Welcome

To the world where there are no border

s, no boundaries, no flags and no count
ries and the only passport is the skills y
ou have and the product you design.

Globalized
 Globalization
It has been said that arguing against
globalization is like arguing against the
laws of gravity.
- Kofi Annan
Road Map to the Globalized World
01 Meaning And Definition

02 Benefits And Drawbacks

03 Stages in Globalization

04 Successfully Globalized Companies

05 Reasons and Types for Globalization

of Market
 Globalization
The term Globalization usually refers to businesses practices followed by companies in which
their operations and human resources are beyond the countries borders and are on a truly
international and global scale.
For example
Like some of you, I have an iPhone. It was designed by Apple in the
United States, and assembled by Foxconn, a Taiwan based company at
its operations in China. Along the way, the components were produced
by 785 suppliers in 31 countries.

This example can sum up our group’s message today in a few words:
Globalization works. And it isn't going away, as we watch, the world's
topography alters.
 Benefits of Globalization

Access to New The Spread of Lower Costs for Higher

Cultures Technology and Products Standards of
Innovation Living Across the
Globe

Access to New Access to New Improved Help SME to

Markets Talent Governance boom
 Drawbacks of Globalization

Dominant global Inflation  Inequality Unemployment

brands

Race to the bottom  Trade Imbalances Vulnerability to external Threats to the Global
economic shocks Commons
 Stages of Globalization (EPRG)
Ethnocentric
EPRG Framework of McDonald’s
The Company focuses on
domestic market Despite being a fast food chain that mainly
serves beef hamburgers and French fries,
Polycentric
aside from the new additions, it is surprising
The company forms a that various countries accepted the
decentralized foreign subsidiary international food franchise. McDonald’s
Regio centric has outlets in all the continents, operating in
Capturing host countries more than 118 countries.
neighboring market
Geo Centric
In this case whole world is
considered as one market
 Globalization Year of McDonald’s
Geo Centric
Polycentric Established itself in 58
Expansion of foreign Countries with
McDonald’s outlet in 3600 restaurants
New Zealand outside USA

1955 1974 1982 1990

Ethnocentric Regio centric
In 1955, Ray Kroc Serving in Fiji,
purchased the restaurant Australia, French
chain and expanded its Polynesia
operation in USA
Why was McDonald’s Successful in Globalizing?
A Whooping

70%
increase in its
share price from
opening to till
date
Things McDonald’s kept in mind
while going global :
 Culture and People
 Product Innovation
 Packaging Innovation
 Type of Business Expansion
 Reasons of Globalizing

Political Social Technology Financial

Creation of United The need of the human The fast paced The increase in the
Nations, World Trade resource to get better and technological financial structure of
Organizations, and World better resources by advancement paved the each country opened
Bank. gaining extra skills route for globalization different routes for
investment
Some Examples
to verify the
Reasons of
Globalization
are :
 Types of Globalization

Financial Globalization
Connection of Financial Stock Markets
Economic Globalization
Creation of organization for free trade among
countries Sociological Globalization
A growing belief that we are all global citizens
and should all be held to the same standards –
Technological Globalization
Connection of global markets and countries and have the same rights
with the use of technological advancements Ecological Globalization
seeing the Earth as a single ecosystem rather than a
collection of separate ecological systems because so
Political Globalization many problems are global in nature
Popularity of free trade governments is getting
Cultural Globalization
all around the world. For e.g.- Democracy Accepting different cultures from different
parts of world
 Drivers of
Globalization
Technological Cost
Technology boosted the The irregular distribution of
interconnectivity leading to resources has led to variable
Globalization cost in different regions

Political Competitive
The formation of G20 and G8 To increase the global presence
summit has put forward the the firms are forced to play on
need of different countries international grounds

Market Demographic
To increase the market base of Limited demographic area has
the company once the local made firms to shift the product
market is captured line production to different areas
Any Questions?
Thank you