...Global Policy and Strategy The impact of globalisation: A case study on Tesco Plc. Submitted by: Ferdous Ahmed AL Mamun B00676737 Abstract Globalisation has been removed geographical barriers among the countries and allow an unrestricted international trade. It refers to the integration of world economies, share of technology and knowledge, inflow and outflow of foreign capital. Reduction of tax and tariff, easy enter into the foreign market, easy transportation impacted large domestic company. Now they seek possible opportunity in the foreign market and no longer national but multinational. The intension of this paper is to explain the impact of globalisation on Multinational Corporation. This study selected a multinational company ‘’Tesco Plc.” From food retail industry. And study explores how globalisation impacted Tesco Plc. On their international market, global policy, market competition etc. Table of contents 1. Introduction……………………………………………………………………………… 4 2. Market Drivers………………………………… ………………………………………. 4 3. Competitive Drivers………………………………………………………… …………. 5 4. Cost Drivers…………………………………………………………………… ……… 6 5. Government Drivers…………………………………………………………… …… 7 6. Conclusion…………………………………………………………………… ……….. 8 7. References………………………………………………………………… …………. 9 1. Introduction Globalisation is not a new phenomenon, but it is process by which world is becoming interconnected. Globalisation has changing the world’s trade and production pattern, has...
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...In essence, the link between globalisation and employment is not clearly stated in the sense that globalisation holds the potential to both impact and influence employees of the developed and developing economies (Larner,...
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...businesses need to be aware of the global context of their markets. Having read this chapter you should be able to: G G G G Learning outcomes understand the difference between globalisation and internationalisation outline the main elements of globalisation illustrate the role of the multinational enterprise introduce the implications of globalisation for business Key terms Capital market flows Consortium Cross-subsidisation Customs union Emerging economies Foreign direct investment (FDI) Franchising Free trade area Globalisation Hyperglobalisation Internationalisation International trade Joint venture Licensing Multinational enterprise (MNE) Regionalism Regional trade agreements (RTAs) Strategic alliance Transfer pricing Transformationalism Globalisation versus internationalisation 39 Introduction Businesses operate in a global context: even if they do not trade directly with other countries, they might be affected by a domestic shortage of skilled labour or may be subject to developments on the global financial markets. There is a difference between globalisation and internationalisation in the business literature but both result in increased exposure to global forces. This means that businesses need an understanding of the process of globalisation. The nature of globalisation is changing; it used to mean the...
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...The Impact of Management in Business Globalisation You often hear the expression that the world is a “Global Village” where news & events are instantly accessible wherever you are in the world, through the internet/satellite driven media outlets including social media. This “globalisation” has also made the business world a global village. The Economist Gunder Frank opined that a form of globalisation existed in the third millennium B.C, another economist Thomas L Friedman put the history of globalisation three periods. First period (1492-1800) involved the globalisation of countries; the second period (1800-2000) involved the globalisation of companies the third period (2000-present) involves the globalisation of individuals. Business globalisation...
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...connected to each other than ever before. It is much easier for people to travel, communicate and do business internationally. This whole phenomenon has been called globalisation. Globalisation is the interaction between countries in order to develop the global economy. It has also been encouraged by trade liberalisation and financial market deregulation. It relates to the economy, politics, culture, society, and generally, with everything we deal with in our everyday lives. Spurred on in the past by merchants, explorers, colonialists and internationalists, globalisation has in times that are more recent been increasing rapidly due to improvements in communications, information and transport technology. There are two types of global integration and they are positive and negative integration. The positive integration deals with homogenising international economic laws and policies and the negative integration deals with eroding of trade or protective barriers such as tariffs and quotas. The economic aspect of globalisation deals with the “increasing occurrence, speed and intensity of production, trading and financial exchange between individuals and bodies across global distances” (Fabian Global Forum, no date: 14). Other economic aspects, which have surfaced over the last thirty years, are multinational companies; technological progress and new financial techniques; authority of umbrella organisations like the World Trade Organisation (WTO), the International Monetary Fund (IMF)...
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...Introduction 3 4 The globalisation and its impact on the Labour Globalisation and the new international division of labour in East Asian countries 4 The regulation of the labour market in the world, which are the actors ? 4 6 The regulation issue for the labour market Labour law, and government policies 6 Responsive regulation, a solution to the deregulation policy problems ? 7 Conclusion 8 2 Introduction Globalisation represents a set of elements that have profoundly altered the world economy, the international trade, and the relations between each country. The globalisation has also changed the labour market and work in all countries, creating a "global work" market. The labour market is divided into two parts around the world: the labour force in developed post-industrial economies, which is a very expensive labour and less productive but provided high quality goods and a labour of works from developing countries, which offered low wage rates and few workers rights. In their search for economy and profits, multinationals have become increasingly interested in the potential offered by developing countries in terms of manpower often less expensive than in their countries of origin. Moreover, the deregulation policies pursued in United States during the '80s, have offered to the multinationals more freedom of action and more opportunities around the world. Asia was the cradle of the first movement led by multinationals offshoring, in their search...
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...eJournal Faculty of Law 4-12-2007 Corporate Social Responsibility: Impact of globalisation and international business Kim Kercher Bond University, Kim_Kercher@bond.edu.au Recommended Citation Kim Kercher. (2007) "Corporate Social Responsibility: Impact of globalisation and international business" ,, . http://epublications.bond.edu.au/cgej/4 This Journal Article is brought to you by the Faculty of Law at ePublications@bond. It has been accepted for inclusion in Corporate Governance eJournal by an authorized administrator of ePublications@bond. For more information, please contact Bond University's Repository Coordinator. Corporate Social Responsibility: Impact of globalisation and international business Abstract [Extract] Corporate Social Responsibility (CSR) is associated with the conduct of corporations and in particular whether corporations owe a duty to stakeholders other than shareholders. Whilst the phrase ‘Corporate Social Responsibility’ may be gaining momentum, the concept itself is not new. The question as to whether corporations owe duties to broader stakeholders has been debated at various times throughout the twentieth century. Keywords corporate social responsibility, corporations, globalisation, international business This journal article is available at ePublications@bond: http://epublications.bond.edu.au/cgej/4 Corporate Social Responsibility ‐ Impact of globalisation and international business By Kim Kercher Date of publication: 11 December 2006 ...
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...Starbucks Corporation in China Company overview Starbucks Corporation is one of the most famous coffee retailers in the world. According to Starbucks Corporation (2012), it runs over 55 countries in many regions including North America, Asia Pacific, Latin America and so forth. Starbucks headquarter is located in Seattle, Washington, USA. It has approximately 149,000 employees. According to Starbucks Corporation (2012), its company verified the income of 11,700.4 million dollars during the fiscal year of 2011, which is an increase 9.3% over the fiscal year of 2010. In addition, the net profit of the firm was 1,245.7 million dollars in fiscal year of 2011, which rose 31.7% over the fiscal year of 2010. This Company is considered as a great business, which grows rapidly in past two decades. To illustrate this, in 1987 Howard Shultz and David Olsen bought Starbucks Company, and then five year later, it expanded from 6 shops to 165 retail outlets in Pacific Northwest. In 2001, Starbucks has more than 7,500 retail stores (Harrison et al. 2005). Nowadays, this company operates more than 17,000 stores over 55 countries (Starbucks Corporation, 2012). In the past decades, Starbucks Company has expanded globally comprising open branches in Republic of China. Starbucks Company first opened in China, found in Shenzhen in 2002. It is held by Coffee Concepts, which is a joint venture between Starbucks Company and Maxim group from Hong Kong (Harrison et al. 2005). In order to acquire...
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...The Globalisation essay Student name: Lok Lei The Globalisation essay "Globalisation is Good’’ tells a tale of two countries that were equally poor 50 years ago - Taiwan and Kenya. Today Taiwan is 20 times richer than Kenya. I think the farmers and entrepreneurs that could develop Taiwan because it introduced a market economy and integrated into global trade. And I know the Kenyan farmers and slum dwellers that are still desperately poor, because Kenya shut its door to globalisation. The Kenyans are suffering from regulations, corruption and the lack of property rights. The unequal distribution in the world is a result of the unequal distribution of capitalism - those who have capitalism grow rich, those who don't stay poor. Globalisation can also be seen positively in a country where the economy has doubled in the past fifteen years, Vietnam. Even though the vast majority of Vietnam is still poor, this is changing due to globalization. First of all, globalisation has clearly made the workers’ lives better. At the Nike factory, workers need to be older than 18 to work at foot wear, and at least older than 16 to work at apparel. The average age of a worker there is around 24 to 25 years old. The reason why so many children had to work before was because their parents needed them to in order to help support the family, but since they are now able to make more money, this is no longer a necessity. Nike pays about $54 per month for their workers which is a high salary...
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...The slowdown in China’s growth has had a rippling effect with consequences seen in the Australian Government, Domestic Firms and even Multinational Firms. Due to the slowdown, implications that have been placed on the Australian Government have been ones such as a need for the restructuring of certain policies to be able to handle the increased exposure to the volatility of the commodity market. The government should ensure appropriate policies are in place to facilitate the management of risk in regards to this volatility. Seeing as how the price of iron ore has fallen by more than what the government expected at the time of the May budget, there is a need to look at the budget again as this may hinder any planned spending due to predicted government investment and income. With the Australian mining industry being held at such a high standard from the rest of the world, there is a need for Australia to retain as much revenue as possible. With the super-sized profits being reeled in by resource companies operating in Australia, it is up to the Australian Government and the implementation of the mining tax, as this would reduce the damage being felt by the exports industries such as manufacturing and tourism which has suffered due to the increased Australian Dollar (Jessica Irvine 2010). Other implications seen by the Government include a potential volatility in the relationship between the Australian Government and the Chinese Government due to a reduction in the...
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...specific company that you are familiar, examine the actual and potential impacts of globalisation on that company. Explain the reasoning behind the points you make. Evaluate possible strategies going forward which the company might use to respond to the impacts you have identified. 1. INTRODUCTION Globalisation is a word that is frequently being used by everyone, from politicians to businessmen and is often referred to closely united economies worldwide, with products, people and money moving easily; in greater volume and value throughout the world. It can be defined as “the process of transformation of local phenomena into global ones. It can be described as the process by which the people of the world are unified into a single society and function together. This process is a combination of economic, technological, sociocultural and political forces.” (Wall, Minocha and Rees, 2010, pg 14) Under the economist’s view point, globalisation focuses on: - • Growth of international trade • Increase in international capital flows • The developing control of multi-national company’s (MNCs) into the domestic and global markets Globalisation is not new, but is “a product of the industrial revolution. Britain grew rich in the 19th century as the first global economic superpower,” (BBC, 2011) due to its greater manufacturing technology and improved global communications such as steamships and railroads. However the possibility speed and scale of globalisation has accelerated...
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...GLOBALISATION COG: GROUP ASSIGNMENT What is Globalisation? Globalisation might have become a buzz-word off late but it is not a new phenomenon. Globalisation loosely refers to the integrated international activities and might have its roots in economic benefits of specialization and competitive advantage. However, with the increased flow of information and ideas across the nations, globalisation has led to make the world a level playing field with very little barriers. The first wave of the organised globalisation started with nations going global, essentially in the quest of new avenues to increase the revenue from the trade activities and access to natural resources. The scramble for the new markets and natural resources led to imperialism and eventually to wars. In the second wave of the globalisation it was organizations that were going global, again in the search for markets and cheaper resources. As the organizations continued to prosper reaping the benefits of the global supply chain, there was an increasing pressure to further reduce the trade barriers amongst the nations. In the third wave of the globalisation, it’s the people who are going global and has lead to integration of different cultures. The world has become a single market and has presented the organizations with huge opportunities as well as increased competition. The complicated interdependencies have perplexed the organizations and regulatory authorities looking for the sweet spot between growth...
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...Topic: Does globalisation pose a threat to cultural diversity The term globalisation is the movement and integration of people, ideology, economy, and culture beyond domestic and national boarders to other boarders around the globe thus growing the interconnectedness of various societies, economy, and culture. “Globalisation is a state of the world involving networks of interdependence and multi-continental distance” this definition of globalisation was offered by Harvard professors (Roberts Keohame, & Joseph Nye, pg105). We say that the course of globalization isn’t in any way a natural practice, i.e., a process that occurred as a result of human laws and orientation. Globalization seems to us as a deliberate, conducted process, the manifestation of an accurate cultural and economic model which carries a particular ideology or philosophy and a worldwide vision. This ideology has had a profound impact towards determining what people from all nook and cranny of the world believe. It has been generalised and made the global trend. For example; the case of American movies and hip hop music being seen as ideal and blueprints to everyone who want to venture into same field, and also the global urge to dress, talk, or even act American. At the pole position of this ideology are the Hollywood, and other multinational companies like McDonalds. Their actual Mother Nature necessarily linked to one specific country, even though they have their ancestries in the various part of world...
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...Globalisation have impacted the world and businesses in different ways, and today different people have been debating on the year that Globalisation started. Brooks, I. et al, stated that “many commentators take the view that globalisation probably started some way back in the nineteenth century” (Brooks, I. et al. 2004, p. 308). The term globalisation can be defined as “a process that refers to the growth of inter-dependencies between national market and industries on a worldwide scale” (Brooks, I. et al. 2004, p. 308). In other words, globalisation is the integration of different markets in the global economy. The process of globalisation have four different phases in the world and businesses. The first phase which started in the year 1880(Brooks, I. et al. 2004, p. 308) was mainly focused in the improvement and development of good transportation and automation processes which enabled the large business firms to rely on a long distance trade. Furthermore, in the 1880’s, the invention of telephone and telegraph communication made the process of transferring information much easier and faster which was very useful and helpful to different business firms to communicate and manage “their supply chain” (Brooks, I. et al. 2004, p. 308). Secondly, the second phase of the process of globalisation helped and enabled the business firms to expand and “establish multinational subsidiaries” (Brooks, I. et al. 2004, p. 308). The third phase was focused on the reduction of tariffs barriers...
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...nature and determinants of ‘globalisation’, paying attention to the cross-border operations of firms. It explores reasons behind the growth and cross-border expansion of firms and it analyses the various modalities of cross-border activity, such as exports, licencing-franchising, inter-firm co-operation (such as strategic alliances and joint ventures), and foreign direct investment (FDI) by Multinational Enterprises (MNEs), alongside the conceptual foundations behind the choice between such modalities. The course also explores main strategies for value capture by MNEs, notably in the context of cost efficiency versus adaptability. It also examines alternative paradigms on national competitiveness, and the role of FDI in their context. The course concludes with an assessment of the record, so far, and future prospects, of globalisation and the MNE. At the company level, while studies of international business have always been dominated by the large multinational company, new forms of international enterprises are being developed by the emerging economies. The concept of the born-global firm is prominent among these relatively new forms. In addition, the demands of the environment are inducing changes in business activities. For example, greater emphasis is placed upon innovation, sustainable development, the impact of emerging markets, and the influence of people on business approaches. These challenge the existing theories on international companies and their behaviours....
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