Globalisation of business
globalisation in its true sense is a way of corporate life necessitated, facilitated and nourished by the transnationalisation of the World economy and developed by corporate strategies. Globalization is an attitude of mind it a mindset which views the entire world as a single market so that the corporate strategy is based On the dynamics of the global business environment.international marketing or international investment does not amount to globalisation unless it is the result of such a global orientation Globalisation encompasses the following: • Doing, or planning to expard, business globally.
• Giving up the distinction between the domestic market and foreign market and developing a global outlook of the business. • Locating the production and other physical facilities on a consideration of the global business dynamics, irrespective of national considerations.
• Basing product development and production planning on the global market considerations.
• Global sourcing of factors of production, i.e., raw materials, components, machinery/technology, finance etc. are obtained from the best source anywhere in the world.
• Global orientation of organisational structure and management culture. Companies which have adopted a global outlook stop “thinking of themselves as national marketers who venture abroad and start thinking of themselves as global marketers. The top management and staff are involved in the planning of worldwide manufacturing facilities, marketing policies, financial flows and logistical systems. The global operating units report directly to the chief executive or executive committee, not to the head of an international division. Executives are trained in worldwide operation not just domestic or international. Management is recruited from many countries, components and supplies are purchased where they can be obtained at the least cost, investments are made where the anticipated returns are the greatest”
• Giving up the distinction between the domestic market and foreign market and developing a global outlook of the business. • Locating the production and other physical facilities on a consideration of the global business dynamics, irrespective of national considerations.
• Basing product development and production planning on the global market considerations.
• Global sourcing of factors of production, i.e., raw materials, components, machinery/technology, finance etc. are obtained from the best source anywhere in the world.
• Global orientation of organisational structure and management culture. Companies which have adopted a global outlook stop “thinking of themselves as national marketers who venture abroad and start thinking of themselves as global marketers. The top management and staff are involved in the planning of worldwide manufacturing facilities, marketing policies, financial flows and logistical systems. The global operating units report directly to the chief executive or executive committee, not to the head of an international division. Executives are trained in worldwide operation not just domestic or international. Management is recruited from many countries, components and supplies are purchased where they can be obtained at the least cost, investments are made where the anticipated returns are the greatest”
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