Drivers of Globalisation.docx
- 文档编号:29211689
- 上传时间:2023-07-21
- 格式:DOCX
- 页数:8
- 大小:41.32KB
Drivers of Globalisation.docx
《Drivers of Globalisation.docx》由会员分享,可在线阅读,更多相关《Drivers of Globalisation.docx(8页珍藏版)》请在冰豆网上搜索。
DriversofGlobalisation
Driversofglobalisation
ModuleTitle:
InternationalBusiness
Level:
6
Semester:
1
DegreeProgramme:
BABusinessandFinancialManagement
Assignmenttitle:
DriversofGlobalisation
Abstract
Globalisationisinevitablefororganisationsduetotheirdevelopmentandgrowth.Companiesneverstoppedtobeglobalised,eventhoughglobalisationmightbringriskandlose.Whatthispaperisgoingtodiscussissomeofthedriversofbusiness’sglobalisation.
Content
Abstract2
1.Introduction4
2.Environmentdrivers4
2.1competition4
2.2Economicgrowth5
2.3Improvementoftransportationandtelecommunication6
2.4EnhancementofTechnology7
3.IntercompanyDrivers8
3.1Reducetheresearchanddevelopmentcost8
3.2Searchforrawmaterialsandlabourforce9
4.Conclusion11
5.Bibliography12
1.Introduction
Theword“globalisation”becomespopularinbusinessworldinlastdecade,anditbecomesincreasinglyimportantforcompaniestobeglobalised.AccordingtoRosa,globalisationistechnological,political,economicandculturedimensionsthatconnectindividuals,governmentsandfirmsacrossnationalborders.(Rosa,p53)Thismeanstheindividualsorgroupsindifferentcountriesareconnectedwithandaffectedbyoneanother,viaEconomy,technologies,policiesandculture.Therefore,forcompanies,tobeglobalisedmeanstohavemorechancefacingwithnumerousdifferentenvironmentsthanbefore.Generally,companies’globalisationhastwomainpartsdrivers:
environmentdriversandinternationaldriverswhichwillbedetaileddiscussedbelow.
2.Environmentdrivers
Withthedevelopmentofglobalisation,severalmajorenvironmentdrivershavegoodimpactsontheglobalisation.Theyhaveimportantinfluencesonthecompany’sstrategyandfuture.Thefollowingmajordriverscouldshowthathowtheyaffecttheglobalisation.
2.1competition
Theglobalisationhasseveraltypes:
economicglobalisation,businessglobalisation,cultureglobalisation,technologyglobalisationandsoon.Nomatterwhichevertheglobalisationis,thecompetitionindeedproducesenoughforcestoglobalisation.Forexample,thebusinessglobalisationhastightrelationshipwiththeworldtrade.
Thecompaniesorenterpriseswouldliketopurchasegoodsormaterialsfromcheaperplaceandsalestosomewherewithhighpriceaimingtomakemoreprofits.Somedistrictsproducecheapmaterialsandprovidelowpaidlabours.Forexample,Asianlabours’paymentonmakinggoodsischeaperthanthatofEuropeorNorthAmerica.Therefore,lotsofcompaniessetuptheirfactoriesintheAsia.Forinstance,AppleInc.producesitsmobilephonesinChina.ChinesematerialsandlaboursarecheaperthanAmerica.ThelowercostofmaterialpurchasingandlabourpaymentwillbringAppleInc.anadvantageinprice,andAppleInc.willbemorestrengthtocompetewithothercompanies.
Oneofthemajortrendsintheworldisthatthebusinesscontactsincreasinglyfrequentamongcountries.Basedonthecompetitiononprice,qualityandotheraspects,thecompanieswillconsidertheirpartnersonbusinessandtrade.Consideringthesecompetitionsandcompany’sstrategy,thecompanieswillchoosethemostsuitableco-operator.Thecaseofco-operationbetweenVolkswagenandSaicMotorLtdexemplifiestheaboveargument.VolkswagenandSaicMotorLtdjointventurein1985andstartthecompany:
ShanghaiVolkswagenwhichproducesandsalesVolkswagencarsinChina.(ShanghaiVolkswagenLtd,2012)ThecooperationcontributestotheexploitingofChinesemarketforVolkswagenandithelpthecompanyavoidthecostoftransportationandtariff.Asaresult,VolkswagencouldgetsomeadvantagesinthecompetitioninChinesemarket.Thus,itcouldbesummedupthatthecompetitioncouldfacilitatetheglobalisation.
2.2Economicgrowth
Thevolumeofcapitalintheworldhasbeenincreasedcountlesstimessofarandtheglobaleconomicgrowthisquiterapidtheseyears.Companiesfocusontheworldwideeconomyratherthanonedistricteconomy.Companiesprefertobecometheglobally-centredcompaniesratherthanthenationally-centredcompanies.Companiestrytobecomemulti-nationalcompaniesandtheydeveloptheirbusinessandmakeprofitsthroughenterintoothercountries.Theeconomicgrowthpromotesthesecompanies’developmentandenlargement.
Thegrowthofeconomyprovidestheplatformforthebusinessglobalisation.Theeconomicgrowthcouldaffectthecompanies’strategy.Thecompanies’strategywillmakesomechangesinordertokeeppacewiththecurrenteconomicsituationandglobalcondition.Ifonenation’seconomybecomesmoreandmoreflourish,thenmanyforeigncompanieswilltrytoenterintothiscountry’smarketandsetupnewbusinessandoffices.Thehostcountry’sconditionaffectsthecompanies’strategy.Thestrategymustmakesomechangesratherthankeepthesameaspast.Foreigncompaniesinvestmoneyontheflourishcountries’marketandindustries.Thehostcountryalsousetheforeigncompanies’capitalandstrategytodevelopdomesticeconomy.Underthiscondition,theyachievethewin-winsituation.Andthebusinessglobalisationachievesthedevelopment.
Ifsomecountries’economyhavedeficitsituation,companiesmightdecreasetheirbudgetandcutsomeoperationsatthatcountry.Forexample,theGreecehassomefinancialproblems;asaresult,somefamouscompaniesmadenewfinancialpoliciestosolvethecurrentproblem,suchasdelaysomeinvestmentinGreece.Therefore,theeconomicconditionhastightrelationshipwiththecompanies’strategyandthebusiness.
2.3Improvementoftransportationandtelecommunication
Theimprovementoftransportationandtelecommunicationfacilitateglobalisationaswell,becauseitservesascornerstoneofinternationaltrading.Asithasbeendiscussedabove,thatcompaniesandinvestorsarealwaystryingtofindinvestopportunitiesandmaximisecompaniesorthemselves’value.Oneofthewaytocreatevalueandfindtheinvestopportunitiesisenteringoverseasmarket.Companiesmightwanttoenterintoforeignmarketlongtimeago;however,theirinvestmentinforeigncountriesareusuallyhaslowerreturnduetothehightransportationcostandinconvenientofcontrolandcommunicationacrosscountries.IftheBoardofDirectorscouldnotcontrolandcommunicatewithbranchcompaniesinoverseasmarket,theycouldnotmakeappropriatedecisionsandchangethestrategieseasily.
TheexpensesofoverseascallinChinacouldillustrateabovestatement.Itwasabout4RMB(about0.5USD)perminutethatpeoplehavetopayforcallingfromChinatoUSAin2000,anditonlycost0.4(about0.06USD)perminutein2009.(PeopleNet.2009)Thismeansthecostoftelecommunicationisreduced,andtheinvestorsarewillingtospendmoretimetocommunicatewiththeco-operatorsorleadersofbranchcompaniesinforeigncountries,whichcouldmaketheinvestorsorBoardofDirectorshavemoreinformationabouthowthecompanyperformsinoverseasmarket.Asaresult,theywouldhavemoreopportunitiestoinvestortodeveloptheircompany.So,thedevelopmentandenhancementoftransportationandtelecommunication,tosomeextent,facilitateglobalisation.
2.4EnhancementofTechnology
Anotherdriverofglobalisationoutsideofcompaniesisthedevelopmentoftechnology.Theimprovementoftechnologyis,usually,contributingtotheglobalisationindirectly,becauseitcouldnotaffecttheprogressofglobalisationindirectly.
Forexample,thedevelopmenttechnologymakesiteasierandcheapertotransportgoodsorproductstoforeigncountries.Theimprovementoftransportandtelecommunicationtechnologydoesnotfacilitatetheglobalisationdirectly.However,theenhancementofthesetechnologiesmakesiteasiertocommunicateandtransport,whichcouldcontributetotheglobalisationdirectlyasdiscussedabove.So,theimprovementoftechnologycouldfacilitatetheglobalisationaswell.
3.IntercompanyDrivers
Intercompanydriversaretheglobalisationmotivatorsinsideofthecompanyincludingexpandproducts’lifecycle,reducetheresearchanddevelopmentcostandsearchforcheaperrawmaterialandlabourforce.
3.1Reducetheresearchanddevelopmentcost
Tobeglobalisedcanreducecompanies’researchanddevelopmentcost.Usually,bigcompanieshaveresearchanddevelopmentdepartmenttoresearchanddesignnewproductsandimproveandupdateexistingproducts.Therefore,anenormousamountofresearchanddevelopmentcostcanbegeneratedeachyear.Toreducetheresearchcostispartofnumerousfirms’objective.However,theamountofresearchanddevelopmentfeeisrarelyreducedbecausecompaniesneedtocompetewiththeircompetitorsbyusingadvancedtechnology.So,whatthecompaniescandoistoexploitoverseasmarkets,ortobeglobalised.Toenterinoverseasmarketcouldincreasethesalesofproducts,asaresulttheresearchanddevelopmentcostcanbeaveragedbythesalesamount.Themorethesalesis,thelessresearchanddevelopmentcostthataveragedineachproductis.
AppleInc.isavividexampleillustratingtheaboveargumentthattheglobalisationcouldreducetheresearchanddevelopmentcost.AccordingtoAppleInc.’sannualreport,in2011,Applehasearned43,818millionUSdollarsasgrossprofit,andtheresearchanddevelopmentexpenseswas2,429millionUSdollars;whilst,in2010,ithasabout25,684USdollarsasgrossprofitwithresearchand$1,782milliondevelopmentexpenses.(AppleInc.2011)Comparingtheexpensesonresearchanddevelopment,itisobviousthatthecostgrewdramatically.However,iftheexpenseswareweightedbygrossprofit;anotherresultwillbeshownout.Thecalculationsareshownasfollow:
2011:
2,429
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- Drivers of Globalisation