A PRESENTATION ON

GOING GLOBAL
TEAM:SULTANS
OF SWING

GLOBAL BUSINESS
TEAM: SULTANS OF SWING

SRIKANTA KUMAR GHOSH

SAUMAK SINHA
SHILPA ASHOKKUMAR
SIMRIT MANIHANI
ANKIT MADHOGARIA

MBA INTERNATIONAL BUSINESS SEPT 2009

13TH OCTOBER 2009

 CONTENTS

•THE VALUE CURVE

•ANSOFF’S MATRIX

•IMPORTANCE OF R&D

•NEED FOR GLOBALISATIION

•MARKET DRIVERS
•COST DRIVERS
•FACTORS TO BE CONSIDERED BEFORE GOING GLOBAL

•IMPACTS OF GOING GLOBAL

THE VALUE CURVE

•THE VALUE CURVE IS A TOOL

TO DIFFERENTIATE THE
VARIOUS SEGMENTS OF
GROWTH IN A GLOBAL
MARKET

•THE EVOLUTION INTO MORE

PROFITABLE PRODUCT
SEGMENTS CAN BE CLEARLY
TRACKED
•MIGRATION TO DIFFERENT
POINTS IN SUPPLY CHAIN
THE VALUE CURVE
ANSOFF ‘S Product-Market Growth Matrix
The matrix allows marketers to consider ways to grow the business via existing
and/or new products, in existing and/or new markets .This matrix helps
companies decide what course of action should be taken given current
performance.
4 STRATEGIES OF ANSOFF:

•Market penetration (existing markets, existing

products):
•Product development (existing markets,
new products):
•Market development (new markets,
existing products):
•Diversification (new markets, new products):
 IMPORTANCE OF R&D IN GLOBAL BUSINESS
The phrase research and development (also R and D or, more
often, R&D), according to the Organization for Economic Co-operation
and Development, refers to "creative work undertaken on a systematic
basis in order to increase the stock of knowledge, including knowledge
of man, culture and society, and the use of this stock of knowledge to
devise new applications"

•New product design and development is more often than not a crucial factor in the
survival of a company.

•R&D has a special economic significance

•R&D investment generally reflects a government's or organization's willingness to

forgo current operations or profit to improve future performance or returns, and its
abilities to conduct research and development.
 NEED FOR GLOBALISATIION
1. MARKET DRIVERS
A. HOMOGENEOUS CUSTOMER NEEDS
B. GLOBAL CUSTOMERS
C. TRANSFERABLE MARKETING

2. COST DRIVERS
A. ECONOMIES OF SCALE AND SCOPE
B. FAVOURABLE LOGISTICS
C. COST OF PRODUCT DEVELOPMENT

3. GOVERNMENTAL DRIVERS
A. FAVOURABLE TRADE POLICIES
B. COMMON REGULATIONS FOR MARKETING WITH THE HOST AND THE FOREIGN
COUNTRIES

4. COMPETITIVE DRIVERS
 MARKET DRIVERS
• 1. HOMOGENEOUS CUSTOMERS
• THIS MEANS DIFFERENT CUSTOMERS,DIFFERENT NATIONALITY DIFFERNET MARKET BUT
SAME PRODUCT REQUIREMENTS.

• 2. GLOBAL CUSTOMERS
• TWO TYPES: NATIONAL AND MULTINATIONAL
• NATIONAL CUSTOMERS BUYS PRODUCTS FROM COMPANIES OF DIFFERENT NATIONALITIES
BUT USES SAME IN 1 COUNTRY EX:DEFENCE AGENCIES OF VARIOUS COUNTRIES
• MULTINATIONAL GLOBAL CUSTOMERS BUYS PRODUCTS AND SERVICES FROM SUPPLIERS
ACROSS THE WORLD AND USES THE SAME GLOBALLY EX:WHO

• 3. TRANSFERABLE MARKETING
• ONE BRAND NAME CAN BE USED GLOBALLY AND THIS ENABLES COMPANIES TO USE 1
BRAND NAME AND DO BUSINESS ACROSS CONTINENTS EX: MCDONALDS
 COST DRIVERS

1. A SINGLE MARKET
NOT CAPABLE TO PRIOVIDE HUGE AMOUNT OF MARKETING SCOPE AND
REVENUE

2. FAVOURABLE LOGISTICS
FAVOURABLE AND NEW DEVELOPMENTS IN THE TRANSPORTATION
INDUSTRIES OVER A PERIOD ALSO PLAYED A KEY ROLE IN HELPING
COMPANIES TO EXPAND GLOBALLY.

3. COST OF PRODUCT DEVELOPMENT

THE COST OF DEVELOPING PRODUCTS CAN BE REDUCED IN A SUBSTANTIAL
MANNER BY DEVELOPING A FEW GLOBAL PRODUCTS RATHER THAN
DEVELOPING MANY NATIONAL PRODUCTS.
FACTORS TO CONSIDER BEFORE GOING
GLOBAL
Overall commitment of entire company
involvement from the executive suite
to customers service so that complete co-operation can be achieved
from all directions.

Frame a business plan to enter global markets

business plan will help to the know the company’s status and
goals so that the results can be measured to a certain extent.

Determination of capacity to invest for expansion

Investing capacity depends upon whether we want invest 10%

of the domestic business profits or pay as one can afford.
Follow a pre-planned strategy
•preparation of penetrating Into global markets.
•watchful eye on the ongoing trends.

Creation of Portal
•helps in vast communication
•the main aspect is the Language that has to be chosen.
•English->PRIME language

Deciding a product or service

We cannot be all things to all people so pick on something and
stick with it.
Market research can be done
To know where the product or service has great demand.
Market research can be done by conducting
market surveys  to ascertain the
prime target.

Estimate where to sell products

Estimate specific geographic location For example
selling few units to a customer in Australia or ten 40-foot
Containers on a monthly basis to retail in France. This will
enable us to know how much can one sell in a specific period of time.

Design the product for export

Packaging plays a main role as it gives an identity to the
Company and makes it best in its class and the product can be
sold anywhere in the world.
Hire professionals to ease the work load

ex. Lawyer, banker, knowledgeable accountant,

and a seasonal transport specialist for international transactions.

Price –Initial quoting of product price

customer react ion to the initial
price and then negotiate.

Finance aspects and terms & conditions

Ex. Never sell on open account to new customers.

Post-sales relationship and Enjoying the

journey
 POSITIVE IMPACTS OF GOING GLOBAL
LIBERALISATION OF TRADE AND FINANCE
Relaxation of government rules and regulations in order to
promote free flow of goods from one place to another.

WIDER MARKET
Globalization widens the market and increases its size.
Companies don’t have to rely on the demand, tastes and
preferences of a single country.

POTENTIAL UNTAPPED MARKETS

Going global provide a chance to explore and exploit the
potential markets.
These markets provide an opportunity of selling the
product at higher price than in domestic markets.
ECONOMIC GROWTH OF THE WORLD
Globalization has lead to specialization, division of labor,
enhancement of productivity etc. which in turn lead to
overall economic growth of the world.

HIGH LIVING STANDARDS

Comparative cost theory indicates that the countries which
have the advantage of raw materials, human resources,
natural resources and climatic conditions in producing
particular goods can produce the goods at low cost and of
high quality.
Enhanced the living standards of people through
consumption of high quality products.
Enhanced purchasing power is given to the customers.
OPTIMUM UTILISATION OF WORLD RESOURCES

Globalization provides flow of raw materials, natural

resources and human resources from the countries where
they are in excess supply to those countries which are in
short supply or need most.

DIVISION OF LABOUR AND SPECIALISATION

Globalization leads to division of labor and specialization.
Example: Brazil specializes in coffee, Kenya in tea, Japan in
automobiles and electronics, India in textile garments etc.

REDUCED RISKS
Both commercial and political risks are reduced for the
companies engaged in global business due to spread in
different countries.
NEGATIVE IMPACTS OF GLOBALIZATION

HUGE FOREIGN INDEBTEDNESS

Developing countries with less purchasing power are lured
into a debt trap due to the operations of MNC’S in these
countries.
Example: Mexico, Brazil, Kenya, Indonesia etc.

TARIFFS, QUOTAS AND TRADE BARRIERS

Governments of various countries impose tariff, import
and export quotas and trade barriers in order to protect
domestic business.

CORRUPTION
The higher bribe rates and kick backs discouraged the
foreign investors to expand their operations.
TECHNOLOGICAL PIRATING

Copying the original technology, producing imitative

products, imitating other areas of business.

HIGH COST

Market surveys, product improvement, quality

up gradation, managerial efficiency etc. require large investments and
involve higher cost and risk.
CLOSING THOUGHTS:SUMUP

Going Global is not about ending one chapter and

beginning another but its all about continuing with
the other chapter but always referencing to the first
one
mills
Industrial life cycle
Going Global is not about achievement, it’s about learning
and growth, and developing qualities like compassion,
patience, remarkable openness to new ideas, joy and so
forth within different countries. And if so that is the case,
then I think our goals should include something which
stretches us…

Thank You one and all!!