International Business Environment & Strategy Drivers of Globalisation June 2010 Slides based on Yip, G. (1995):- Johnson, Scholes & Whittington (2005) “Exploring Corporate Strategy”, 7 th edition Robert Jones © 2010
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International Business Environment & Strategy
Drivers of Globalisation June 2010
Slides based on Yip, G. (1995):- Johnson, Scholes & Whittington (2005)
Exploring Corporate Strategy, 7th edition
Robert Jones 2010
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What is globalisation?
Causes?
Effects?
Pros & cons?
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Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice Hall Based 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
Similar customer needs Global customers Transferable marketing
Drivers of globalisation
Global market convergence
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Global market convergence
Similar customer needs e.g. Personal computers Mobile phones i-Pod
Global customers Europe Americas Asia Africa
Transferable marketing Global marketing Local adaptation especially with car models
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Global strategies
Similar customer needs Global customers Transferable marketing
Drivers of globalisation
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
Similar customer needs Global customers Transferable marketing
Interdependence Competitors global High exports / imports
Drivers of globalisation
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 nations Global car makers
High exports / imports Many 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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Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice Hall Based 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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Government influence
Trade policies Falling barriers to trade Liberalisation & 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 policies Sensitivity 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 Australia Brazil Canada China France Germany India Indonesia Italy Japan Mexico Russia Saudi Arabia South Africa Republic of Korea Turkey United Kingdom United States of America
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Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice Hall Based 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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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, FT Prentice Hall
Based 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
The 4 Cs of globalisation
Government influence
Cost advantages
Global market convergence
Global competition
Country
Customer
Cost
Competition
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Sources of Culture
Language/s Nationality Education Profession Ethnic group Religion Family Sex Social class Corporate or organisational culture
Culture
Based on Usunier (2000) Marketing Across Cultures, Pearson Education Ltd
Sources of Culture
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R Jones (2006) - Based on Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice Hall
Based 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
The 5 Cs of globalisation
Government influence
Cost advantages
Global market convergence
Global competition
Country
Customer
Cost
Competition
Culture
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R Jones (2006) - Based on Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice Hall
Based 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
The 6 Cs of globalisation
Government influence
Cost advantages
Global market convergence
Global competition
Country
Customer
Cost
Competition
Culture Converging technologies, E-business
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R Jones (2006) - Based on Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice Hall
Based 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
The 6 Cs of globalisation
Government influence
Cost advantages
Global market convergence
Global competition
Country
Customer
Cost
Competition
Culture Converging technologies, E-business
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http://www.bankofengland.co.uk/monetarypolicy/assetpurchases.htm
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R Jones (2009) - Based on Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice Hall
Based 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
More Cs of globalisation
Government influence
Cost advantages
Global market convergence
Global competition
Country
Customer
Cost
Competition
Culture Converging technologies, E-business
Credit crunch Currency
-
R Jones (2009) - Based on Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice Hall
Based 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
More Cs of globalisation
Government influence
Cost advantages
Global market convergence
Global competition
Country
Customer
Cost
Competition
Culture Converging technologies, E-business
Credit crunch Currency
Collaboration
Common platform
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http://unfccc.int/essential_background/feeling_the_heat/items/3157.php
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R Jones (2009) - Based on Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice Hall
Based 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
More Cs of globalisation
Government influence
Cost advantages
Global market convergence
Global competition
Country
Customer
Cost
Competition
Culture Converging technologies, E-business
Credit crunch Currency
Climate change CO2
Collaboration
Common platform
-
R Jones (2009) - Based on Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice Hall
Based 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
More Cs of globalisation
Government influence
Cost advantages
Global market convergence
Global competition
Country
Customer
Cost
Competition
Culture Converging technologies, E-business
Credit crunch Currency
Climate change CO2
Collaboration
Common platform
Copenhagen
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