StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Nobody downloaded yet

The Role of Globalization in the Development of Firms Competitiveness - Term Paper Example

Comments (0) Cite this document
Summary
"Role of Globalization in the Development of Firms’ Competitiveness" paper states that despite the forces of globalization, locality advantage remains the key determinant of competitiveness’. The paper identifies whether the evidence from corporations and specific industries supports this view. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.9% of users find it useful
The Role of Globalization in the Development of Firms Competitiveness
Read Text Preview

Extract of sample "The Role of Globalization in the Development of Firms Competitiveness"

Download file to see previous pages The power of firms within their local market defines their potential to compete effectively the other firms that operate within the same sector in the international market. The fact that despite the existence of many multinationals, local firms have often more powerful presence within the market of a specific country that supports the above view. As an example, we could refer to the supermarket industry and the case of UK where Tesco, a firm that is well expanded across the country dominates the country’s relevant market despite the fact that there are other firms within the same market that have become international, like the case of Marks and Spencer. Indeed, in accordance with a series of current data (the most current available) published by the Guardian (see Appendix section, Figure 1) Tesco dominates the British supermarket sector with a significant difference from the second most powerful competitor (26% for Tesco and 17% for Asda). In other words, locality and national advantage keep on remaining a fundamental criterion for the competitiveness of a firm. Globalization can help the firm to acquire a more active presence within the international market but not necessarily to achieve a higher rate of growth or to increase its competitiveness, especially in the national market.

Globalization is a phenomenon well expanded around the world. Regarding specifically the business activities, it is stated by Mueller (1994, 407) that ‘multinational companies have been effective in diffusing best practices across borders: one implication is that organizational and globalization effects may complement or even counteract the societal effect’. On the other hand, the global market could be represented using a series of schemes. The most known study regarding globalization and its effects on business are one of Porter.  Indeed, in accordance with Porter (1998, 77) ‘today's economic map of the world is dominated by what are called clusters: critical masses - in one place - of unusual competitive success in particular fields.   ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Role of Globalization in the Development of Firms Competitiveness Term Paper - 1, n.d.)
The Role of Globalization in the Development of Firms Competitiveness Term Paper - 1. https://studentshare.org/business/1711006-despite-the-forces-of-globalization-locality-and-national-advantage-remain-the-key-determinants-of-competitiveness-does-the-evidence-from-transnational-corpo
(The Role of Globalization in the Development of Firms Competitiveness Term Paper - 1)
The Role of Globalization in the Development of Firms Competitiveness Term Paper - 1. https://studentshare.org/business/1711006-despite-the-forces-of-globalization-locality-and-national-advantage-remain-the-key-determinants-of-competitiveness-does-the-evidence-from-transnational-corpo.
“The Role of Globalization in the Development of Firms Competitiveness Term Paper - 1”. https://studentshare.org/business/1711006-despite-the-forces-of-globalization-locality-and-national-advantage-remain-the-key-determinants-of-competitiveness-does-the-evidence-from-transnational-corpo.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Role of Globalization in the Development of Firms Competitiveness

Globalization and Economic Development

...? Globalization and Economic Development GLobalization and Economic Development The products and services each country and its people produce and provide are essential for its survival as a nation. Excess capacity translating to excess production normally earns for the country revenue from exports to another country. Conflict arose when these products are in direct competition with the incoming products. In this regard tariffs or taxes are normally increased on the incoming products to ensure that the local producers are protected. This scenario will result to an increase in price for the incoming product that will provide protection for the lower untaxed priced of the local product. However, extra legal means of bringing products...
3 Pages (750 words) Essay

Development and Globalization

... Development and Globalization Question The development of a country can be measured using a number of different approximation methods. However, use of GDP as a measure of development has been found to be inappropriate. This is because; scholars assert that estimation of GDP growth involves a lot of inaccuracy and untrue data. For instance, in the year 2008, the data provided by the GDP about the recession was later proved to be wrong and inaccurate by economists. Therefore, measurement of the GDP involves many errors which at times are meant to give a better and positive picture to economists (Roberts & Hite, 2007, 6). Estimation of GDP growth also leaves out a lot of information, which might be useful in measuring the development...
7 Pages (1750 words) Term Paper

Competitiveness and Globalization

At the point of establishing chains of restaurants, the main idea that was in the mind of the entrepreneur Steve was that, as a place of fast foods, the restaurant needed not to be quite expensive but, more accessible and affordable to most of the consumers. As such, when Steve commissioned the opening of the first of such restaurants in Denver in the year 1993, it became a great hit in the marketplace, and the majority of consumers were pleased with the services offered. According to the report, Chipotle grew in operations from a 1-unit restaurant to a 1,230-unit chain of restaurants that served in various parts of the country (41 states), and which managed to serve a daily customer base of about 800,000 people.
The reasons...
12 Pages (3000 words) Case Study

Community Development and Globalization

... Public Management (NPM) philosophy. NPM is oriented towards outcomes and efficiency through better management of public monies. It is achieved by introducing competition, to organizations in the public sector which is thought to enhance economic efficiency and promote leadership (Sanford 2000). As a result community development has undergone considerable changes in many advanced countries, including Australia (Miranda, 2005). The basic theme of the reform movement is based on greater decentralization and incorporation of market forces in the administration process that extends to the lowest levels, i.e. to the hierarchy of municipalities. The movement is rooted in the drive towards excellence in the face of globalization in the world...
10 Pages (2500 words) Essay

The Global Competitiveness of Firms

...The reasons why location has again become a critical issue in explaining the global competitiveness of firms BY YOU YOUR ACADEMIC ORGANISATION HERE YOUR COURSE/TUTOR HERE DATE HERE The reasons why location has again become a critical issue in explaining the global competitiveness of firms Introduction Companies which operate in the global business arena, regardless of their particular industry, must work within unique operating environments and be adaptable to whatever external trend drives their business strategy. For example, a fashion retailer headquartered in the United Kingdom, with multiple divisions in Europe and North America, will have to consider cultural trends for each geographic market and create promotional materials...
7 Pages (1750 words) Case Study

Globalization and development

...Globalization and Development Globalization and Development The economy of china has constantly grown over the last three decades. Its move from a developing country to a developed country was influenced by reforms that were generally experimental in nature but proved successful. China is now the fourth largest economy in the world and is an established world power (Rodrik, 2007). According to Guthrie, the success of China’s reforms is due to the fact that the state engineered most of these reforms and has maintained a strict approach to resource maintenance. This thought is similar to that of Rodrik who attributes the success of the innovations to government involvement. For example, the government liberalized agriculture at the margin...
1 Pages (250 words) Essay

Strategic Management Competitiveness & Globalization

...Globalization Professor Theodore Levitt of Harvard School of Business made a statement nearly twenty years ago. The globalization of markets is at hand. With that, the multinational commercial world nears its end and so does the multinational corporation (Levitt, 1983). There is a ring of truth is his foreshadow as the business world today is characterized by tumultuous developments. The Ford Company The Ford Company is an example of companies that have proven Levitt’s prediction right. The major global marketing strategy used by this company mainly has to do with technology. They diversify their technology frequently. Their appealing factor to global consumers is their constant manufacture of new bands of cars. The Ford Company always...
1 Pages (250 words) Essay

Globalization and its Impact on Firms

The Coca Cola Company, for instance, is one of the major multinational corporations operating in China as the leading market player in beverage drinks. In fact, the company holds nearly 16% of the total market share control of beverages in the Chinese market, which is a huge threat to the local players in the industry. The company is currently planning to spend $ 4 billion between 2015 and 2017 in the Chinese market in order to cut off the stiff competition it is getting from the here as the world’s most popular beverage drink market. This is just a sign of how much competition the local firms face from established multinational corporations. As such, apart from these firms coming into the domestic market with huge outlays o...
8 Pages (2000 words) Assignment

Globalization: Characteristics of Global Firms

The research article by Fan & Phan is also an extension to the previous research work done on nature and the characteristics of the ‘born global’ firms. Born global firms are defined as business entities which chose to go international soon after their inception (Rasmussen & Madsen, 2002). The article wishes to explain the economic factors behind the decision of the firms to go international at such an early stage.
The article also explains the effect socio-cultural factors on the decision of the born global firms. These factors can play a major role in a firm’s production in local and international markets. The article has tried to explain that born global firms are not alien and their decisions...
11 Pages (2750 words) Term Paper

Strategic Management Competitiveness and Globalization

...Report for Sustainable Global Enterprise Abstract Apple Inc. was incorporated in 1976 together with its subsidiaries. The company is mainly involved in the designing, manufacturing and marketing of mobile communication and media gadgets, personal computers, and portable digital music players. The company is also engaged in developing and selling a broad range of related software applications, networking solutions, peripherals, plus third-party digital content. In the year 2011, Apple Inc. acquired Nortel Networks Corporation’s Patent portfolio. In 2012, Apple Inc. acquired app-search engine Chomp. Apple has incorporated sustainability goals in its operations, allowing the company to substitute energy and carbon-intensive processes...
6 Pages (1500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic The Role of Globalization in the Development of Firms Competitiveness for FREE!

Contact Us