitiveness and investment attractiveness. In Part 1, the researcher will apply the extended version of Porter’s National Diamond (PND) model to the Indian food retail industry. In Part 2, two key management issues will be taken into account and analysed before developing any further operations into the Indian food retail industry. In Part 3, two market entry strategies will be selected, compared, and discuss the advantages and limitations of each to determine the optimal strategy to be implemented in regards to the Indian food retail industry. 2.0 Part 1: PORTER’S NATIONAL DIAMOND ANALYSIS India has experienced significant social and economic change as of late, enabling a solid consumer market for foreign retailers. According to UNICEF, the Indian economy has been booming, with an average GDP growth rate of 4.5% from 1997 to 2007 (Mann & Byun, 2011), and is anticipated to be the world's third greatest economy after the USA and China by 2050. When market size, development prospects, and consumer wealth and preparedness are considered to determine the retail food index, India falls within the main five nations (Mann & Byun, 2011).This spell of flourishing has come...
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...more efficient than small-scale production and leads to greater profits, which drive further efficiencies, including more advanced technology. Some political scientists say free trade improves national security by making nations so economically interdependent that armed conflict becomes an increasingly remote possibility. Furthermore, some say that the right to labor includes the right to engage in some degree of market capitalism that includes trading with the partners of one's choice, irrespective of national borders. As individual entrepreneurs pursue their own self-interest, they accumulate capital that can be used to subsidize the arts and culture within their communities. Sponsored Links GlobalSources.com Source For Verified Manufacturers & Wholesale Suppliers. Register Now! www.GlobalSources.com Arguments Against Opponents of free trade argue that the economic benefits of trade are outweighed by the hidden costs. For example, free trade tends to promote the formation of large business enterprises such as multinational corporations that accumulate profit at the expense of local, smaller enterprises. In addition, foreign capital can cut off young industries from blooming in developing economies, fostering a dependency on foreign businesses and potentially undermining the competitiveness of local firms. Additionally, some say that free trade undermines cultural diversity and can make some economies dependent on...
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... Chile, Thailand, Poland, etc. These emerging market countries are generally numerous population and they have a large domestic market that means the demand for goods and services are very big. Emerging markets has a free market system which is democratic system and the features is they open the door to welcome more foreign investment as well as the good promotion to improve the trade relationship between countries. Also, emerging markets drive growth in the global economy so they are very important. Although emerging market accounted for a certain size and influence in the global economy, emerging market still have challenges and risks. In this assignment, I selected Brazil to discuss the characteristics, challenges, the environment of economy and the impact of market factors. Global overview Brazil is the most influential country in South America which is rising economic power and it is one of the world’s biggest democracies. Brazil has natural resources especially iron ore that is highly prized by major manufacturing nations such as China. Brazil is the largest country in both South America and Latin America which is the fifth largest country in the world. For the geography, Brazil has a variety of ecological system and extensive natural resources in the large tropical forest, Amazon River basin. This unique natural resources make Brazil become the one of 17 megadiverse counties. For economy, Brazil is the ninth largest by nominal GDP and seventh largest by...
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...Pacific Island Nations PNG STUDIES AND INTERNATIONAL RELATIONS MAJOR PAPER PREPARED AND COMPILED BY JOHN STARLING IRO BUSINESS ACCOUNTANCY 4 DIVINE WORD UNIVERSITY FACULTY OF BUSINESS AND INFORMATIC DUE: 6th March 2015 Globalization and its impact on Pacific Island Nations PNG STUDIES AND INTERNATIONAL RELATIONS MAJOR PAPER PREPARED AND COMPILED BY JOHN STARLING IRO BUSINESS ACCOUNTANCY 4 Table of Contents Introduction3 1.0 The features of globalization 1.1 Economy…………………………………………………………………………………………………...4 1.2 Trade………………………………………………………………………………………………………...5 1.3 Communication and Technology……………………………………………………………….7 1.4 Environmental…………………………………………………………………………………………..8 1.5 Culture………………………………………………………………………………………………………9 2.0 Impacts of globalization on pacific island nations…………………………………11 3.0 The serious problem facing the world today…………………………………………13 3.1 Global warming……………………………………………………………………………………….13 3.2 Poverty, Disease, conflict and natural disaster………………………………………..14 4.0 How it affects the Government and people of Solomon Island……………..16 Conclusion……………………………………………………………………………………………………..18 Introduction Definition Globalisation is define as; “A process in which the economic, political & cultural separation between nations is breaking down & an international order is emerging” It is further define as the occurring in the economic, political & social realms which is the result of the dismantling of fixed boundaries around nations, cultures and economies”...
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...- Dimensions of market/country attractiveness ‘Fine-grained’ screening As the BERI index focuses only on the political risk of entering new markets a broader approach that includes the competences of the firm is often needed. For this purpose, a powerful aid to the identification of the ‘best opportunity’ target countries is the application of the market attractiveness/competitive strength matrix (Figure 7.4). This market portfolio model replaces the two single dimensions in the BCG growth–share matrix with two composite dimensions applied to global marketing issues. Measures on these two dimensions are built up from a large number of possible variables, as listed in Table 7.2. In the following, one of the important dimensions will be described and commented upon. - Market expansion strategies, incremental versus simultaneous entry A firm may decide to enter international markets on an incremental or experimental basis, entering first a single key market in order to build up experience in international operations, and then subsequently entering other markets one after the other. Alternatively, a firm may decide to enter a number of markets simultaneously in order to leverage its core competence and resources rapidly across a broader market base. Entry on an incremental basis, especially into small markets, may be preferred where a firm lacks experience in foreign markets and wishes to edge gradually into inter- national operations if a firm is small and has limited resources...
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...World Beer Industry The history of beer or ale can be traced back to 7000 years ago in today’s Iran. Over centuries, beer gradually has become a routine diet in every society. Today, approximately 182.69 million kiloliters beers are consumed globally every year (Kirin, 2011). The world beer annual consumption has been consecutively increased for 25 years since 1985. In 2010, the world beer consumption increases 2.4% compare to 2009. However, the beer consumption around the world is various from different regions. China has been consecutively the top one beer-consuming nation on the earth for eight years, consuming 24.5% of the world beer consumption. On the list of the world's 25 largest beer-consuming nations, Nigeria, India, and Brazil reached the highest growing rate of 17.2%, 17.0%, and 16.0%. Asia, Latin America, and Africa have strong demand for beer and lead the world consumption of beer in recent years. Asia was consumed 5.3% more beer in 2010 compare to 2009, has maintained increasing rate for 10 years consecutively, and a 33.6% share of the world beer market was taken by Asia. In China, the annual consumption of beer is 31.5 litters per capita (Kirin, 2010), where as in Czech Republic, the consumption of beer is 131.7 liters per capita per year (Kirin, 2010). The Czech Republic has been the top one beer-consuming nation in per-capita consecutively for 18 years. Even though the beer consumption per-capita dropped about 21.1 633-milliliter bottles in 2010...
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...Leading Culturally Diverse Groups Dave Park Leadership is important in managing and organizing the structure of the organization while trying to maintain a profitable company that takes into consideration employees, shareholders, customers and board of directors, etc. Another attribute of a great leader is managing diversity in the workplace. However, diversity includes many different issues and needs to be managed and if done properly can lead to competitive advantages for the company. Thomas A. Kochan, professor at MIT, stated “Diversity can enhance business performance only if the proper training is provided and the organizational culture supports diversity (Dubrin, 2010). Managing Cultural Diversity: Managing cultural diversity is not an easy task, however, when incorporated into the organizations core values, is makes it easier to incorporate (Dubrin, 2010). Below is a diagram that provides a breakdown of areas or issues that may need to be looked at to evaluate the possibility of creating and leading a culturally diverse organization. These areas may help to identify areas where a competitive advantage may be available in the organization. In such a culturally diverse world and as the organization makes decisions that will impact them globally, these discussions are vital for the success of the company. Whether not decisions are made to implement or not to implement decisions based on diversity within the organization, these ideas, may identify some of the...
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...Leadership is important in managing and organizing the structure of the organization while trying to maintain a profitable company that takes into consideration employees, shareholders, customers and board of directors, etc. Another attribute of a great leader is managing diversity in the workplace. However, diversity includes many different issues and needs to be managed and if done properly can lead to competitive advantages for the company. Thomas A. Kochan, professor at MIT, stated “Diversity can enhance business performance only if the proper training is provided and the organizational culture supports diversity (Dubrin, 2010). Managing Cultural Diversity: Managing cultural diversity is not an easy task, however, when incorporated into the organizations core values, is makes it easier to incorporate (Dubrin, 2010). Below is a diagram that provides a breakdown of areas or issues that may need to be looked at to evaluate the possibility of creating and leading a culturally diverse organization. These areas may help to identify areas where a competitive advantage may be available in the organization. In such a culturally diverse world and as the organization makes decisions that will impact them globally, these discussions are vital for the success of the company. Whether not decisions are made to implement or not to implement decisions based on diversity within the organization, these ideas, may identify some of the organizations strengths and weaknesses. (Cox...
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