Falling trade barriers, free flow of money across borders, growth in world trade among countries represent the trend known as globalization which has allowed the large organizations to expand overseas. The process of globalization has enabled countries to source raw materials from anywhere, produce anywhere and market their finished products anywhere in the world. …
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The emerging markets are those nations that are between the developed and the developing nations. Emerging markets present tremendous opportunities for all multinationals as the purchasing power in these nations has been steadily growing. The emerging economies now account for 30% of exports compared to only 20% in 1970 (Wadsworth, 2010). However, their strategies are shaped by forces beyond their control but they must evaluate the business environment before moving ahead.
To gain competitive advantage several theoretical perspectives are taken into account. The most commonly used analysis is Porter’s generic strategies (cost leadership, differentiation and focus). Porter’s generic strategies emphasize that only one strategy should be used at a time but others argue that a hybrid or a middle approach can be used (Baack & Boggs, 2008). Mintzberg et al (1998) suggest that the strategy should act as a mediation force between the organization and the environment. This implies that in a changing business environment the strategy too should be flexible enough and adapt to change. Organizations adopt a strategy suitable to its internal and external environment. A global strategy treats the world as a single unified and homogenized world but a localized approach becomes essential when formulating the strategy.
While McDonald's has achieved success through failures in localizing its product offerings, McDonald's has failed to respect the sentiments of the people. In Israel McDonald's has been accused of ‘Americanization’ and of disregarding long-established traditions and conventions. The Golani Brigade in Israel is a part of the Israeli military history. Moreover, this intersection in Lower Galilee has been named as Golani Junction as a mark of respect (Azaryahu, 1999). McDonald's intentionally ignoring and overlooking the local sentiments opened its restaurant next to the memorial. This became a controversial issue as the restaurant seemed to overpower the memorial. This suggests that local factors in overseas expansion cannot be ignored. Competitive advantage among nations can be ascertained based on Porter’s Diamond Model or the theory of competitive advantages which places innovation in the centre of the process of development and competition (O’Connell, Clancy & Egeraat, 1999). However, the national competitiveness does not depend upon the economy as a whole but can be industry-specific. Nations that possess such strengths gain prominence in the world market. India demonstrated definite advantages over other nations in the field of IT and hence gained immensely when foreign firms entered India. India made tremendous progress in the field of telecommunications and in development of IT parks. The Indian government had opened up the economy and brought about a lot of reforms that have made India conducive to investments. Low labor rates, low labor turnover, high quality of human resources and support from the government have all contributed towards the success of the IT sector in India (Gonsalez, Gasco & Llopis, 2006). Lack of environmental analysis (PESTLE) can lead to errors and omissions. The Uppsala Model of internationalization suggests that firms should start expanding in
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The Pros and Cons of "Globalization". Globalization cannot be considered as a sole concept that can be easily defined and covered within a set time frame. It is also not a procedure that can be described clearly with a commencement and an end. In addition to these, it cannot be explained upon with confidence and be appropriate to all the people and in all contexts.
This would involve taking sensible investment as well as financing decisions that would add value to the business. One of the core reasons for concentrating on shareholder wealth is that the businesses that are failed to do so may be taken over by other companies.
In the year 2003, the international retail sales were alone accounted for almost 7 trillion USD. The topmost 200 retailing organizations including Wal-Mart catered to 30% of global demand in the year 2003. The retail sales are usually determined by customer’s capacity and enthusiasm to purchase (Anand & Nambiar, n.d.).
Multicultural Organizations. Rapid economic globalization insists that organizations have to have the capacity to operate in diverse cultural settings. Community ceased to labor in a narrow-minded marketplace. Organizations and organizational processes are part of the worldwide economy.
The company that is the subject of this research is Wal-Mart As the largest retail store in the world with more than 20% market share in the United States of America only. Research shows that the success story of Wal-Mart actually starts with the perfect utilization of the core components of retail internationalization.
It cannot be described as a process neither with a beginning or a clear end. Furthermore, it cannot be applied with certainty to all individuals across all regions. Globalization involves integration of the economy, transfer of various policies and regulations across borders, knowledge transmission, cultural stability, relations, reproductions and power discourse.
Transnational companies, for instance, use international subsidiaries to advertise their goods abroad, and this makes sure that they are advertised appropriately. Also, transnational companies normally
the prominent characteristics in Third World Countries, where there maybe a record number of billionaires, but there is also a presence of a record number of people below the poverty line. India Brazil and China, three of the leading developing nations also figure in the highest
The company’s HR policies have to be suited so as to help the company in the long run and maintain the well being of the employees.
Globalisation has gained impetus in the last few decades and has majorly affected the multinational