Developing international markets

Q1) According to Steger (2014), Globalization is defined as the spread and strengthening of
social ties and consciousness across time and space. It is a multifaceted phenomenon that
includes economics, politics, culture, philosophy, the environment, and technology (Steger,
2014)
This occurrence has been fueled by several factors, including technological drivers, trade
liberalization, and the rise of multinational corporations. We will critically examine the key
drivers of globalization in the context of Olam International and their implications for the
competitive landscape. The following are some key drivers of globalization in the context of
Olam Internation. They are;
Technological Drivers: The commercial world has become more international thanks to the
quick development of technology. Olam International has used technology to boost
productivity, save costs, and improve supply chain management. As an illustration, the business
has created a digital platform that links farmers and purchasers, expediting the procurement
process and enhancing transparency. Olam International has also invested in technologies that
help with precision farming, which helps to increase agricultural yields and decrease waste.
Technology has shaped and laid the groundwork for modern globalization (Bauernfeind, 2005).
Political Drivers: Liberalized trade policies and deregulated markets resulted in decreased
tariffs and the acceptance of foreign direct investments practically everywhere in the world.
Recent developments include the establishment of GATT (General Agreement on Tariffs and
Trade) in 1947 and the WTO (World Trade Organization) in 1995 (Bauernfeind, 2005). Trade
liberalization is the reduction of trade barriers such as tariffs and quotas to promote
international trade. Olam International has benefited from trade regulations that have allowed
its global expansion. For example, thanks to free trade agreements and advantageous trade
regulations, Olam has been able to access new markets and export its products to various
regions.
Market Drivers: Domestic markets are constrained by market saturation. They do not provide
the same amount of profit prospects, thus businesses and governments began to trade globally
to increase their ability to generate a larger profit and reach a larger customer market. (Collins,
2017) As domestic markets get increasingly saturated, possibilities for expansion become
restricted, and most firms including Olam choose to solve this problem by expanding globally.
Common client needs, as well as the ability to leverage global marketing channels and, to some
extent, transfer marketing, are all reasons to select internationalization. (Bauernfeind, 2005)
Monetary Drivers: Sourcing efficiency and costs vary by region, and global enterprises can
capitalize on this fact; other cost drivers to globalization include the opportunity to achieve
global scale economies and the current high product development costs (Ferrier, 2004).
Competition: Global trade fosters a competitive environment by importing and exporting
commodities at reduced costs and utilizing labor from other countries. Internal competition
exists in firms that operate in multiple areas around the world, but it can also include consumer
and resource competition. According to certain theorists, the competitive environment is not
only a driver of globalisation, but also a resultant element due to the volatile and ever-changing
nature of the global market environment. (Collins, 2017). Olam International is a multinational
firm that has expanded its operations and gained a competitive edge by leveraging its global
presence. The company's diverse product and service portfolio has allowed it to avoid risks and
capitalize on opportunities in various locations.
IMPACT OF GLOBALIZATION ON THE COMPETITIVE LANDSCAPE
Olam International's globalization has had a number of effects on the competitive landscape.
One of the benefits is that it has given the organization access to new markets and customers.
For example, Olam International has expanded its operations to emerging areas such as Africa
and Asia, where food product demand is increasing. The presence of the corporation in these
markets has aided in increasing its market share and revenue.
Another benefit of globalization for Olam International has been the facilitation of knowledge
transfer and innovation. The organization has been able to incorporate best practices from
several regions into its operations. Olam International, for example, has invested in research
and development to create new crop types and improve its manufacturing processes. In
addition, the organization has collaborated with local communities to establish sustainable
agricultural practices that increase output while minimizing environmental effects.
Globalization, however, has had some negative consequences for Olam International and the
competitive landscape. Increased competition is one of the negative consequences. As more
companies enter new markets and compete for clients, the globalization of business has
intensified competition. This has put pressure on Olam International to keep its competitive
edge by providing high-quality products, efficient services, and low costs Pisano (2019).
The potential for political and economic volatility is another negative impact of globalization on
Olam International. The company operates in politically and economically unstable regions such
as Africa and Asia. These areas are subject to challenges such as corruption, civil upheaval, and
terrorism, which can disrupt operations and reduce profitability. Chong and Calderon (2015)
Finally, Olam International's globalization has been fueled by technological, political, and
competitive factors, as well as monetary drivers. The company's internationalization has had
both beneficial and negative effects on the competitive landscape. While globalization aided
the company's expansion into new markets, as well as knowledge transfer and innovation, it
also raised competition and exposed the company to political and economic threats. Olam
International, as a multinational firm, must continue to adapt to the changing global
marketplace and use its global presence.
Q2.
Olam International is a leading food and agribusiness company with operations across
the whole supply chain, from raw material sourcing to processing and distribution.
Because the company has a global footprint and operates in more than 60 countries, it
is a great case study for examining the possible impact of supply chain internationalism.
Supply chain internationalism is the practice of obtaining goods and services from
numerous nations in order to cut costs, boost productivity, and gain access to new
markets. The technique has become more widespread in recent years as a result of
globalization, technological advancements, and shifting consumer preferences.

Increased efficiency and cost savings are one potential benefit of supply chain
internationalism on Olam International. The corporation can benefit from lower
production costs, lower shipping expenses, and economies of scale by acquiring raw
materials from different nations. This can lead to greater profitability and
competitiveness.

However, there are some drawbacks to supply chain internationalism. For example, the
company may face difficulties managing complex supply chains that span multiple
countries and cultures, as well as increased risks related to political instability, natural
disasters, and other factors that can Furthermore, supply chain internationalism may
raise ethical concerns, such as labor rights violations, environmental damage, and
exploitation of local populations. Olam International has previously experienced criticism
for its labor practices and has taken initiatives to rectify these issues.disrupt supply
chains