During the past sixty years the business world has changed a lot. The globalization movement is one of the primary reasons for the changes. Organizations began to realize that in order to achieve growth firms had to expand beyond their domestic markets. If a country only has a population of one million this implies that the amount of potential customers is limited to the population of the country…
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The simplest and easiest globalization strategy to implement is exporting. There are two types of exporting: indirect and direct export. When a company begins to use exporting to achieve globalization they implement indirect exporting. Indirect exporting involves the use of intermediaries to introduce a product into a foreign market. One of the disadvantages of indirect exporting is that the profits have to be shared with the intermediary. The second type of exporting strategy is direct exporting. Direct exporting can be implemented in several ways. Four ways to implement direct exporting are: Domestic based export department or division Overseas sales branch or subsidiary Traveling export sales representative Foreign based distributors or agents (Kotler, 2003). A second market entry strategy is licensing. Licensing is also considered a relatively easy way to achieve market penetration into a foreign marketplace. In a licensing agreement the licensor licenses a foreign company to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or a royalty (Kotler, 2003). Due to the fact that a second party is involved in the process the profitability of this market entry strategy is lower than other options.
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(“Globalization Strategies Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
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(Globalization Strategies Essay Example | Topics and Well Written Essays - 500 Words)
“Globalization Strategies Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/other/1411029-globalization-strategies.
The company gradually after gaining much local publicity in Sweden endeavored to take over the world. It started spreading its branches among several European countries which started running successfully owing to the same cultural environment.
Thus, power can no longer be contained within formal institutions and has thus become an integral part of the global information network (Castells, 1999). Sassen (2001) says that while capital, technology and information are distinct, the global network of production and social space has produced a primary association between them.
Companies suddenly had more production available than what the local marketplaces could process. The globalization movement of the 20th century found a solution to the problem by providing businesses with different alternatives to achieve market entry. The four major market entry strategies available to business are indirect and direct export, licensing, joint ventures, and direct investment.
However, downsizing does not change the arrangement of businesses in organisation’s structure. It is a strategic process where reducing the workforce is a conservational or managerial occurrence which happens willingly and results in loss of organisation’s resource (Hitt & et.
Consequently, both developed and developing economies have experienced diverse effects on their social economic status because of implementation of these policies. In spite of the apparent adverse effects of downsizing and globalisation, corporations are widely applying these strategies.
The company is number one in the word in supply of sparkling beverages, ready to drink coffees, and juice drinks. The company has established its branches in over 200 countries across the globe, and it is estimated that the company serves at least 1.7 billion servings per day.
As can be witnessed from the above discussion, China and globalization are interrelated to each other. China has faced many difficulties in the way of adapting globalization wherein, its successful accomplishment of the targeted position has apparently influenced the global welfare tactics and trade related prospects of the nations in world politics.
According to the discussion organizations are required to deliver in terms of cost, quality, reliability and flexibility while keeping employees happy, machines operational and delivering products and services when and where the customer wants them at low prices and in a variable range of quantities.
Secondly, the article will describe how the firm standardized key processes across their global operations.” (2004, 1) The article proffers an exploratory case identifying processes that require standardization on a globalized market.
The authors started their