Question:
Discuss About The Favorable And Unfavorable Globalization?
The report focuses on understanding and evaluating the impacts of globalisation on different international economies based along four main factors like marketing, costs, operations and finally along competitive factors. It focuses on reflecting both the favourable and unfavourable influences of globalisation along such factors. Empirical inferences are aimed to be gained from the study of journal and books associated with the research topic.
Globalisation is identified as the process through which people and business institutions operating in specific industries based along a certain nationality tend to interact and integrate with people from the same industry dwelling and operating along international markets. Further, the aspect of globalisation also reflects the incorporation of information technology resources that contribute in the growth of interactions both along the social and commercial platforms while also contributing to the growth trade and investment activities along international frontiers (Beck, 2015).
The aspect of globalisation generates both positive and negative influences on marketing. In terms of favourable influences the aspect of globalisation contributes in generating economies of scale through standardisation of marketing operations and also other functions associated with packaging and marketing communication activities. Further, the aspect of globalisation also contributes in enhancing the speeding of the products and services to the market. The firms that are globalised are characterised in terms of central planning functions and thereby contribute in the generation of new product introductions within a span of one year. Moreover, in terms of globalisation the product or service companies gain the potential for developing an international brand name and identity. The same contributes in reduction of the level of marketing communication required to be generated by companies for targeting effective market segments associated with employing the product or service. Similarly, the advent of globalisation also helps the product or service companies to generate effective expansion of its target markets. This in turn contributes in enhancing the sales volume for the products or services. Finally, the advent of globalisation also helps the business institutions for gaining potential access to resources and financial supports for production of goods and services in large volumes (Filatotchev, Bell, & Rasheed, 2016).
The existence of centralised planning and decision making units tends to affect the speeding up of the decision taking activities concerning addressing of needs of local consumers and also in effectively combating the actions of the local competitors. Further, the reduced contacts of marketing managers based at headquarters with the local consumers and markets affect the potential of the marketing strategies developed by them. Again, the impact of a problem emerging in a local country and its influence on the global brand tends to be increasingly communicated over the global market in the era of globalisation. The same makes the product or service brand vulnerable to reduction in global market demand. Again, from the consumer viewpoint the generation of standardised products and service designs and also marketing operations tends to affect the level of customer satisfaction for the product or service firms. From a national point of view, the influence of globalisation tends to create a threat to the different nations causing them to lose their identity and culture (Naghi & Para, 2013).
The aspect of globalisation contributes in the development of free trade agreements such that countries tend to specialise on the production of such commodities regarding which they have potential access to material and other types of resources. Specialisation in the production of goods and services in turn contribute in reducing the prices of such for the consumers while also in helping the consumers gain access to large number of product choices. It also generates greater economies of scale and reduces the level of competition. Moreover, the emergence of globalisation also contributes in helping the development of products along different regions. The same contributes in reducing the average cost of production and thus reduces the prices for the products. Similarly, the aspect of globalisation also helps in reducing the existence of monopolies along different markets. Reduction of monopolies and increase in the level of competition helps in reducing the price structure for the products. Again, the advent of globalisation has also contributed in the flow of investment to a region or nation from different other nationalities. The same helps in development of the economic situation in the region and thus also reduces the impact of costs (Shen, Wei, & Yang, 2017).
The existence of free trade owing to globalisation affects the operations of the developing markets and benefits the developed regions. The aspect of globalisation is also observed to enhance the level of environmental cost for the different economies owing tom increased spending of non-renewable energy sources and also the growth of pollution emanating from logistics and operational activities. Globalisation also contributes in increasing the amount of labour cost for the different industries in that labours tend to move over to those regions in like industries where they would access to increased wages and salaries. The same reduces the availability of labour in the poorer economies thereby making them depend on sourcing greater amount of labour thereby increasing costs (Dunford, Dunford, Barbu, & Liu, 2013).
An analysis of the Turkish Electric Industry reflects that the impact of globalisation has resulted in generation of rapid technological changes and also in the emergence of new opportunities that in turn generate a positive effect on the delivery speed of the sector. Moreover, the influences of globalisation also contribute in the expansion of trading activities along the sector while also helping in the growing of logistics activities and technological framework in the region. Similarly, the advent of globalisation also contributes in promoting greater opportunities for the electricity industry in Turkey. The above factors act as potential triggers for the enhancement of the speed of delivery of the services which in turn amounts to growth in profit. Further, the different types of threats amounting from globalisation like increase in the level of cost pressure and growth in the generation of new market opportunities have in turn contributed in enhancing the level of flexibility of the current level of electric operations conducted in the region. The owners and business managers in the Turkish Electric Industry are required to generate products with needed flexibility for meeting of customer needs in an enhanced fashion. It helps in the growth of competitiveness for the industry and thereby contributes in effectively surviving under potential cost pressures. Similarly, the electric industry of Turkey for potentially exploiting the new market opportunities is required to develop new products and also create greater product assortments within a shorter period. The same also enhances the level of competitiveness of the firm (Sengul, Alpkan, & Eren, 2015).
The impact of globalisation potentially tends to impact the operations of the multinational enterprises. It is observed that firms failing to effectively manage and monitor the operations of the international branches suffer from operational losses and margins. The firms are also required to generate training mechanisms for training the foreign staffs on the objectives of the firm and also the regarding enhancement of customer satisfaction. The same enhances the training and manpower development cost for the organisation. Moreover, the intake of expatriate staffs by the firms is also observed to affect the operational scenario in that the expatriates reflect lesser empathy to the needs of the local and regional markets and act based on the understandings gained from their home market. The same affects the operational scenario of the firms thereby amounting to loss of operational and business margins (Stefko & Sojka, 2015).
The advent of globalisation contributing in the movement of international firms to emerging or developing markets is made possible through the opening up of branches in specific regions. The global firms having opened branches in key international markets demand the availability of needed expertise that would help in meeting the needs of business and its customers. This accounts for the development of the existing skill or human resources base in the international markets through the development of educational and training institutions where they contribute in the development of effective human resources. The above fact thereby helps in the development of the competitive advantage of the regions. Similarly, the growth of globalisation also contributes in the flow of potential investments in the form of Foreign Direct Investments (FDI) from foreign markets. The investment is potentially employed for developing the innovation potential of the region and the different industries which in turn contributes to growth of competitive advantage. Innovation coupled with needed resources rightly contribute in the development of quality products and services for meeting the needs of diverse customers (Kupfer, 2014).
The advent of globalisation makes the firms more vulnerable to growth of competition such that foreign firms operating in the like industry would tend to gain on increased market share through gaining access to scarce resources. The same affects the operational potency of the firms operating in the home country. Moreover, the entry of foreign firms in the existing market fuelled by globalisation contributes in the development of novel market forces and also tends to change the regulatory and legislative situation. The same contributes in affecting the business operations of the firms in the home market. International firms aiming to enter a foreign market are made possible through the development of large number of franchisees and also development of partnerships and joint venture with local firms. The above strategy undertaken by the big international firms potentially affects the market of the local and regional firms (Gerber, 2012).
Conclusions
The report effectively highlights on the concept of globalisation while also reflects on both the positive and negative influences of globalisation along different factors like market, cost, operations and finally along the competitive forces. Empirical and secondary inferences are gained from consulting different journals and books associated with globalisation and its impact on the stated factors
References
Beck, U. (2015). What Is Globalization? United Kingdom: John Wiley and Sons .
Dunford, M., Dunford, R., Barbu, M., & Liu, W. (2013). Globalisation, cost competitiveness and international trade: The evolution of the Italian textile and clothing industries and the growth of trade with China. European Urban and Regional Studies , 1-25.
Filatotchev, I., Bell, R. G., & Rasheed, A. A. (2016). Globalization of Capital Markets: Implications for Firm Strategies. Journal of International Management , 22 (3), 211-221.
Gerber, D. (2012). Global Competition: Law, Markets, and Globalization. United Kingdom : OUP Oxford.
Kupfer, A. (2014). Globalisation, Higher Education, the Labour Market and Inequality. New York : Routledge .
Naghi, R. I., & Para, I. (2013). The Effects of Globalization on Marketing. GSTF Journal on Business Review , 2 (3), 168-173.
Sengul, M., Alpkan, L., & Eren, E. (2015). Effect of Globalization on the Operational Performance: A Survey on SMEs in the Turkish Electric Industry. International Business Research , 8 (7).
Shen, J., Wei, Y. D., & Yang, Z. (2017). The impact of environmental regulations on the location of pollution-intensive industries in China. Journal of Cleaner Production , 148, 785-794.
Stefko, R., & Sojka, L. (2015). Analysis of the Impact of Globalisation on Selected Indicators of Firms’ Activities. European Scientific Journal , 1, 149-162.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download