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Globalization

GLOBALIZATION

1.
Political & Econ. Changes in the erstwhile communist and socialist countries and the substantial liberalization of multilateral trade and investment have strengthened the forces of globalization.

Companies are becoming more globalized in their production, marketing and other functions.

2.
TOYOTA
Japan’s largest, worlds 2nd largest automobile company.

• 2/3rd total business outside Japan.
• > ½ of its vehicles sold overseas are mfg. overseas and the remaining exported from Japan.
• Has established integrated mfg. systems in all three of its main markets: North America, Europe and Asia.
• Plans in China, Indonesia, Malaysia, Phillipines, Taiwan and Thailand turned out nearly a third of the company’s overseas production
• See following diagram:

3.
G is an attitude of mind – a mind set which views the entire world as a single market so Corp. strategy based on dynamics of global bus. Environment. If Int’l marketing or int’l investment has to amount to globlsn , it is the result of such a global mind set orientation.

“thnking of themselves as national marketers who venture abroad and start thinking of themselves as global marketers. Not just domestic or local or national but int’l and global, one market.
The Borderless world – Kenichi Ohmae.

Honda – no place for “overseas” in their vocabulary. Sees itself as equidistant from all its key customers. Key managers meet once in a month to lay out revised plans for global product development.

Cos. And their top managers are involved in the planning of world wide mfg. facilities, mktrg. Policies, financial flows and logistical systems. Executives are so trained. Mgmt recruited from many countries, components and supplies are purchased where they can be obtained at the least cost, and investments are made where the anticipated returns are greatest.

5.
Globalization encompasses the following :
• Doing or planning to expand business globally....