Efficiency And Effectiveness Of Business Report For Globalized Approach

Globalized Approach to Marketing

Write about the Efficiency and Effectiveness Business Report for Globalized Approach.

Established in 1886, Johnson and Johnson have over the years grown in terms of the values and principles that were established during the time of inception. The founding idea of the establishing the company was the use of sterile bandages and dressing items in order to treat the patients. This was a revolutionary idea during the time the organisation was established. Johnson and Johnson have developed and ever since have been dedicated to provide the customers with innovative ideas as well as knowledge regarding healthcare (Jnj.com, 2018). The company has grown over the years and now it serves the customers all over the world in more than 60 countries today it is the 6^th consumer health organisation (Jnj.com, 2018). During the course of its operations the company has gone through a number of ups and downs and has gathered goodwill among the stakeholders. The company strives to create products which will help the consumers lead a better life. The organisation operates in the pharmaceutical, consumer packaged goods as well as manufactures medical devices (Forbes.com, 2018). The expansion and development of the company revolves around the innovation and research hence focusing on global strategy as one of the major strategies of the company. This essay is going to identify and evaluate the strategies that Johnson and Johnson has adopted over the years to grow and expand the business and also remain true to the values and principle keeping in mind the global approach based on which the company was created.  The assignment will also describe the benefits and challenges of the strategy.

The company follows a globalized approach of marketing in implementing its strategies in the society. The globalized approach to the marketing in comparison to the approaches takes into consideration the market strategy of the company does not have any variation globally. Any business organisation operates in two environments: internal and external, where the internal factors are under the control of the management, the external factors are the ones the company should be prepared for. The analysis of the external factors help the management creates and looks out for opportunities and scope for the business as well as seeks for the threats that are prevalent in the external environment that might impact the future of the business. The products that the company has focused on the fact that the customers or the target market may be the same but they have specific needs and requirements and therefore the company has used the strategy of mass customization in the process of product development is used  as the global strategy. Johnson and Johnson is an organization that is focused on serving the customers using the similar strategies globally. The subsidiaries of the company share the organization’s similar vision. Mass Customization with the help of product development has been used as a strategy to expand business over the years.

Advantages of Global Strategy

Some of the advantages of the global strategy of product marketing are: firstly the company with the help of global strategy can keep up with the dynamics of the trends in the industry of operation by implementation of strategies at once. For example: Johnson and Johnson created a number of varieties of lotions for kids to keep up with the trends in the industry and the same product is marketed internationally (Wilkinson & De Angeli 2014). On the other hand the similar organization Proctor and Gamble has a multinational approach and the organizational strategy to support the development of the organization in the international market. Contrary to the global approach this approach takes in to consideration the needs of local national markets to which the products are marketed. One of the major objectives of the company is to create valuable customer relationship so that they may have an influence on the market (Wilkinson & De Angeli 2014). In pursuit to understand the customers the company has to be in continuous touch with the customers helping in building a relationship of understanding. Global strategy for a company helps the organisation to grow and create opportunities with the help of the strength. The Global strategy helps in developing a culture of innovation that furthermore it helps in creating high value propositions due to its universal outreach. However, there are also some important challenges to the strategy of product development as well. Companies may find it difficult to finance their research and development department, it is difficult for SMEs to invest a large amount of money (Forbes.com, 2018). The management should be prepared for failure and should be able to bear the cost of these failures (Wei et al., 2014). There are also chances of this not going as planned, in order to encourage innovation it is important for the management to keep a far-sighted vision of the process. The local adaptation of the global strategies is because of the fact that it markets a high quality products related to the healthcare which abides by the healthcare norms of all the countries. Another challenge is the acceptance of a new idea among the target market. If the innovation is effective yet the communication of the company is not strategic the innovation might fail to comprehend with the dynamics of the requirements of the customers. It can be said that the process of incorporating innovation in the business strategy involves considerable risks for the management (Thomas, 2013).

Challenges of Global Strategy

It can be concluded from the above discussion that Johnson and Johnson is an organization that focuses on the customer’s requirement and strives to provide the customers with the high quality products at the most affordable prices. In order to keep up the changing trends in the industry and also to keep an edge over the customers the company uses several strategic management decisions. One of the most important strategies that Johnson and Johnson have been using is innovation in global strategy and spreading knowledge among the customers regarding healthcare. The company has set several benchmarks in the industry with the help of the strategies of innovation globally.

For a business organisation to operate in a country there are several rules and regulations that they have to follow. Depending upon the industry of operations rules might change. Political, economic, societal, legal and technological aspect of a country helps in establishing the trade and business environment in a country. For example: the political relation in between two nation states encourages or creates a barrier in international trade and expansion. The government of a country sets rules and regulations in order to keep a check on the economy as well as establish some control on the organizations as well. In this essay the Bahrain-US free trade agreement is going to be analyzed in order to understand the role of government in trade of a country (Ustr.gov, 2018). The essay will contain an analysis of the measures that are stated in the agreement as well as analyze the provisions and the benefits that are associated with the agreement. A free trade agreement is a treaty in between two nation states that would lay down a framework which would enable the two countries to have trade relations. A free trade agreement removes several barriers in commerce in between the countries. There are a number of countries that have established Free Trade Agreements with Bahrain. The (USBFTA) has encouraged trade in the country and has given a boost to international trade of the country as well. US is one of the developed economies in the world and maintaining a Free trade agreement has encouraged traders in Bahrain to invest and distribute products and services in the international market (Ustr.gov, 2018). On the other hand the agreement is also equally profitable for the business environment in the US as Bahrain is also one of the economic leaders in the Gulf region. In Bahrain the Ministry of Foreign Affairs deal with such agreements as the department is responsible for coordinating and formulating decisions regarding international trade. The agreement was signed in 2004 and was implemented from 2006 (Mofa.gov.bh, 2018).

Conclusion

The highlights of the agreements are: Duty free access of 96 percent of the agro-industry as well as industrial products from Bahrain. Similar freedom is access to the US products as well; such elimination of the tariff will reduce the cost of the products for the foreign market as well expanding the target market of the companies. On the other hand the textile industry of both the countries have received boost from this agreement as the products are declared duty free as long as the companies adhere to the Yarn-Forward Rule (Sice.oas.org, 2018). Therefore the fashion and textile industry in the countries expand its opportunities with the help of this treaty. Apart from these there are also services which have received encouragement in their trade with US with the help of this treaty (Sice.oas.org, 2018). There is a negative list approach used in the treaty which means that all the services will enjoy free pass unless it is a service that is specifically mentioned. Some of the service sectors that will enjoy the perks of the agreement are the telecommunications, computer and peripherals, transportation, healthcare, education, advertising, tourism, engineering, construction, audiovisual and express delivery (Mofa.gov.bh, 2018). The free trade will subsidize the prices that the country imports from US thereby reducing the price of the products in the local market. The engineering construction and healthcare facilities coming in this purview will lead to the reduction of the cost of innovations in the infrastructure. 

There are also measures of financial services which include Islamic financial services as well. There are also provisions for liberalizing the Bahrain Stock Exchange and the insurance industry. The financial services will enjoy free access in both the cases unless the service is excluded by a Non-Conforming Measure. One of the special highlights of the treaty is the acceptance of technology in the form of encouraging e-commerce (Customs.gov.bh, 2018). E-Commerce sector will enjoy a liberalized, non-discriminatory trade environment in the countries there will be non-discriminatory actions taken for digital products it also explains that there will also be no customs duties imposed on digital products. This will help the e-commerce sector of Bahrain to improve and expand its infrastructure as well as establish the country as the e-commerce leader in the Arabic Gulf region. Apart from these highlights there are several regulatory measures of maintenance of transparency, regulations regarding the labor law and technical assistance and how the treaty shall be enforced (Mofa.gov.bh, 2018). 

Bahrain-US Free Trade Agreement

Therefore it can be concluded that there are several economic benefits from a Free Trade agreement of both the countries, from the perspective of Bahrain firstly it provides the countries opportunity of expansion of the business corridor and to showcase the products and services in the global market, this in turn increases the import as well as export of the country. The treaty will also boost the manufacturing industry in order to make the products duty-free there has to be a certain percentage of domestic content in the products; this will encourage the manufactures to invest in the country.  The above discussed factor will give rise to an increase in demand of the products and services, which in turn will call for employment opportunity rise in the country. Creating opportunity for the country will boost and encourage the trade and commerce in all the sectors which will get free access to the US market . 

Established in 1981, The Gulf Co-operation Council (GCC) is a union council which was initially established with six members, the United Arab Emirates, Kingdom of Bahrain, Kingdom of Saudi Arabia, Sultanate of Oman, State of Qatar and State of Kuwait.  Several facts facilitated the development of the GCC geographical proximity, shared cultural aspects among the countries, parallel economic assets and activities, similarities political scenario (monarchies). This council provides a framework for the members to act in a unified fashion in order to develop their states and provide the citizens with better opportunities. This framework would enable the members of the corporation to maintain coordination, integration and inter-connection in politics, economics etc. The corporation would also establish strong relationship bonds in between the nation states. Some of the departments which are the highlights of the corporation revolve around: politics, military and security, legal and judicial, economic relations with other countries, media and communication, human resources and employment, Auditing etc. The objective of the essay is to understand the benefits that a Bahrain based business would have from The Gulf Co- operation Council (GCC). One of the most important partners of the GCC is the World Bank. The two organizations have been in a profitable and healthy partnership for more than 40 years. The World Bank provides GCC with reimbursable advisory services (RAS).

The framework that is established would help the members in encouraging the trade and business corridor of their region by improving the trade relations among the member countries. This would allow the business to have a wider reach in the global market as well. This has improved the export of Bahrain as the business men in the country have the opportunity of expanding their business in other gulf region as well. Most of the products and services which are exported have low restrictions than other countries which are not the members of the GCC.  Bahrain has received technical, knowledge and experience assistance from the institution. On the other hand the GCC is the 5^th largest export market of EU as well as the trading partner which offers a member nation like Bahrain to have a wide access to the European market as well (Gulf-insider.com, 2018). Not only this they are also the largest trading partners, GCC represents 4.4% of the EU’s total trade. As an example the construction industry of Bahrain has gained immensely from the agreements of the GCC. State-owned Aluminum Company in Bahrain known as Alba received a boost from the trade relations that is established with the corporation among the Gulf countries. Also there are organizations like the Nass constructions which have received contracts of project development across the members of the GCC. In the first quarter of 2015, growth of the construction industry of Bahrain was 7.5%, which is the second highest of any segment of the economy of the country. Another example of an sector that enjoys form the member ship is the oil and gas industry, Bahrain’s National Oil and Gas Authority (NOGA) have the back up of the GCC nations when there is a need for funds and the country’s resources does not only have to be the only option of the fund raiser (Oxfordbusinessgroup.com, 2018).

On the other hand, the membership of GCC has also provided the country with features which makes it attractive for the investors to put their money in the economy and set up their business in Bahrain. The government of Bahrain has the vision of making the country the leading business corridor and commerce hub in the Gulf region (Gulf-insider.com, 2018). The economic freedom that the country gets from being a part of the GCC encourages a lot of trade and business in the economy, it not only facilitates the external investors but also encourages the people of the country to invest in business and grow (Bahrainedb.com, 2018). The government and the regulations in the country is very lenient when it comes to regulating business and commerce in the country, there is low taxation even on private organizations. The GCC countries have also made arrangements to improve the inter-state connectivity and transportation, which furthermore inspires the trade in the region. The Saudi-Bahrain Causeway is further being planned to extend and join the Qatar-Bahrain Causeway (Oxfordbusinessgroup.com, 2018). With the help of the measures and provision that has been created with this corporation Bahrain has over the years established the country as a land of opportunity for the investors. The leading economy, the political support, the technical and physical infrastructure availability as well as high standard of living among the people has helped in establishing the country as one of the most attractive investors in the global market. Being a part of the GCC has helped the country to achieve this position in the international market (Gulf-insider.com, 2018).

It can be concluded form the above discussion is that in the present time Bahrain has successfully established the opportunities it has to offer in the global market. GCC has helped the government of the country to develop business opportunities with various regions in the world like India, EU etc. The economy of the country is booming and the government wants to establish itself as the economic leaders in the region (Bahrainedb.com, 2018). 

The kingdom of Bahrain has in the last two decades attracted the attention of international investors all over the world. The country has the aim to establish itself as the economic leader of the region. The country has constitutional monarchy form of government and has established itself as an investment attraction (Wto.org, 2018). There are certain features of the country’s external business environment factors that prove the same. The Economic Development Board of Bahrain, states that human resources, strategic geographic location, support and far-sightedness of the government, high standard of living among the people and favorable business factors are some of the features that make the country attractive for trade and commerce (Wto.org, 2018). The idea of this essay is to determine and evaluate the benefits that are enjoyed by Bahrain as a part of the World Trade Organisation. World Trade Organisation is an icon of globalization and international trade. Around 164 countries are a member of the organisation and have over the years enjoyed the perks of the membership in international trade, encouraging their internal business. With the help of trade agreements the WTO, helps the countries to ensure there is hassle free international trade among the countries. WTO establishes frameworks that have rules and regulations as well as penalties for breaking the same. The countries are expected to follow the protocol in order to remain a part of the WTO. The kingdom of Bahrain has been a part of the organisation since 1995 (Wto.org, 2018).

Firstly being a part of the WTO opens the international platform and provides business opportunities on the global market for organizations of Bahrain. As Bahrain is a member of the organisation the country enjoys the feature of being in the status of Most Favored Nation. All the members of the organisation are treated in the same way without biases, thus providing Bahrain with opportunities like any other country on the list of members. Bahrain also enjoys low rate of challenges in terms of trade barriers and tariff in international trade with other members of WTO, this allows the country to have a better market expansion for the business which in turn indicates that the country has the opportunity to employee more people, create transaction in the economy by accelerating the economic growth of the country. Bahrain has been on the rising trend of economic growth and this growth has been forecasted to be on the rising trend given the circumstances the country is in (Wto.org, 2018).

With the help of the membership of WTO the country has the opportunity to trade with several developed countries around the world. Maintaining trade relations with developed countries provide opportunities for the country to encourage international trade for the domestic business companies (Wto.org, 2018). Trade relations with US, UK and EU are easy to establish as a part of WTO, thus the country has the benefits to trade with developed economies increasing. Bahrain has been one of the founding members from Asia. The government of the country is always supporting and engaging in the improvement of the trade corridors of the country as they realize that trade and commerce can drive the country to economic excellence. Some of the trade benefits that the country gets as a member of WTO are: the prices of the goods are relatively low which makes products and services available for the people of the country. There are also benefits for the domestic companies of Bahrain which want to establish a global footprint as it serves as a major back up. The free structure of trade and reduced barriers enables the trades in the country to have higher value proposition and competitive opportunity in the industry. Bahrain has been a forerunner in understanding the opportunity of globalization and thus with the member ship of WTO the country has continuously strived to provide the best opportunities of trade. Being a part of the WTO the country has also significantly provided in the improvement of the global economy (Wto.org, 2018).

Bahrain as a part of WTO helps also in maintaining a harmonious relation with other countries (Wto.org, 2018). The political as well as economic relations with not only the countries of the Gulf region but also of the rest of the world is easy to establish owing to the rules and regulations that the member countries have to abide by. The organisation also creates and enforces confidence among the countries while formulating agreements. Another benefit that the country enjoys is that it can provide the citizen of the country with a wider array of products and services to choose from around the world. This on the other hand also helps in establishing a better standard of living among the people (Wto.org, 2018).

The government of Bahrain has established as commerce encouraging and focusing on improving the economy of the country. The membership of WTO has helped the country in establishing their perspective. All the countries who are a member of WTO share the same privileges and constraints and thus Bahrain also enjoys privileges in globalization.

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