presentation globalization[1]

GLOBALIZATION OF FIRMS IN DEVELOPING

COUNTRIESGroup members;

Leong Colin Teng SuzanneSharan Chao

MingBen SharonDavid Tsen

Tsen

GLOBALIZATION OF FIRMS IN DEVELOPING COUNTRIES

WHAT IS GLOBALIZATION?

GLOBALIZATION IS THE INTEGRATION OF

ECONOMIES, SOCIETIES AND CULTURES OF VARIED

WORLDS THROUGH THE PROCESS OF TECHNOLOGY

AND TRADE.

GLOBALIZATION OF FIRMS IN DEVELOPING COUNTRIES

Globalization is the strategy of approaching worldwide markets with standard products

This is done as firms either saturate in their domestic market and finds its strategies exhaustive and decides to shift the same strategies abroad, on a global level.

THE VARIOUS EFFECTS OF GLOBALIZATIONS

GLOBALIZATION

Industrial

Financial

Economic

Political

Language & Cultural

Competition

Legal / Ethical

Religious

Technical & Informational

Ecological


1. Industrial Emergence of worldwide productionmarkets and boarder access to a range offoreign products for consumers andcompanies

2. Financial Growth of worldwide financial markets andbetter access to external financing forborrowers

3. EconomicRealization of a global common market,based on the freedom of exchange ofgoods and capital


4. Political Some use “globalization” to mean thecreation of a world government whichregulates the relationships amonggovernments and guarantees the rightsarising from social and economicglobalization; such as US and China


5. Language & CulturalGrowth of cross-cultural contacts; adventof new categories of consciousness andidentities which embodies cultural diffusion“ world culture”


6. CompetitionSurvival in the new global business marketcalls for improved productivity andincreased competition


7. Ecological The advent of global environmentchallenges that might be solved withinternational cooperation; such as climatechange, cross-boundary water and airpollution & etc


8. Technical & InformationalDevelopment of Global Information System; such as Internet, communicationsatellites, wireless telephones & etc


9. Legal / EthicalCreation of the international criminal courtand justice movements

10. ReligiousSpeared and increased interrelations ofvarious religious groups, ideas andpractices


HSBCOne of the world largest bank, operatesacross the globe setup their GlobalTechnology Centre in Pune, India whichdevelop software for the entire HSBC group

PROOF OF GLOBALIZATION OF FIRMS IN DEVELOPING COUNTRIES

McDONALDA North American company which now aglobal enterprise with more than 31,000locations worldwide. One of the example offood causing cultural influence on globalscale


GOOGLEGoogle Inc is a multinational public cloudcomputing, Internet search and advertisingtechnologies corporation. Google's rapidgrowth since its incorporation has triggereda chain of products, acquisitions andpartnership beyond the company's coresearch engine


E-BUSINESS & E-COMMERCEThe process of transacting business(buying & selling) through virtual market;birth of new technology such as theinternet and the World wide web.

Today, the buyer and seller no longer needto meet in a physical market place such asamazon.com


NEW TRADE AGREEMENTS Trade agreement refer to corporationbetween governments of different nationsto promote and liberalize trade betweenone another; NAFTA - Mexico, USA & Canada

(North American Free Trade Agreement) AFTA - ASEAN member countries

(Asean Free Trade Agreement)


INTERNATIONAL CHAIN HOTEL Ritz-Carlton Hotel Hilton Hotel Marriott Hotel Hyatt Hotel


AUTOMOBILE Toyota Nissan Hyundai Proton


CASE STUDY ON AIR ASIAAir Asia operates over daily 400 flights, with

both domestic and international routes covering Indonesia, Malaysia and Thailand and with international routes, primarily from Kuala Lumpur, to Australia, Bangladesh, Brunei, Cambodia, the People's Republic of China, Laos, Myanmar, Philippines, Singapore, Sri Lanka, Taiwan, the United Kingdom, South Korea and Vietnam.


CASE STUDY ON AIR ASIA (con’t) Tony Fernandes had also declared that 2010

will his “India Year” after coming off a three-year campaign in China.

Air Asia had been operating on the fringes of India connecting Malaysia to Kolkata, Trichy, Kochi and Trivandrum. The airline plans to gradually link New Delhi, Chennai, Bangalore, Hyderabad and Mumbai to Kuala Lumpur.


CASE STUDY ON AIR ASIA (con’t)Effects of Globalization on AIR ASIA The globalization consideration impacts

virtually all-strategic decisions in a company - forced Air Asia to survival for business

Air Asia implement E-commerce and maximized information technology usage to make the efficiency and effectively in the company and make possible low cost carrier in their business.


CASE STUDY ON AIR ASIA (con’t)Challenges faced by AIR ASIA• In order for Air Asia to globalize, Fernandes

needs airport operators; which includes government-owned ones to participate.


CASE STUDY ON AIR ASIA (con’t)Challenges faced by AIR ASIA• For 3 years, Air Asia have tried to negotiate with

the Airport Authority of India and private firms that run airports in India for special allowances but had come to no avail. High ground handling charges and security costs are one of the biggest challenges for Tony Fernandes even back home in Malaysia.


WORLD DISTRIBUTION OF HOUSEHOLD WEALTH GDP & POPULATION

IN THE YEAR 2000

Data obtained from the UN-WIDER report on worldwide distribution of household wealth: http://www.wider.unu.edu/research/2006-2007/2006-2007-1

2010 IMD WORLD MOST COMPETITIVE COUNTRIES

Data obtained from IMD WORLD COMPETITIVENESS YEARBOOK 2010 http://www.imd.ch/research/publications/wcy/upload/scoreboard

The table shows the ranking of 10 countries in 2010 International Institute for Management Development (IMD)

2010 IMD WORLD MOST COMPETITIVE COUNTRIES

Data obtained from IMD WORLD COMPETITIVENESS YEARBOOK 2010 http://www.imd.ch/research/publications/wcy/upload/scoreboard

The results of the IMD’s WorldCompetitiveness rankings 2010 havebeen strongly affected by; Gross Domestic Product data Exchange Rates

(especially the dollar versus the Euro)

Financial Assets (the financial crisis)

Trade and Investment flows

COMPLEXITY OF THE GLOBAL ENVIRONMENT

• Differences in political, legal, social, and cultural environments

• Demands of foreign governments• Widely differing economic and social

conditions• Business practices and negotiating styles are

different• Communication with, and control of, overseas

affiliates is difficult• Extreme competition• Restrictions imposed by the Trade Unions of

the respective countries

FUTURE GLOBALIZATION TRENDS

The future globalization trends give an ideaabout how regional economies arechanging and evolutions in the economicactivity that lie behind these changes.

Regions then have to decide what is a sound basis for decision-making on investment and strategy given thesetrends.

FUTURE GLOBALIZATION TRENDS

The performance of firms can be affectedby a number of external shocks or changesthat are beyond the control of firms butthat affect dramatically theircompetitiveness. Three influences include:

• Changes in market demand;• Disruptive technologies;• Uncertainties relating to globalization

process more generally

CONCLUSION

To sum up, firms globalize with different motives. They pursue different strategic paths to suit environmental aspects.

For firms to remain sustainable in the global front, it must improve its organization and managerial capability to the extent that it can meet demand from extending physical capacity.

presentation globalization[1]

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