GLOBALISATION

WHAT IS GLOBALIZATION??

 A shift towards more integrated and interdependent

world economy
GLOBALISATION ENCOMPASES THE FOLLOWING

Operating and planning to expand throughout the world Erasing differences between foreign & domestic markets Global orientation in strategies, organizational structures ,organizational cultures, managerial expertise

 Sourcing of factors of production and inputs like raw materials , machinery ,technology
Product planning and development are based on

market consideration of the entire world The global business firms compete with each other in global markets ex coke vs. Pepsi

THE PROMINENT AREAS

ECOLOGICAL
POLITICAL INTEGRATIONS ADOPTION OF

UNIFORM POLICIES TECHNOLOGICAL CULTURAL PRODUCTION INVESTMENT Tourism

IS IT ALWAYS GOOD??????????

Mumbai Terrorist Attack

 Dr Mallya's website www.mallyainparliament.com was

hacked and the Pakistani flag was placed with a dire message from an organization known as the Pakistan Cyber Army

GLOBALISATION OF MARKETS

 The process of integrating and merging of distinct

world markets into a single market It requires identification of common taste , preferences values and slowly enables the cultural shift towards a use of common product or service

Reasons for globalization of markets

To reduce risk
To increase profits Adverse business environment

To cater to the demand for their product in foreign

markets

Features
The size of the company need not be too large
Most of the foreign markets are the markets for non

consumer like industrial products , machinery, computers

GLOBALISATION OF PRODUCTS

INTERNATIONAL PRODUCT STRATEGIES

STANDARDISATION VS ADAPTATION
FACTORS ENCOURAGING STANDARDISATION

High Cost Of Adaptation 2. Industrial products 3. similar taste 4. Country of origin effects
1.

 FACTORS ENCOURAGING ADAPTATION

Consumer tastes 2. Variations in ability to buy 3. Cultural differences 4. Influence of governments

1.

Pros and cons of standardization

PROS reduces marketing cost Facilitates centralised control of marketing Results in economies of scale Cons Ignores local differences Ignores differences in buyers patterns

Pros and cons of customization

PROS
Reflects different conditions of product use Promotes for local market initiatives

Cons Increases marketing cost Reduces economies of scale