Globalization
Globalization is the strategy, process, procedure or technique of optimizing the resources available in various countries and catering to customers throughout the world with internationally standardized products, at competitive prices.
Driving Forces for Globalization
TECHNOLOGY ADVANCES
RISE OF DEVELOPING ECONOMIES
FREE MARKET IDEOLOGY
NEW BUSINESS OPPORTUNITY
CHEAP LABOUR FORCE
HUGE INVESTMENTS IN INFRA STRUCTURE
CROSS BORDER FLOW OF: GOODS,SERVICES ,INVESTMENTS, TECHNOLOGY AND HUMAN RESOURCES
Criteria for Globalization
ž Size of the market
ž Location advantage
ž Global competitiveness
ž Management efficiency and mindset
ž Vision and long term objective
ž Right human resource to handle
Stages of Globalization
ž Make the presence feel – the move for product or service
ž Study the whole nation and explore the avenues for production
ž Set up production facility with a local or alone
ž Expanding to neighboring areas through production
ž Review all the pitfalls and gear up to other regions
ž Emerging as global enterprise
Challenges
ž Distance
• Physical distance
• Psychic distance
ž Context
• Political system
• Tax system
• Judicial system
• Labour system
ž Resources
Speed of Global Expansion
ž Slow globalization
ž Rapid globalization
• Competitor’s can easily replicate company’s idea of success
• Scale of economies is important
• Highly capable management
Role of Global Manager
ž Strong information base
ž Multi-lingual skills
ž Adaptable
ž Innovative
ž Cost management
ž Understand the strategies of their competitors
ž Understand and implement all the organizational policies
Acceptable
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