globalisation. what is a globalisation a set of processes leading to the integration of economic,...
DESCRIPTION
WHAT IS A GLOBALISATION IMF AS PER IMF GLOBALISATION REFERS TO “ THE GROWING ECONOMIC INTERDEPENDENCE OF COUNTRIES WORLDWIDE THROUGH INCREASING VOLUME AND VARIETY OF CROSS BORDER TRANSACTIONS IN GOODS AND SERVICE AND OF INTERNATIONAL CAPITAL FLOWS, AND THROUGH THE MORE RAPID AND WIDESPREAD DIFFUSION OF TECHNOLOGY”TRANSCRIPT
GLOBALISATION
WHAT IS A GLOBALISATION
A SET OF PROCESSES LEADING TO THE INTEGRATION
OF ECONOMIC, CULTURAL, POLITICAL AND SOCIAL
SYSTEMS GEOGRAPHICAL BOUNDARIES
WHAT IS A GLOBALISATION
AS PER IMFIMF GLOBALISATION REFERS TO “ THE
GROWING ECONOMIC INTERDEPENDENCE OF
COUNTRIES WORLDWIDE THROUGH INCREASING
VOLUME AND VARIETY OF CROSS BORDER
TRANSACTIONS IN GOODS AND SERVICE AND OF
INTERNATIONAL CAPITAL FLOWS, AND THROUGH
THE MORE RAPID AND WIDESPREAD DIFFUSION OF
TECHNOLOGY”
GLOBALISATION (OCCURS AT 2 LEVELS )
MACRO LEVEL
( i.e., GLOBALISATION OF THE
WORLD ECONOMY )
MICRO LEVEL
(i.e., GLOBALISATION OF THE
BUSINESS AND THE FIRM)
GLOBALISATION AT MACRO LEVEL
GLOBALISATION AT MACRO LEVEL MEANS INTEGRATION OF OUR
ECONOMY WITH REST OF THE WORLD. IT FOCUSES ON :
INTERNATIONAL COMPETITION
FREE MOVEMENT OF GOODS FROM ONE COUNTRY TO THE
OTHER
FREE FLOW OF CAPITAL AND TECHNOLOGY FROM ONE COUNTRY
TO THE OTHER
GLOBALISATION AT MICRO LEVEL
GLOBALISATION AT MICRO LEVEL IS IN FACT IS A WAY OF CORPORATE LIFE
NECESSITATED, FACILITATED AND NOURISHED BY THE TRANSNATIONAL OF
THE WORLD ECONOMY AND DEVELOPMENT OF CORPORATE STRATEGIES:
DOING OR PLANNING TO EXPAND, BUSINESS GLOBALLY.
DEVELOPMENT A GLOBAL OUTLOOK OF THE BUSINESS i.e., THROUGH MAKING
GLOBAL ORIENTATION OF ORGANIZATION STRUCTURE AND MANAGEMENT
CULTURE.
GLOBAL SOURCING OF FACTORS OF PRODUCTION.
PRODUCT DEVELOPMENT AND PRODUCTION PLANNING ON THE BASIS OF GLOBAL
BUSINESS DYNAMICS.
MACRO LEVEL AND MICRO LEVEL
• MANAGERIAL IMPLICATIONS
• THE NEED FOR ATTITUDINAL CHANGE
• CUSTOMER DRIVEN PHILOSOPHY
• QUALITY STANDARDS
• CORE COMPETENCE
MACRO LEVEL AND MICRO LEVEL
ACCORDING TO
MAGSAYSAY. STRATEGIC
ALLIANCES ON BASIS OF
STRUCTURED CAN BE
EQUITY BASED JOINT
VENTURES) OR NON-
EQUITY BASED
DRIVING FORCES OF THE GLOBALISATION PROCESS(ADAPTED FROM GLOBAL OPERATORS AND LOGISTICS PHILIPPE – PUIRE DERNIER, RECORDO
ERNST, MICHEL FENDER, PANOS KOUVELIES)
• GLOBAL MARKET FORCES
• TECHNOLOGICAL FORCES
• GLOBAL COST FORCES
• POLITICAL AND MACROECONOMIC FORCES
COUNTRY EVALUATION
1. COUNTRY IDENTIFICATION
2. PRELIMINARY SCREENING
3. IN-DEPTH SCREENING
• MARKET SIZE
• GROWTH RATE
• COMPETITIVE INTENSITY
• TRADE BARRIERS
4. FINAL SELECTION
COMPETITOR ANALYSIS
• STRENGTHS AND WEAKNESSES
– BRAND RECOGNITION/REPUTATION
– DISTRIBUTION CHANNELS AND RELATIONSHIPS
– KNOWLEDGE OF DOMESTIC MARKET
– GOVERNMENT PROTECTION
• SIGNALING
THE DIMENSIONS OF A GC
MARKETING STRATEGY
STRUCTURE
CULTURE
CORPORATE STRATEGY
VISIONARY LEADERSHIP
MANAGERIAL PROCESSES
ENTRY STRATEGIES
• EXPORTING
• JOINT VENTURING
• LICENSING
• FRANCHISING
• CONTRACT MANUFACTURING
• MANAGEMENT CONTRACT
ENTRY STRATEGIES
• ASSEMBLY OPERATIONS
• FULLY OWNED MANUFACTURING FACILITIES
• COUNTER TRADE
• MERGERS AND ACQUISITIONS
• STRATEGIC ALLIANCE
• THIRD COUNTRY LOCATION
INDIA AND GLOBALISATION
NEW ECONOMIC POLICY OF INDIANEW ECONOMIC POLICY OF INDIA
• TO REDUCTION OF FISCAL DEFICITS
• TO WIPE OUT DEFICITS IN THE CURRENT ACCOUNT
• TO CUT DOWN THE GOVERNMENT EXPENDITURE
• TO RATIONAL OF SUBSIDIES
• TO CONTROL OF INFLATION
• TO ALLEVIATE POVERTY AND
• TO ACHIEVEMENT OF SOCIAL EQUITY
INDIA AND GLOBALISATION
POLICIES AND REFORMSPOLICIES AND REFORMS
• REMOVAL OF LICENSING ON EXPORT ITEMS.
• CHANGES IN TAX POLICIES
• ABOLISHMENT OF FERAFERA AND INTRODUCTION OF FEMAFEMA
• ABOLISHMENT OF INDUSTRIAL LICENSING
• INTRODUCTIONS OF FINANCIAL SECTORS REFORMS
• INTRODUCTION OF PRIVATIZATION CONCEPT
FACTOR AGAINST THE INDIAN BUSINESS
• GOVERNMENT POLICY AND PROCEDURE
• HIGH COST
• POOR INFRASTRUCTURE
• OBSOLESCENCE
• RESISTANCE TO CHANGE
• POOR QUALITY IMAGE
FACTOR AGAINST THE INDIAN BUSINESS
• SUPPLY PROBLEM
• SUPPLY PROBLEM
• SMALL SIZE
• LACK OF EXPERIENCE
• LIMITED R & D AND MARKET RESEARCH
• GROWING COMPETITION
• TRADE BARRIERS
FACTOR IN FAVOUR OF THE INDIAN BUSINESS
• HUMAN RESOURCES
• WIDE BASE
• GROWING ENTREPRENEURSHIP
• GROWING DOMESTIC MARKET
• NICHE MARKETS
FACTOR IN FAVOUR OF THE INDIAN BUSINESS
• EXPANDING MARKETS
• TRANSNATIONALISATION OF WORLD ECONOMY
• NRI’s
• ECONOMIC LIBERALIZATION
• COMPETITION