Question 1a) What is meant by global localization? Is Kentucky Fried Chicken (KFC) a global product? Explain."Global localization" can refer to a broad-reaching or world-wide (global) strategy for the customization of materials to suit specific languages and locales (localization).Globalizationis becoming increasingly important for businesses all over the world. Not only is it important to expand into new markets, but it is important to localize enough to be accepted while still keeping your brand consistent worldwide. Corporations are beginning to see how difficult this balancing act can be. Expanding into new countries can lead to enormous profits, but it comes at a much higher risk. Glocalization is the concept of developing a product or service strategy that takes the benefits of a global product platform and integrates it with the advantages of product localization.Just 10 years ago, it was widely believed that the future of global business lay in ever increasing levels of standardization of products and processes. Business-schools taught future leaders to globalize the international strategy and assess the speed of internationalization. Countries neighboring each other were presumed to assimilate each others cultures (Europe treated as a single culture). Companies would develop a global concept that fit a global customer-base which was converging, becoming homogeneous.Even though this strategy has economic advantages and has worked for some companies it often backfires or hampers growth potential in many markets. Today, many companies are learning that it pays to have a global product platform to reduce costs married with a local customization of the products and processes to appeal to a cultural demographic. Globalized but localized glocalized. Global business is moving towards what has been called mass customization. New technology will aid in the development, with new production process such as additive manufacturing which will make mass customization truly economically viable.Getting the feel for glocalization is now seen as an efficient approach to build brand image and a way to generate long-term brand loyalty. As global competition grows fiercer, its not enough to have a product that is at 75% of its full potential due to unsuccessful glocalization. KFC is a great example of successful glocalization. While KFC retain its core Kentucky fried chicken concept as a global product platform in China, it has successfully localized its product portfolio (i.e., its menu). Warren Lui, one of the members of KFCs management team in China outlines the importance of cultural knowledge and product localization in his bookKFC in China: Secret Recipe for Success. Liu states that you need an understanding of China and the Chinese cultural context so deep that it is intuitive, to understand the Chinese peoples mixed feelings, of love and hate about the West, to understand Chinese history, language, the influence of Confucianism, Buddhism and Taoism, this is especially important if you are in the consumer goods industry. KFCs menu contains many items tailored to the Chinese consumer palate and it has paid off the number of KFCs in China has grown to over 3,000, in 650 cities, with one new restaurant opened a day. KFC has even penetrated smaller cities in the interior of China.

b) A companys global marketing strategy (GMS) is a crucial, competitive tool. Describe some of the global marketing strategies available to companies. Give examples of companies that use the different strategies

Global marketing is more than simply selling a product internationally. Rather, it includes the whole process of planning, producing, placing, and promoting a companys products in a worldwide market. Large businesses often have offices in the foreign countries they market to; but with the expansion of the Internet, even small companies can reach customers throughout the world. Competing successfully in this challenging business environment requires business-to-business companies to meet the needs of both low-growth and high-growth markets while differentiating their offerings from foreign and local competitors. Many formidable rivals from rapidly developing economies (RDEs) are capitalizing on their low-cost position in these fast-growing markets and assuming a leading role in some global markets from natural gas and iron ore to automotive forgings, micromotors, and regional jets.Global companies face a radically altered business landscape following the recent financial crisis, most notably a slowdown in world economic growth. Moreover, a two-speed world economy is emerging, sharply defined by slower growth in the developed economies of the United States, Europe, and Japan and much faster growth in Southeast Asia and the BRIC countries (Brazil, Russia, India, and China).Successful companies are able to adapt their business models to new groups of target customers in RDEs and develop new ways to integrate these different business models to achieve synergies and share best practices within the firm. To achieve global leadership, integrated strategies should incorporate the following elements: Market access: driving sales growth by reaching new markets and targeting new market segments; For example, rising to this challenge, General Electric has delivered on its promise to create health-care innovations that would substantially lower costs, increase access, and improve quality. Network coordination: integrating operations to capitalize on the strength of the companys global network. For example, resource advantages developed in different markets can be shared and diffused to other operating units around the world. Likewise, network advantage is promoted by sharing successes around the world taking innovations developed in RDEs back to developed markets. Resource access: leveraging valuable resources (for example, talent, assets, raw materials, and knowledge) in RDEs to achieve competitive advantage; Many companies like General Electric, Microsoft, and Apple are transferring steps in their value chainlike R&D or manufacturingin order to attract talented personnel and to enhance design and manufacturing capabilities. Apart from enhancing global competitiveness, companies are leveraging their sourcing efforts in RDEs to secure access and penetration in local markets. Local adaptation: developing and adapting products and services to satisfy the unique needs of RDE customers; To unlock the potential, General Electric created a local growth team model to create new offerings for customers in RDEs, such as China and India, and empowered them to develop their own strategies, organizations, and products.

References1. Acevedo, L. 2012.Product Standardization Strategy.[online] Available from:http://www.ehow.com/way_5379387_product-standardization-strategy.html2. Holllensen. S, 2004.Global Marketing a decision-oriented approach, 3rd ed. Essex: Pearson Education Ltd.3. Rouse, M. 2005.Localization[online] Available from:http://searchcio.techtarget.com/definition/localization4. Gala-global.org, (2015).What is Localization? | Globalization and Localization Association. [online] Available at: http://www.gala-global.org/what-localization 5. Universalconsensus.com, (2015).Glocalization: Global Product Localization Strategy | Universal Consensus. [online] Available at: http://www.universalconsensus.com/2012/08/21/glocalization-global-product-localization-strategy/