Globalization and the Impact on Successfully Handling a Flat World - Case Study Example

Globalization and the Impact on Successfully Handling a Flat World Introduction       This discussion explores the effects of current economic globalization through informing features of Unilever, a transnational corporation. This organization is a stakeholder in globalization with advanced capabilities entrenched in information technology and digital information throughout the world (Travica 2010, p. 1). Globalization has been known to shape the future of many people across the world in terms of financial independence and also long term job security (Jones 2010, p. 1). It is also observed that most transnational corporations that do not have good marketing strategies or export competition to stay afloat lead to an imbalance in global economy because many people across the world will be laid off and the overall economy will drop (Ketels 2010, p.1). This discussion will focus on marketing strategies in terms of globalization of Unilever in the next three years. Travica (2010, p. 2) suggests that transnational corporations employ the use of international cuisine, cultural domain, shared utilization preferences and also lifestyle which is becoming universal due to a flat world where everyone across the world can engage in a global competition for job opportunities to make larger returns. A flat world is a world that has been leveled for people from different backgrounds worldwide to compete for common resources due to computer literacy, networks and also transnational corporations.       The internet, TV networks and films communicate globally to serve purposes that are motivated by commercial interests. There are countries that have strong cultural, economical and political base while some countries have weaker bases but transnational corporations makes sure that a flat world plays by the same rules of survival of the fittest, competition and speed. People from different parts of the country are able to compete for different resources at real time because of advanced computer, networking, e-mails and teleconferencing skills and experience. Definition       Globalization is the collection of all information centers worldwide and putting them together as a solitary global network which ushers an era of innovation and prosperity. Transnational corporations such as Unilever will expand its market share from local to global by selling the same products in different countries. This does not only improve profits and international relations but it also creates job opportunities in developing countries and also contributes to the rise in global economy. Harvard Business School (HBS) (2010, p. 1) faculty discussed that globalization is made possible by the existence of advanced computer technology, the Internet and universally acquired skills to supply and sale products to different people with the same preferences worldwide. Computers and Internet connection makes people communicate with others using video conferencing which is cheaper than making an actual business trip to meet stakeholders.       A flat world by definition is a world that has distributed its resources, information and skills to different countries so as to improve global economy. A person who is in India has the same expertise maybe even more than a person who is born and raised in the UK due to transnational corporations and extensive skills that have been introduced to third world countries (Mortensen & Neeley 2009, p. 1). Labor in third world countries have the same skills and experience as anyone across the developed world but the living expenses for such people is low. Recommendations to the Board on Globalization as a Marketing Trend The first step Unilever needs to take while making their products available for a global market in the first three years is to study the culture of a country before setting up bases. Cultural aspects of a country are very important because there are countries that do not invest in beauty products because of traditional beliefs. When studying the cultural aspect of a country, Unilever can either incorporate some cultural aspects into their business or look for countries that have cultural diversity. Unilever should also search for countries that have political stability (Malhotra 2011, p. 1). Most countries that experience civil unrest have high cases of vandalism and looting which will be a great loss to Unilever. Politically stable countries ensure that multinationals trade in safe markets with inspired employees (Chaundhary et al. 2011, p. 1). The next step is to set up premises in the most busy areas or towns. Urban centers are considered to be considerable when Unilever wants to reach a larger target group (HBS 2011, p. 1). These premises should meet the standards of the country’s construction rules. Many commercial buildings are set up at the heart of a country or town to meet the needs of many people at the same time. Advertising and job interviews should be carried out to get the most specialized work force. The education system in many countries differ but the when Unilever will be hiring; they will train employees on how to handle products and services while working for the company. Consumers are fully aware of the products being sold and also because many countries will adopt International Financial Reporting Standards (IFRS) for the sake of good global business relations (Ramanna & Sletten 2010, p. 1). Unilever should use project in controlled environment (PRINCE2) system in order to manage the workforce, achieve key objectives and also minimize the risks. Processes directed towards adding value to Unilever should be followed in stages to have high profits. Risk management is very important because it reduces the severity of a risk in the company in case it occurs. Some risks can be identified while others are unforeseen. Both these risks must be managed with a risk management plan put into place because in business risk is inevitable. Unilever should also venture into countries that provide cheap labour from skilled workers (Alfaro & Chen (2009, p. 1). Cheap labour means that funds for managing Unilever in new countries will be effectively managed for expansion into other neighbouring countries. Constant upgrade of products will be resourceful to Unilever in countries that adapt quickly to change. According to Pisano and Shih (2011, p. 1), research should be carried out on a yearly basis to find out what consumers want from the products being sold and how much money they are willing to spend for such products. Reasons why Globalization is Important to Unilever       Unilever has monopoly over other competitors or retail companies that are planning to rise. The fact that labor is cheap in developing countries such as India, China and Africa, Unilever will have an upper hand when it comes to manufacturing of products and employees’ wages in new markets. There are countries that do not hire women because of cultural reasons and this is an advantage for Unilever to give these women a chance to help in nation building (Siegel 2010, p. 1)       Globalization develops good international relations because of the commercial interests both the corporation and the government derive from this business venture. This type of relationship will ensure that other companies also set base in the third world countries because of their contribution into improving the living standards of local citizens (Khanna 2010, p.1).       Globalization is important when it starts early because the world is going to an era where it will be a solitary community sharing the same cultural beliefs, social and political aspects. English as universal language is encouraged because workforce will be able to communicate with different clients across the world efficiently (Neeley 2010, p. 1). When the world has shaped itself into a universal market, many corporations will be fighting for space and clientele in the global market (Alfaro et al. 2010, p. 1). Impact of Globalization on Unilever       Unilever is a cosmetics and soap manufacturing industry that has ventured into new markets because of social and economical similarities throughout the world. Famous actors, actresses and even musicians have a great impact on what people will buy as cosmetics. When Unilever has ventured into other desirable foreign markets, the amount of profits it will make due to a wider target group will be incredible (Abdelal 2010, p. 1). Most transnational corporations are afloat because of the kind of returns they make and competition (Bloom 2010, p.1). Unilever’s Positioning and Target Group       Urban areas are places which are developed and people actually buy Unilever products on a daily basis from different commercial premises (Bernstein 2010, p. 1). These areas are also where local and international tourists gather for entertainment and also business trips. The chances of people purchasing Unilever products in urban areas are higher than when business is in the countryside that does not practice International Financial Reporting Standards (Ramanna & Sletten 2010, p. 1). The target group of Unilever products should not be in age, gender or income level but the drive that makes people buy these products. Unilever needs to find out why their products are important in the lives of consumers because this is the drive that makes a person budget for the products like other basic needs. Unilever’s Strategy to Deal with Changes Global economy in 2010 dropped drastically due to natural disasters in major towns. Unilever is faced with such challenges where the company has to lay off a percentage of its employees in order to stay in the market. This is a good choice for corporate even though there are employees who will be greatly affected. Changes in technology also mean that employees have to be taught about new systems and also new software has to be bought. This means that Unilever will be forced to hire people who have these newly acquired skills or train employees who are not resistant to change. Conclusion       Globalization is an important marketing trend for transnational corporations when they want a larger market share and also cheaper labor. Unilever has already penetrated into some foreign markets with its products. There are however countries that have not yet experienced the good products that Unilever has to offer in affordable prices. Third world countries make a lot of money from transnational corporations and also get job opportunities for their citizens. 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