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CORPORATE GLOBALIZATION

By:
Sameer Wankhare 01
Shakeel Rehman 06
Manas Chafekar 12
Samrat Chakrabarti 14
Pooja Bharti 37

Growing Organizational Complexity and Reach

 Visible Signs and Symptoms
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 The Globalization of Markets / Customers

 Advances in the technological environment.
(Internet and e-commerce)
 Technology effecting information/communications

 It is possible to "know" where to buy

components parts at cheaper prices
 People around the globe are more connected to

each other than ever before.

 Information and money flow more quickly than

ever.
 Visible Signs and Symptoms
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 Outsourcing: the "modular approach to business”

 Few things "made" in a factory, most stuff is

assembled from component parts that come from a

variety of locations, some national, some
international.
 Goods and services produced in one part of the

world are increasingly available in all parts of the

world.
 Core Problems
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 Financial – Matching international currencies and

their rate of exchange. Handling finances of a company
on a global scale.
 Economic – Dealing with economies of different
countries.
 Political – Political issues of different countries.
 Informational – Managing flow of information across
international boundaries.
 Language – Different languages in different countries.
 Core Problems
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 Competition – Global competition. New competition

in new markets.
 Ecological – Climatic & environmental problems in
different countries.
 Cultural – Different working & general cultures of
different countries.
 Legal/Ethical – Different legal policies in different
countries.
 Religious – Prime religion of a country & its impact
on local people of a country.
 How should companies respond ?
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 Trade Barriers: Burden of tariffs, quotas, the policy

of buying.
 Understanding Customer Demands: Effective
operations, product assurance and reliability,
logistical problem solutions
 Globalization of Competitors : Understanding the
behavior of the international competitors.
 How should companies respond ?
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 Regulations and Restrictions: Limiting the

expansion, Regulations related to encroaching in the
local companies' profits ,controlling costs.
 Providing Incentives : Capital infusion, skills, and
technology voluntarily provide incentives such as
fixed assets, tax exemptions, subsidies, tax holidays,
human capital, and low wages.
 Expected Benefits
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 Huge annual turnover: Revenues of Wal-Mart is

bigger than Indonesia. Revenues of General Motors
is approximately equivalent to that of New Zealand,
Ireland and Hungary combined.
 Better Purchasing Power: open up all government
contracts, services, and goods to competitive
bidding .
 More Opportunities: less governmental
interferences, and market access provisions .
 Expected Benefits
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 Economic and Political Stability :With economic

prosperity, comes political stability
 Economic partnership : create win/win exchanges .
Eg U.S. has backed international loans to Argentina
 Reduce Trade Disputes: Economic partnership
reduces trade disputes. For example it might be able
to soothe trade disputes between the U.S. and Brazil .
 Examples
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 Reliance
 Sundaram Fasteners
 TCS,Infosys etc.
 GE
 Unilever
 Toyota
 Citibank
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THANK YOU

Growing Organizational Complexity and Reach