Global is at Ion Lecture Nov2010

8/8/2019 Global is at Ion Lecture Nov2010

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What is globalisation?

Causes?

Effects?

Pros & cons?


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Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice HallBased on G. Yip, Total Global Strategy, Prentice Hall, 1995, chapter 2

Trade policies Technical standards Host government

policies

Global

strategies

Similar customer needs Global customers Transferable marketing

Interdependence Competitors global High exports / imports

Drivers of globalisation

Government

influence

Cost

advantages

Global market

convergence

Global

competition


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Global

strategies



Global market

convergence


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Global market convergence

Similar customer needs

e.g. Personal computersMobile phones

i-Pod

Global customers

EuropeAmericas

Asia

Africa

Transferable marketing

Global marketing

Local adaptation especially with car models


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Global

strategies



Cost

advantages

Global market

convergence


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Employees at a call centre in the southern

Indian city of Bangalore.


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Global

strategies




Cost

advantages

Global market

convergence

Global

competition


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Global competition

Interdependence

Global alliances car industry- airlines

- electronics

Competitors global

Top firms have #1 / #2 market shares in many nationsGlobal car makers

High exports / importsMany electronic products are made in China

Shoes are made in Vietnam

Home markets are disappearing


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Is my Toyota Corolla a Japanese car or?


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A global airline alliance:-


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Trade policies Technical standards Host governmentpolicies

Global

strategies




Government

influence

Cost

advantages

Global market

convergence

Global

competition


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Government influence

Trade policies

Falling barriers to tradeLiberalisation & deregulation

WTO / EU and trading bloc policies

Technical standards

ISO replaces national standards (BS, DIN, ASA)Computer software is international

Safety & quality standards:-

Pharmaceutical, aviation, automobile sectors

Host government policiesSensitivity is needed

National differences still exist


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7th Session of the WTO Ministerial Conference

in Geneva 30 November to 2 December 2009


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Argentina

AustraliaBrazil

CanadaChina

France

GermanyIndia

Indonesia

ItalyJapan

MexicoRussia

Saudi ArabiaSouth Africa

Republic of Korea

TurkeyUnited Kingdom

United States of America


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Trade policies Technical standardsHost governmentpolicies

Global

strategies




Government

influence

Cost

advantages

Global market

convergence

Global

competition


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How do these Drivers of Globalisation affect us?

Think of the 4 Cs:-

Competition is increasing

Costs must be reduced constantly

Customers are ever more demanding

Country differences are still important


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R Jones (2006) - Based on Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FTPrentice Hall

Based on G. Yip, Total Global Strategy, Prentice Hall, 1995, chapter 2


Global

strategies



The 4 Cs of globalisation

Government

influence

Cost

advantages

Global market

convergence

Global

competition

Country

Customer

Cost

Competition


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Sources of CultureLanguage/s

Nationality

EducationProfession

Ethnic group

ReligionFamily

SexSocial class

Corporate or organisational culture

Culture

Based on Usunier (2000) Marketing Across Cultures, Pearson Education Ltd

Sources of Culture


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Global

strategies




Government

influence

Cost

advantages

Global market

convergence

Global

competition

Country

Customer

Cost

Competition

Culture


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Global

strategies




Government

influence

Cost

advantages

Global market

convergence

Global

competition

Country

Customer

Cost

Competition

Culture Converging technologies,

E-business


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Global

strategies




Government

influence

Cost

advantages

Global market

convergence

Global

competition

Country

Customer

Cost

Competition


E-business


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http://www.bankofengland.co.uk/monetarypolicy/assetpurchases.htm


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Global

strategies



More Cs of globalisation

Government

influence

Cost

advantages

Global market

convergence

Global

competition

Country

Customer

Cost

Competition


E-business

Creditcrunch Currency


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Global

strategies




Government

influence

Cost

advantages

Global market

convergence

Global

competition

Country

Customer

Cost

Competition


E-business


Collaboration

Common

platform


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http://unfccc.int/essential_background/feeling_the_heat/items/3157.php


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policies

Global

strategies




Government

influence

Cost

advantages

Global market

convergence

Global

competition

Country

Customer

Cost

Competition


E-business


Climate

change CO2

Collaboration

Common

platform


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Based on G Yip Total Global Strategy Prentice Hall 1995 chapter 2


policies

Global

strategies




Government

influence

Cost

advantages

Global market

convergence

Global

competition

Country

Customer

Cost

Competition


E-business


Climate

change CO2

Collaboration

Common

platform

Copenhagen

Documents

Global is at Ion Lecture Nov2010