global is at ion lecture nov2010
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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
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 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
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 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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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 governmentpolicies
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 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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Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FT Prentice HallBased on G. Yip, Total Global Strategy, Prentice Hall, 1995, chapter 2
Trade policies Technical standardsHost governmentpolicies
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, FTPrentice Hall
Based on G. Yip, Total Global Strategy, Prentice Hall, 1995, chapter 2
Trade policies Technical standardsHost governmentpolicies
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 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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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
Trade policies Technical standardsHost governmentpolicies
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, FTPrentice Hall
Based on G. Yip, Total Global Strategy, Prentice Hall, 1995, chapter 2
Trade policies Technical standardsHost governmentpolicies
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, FTPrentice Hall
Based on G. Yip, Total Global Strategy, Prentice Hall, 1995, chapter 2
Trade policies Technical standardsHost governmentpolicies
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, FTPrentice Hall
Based on G. Yip, Total Global Strategy, Prentice Hall, 1995, chapter 2
Trade policies Technical standardsHost governmentpolicies
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
Creditcrunch Currency
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R Jones (2009) - Based on Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FTPrentice Hall
Based on G. Yip, Total Global Strategy, Prentice Hall, 1995, chapter 2
Trade policies Technical standardsHost governmentpolicies
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
Creditcrunch 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, FTPrentice 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
Creditcrunch Currency
Climate
change CO2
Collaboration
Common
platform
-
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R Jones (2009) - Based on Johnson, Scholes & Whittington (2006) Exploring Corporate Strategy, FTPrentice 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
Creditcrunch Currency
Climate
change CO2
Collaboration
Common
platform
Copenhagen
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