Tag: Global

  • Global Leadership Organization Role Management Essay

    Global Leadership Organization Role Management Essay

    What is the Role of Global Leadership Organization in Management? According to Peters ducker leadership or management isn’t always about a listing of some qualities, attributes, charisma; and it cannot be equal in all leaders it is all about the transport of performance; the manner managers present, resolving problems and might make other humans work properly.

    Here is the article to explain, How to define Global Leadership Organization Role in Management?

    Leadership isn’t always about outcomes among chief and fans; it may not don’t forget effective and global leadership in the organization; if there is a lack of results between leader and fans; On the other hand, it doesn’t mean that fans are usually supposed and trust regardless of the leader says is right. An example of an excellent team and leader is that whenever a leader is incorrect, followers must improve the point; with the ideal expertise and common sense then again leader; If wondering any doubt about his planning; he ought to do not forget legitimate points and try to accept and amend it. When a person starts off evolving saying he doesn’t recognize here gaining knowledge of starts and someone; who is a great listener is continually an excellent chief.

    What are the styles of leadership?

    There are three styles of global leadership organization which are as follows:

    Dictatorial or authoritarian:

    This style is specifically used when leaders tell their employees that they want this done; and in that period usually, in such cases, all the information is ready or available. This condition is suitable when employees have all the relevant information to solve; the problem o the leader is short on time and the employees are well motivated. Some people think that this style is a yelling style, like ordering rather than working as a team.

    Participative (Democratic):

    This style involves the leader including one or more employees in the decision-making process in terms of what to do and how to do it? However, the leader maintains the final decision-making authority but on one hand; it shows the weakness of the leader that he doesn’t have full knowledge; but, it’s always not necessary that the leader should have all the knowledge of the problem. If leaders use this style it’s a mutual benefit; on one hand, it allows the leader to become part of a team; and on the other hand, allows the leader to make better decisions.

    Delegative (Free Reign):

    In this style managers allow the employee to make a decision but still; the leader has the power of final decision and he can apply this practice only; if he trusts his employees in such a way; that even if they make the wrong decision so he will be responsible. In a whole task, you can’t do everything you must allocate certain tasks to employees.

    Normally good leaders apply all three styles in their work; it just depends on the nature of work and the time that which style has to follow and in leadership; the leader should never be so soft that; it’s so easy for employees to mold it and never be so hard that could easy to break. Before discussing global leadership skills; it’s important to have some reviews on leadership skills first to get the appropriate vision of global leadership skills in the organization. A leader is a dealer in hope.

    What are the leadership skills?

    Some of the leadership skills are as follows:

    • Cognitive Skills
    • Interpersonal Skills
    • Business Skills
    • Strategic Skills

    Cognitive skills;

    They can be explained as the base of leadership or manager skills because of the characteristics involved in it; such as collecting, processing, disseminating information, and learning, the leader has to involve in all those activities. The leader has to be good at oral communication as speaking; he should be able to deliver or convey his message accurately that what and why it needs to be accomplished. Apart from speaking, he should be a good listener; on the other hand, he to listen to questions and reply accurately in time to achieve the desired task.

    Both of these qualities accomplish communication skills. his written skill plays a vital role; as well he should be good in writing in terms of delivering his message; and also can read well to understand and achieve tasks which are required. Active learning is also one of the characteristics which are very important in leadership; a leader should be a fast learner and should have the ability to act on emergent, non-routine and dynamic situations on the job.

    Interpersonal and social skills;

    It is another important step of leadership skills as it relates to interacting and influencing others; it comes in the category, as referred to by the previous research as social capacities, social judgment, social complexity and differentiation, and human relation; it’s all about understanding other people’s behavior; why they react in such situations and their performance under pressure work environment; it involves the coordination of actions and negotiating to reconcile differences among employee perspectives and establish mutually satisfying relationships. This skill also makes people believe and influence in such a way to accomplish organizational tasks more effectively.

    Business Skills;

    They are specifically used for managing personal resources of the business and to develop, motivate, identify and promote employees the way they work as well as management of financial resources and organizations unit.

    Strategic Skills;

    They are highly conceptual and based on strategies that a leader has to implement at the required time in the organization for effective results; sometimes they have to forecast such situations and have to prepare strategies. This includes important planning and visioning of future situations. Strategic skill is also a problem-solving component that identifies problems; and, becomes increasingly important for these jobs to identify problems and take the necessary steps to solve them.

    Purposes and Objectives;

    The reason Toyota is been chosen is because of its size, growth, and strategies as a multi-national company and its leadership skills. In such a big company it will be easy to discuss different points and theories with examples. The basic aim of the project is to see how leadership skills affect a company’s business; how good and bad leadership makes difference, and how with the help of their strategies and leadership skills they have reached the success heights.

    Here we will also outline the role of a leader globally in terms of his/her skills in a multi-national organization. Their responsibilities, duties, and skills should exist as part of their personality. We discuss leadership skills above; which are more or less similar to the qualities of global leadership qualities in a multi-national organization.

    Role of Global Leadership Organization;

    The organization is planned, understood, coordinated, and purposeful action of human beings to produce a product that can be tangible or intangible but this product market is limited just to the country however multinational organization is a group of people who can produce and market product not only inside the country but abroad as well on an international basis global leadership in the organization.

    So its very obvious that the nature of business and number of problems will be less if compared with the multinational organization so similarly responsibilities and duties of local company leader will be less then the global leader, take an example of a local company, for example, Ashwin Travellers they have got their branches in different cities of UK so the responsibility of its manager will be far less then the responsibilities of a multinational organization for example Toyota.

    Well according to some writers there is no such thing as a global manager; Usually, multinational companies hired three kinds of persons in multinational companies – Business manager – Country manager – Functional manager, and a corporate manager.

    Business Manager;

    Consists of three parts which are Strategist + Architect + Coordinator.

    One of the responsibilities of a global business manager is to improve companies’ global scale efficiency and competitiveness. In this task, the business manager has to recognize the current and future opportunities of the company; how can they make a profit in long term goals apart from that; he has to take into consideration the global market risks and competitors across the borders; and, before making any strategic plan or decision he should know all those risks and factors; which could affect their plans as in whole. His job is to take full advantage of the integrated worldwide operations.

    Toyota, they have got different brands in different countries but not all models need to be famous in all regions of the world they have to observe the demand and supply graph or look over the sale graph of different models in different countries after that they can assess well that which product/model needs marketing efforts, on the other hand, increase the supply of the models which are selling out faster for example according to the search in Toyota Yaris, Avensis and Lexus are more famous and use in Uk at the moment on the other hand in middle east Toyota Jeeps, Toyota Corolla, Toyota Hilux, and Land Cruiser are more famous so in comparison of both;

    Market strategies;

    It needs different market strategies and demand and supply chains so all these factors should take into consideration and related to the job of the business manager to keep an eye on these factors and take accurate decisions at the right time. Three roles should play very effectively by the business manager firstly act as a strategist for his organization, an architect of its worldwide assets and resource configuration, and should have an idea of transactions across the national borders.

    Al Cabito Group Vice President, sales administration, Toyota motor sales provide great insights into Toyotas emerging build-to-order strategy. Toyota’s annual profit in 2003 was $8.13 billion, much more than the combined income of GM, Ford, and Chrysler and the biggest profit of the automakers in the last decade. so all this profit and high production are because of excellence in strategies and architecture with coordination which consider the key of a Business manager.

    Country Manager;

    Consists of three parts Sensor + Builder + Contributor.

    National subsidiaries exist always used as a building block for most worldwide companies. If on the one hand global business manager’s job is to achieve global scale efficiency and competitiveness on the other hand job of a country manager is to activate his market sensors 24/7, 365 days a year to get a clear vision of the sensitiveness and response of the local market. the job of the country’s manager is not only to meet customer needs but also to require satisfaction of the host government requirements and defend their position in the market against local and external competitors. As a business manager, the country manager has to fulfill 3 vital job aspects.

    He should be a sensor and interpreter of the local market opportunities and threats as in risk, should be the builder of all the local resources and capabilities, and act as a contributor too and to act as an active participant in the global strategy. Country manager job activities should be very fast and accurate in terms of gathering and transferring information regarding market reports in terms of risks, demand, and supply of the product;

    Local information;

    Because all those local information plays important role in big decisions and strategic planning. This act matches one of Toyota’s principles “Right process produces Right results”. In terms of Toyota, Ken Elliot, Service parts center, a national manager shared a lot in making Toyota Way Culture in a new part of the distribution center.

    In the automaker industry job of a country; the management isn’t easy because of the different brands of different countries in the market. In the UK alone there are approximately 55 car manufacturers which mean every week each carmaker comes up with a new model, price, and warranty. so for this purpose, country managers’ sensors should be working fast, and on top of that, it’s fast and accurate delivery. He should be active in terms of contribution as well as should know about all market reports in terms of contribution.

    The Functional Manager;

    Consists of three parts Scanner + Cross Pollinator + Champion.

    The above two managers have come into their well in the case of Functional managers who have to get recognition in many multinational companies through them. functional manager support staff roles, excluded from important meetings and even dismissed unnecessary overhead. Organizations that build a culture of learning to create and spread innovations needs such skills to transfer with the connection of scarce resources and capabilities across national borders.

    The above objective is very important and to achieve this functional manager at his best practice has to scan specialized information worldwide and champion innovations that may offer transactional opportunities and applications. Innovation, basically starts with a new opportunity or market threat to the manager for example technological development, pending government regulation, when any of the above situations arises around the world corporate headquarter take it very lightly if viewed in isolation but when scanner serves by a functional manager with the reason that expertise should find any trends and move knowledge across the boundaries then the person can transform piecemeal information into strategic intelligence.

    Take an example of Toyota it starts with a big 5 seated car in the past but with time they have seen the people’s demand changing to small cars so on the other hand, they have started production of small cars with smaller engines. A recent example of innovation is Toyota’s green car which runs on electricity, the reason for its production and spending loads of money on its research is just to attract customers and capture the market as they have realized the market demand earlier.

    Corporate Manager;

    Consists of three parts Leader + Talent scout + Developer.

    This is crystal clear that there is no single model for Corporate managers neither the old line international specialist manager nor even today any generalist can handle the modern-day complexities of cross border strategies. corporate managers deal with many levels of responsibility playing the most vital role in transactional management. Corporate manager always leads in the broadest sense and they always realize and identifies the importance of developing ESOP talented business, country, and functional managers and balancing the negotiation among the three.

    It is in the hand of corporate managers to develop and promote strong managerial specialists who can give vision to the strategies around the world. The very first step as a senior executive is to identify those in the organization who have the potential and ability to become a global managers. broad vision, deep understanding of the business, country, and functional task. There will be other talented managers in the organization but all of them are not flexible with all combinations discussed above especially when it comes to cross-border coordination and integration.

    Global Leadership Organization Role Management Essay Image
    Global Leadership Organization Role Management Essay; Image by Mohamed Hassan from Pixabay.
  • Global Digital Divide Examples Essay

    Global Digital Divide Examples Essay

    The phrase global digital divide has become a global phenomenon and has taken the world by storm, with It an Essay and Examples. What exactly does this term mean and what does it entail? This phenomenon became current during the mid-1990s and define as the segregation between those; who have access to advanced forms of technology and those who do not have access to advanced forms of technology specifically between the developing and non-developing world.

    Here is the article to explain, The definition of Global Digital Divide with an Essay and Examples!

    The global digital divide is an ongoing debate that includes a variety of contributing factors that will discuss in this paper such as cultural, political, and economic issues specifically within the context of how two African nations South Africa and Mauritius are combating the global digital divide.

    Moreover, this paper will utilize the success story of Mauritius as a comparison of how once government institutions; and powers are actively involved within communities by providing subsidized internet access; the division caused by the global digital divide examples minimizes.

    Furthermore, this specific case study of Mauritius provides hope and ambition to other African states specifically in the context of South Africa; that if a community-supported with powerful institutions and federal resources combating the global digital divide examples is possible. Likewise, this paper will focus on both the quantitative and primarily the qualitative research measures that differ between how Mauritius successfully combated the global digital divide along with the obstacles; which hindered South Africa’s potential success of combating the digital divide; the challenges which prevented the success of South Africa.

    Essay Part 01;

    Additionally, Mauritius is a small island nation within the Sub-Saharan region of Africa. Mauritius has a population of about 1.2 million and an estimated 70% of the nation’s population aged between 15-64; as well as an estimated 88% are literate. Despite English being the official language; it spoke by less than 1% of the population, while the majority (80%) speak Creole.

    Interestingly enough, Mauritius existed previously colonized by both the Dutch and French; although either french or dutch are prominent languages in Mauritius. Mauritius adopted towards establishing an English-speaking nation after the colonial period; which has significantly helped them in the world trading market and ultimately increased the nation’s literacy rate to 88%. As well as “These efforts have​ been acknowledged in the e-government readiness ranking by United Nations”​.

    Furthermore, the government of Mauritius proposed a five-year National ICT Strategic Plan in 2007. This plan aspires to convert Mauritius into a favored hot spot for ICT skills, expertise, and employment in the region. Additionally, once Mauritius converts into an ICT hub; this will allow Mauritius to have the necessary skills they need to access the Internet without any challenges.

    Essay Part 02;

    Therefore, once this establishes the strategic plan also aims to target social indicators by the year 2011; which includes increasing personal ownership by at least 12,000 in primary schools, 20,000 in households; increasing broadband internet penetration by at least 250,000, and establishing 150 public internet kiosks across the island.

    Furthermore, the targeted installment of kiosks throughout Mauritius primarily in geographically located areas; such as rural neighborhoods has been positively linked with ICT use. Findings include that perceived usefulness and subjective norm are both factors that lead to the positive use of ICT.

    Perceived usefulness can define as “a degree to which an​ individual believes that using a particular technology would enhance performance”.

    To guarantee the relevance of internet kiosks, a diverse range of sources; such as internet browsing, word processing, health care, and e-mail is more efficient compared to third-party sources; which typically come at a cost. Thus, these advances are more likely to encourage the use of publicly subsidized Kiso’s.

    Essay Part 03;

    Additionally, the subjective norm positively links to ICT use. Subjective norm can define as “an individual’s perception of the extent to​ which important social referents would desire the performance of a behavior”, this factor is relevant in Mauritius. For example, if a relative or friend suggest the use of public internet kiosks is helpful and encourages one to make use of it; the individual is more likely to believe his or her friend or relative and in return has the motivation and intention to use the public internet kiosk.

    Moreover, this essay will focus on a case study of South Africa; and the challenges that this nation faces with combating the global digital divide. In the article Addressing the digital divide. Online information review (2001).​

    Cullen highlights that a major issue is the lack of physical access to ICT’s. The constraint with physical access to ICT use in South Africa is that the majority of ICT centers; and hubs are located in major cities as opposed to geographically isolated areas such as rural neighborhoods. Similarly, constantly commuting to these locations is not feasible along with another obstacle; which is the challenges that disabled people encounter.

    Essay Part 04;

    Therefore, not only are an absence of ICT use in rural areas but the commute cost is to the ICT centers is not feasible along with the significant challenges that these commutes can be for disabled people. Also, according to statistics on world connectivity; findings show that during the year 2000 South Africa’s number was 440,000 compared to Mauritius’s number of 1.8 million.

    Likewise, in the article Reevaluating the global digital divide: Socio-demographic and conflict barriers to the internet revolution. Sociological Inquiry (2010).​

    Robinson and Crenshaw, highlight a vital constraint towards Internet connectivity which is oftentimes dismissed. This constraint is the impact and influence that political leaders have on the nation. Nations which have liberal and democratic leaders are more likely to have citizens that are proactive and engaging in internet activity. Similarly, these leaders are also more likely to incorporate activities and programs; which motivate ICT use similarly to Mauritius Strategic Plan. Moreover, the turmoil of the post-apartheid conflict in South Africa is still significantly relevant in today’s society.

    Although this conflict occurred over 20 years ago, South Africa’s trajectory was stagnant for a few years; and it hasn’t been until recent presidential figures that democratic values became acceptable. Thus, this greatly impacts political institutions to confidently and successfully incorporate and introduce ICT; use simply because South Africa’s primary concern was moving past an apartheid government; basic values such as marrying someone of the opposite race; and freedom of speech were primary concerns rather than Internet connectivity.

    Essay Part 05;

    Additionally, in the article Information access for development: A case study at a rural community center in South Africa (2006).

    Jacobs and Hersleman argue the barriers which restrict ICT use in South Africa. These barriers include, “lack of awareness of the benefits of ICTs” ​ ​and”lack of ICT skills and​ support”. As mentioned above, South Africa is progressing rather slowly post-apartheid. This plays a significant role in the barriers of ICT use because; although they may have established ICT hubs in populated cities Capetown, Durban, and Soweto; there is one problem that contributes to both the lack of awareness of benefits and lack of ICT skills and support.

    This constraint is that “Facilities like community centers can assist by​ increasing user’s familiarity with technology in non-threatening, social settings”. Therefore, utilizing the staff and volunteers at community centers is imperative in increasing the motivation and engagement of ICT use; especially because incorporating ICT use at facilities such as community centers do not provide much use; if the community is unaware that these resources are available to them and how exactly they can access these resources.

    Essay Part 06;

    Furthermore, in the article Time machines and virtual portals: The spatialities of the digital divide. Progress in development studies ​ ​(2011).

    Graham highlights that cultural barriers play a significant role in contributing to the lack of Internet connectivity, information, and access. English is commonly spoken throughout South Africa; however, it does not speak outside of main cities such as Capetown and Durban.

    Also, not only is English not commonly spoken outside of these main cities, the degree of English use on computers or Kiosks and other forms of ICT are not at a beginner level.

    Ultimately, this creates a significant barrier to access to the Internet. Another challenge in South Africa is that has 10 main languages spoken throughout the country excluding English.

    The languages spoken depend on which region or part of South Africa an individual is in. Unlike Mauritius, English is not the most common and main language spoken in South Africa; therefore an alternative can be to provide translators at community centers or providing installing alternative language options on computer or kiosk settings.

    Essay Part 07;

    Moreover, in the article The impact of connectivity in Africa: Grand Visions and the mirage of inclusive digital development. The Electronic Journal of Information Systems in Developing​ Countries ​(2017).

    Friederici, Ojanperä, and Graham highlight that “telecommunication services have been​ found to lessen the financial vulnerability and susceptibility to shocks of poor households in South Africa”. Although, the poorest households may not necessarily benefit simply because they do not have access to telecommunication services.

    These constraints could be because poor households reside in rural areas; which do not have telecommunication services nearby and the commute cost is out of their means as well as the comprehension of English is poor. Unlike the Mauritius case study, the government and other institutions placed publicly subsidized kiosks in both rural and urban areas to mitigate the lack of mobility and accessibility as a constraint.

    Essay Part 08;

    Overall, the highlighted challenge that South Africa faces to combat or mitigate the global digital divide is the lack of physical access; ICT’s do not place in geographically isolated areas such as rural neighborhoods; thus making the commute costly and challenging for those with disabilities.

    Another challenge that South Africa faces is that there is a significant lack of awareness of present or available ICT’s and how exactly one can navigate ICT’s; community members do not encompass sufficient skills to navigate ICT’s. Furthermore, a final constraint that South Africa faces is a lack of English literacy.

    English spoke throughout South Africa, however, it is not the dominant language, and providing ICT’s with intricate levels of English is a barrier that prevents successful ICT use. Comparingly, Mauritius was successful in mitigating the global digital divide examples because English is their main language and they placed publicly subsidized kiosks in rural areas as well as provided the necessary skills needed to navigate kiosks.

    Essay Part 09;

    Moreover, as mentioned above there is a variety of contributing factors that have been constraints in South Africa’s success in combating the global digital divide. The supporting articles of the challenges that South Africa faces in this essay provide significant support for both quantitative and primarily quantitative research.

    Throughout, the articles surrounding South Africa, there has not been a great deal of statistical data as opposed to Mauritius. Additionally, South Africa’s recent history with geopolitical affairs and conflict plays a significant role in their trajectory towards combating the global digital divide.

    Mauritius had both fewer geopolitical and post-colonization obstacles compared to South Africa. As well, suggestions for South Africa are to place ICT’s in geographically isolated regions with different language options as well as advertising where ICTs can find along with having staff or volunteers at the ICT locations that are knowledgeable on how to successfully navigate ICT’s trajectory towards combating the global digital divide.

    It is clear that Mauritius had both fewer geopolitical and post-colonization obstacles compared to South Africa which allowed them to be successful in combating the global digital divide, further research needs to determine the current status of South Africa’s trajectory with the global digital divide. In conjunction, this paper demonstrates that if the government understands the need and importance of combating the global digital divide by incorporating publicly subsidized kiosks and other forms of ICT’s, it is possible to strengthen internet connectivity.

    The definition of Global Digital Divide with an Essay and Examples Image
    The definition of Global Digital Divide with an Essay and Examples! Image by StockSnap from Pixabay.
  • Positive and Negative impacts of Globalization on Economy

    Positive and Negative impacts of Globalization on Economy

    Positive, Good, Negative, and Bad impacts or effects of Globalization on Economy; Globalization makes business management easier and efficient for the company. Based on my research, Globalization simplifies business management in the world. This is due to the advancement in technology, transport, communication, education, and regulations of trade that makes trade fair to all parties. This attracts more people to engage in international business and international trade. Managers within the global face a lot of challenges due to high competition in the industry; good decisions must make to satisfy and maintain their customers and attract more customers for their products. 

    Here is the article to explain, What are the Positive, Good, Negative, and Bad impacts or effects of Globalization on Economy?

    Companies enjoy economies of scale in the business due to the reduction of cost in the management. This report explores a range of interlinking questions, starting with what is globalization, what are the impacts or effects of globalization in developing countries and developed countries, this is in terms of positive and negative impacts or effects on the economy. Globalization is something that affects all of us, no matter what our profession or interest is.

    Globalization is a very wide and very important focus of discussion. I spent time researching what it is and the effects it has in developed countries and developing countries. So in this report, I will define what globalization is and the effects according based on my research. Globalization despite having benefits to the world also has negative impacts or effects of it.

    The following Positive, Good, Negative, and Bad impacts or effects of Globalization on the Economy below are;

    Globalisation has brought benefits in developed countries as well as negative impacts or effects, while positive. The positive impacts or effects include several factors which are education, trade, technology, competition, investments and capital flows, employment, culture, and organization structure.

    Positive impacts or effects;

    It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive impacts or effects of globalisation and the negative impacts or effects they have had on so many demographic segments of society.

    Global market.

    Most successful emerging markets in developed countries are a result of the privatization of state-owned industries. For these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management see by the sudden increase in the number of transactions across the borders.

    In protecting yields and maintaining competitiveness, businesses are continuing to develop a wide range of their footprint as it lowers cost and enjoys economies of scale. Multinational corporations are a result of globalization. They occupy a central role within the process of globalization as evidenced through global foreign direct investment inflows.

    Their concentrations within Europe in western economies have led to size constraints, therefore there is a need for new geographical areas to operate whereby they will face a lot of competition in the market. Through this they will enlarge their market and enjoy economies of scale as globalization facilitates time-space compression, economies compete at all levels including that of attracting investors.

    Cross-cultural management.

    Globalization tends to be the realm of the elite because in many parts of the world they are the only people who are affluent enough to buy many of the products available in the global marketplace. Highly educated and wealthy people from different backgrounds interact within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often embraces western styles of products and patterns of behavior to impress others.

    Today Western culture and patterns of behavior and language are staples of international business. United states have a powerful impact upon many other countries and societies. The world today has a popular cultural force. The popular consumer culture of the economically dominant West is relentlessly and inevitably transforming other regions, cultures, nations, and societies.

    In addition, such perspective implies that technological change, mass media, and consumer-oriented marketing campaigns work in tandem to remake whatever they touch in their image. Even attitudes and ideas about society, religion and, technology transformed by cultural diffusion brought by globalization. For example, in America McDonalds, represent fast, cheap,p and convenient food while it is not the same worldwide. It’s of high price in other countries like China and Russia where it involves cultural experience.

    Foreign trade.

    Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the globe. These countries that export goods get comparative advantages.

    Organizations have been established to control and regulate the trade activities of the countries in the world to have fair trade. World trade organizations emerged a powerful international or organizations able to effectively influence individual governments to follow international trade rules, copyrights, policies on subsidies, taxes, and tariffs. Nations can not break rules without facing economic consequences. The number of nations that are dependent on trade, foreign capital, and the world financial markets increased greatly.

    Countries engaged in foreign trade enjoy a comparative advantage. The post-Recardianan trade theories predicted that specialization in labor and capital-intensive goods would bridge enormous wage gaps between the poor and the rich countries, that is the developing and developed countries, sparing the latter from massive labor immigration.

    Resource Imperative.

    Developed countries need the natural and human resources of the developing countries while developing countries need the capital, techno, logy, and brainpower of the wealthier countries. Developed countries’ economies are increasingly dependent on the natural and human resources of developing nations. The growing interdependence of nations and their activities on one another fosters by the depletion of natural resources; as well as overpopulation.

    Foreign investment.

    One of the most visible positive impacts or effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we also need to see is the amount of Foreign Investment Inflow that flows into the developing countries. Indian companies which have been performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in India.

    This is also one of the positive impacts or effects of globalization in the US and other developed countries as developing countries give them a good investment proposition. Managers’ objectives might not be the same as those of stockholders in some situations. The more complex the corporation the more difficult it is for shareholders to monitor management’s actions whereby it provides the managers more freedom to act in their self-interest at the expense of shareholders.

    Multinational firms are more complex than national firms. Managers might favor international diversification because it reduces firm-specific risk or adds to their prestige. These goals might be of little interest to shareholders. This divergence of interests between shareholders and managers might reduce the value of multinationals relative to domestic firms.

    Competition.

    One of the most visible positive impacts or effects of globalization is the improved quality of products due to global competition. Customer service and the ‘customer is the king’ approaches to production have led to improved quality of products and services. As domestic companies have to fight out foreign competition; they compel to raise their standards and customer satisfaction levels to survive in the market. Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates competition in the market and a survival of the fittest situation.

    Culture.

    The positive impacts or effects of globalization on culture are many! Not all good practices were born in one civilization. The world that we live in today is a result of several cultures coming together. People of one culture, if receptive, tend to see the flaws in their culture and pick up the culture which is more correct or in tune with the times.

    Societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Cooking styles, languages, and customs have spread all due to globalization. The same can say about movies, musical styles, and other art forms. They too have moved from one country to another, leaving an impression on a culture that has adopted them.

    Legal Effects.

    Increased media coverage draws the attention of the world to human rights violations. This leads to improvement in human rights. Global economic growth does not necessarily make people happier, worldwide free trade should also benefit humanity as well as protect nature, not just reward managers and stockholders. Those who would be authentic leaders need to address inequalities.

    Globalization should promote openness and information along with exchange with greater democracy and prosperity. Gone are the days where the limited jurisdiction became a hindrance in the prosecution of criminals. These days due to international courts of justice, these criminals can no longer seek asylum in a foreign country but will be brought forward and there will be justice.

    Due to globalization, there is also an understanding between the security agencies and the police of two or more different countries who will come together to curb global terrorism. Hence, it is now possible to catch the perpetrators of crime irrespective of which country they choose to hide in. This is undoubtedly one of the greatest positive, good, negative, and bad impacts or effects of globalization on society or the economy.

    Negative impacts or effects;

    Globalization also has its side effects on developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows, and so on.

    Jobs Insecurity.

    In developed countries, people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white-collar jobs. That means fewer jobs for their people. This is because the manufacturing work is outsourced to countries; where the costs of manufacturing goods and wages are lower than in their countries. They have outsourced to developing countries like China and India.

    Most people like accountants, programmers, editors,s, and scientists have lost jobs due to outsourcing to cheaper locations like India. Globalization has led to the exploitation of labor. Safety standards are ignored to produce cheap goods. “In practice, however, the recent experience in Latin America has been that many such open-handed multinationals moved their operations too; for example, China or South East Asia because of cost and market considerations”.

    Fluctuation in Prices.

    Globalization has led to a fluctuation in price. Due to the increase in competition, developed countries are forced to lower down; their prices for their products, this is because other countries like China produce goods at a lower cost; making goods to be cheaper than the ones produced in developed countries. So, for the developed countries to maintain their customers they are, forced to reduce the prices of their goods. This is a disadvantage to them because it reduces the ability to sustain social welfare in their countries.

    Positive Good Negative and Bad impacts or effects of Globalization on Economy Image
    Positive, Good, Negative, and Bad impacts or effects of Globalization on Economy; Image by Fathromi Ramdlon from Pixabay.

    References; Positive and Negative effects of Globalization. Retrieved from https://www.ukessays.com/essays/economics/positive-and-negative-effects-of-globalisation-for-business-economics-essay.php?vref=1

  • Differences between Brand Local National Private Global

    Differences between Brand Local National Private Global

    Differences between Brand Local, National, Private, and Global; The brand has become a familiar thing toward the consumer, having brands also help consumers in many ways and anything that was unbranded will go hard in the market. The brands also could create value on the product. For example, Nike product that a product could create value among the consumer. Besides that brand also assist the product in numerous ways and also as legal protection. The product that has a brand will difficult for the other product to copy the product.

    Here is the article to explain, the Differences between Brand Local, National, Private, and Global Market consumers!

    In addition, the brand also could make sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem. The brand can be of various types. Each of them will have their style of branding and use their strategy. The local brand, private brand, national brand, and global brand were the main brand that the manufacturers all over the world use it. So, the manufacturer should know each of these kinds of brands that have been used nowadays.

    Besides that, the strategies that use these four brands also will be different. The brand strategy aims at influencing people’s perception about the brand such as they did persuade to act in a certain manner; for example buying and using the products and services offered by the brand and purchasing at a higher price. In addition, most brand strategies aim to persuade people to buy and use by offering them some form of experience. Branding is typically an activity that did undertake in a competitive environment that aims to persuade people for the brand.

    National Brand;

    Firstly is the national brand. This kind of brand is a brand that circulated throughout the country. The product is only being nationally distributed and marketed. Moreover, the national brands own and advertise by a manufacturer. The national brand also can differ from the local brand or regional brand. On the marketing side, this type of brand is more difficult than the local brand. To market their product they have to know their consumer very well but it may take a long period. The cost also was big.

    This is because to market the national brand they have to know their customer widely. Moreover, this kind of brand will use to market their brand in another country by radio, print, and television advertising. The advertisement also can customize for local and national brands so that the public could get familiar with the brands. Companies that sell national brands count on the reputation of their brands to get the market share. The national brands may appeal to the consumer by their brands’ names. The consumer often looks the brands that are familiar and easy to identify.

    Understand with Example;

    National brands may play on distrust of regional or private label brands to get consumers to buy them. Its’ also have to encourage people to ask question, for example, the quality of generic or store-branded products. Most national brands started with small regional brands then will slowly grow over time. New companies’ products are constantly being established and some of the companies will go on to capture the market; and expand it to a wider area and lastly will become national brands. The example of the product in Malaysia which is from the regional brand and eventually become a national brand is Padini brands

    This type of brand has to create their brands’ strategy to make their products achieve in the market. This national brand has to focus on the brand equity strategy. They have to create a loyal customer and customer who are aware of their brand. Some of the retailers will use the packaging strategy. They will design the unique packaging so that consumers will remember the brand directly. For example, an Avon product is gaining preferred shelf positions by partnering with retailers and using packaging and displays as part of marketing. In the new scenario, the national brands’ equity is often used to endorse a store brand. That could raise the stature of the company brand.

    Local Brand;

    Secondly, the local brand. This type of brand is a brand that sold its product or marketed their brand’s product in a small or restricted geographical area. This type of brand only can see in one country or region. It may also be a brand that develops for a specific national market; however, the amazing thing is the local brand is more often being done by the consumers than by the producers. The local brand is very easy in marketing their products. It was not hard to know their customer because the area that they have to study about their customer is not wide.

    The local brand may use many strategies to make their brand is being aware by the consumer. The local brands were a brand that was easy to develop. For an example of a brand that is only famous in the Philippines could survive in the Philippines market. They have used brand strategy by knowing their customer need and want and the relevant brand name according to their culture. The local brand has to create a modified branding if the product that they sell were similar to the other products. The uniqueness of the brand name or sign may attract consumer attention.

    Private Brand;

    The other type of brand product is the private brand. This is the brand where the retailer or the member buys from a manufacturer in bulk and puts its name on the product. This mare gives more advantages to the retailer, such as will give more freedom and flexibility in pricing. Other than that is more control over product attributes and quality, lowers selling price, and eliminates much of the manufacturer’s promotional costs. The private brand also gives a benefit to the manufacturer. The private brands provide another outlet for distributing their products or services. By producing the same goods as for their national brand distribution and labeling them with private brands for various clients, the volume of production is often higher than it would be otherwise.

    Private strategy and example;

    An example of a private brand was Macy’s. It did recognize as a retail industry leader in developing private brand merchandise that differentiates the assortments in their stores and delivers exceptional value to the customer. Merchandise for each private brand available “only at Macy’s”, develops to appeal to a certain customer lifestyle. The marketing programs also have been supported by creating a precisely defined image. Macy’s also develops private-label goods to meet specific customer needs and fill gaps in the assortment.

    The strategy that this private brand should use is, firstly the unit of package. This is the strategy that could develop for this brand. Nowadays it is difficult to assign a private label character even though the product has enhanced customer loyalty because of any reason. This kind of product will not qualify as the private brand label. In addition, using the relabeling strategy also can use. The unit of the pack must bear only the brand name of the particular store or any other party the store may choose for its private label program. Private labels will enhance profitability by increasing the negotiation power of the retailer and the better value that has been created may get customer loyalty.

    Global Brand;

    A global brand can define as a brand perceived to reflect the same set of values around the world. The global brands were more focused on enduring relationships with consumers across countries and cultures. Nowadays there were many global brands did sell in international markets. An example of global brands is Facebook, Apple, Coca-cola, McDonald’s, and Sony. These brands are selling a similar product in multiple markets and they also can consider as successful global brands. These kinds of brands also can easily recognize by the cross-culture of consumers.

    In addition, there were many advantages of the global brand. Firstly the marketing costs will be lower and then the brand imagery was consistent and being maintained. Furthermore, the global brand also has to be variable, it may differ from country to country. The elements that have to be different from one place to another place are the corporate slogan, product, and services, products names, product features, positioning of the products and the marketing mix also have to change. The change will depend on the differences in the language, style of communication, cultural differences, brand development, and consumption patterns.

    Global strategy with Example;

    The global brand can use many strategies; for example, the broad strategy areas that can use are the brand domain. These brand domains are experts in one or more of the aspects. To use this kind of strategy the person must have intimate knowledge, not only about the technologies shaping but also the pertinent consumer behavior and needs. Brand recognition is also one of the branding strategies. This kind of strategy was specialists distinguish themselves from the competition by raising their profiles among the consumers. It can use as to convince the consumer to show their brand is different than the other competitor. However, brand strategy is not a given and needs to be constantly reassessed. The brand managers must decide what the best course of action for their brands is in particular markets, based on an analysis of the relevant internal and external influences on the brands.

    Conclusion;

    In conclusion, there were many differences among the local, private, national, and global brands. The people who use any one of the brands have to understand clearly about the brands so that they can implement many kinds of strategies. Understanding these four types of brand will make the person can decide which one he or she want to use. Any type of brand that chose must have its advantages and disadvantages; it depends on the individual to use it and manage the disadvantage that they may face.

    Differences between Brand Local National Private Global Image
    Differences between Brand Local, National, Private, and Global; Image by Bruno Marques Designer from Pixabay.

    References; Local, National, Private and Global Brand Differences. Retrieved from https://www.ukessays.com/essays/marketing/differences-between-local-national-private-and-global-brand-marketing-essay.php?vref=1

  • L’Oréal Global Branding Strategy explains What? their Case Study

    L’Oréal Global Branding Strategy explains What? their Case Study

    L’Oréal Global Branding Strategy; The L’Oréal group has been the market leader of cosmetics and the beauty industry. The products it mainly sells are in the fields of cosmetics including, hair color, makeup products, skincare products, perfumes, etc. Poster presentation on L’oreal Luxury Cosmetic; The company has also launched several products in the field of dermatology and pharmacy. The sales and profits maintain through its wide range of professional consumer luxury; and, active products showing a strong through it. So, what discusses is: L’Oréal Global Branding Strategy explains What? their Case Study.

    The Concept of the study explains the Case Study of L’Oréal Global Branding Strategy.

    It was founded in 1909 by Eugene Schueller and soon it grew into the world’s largest company in the industry. The turnover of the company has grown over 19 billion euros with over 11 percent of growth; which considerably indicates the success of marketing strategies of the L’Oréal group. The company market over 70 international brands along with several local brands made specifically for the country it is marketing with the same international standards; and, flexibility according to the local needs and requirements that are to sell to both men and women in over 150 countries.

    The company has shown enough growth in the continents of North America and Western Europe with its outstanding performance of twice the market trend growth of the markets of Asia Pacific, Eastern Europe, Latin America, Africa, and the Middle East. The global marketing efforts of the company with its smart selling efforts brought a tremendous amount of success for it. The differences between the different cultures and the needs of the native people of those different cultures have been quite successfully understood by the company’s marketing personals.

    Explain 01:

    To understand and to answer the cosmetic requirement of the different types of people in the world the company has set up its five worldwide research; and, development center which establishes in different continents like 2 in France, 1 in the US, and 1 in Japan and 1 in China, to make the manufacturing of the product; managed according to the needs of a different culture. L’Oréal group has successfully projected itself as a nice example of a good multinational corporation that manages its profit with considerable success through the competitions in the market’s surrounded by the various geographical, social, economic, and cultural risks.

    The company reached out to a variety of customers with different economic status and cultural background in overall different perception through its fine global branding strategies. Through its selling of different products, the company sold different genres of products like Italian elegance, New York street smarts, French beauty, etc through different global branding methods.

    L’Oréal’s global branding strategy that’s doing wonders has been actively spearheaded by Owen Jones himself. Lindsey Owen Jones has been the CEO of L’Oréal for nearly two decades and an “Honorary President” now, and under his leadership; L’Oréal has really fine-tuned its global branding strategy. Interestingly some press reports tell us that he has been seen roaming around streets in foreign markets to understand the new and existing trends.

    Explain 02:

    And without any doubt, his interesting work style seems to work wonders. The branding strategy of L’Oréal has such an impact that L’Oréal seems to be the only global leader in every segment of the cosmetics industry; the right positioning of its products seems to be the key. Whatever it is trying to sell the French elegance or street smartness of America; is getting good response throughout the world and L’Oréal has been able to reach its consumers across the national and cultural boundaries.  Owen Jones says: “We have this great strategy back in the head office of how we are going to do it worldwide.

    But when you go out and look at what is happening, is there a big gap between your projections and the reality of what you see and hear? It is so important to have a world vision because otherwise decentralized consumer goods companies with many brands can fracture into as many little parts if somebody isn’t pulling it back the other way the whole time with a central vision.” This really explains why he prefers roaming in the streets for his strategy-making rather than sitting in the boardroom. Having said all that it’s quite evident that the global branding strategy of L’Oréal has paid huge dividends to the company overall.

    Explain 03:

    To understand this splendid growth story, we need to see how exactly L’Oréal applied their strategy to the countries that were entirely distinct as far as the lifestyle, spending pattern, and culture concern. L’Oréal was started in France, has a good brand value in the united states of America, is reaping good dividends from India, and has a remarkable presence in Japan. These are different complex societies with different needs; so how exactly L’Oréal managed to be equally successful in all these places? This question needs some fact-finding to be done based on country-specific products; and, strategies adopted by the cosmetics conglomerate.

    That’s what exactly we will try doing in the next section of this case study. In India, 4 billion 7.5 ml sachets sell every year and that’s a staggering 66% of total shampoo consumption in India. Most of the urban Indian women (96%) use shampoo, however only 46% use foundation. For hair care, a huge 74% population of Indian women still rely on home remedies, 42% use henna, and 94% use hair oil, as far as L’Oréal’s sale per person in India concern is just 10 cents compared to 28 Euros per person in France. In India skin lightening creams (fairness creams) constitute more than 50% of the skincare market people seem to be crazy about getting fairer.

    Explain 04:

    These facts are self-explanatory about the nature of the Indian market; and, it’s clearly stating that the strategy used in the USA or any other European countries is not going to work in India. the USA is a mature market as far as cosmetics consumption concerns India is an emerging economy with most of the population below 35 years of age and a huge aspiring middle class. The cosmetics market is growing approximately at an annual rate of 16% in India, still a long way to go. The youth in urban centers very concern about the image but the larger section is still off the fashion map.

    Interestingly even after the success story of corporate India, apparently it’s still a country that is very much community-oriented. The great Indian middle class is aspiring but still has the community-driven cultural values intact. L’Oréal has taken this fact very much into consideration while preparing the marketing strategy for India. A very good example would be the launch of Garnier Fructis shampoo in India. The concept was to rely on the idea rather than relying on advertising a brand. The idea of getting five times stronger hair was the central point that created the hype, through “word of mouth” or network marketing.

    Initially, it was positioned as a product for young and teenagers; once the product was established in the market it tried to change or rather increase the target base by shifting gears. In a recent advertisement for Garnier hair color, a daughter is shown advising her mother to try the Garnier product and explaining the benefits. Again it relies on the concept of the idea getting spread by “word of mouth” to another customer segment. This is the best example of marketing in a closed &community driven society.

    Explain 05:

    There is one more remarkable thing about this entire campaign the catchline “take care”. It shifts the focus from the product to the core value of Indian society “caring about others”; and, the entire advertisement becomes more of good advice rather than publicity. China is the world’s most populated country in the world and that makes it very clear that it has the potential of being the biggest consumer market. These days Chinese women are spending an average of 10 to 15% of their income on cosmetics products, and urban Chinese ladies would use 2.2 cosmetics products on average every morning.

    Evidently, most of them want to be fashionable and the L’Oréal punch line – ‘if you want to be fashionable, just choose Maybelline’, really seems to work. Masses are made to believe that this is something that represents America and it ought to be trendy. Maybelline is the product line for the masses and L’Oréal really uses the tendency of masses to look towards the USA that’s why the Maybelline products display against the backdrop of the shiny skyline of New York City Chinese women prefer skincare and beauty products.

    Explain 06:

    According to research by L’Oréal in China, women concern about the radiance of their skin; and, prefer skin nourishing lotions that protect their skin from skin-drying winters. Unlike us customers most Chinese women like skin whiteners rather than tanning products. It’s a sign of beauty for Chinese women. Also, the texture of Chinese hair is thicker and more course than typical US Caucasian hair. This requires different products, and really different skill set to effectively sell and get these products moving in China.

    L’Oréal has dedicated research facilities for these and other issues and followed up with more innovations to suit the needs and preferences of Chinese consumers. There is one more very interesting fact about the Chinese cosmetics industry; Chinese women are very concerned about the ingesting of lipsticks. This is the most interesting food attitude about Chinese women.

    Now following its global strategy L’Oréal even considered this and developed lipsticks containing vitamins; as soon as this was told to the women they were more comfortable in using the product. European countries are mostly developed, here L’Oréal has the liberty of publicizing the brand value rather than focusing on pricing, the benefit to L’Oréal in these markets is that it already well establish and the brand well knows so it can concentrate on grabbing the attention of individualistic feminist women.

    Explain 07:

    Pricing is not a concern in these markets so L’Oréal can afford to have punchlines like-“I am worth it” because these punchlines justify the high pricing of the products and fulfill the feeling of exclusivity of high-end clientele. Now let’s take another example from the European and our markets, L’Oréal brands in these markets are quite well established. L’Oréal products have been used there for few generations now; once young consumer of the L’Oréal brand has started aging and the same street-smart products could not position to them, they have started becoming the mature citizens; now their priorities have changed.

    A recent market report suggests that the new target segment in the cosmetics industry is 40 plus women who once used teenage cosmetics products. The thrust is on anti-aging products because it not only adds the new customer base but retains the once teenage customer also. The customer from the baby boom generation reaches the retirement age and tries to maintain a healthy and youthful look and finds out that their favorite cosmetics brand is still making products for them. L’Oréal capitalized on their desire to look youthful and started marketing its anti-aging products, it has signed sixty-year-old Diane Keaton to represent the Age Perfect Pro-Calcium skincare line.

    Explain 08:

    Also, L’Oréal has signed Scarlett Johansson, Penelope Cruz, Eva Longoria, and Beyoncé Knowles to promote specific cosmetics lines according to the age groups. Now this tells us how L’Oréal used the desire of customers to position its products. The French conglomerate believes that only two different cultures as far as fashion concerns are dominant, represent by two flagship brands L’Oréal Paris and Maybelline New York. L’Oréal has been projected as a French origin with elegance, high-end presentation, and obviously high pricing.

    Whereas the Maybelline product line represents the street-smart American babe who is looking for the value of the money. America seems to be the growth engine of the world, in the cosmetics industry as well. L’Oréal has understood this and they made a strategy based on the trends in the USA and that’s how Maybelline came into existence. Maybelline currently is the second-largest brand in the share of unit sales of cosmetics products and number one in makeup brands. It claims to be totally consistent with today’s confident woman. Maybelline products targets three customer segments; youngster (16 to 25), office lady (26-35), and career women (35 plus).

    Explain 09:

    The marketing mix for the Maybelline line of products consists of two main strategies; foreign consumer cultural positioning; and, symbolic New York City imagery that women can relate to everywhere. Maybelline promotion includes the different way of grabbing attention including promotional coupons; online advertising; sponsorship of fashion shows; signing fashion icons as spokesperson of the product; free makeup consultancy and providing scholarships, etc.; we can see as American cosmetic market is a mature market so L’Oréal tries to rely on mature marketing tactics. In the early 20th century, even American society was not very much open to makeup and skincare products.

    People thought that only sinful women should wear makeup; but, eventually with the economic independence that the American women gained; makeup and cosmetics started coming into the mainstream. Cosmetics apparently became the symbol of new self-belief that the American women were beaming with; and remember even Maybelline claims to be totally consistent with today’s women; there are several other punchlines like ‘maybe she’s born with it’, ‘maybe it’s Maybelline’; all the punchlines keep the self-confidence of women in the center as if its not the makeup but its the attitude that has to be worn.

    Explain 10:

    That’s why women of every nationality and culture started identifying themselves with the product; and, this became the symbol of the 21st-century woman. The mindset and the lifestyle of the customer heavily impacted by the culture. Culture defines by different norms, values, interactions, language, and other personal components shared by groups of people across the world. It is a social phenomenon that defines people’s interests, thoughts, and other behaviors they may exhibit in social life.

    From one country to another, humans have evolved and developed different types of expressions, beliefs, and behavior; which can be difficult to understand for someone who does not belong to the same culture. Culture is the way how the members of a particular group interact with each other on the sharing of the available means; now that determines what is going to be the need for a particular product in that society; that also decides whether a particular advertising strategy will work or not; and, how exactly that will interpret by the target customers.

    Explain 11:

    In different markets, consumer requirements and consumer behavior may vary. Cultural aspects deeply impact consumer behavior; the impact may be direct or indirect. The cultural distinction creates the consumer behavior difference, as it can notice between the Asian and European continents where the culture and the behaviors are very different. Being a global organization L’Oréal certainly needs to understand the cultural differences and position its products; accordingly, otherwise, the results may be far more different than they are at this moment. The thrust has to be on hitting the right customer with the right product.

    This can be possible only if one has a deep knowledge of local culture and beliefs. A very interesting example would be lipstick use in China; according to research, only 3% of women use lipstick for makeup. The reason that was supposed to be behind this low percentage of lipstick use is even weirder; women in China have concerns about ingesting lipstick. L’Oréal surveyed to see whether this is just an age-old saying or it holds some truth; based on the findings it came up with a lipstick that had vitamins in it, and in turn, the demand for L’Oréal vitamin lipsticks increased. Another example could be really handy; in India long hair consider necessary for a woman to consider beautiful.

    Explain 12:

    L’Oréal considered this fact while launching its shampoo product in India; and, it focused on publicizing the fact that using the Garnier Fructis shampoo helps in getting long and strong hair. This strategy made the product very popular in India. In China or India, people like to have a fair complexion. In Asia, women take special care of their skin. People want radiant skins and lotions that can nourish their skin against the sun; whereas in the United States people would rather buy tanning cream.

    On basis of this knowledge, L’Oréal can position their whitening creams in India; and, the interesting part is the way the advertisements could interpret; the way the advertisements for the fairness creams make in Asian countries can interpret as racial advertisements in the USA; but, in Asian countries that seem to be quite usual. Now that’s where the knowledge of the culture and beliefs comes in handy and helps to avoid unnecessary problems. From a business point of view; companies have to adapt themselves to the culture of each country in which they want to have a business. Because of the differences in culture between countries; companies need to adjust their products and services according to local demands.

    This will help them to create and develop a brand image across the globe bases on a large number of globally-recognized products. L’Oréal was able to be successful in these markets; because it adapted to the ground realities of the particular market yet it followed a standardized strategy. If we consider the marketing mix of Maybelline, it has a two-pronged strategy; one for the foreign markets is the global street-smart image of the American chic.

    Explain 13:

    The global street-smart image of New York chick can admire in almost all the urban centers, be it India, China, or Brazil. However, there has to be the right mix of local flavor as well. The most important part of L’Oréal’s strategic plan is to opportunity hunting or the marketing of its products worldwide. From the initial days, it already started catering to the demands of women worldwide. To do that efficiently, they were expected to be well aware of the diversities of women across the globe.

    Once they knew the diversities their job was to come up with a different line of products suitable to women from all parts of the world. Innovation has been the keyword for L’Oréal and this was made possible through constant research and development over the years. The group has already covered most parts of the world and still striving to cover more. To do so, the L’Oréal group has to keep respecting other people’s identity, ideas, and culture. L’Oréal has to keep valuing different cultures and nationalities to get their brand value up; and, it seems that they have been doing it really well.

    The success story can continue further because even today products of L’Oréal touch the cultural values instilled in the potential customer’s mind. L’Oréal just doesn’t sell the product it makes the customer buy the idea of dreaming big; but, remaining rooted in the core cultural values. It has carefully devised its global marketing strategy and customized it to the local needs; and, that’s the reason people from Africa to Europe and America to Australia are using the L’Oréal products.

    L'Oréal Global Branding Strategy explains What their Case Study
    L’Oréal Global Branding Strategy explains What? their Case Study. Image credit from L’Oréal.

  • Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx

    Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx

    Transportation is one of the largest industries in the world, and its sector range is very wide which include taxis, truck, train, ships, barges, airplanes, pipelines, warehouse and logistics service. For the industry, the three main trends were the globalization of business, information technology development and new technology to support process efficient, and the market demand for more value-added. Also learn, Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx.

    Understand and learn what? Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx.

    Hence, the companies in the transportation and logistics industry depend on the global network of distribution centers to gain quick payment cycle and cheaper resources. In FedEx Corporation, as a leading firm in the industry, its centralized structures have always required, and facilitated billion dollar investments in IT and established the website from 1994.

    It provided a successful technology for the FedEx Corporation as a pioneer in the whole industry for e-business. This strategy became an advantage that they used to undermine their competitors’ strengths and localized customer service. With a globally connected IT network, FedEx was able to leverage their IT advantage to service their corporate accounts on a global basis, rather than on a country by country basis.

    Pioneer of Internet Business in the Global Transportation and Logistics Industry.

    FedEx Corporation created its own website form in 1994, it is the first step and basis for the company to develop its e-commerce. FedEx.com is the first transportation website which could accept the one line order for package tracking and allow the customers to transact the business by the Internet.

    Both shippers and recipients could access shipping information and print documentation via the Internet. As the pioneer in the industry, FedEx should continually improve their system and service due to its competitor also created the Internet service and Internet software.

    For instance, the DHL launched the website in 1995, UPS spent billions on IT and electronic commerce. The express transportation associated with e-tailing would reach $7 billion in the year 2000, but FedEx only handled with 10 percent of purchase online goods. All of these brought heavy pressure to FedEx. In 1998, the company paid more than $2 billion to acquire the Caliber System, Inc. to increase the abilities and power on Internet service and e-tailing.

    Because of the large potential market and lower cost, the Internet and e-tailing market was continually enlarging in the Global Transportation and Logistics Industry. To evaluate the performance of FedEx in Internet and e-tailing market should be from the view of five performance objectives.

    Firstly, from the view of cost, FedEx as the first one for Internet and e-tailing in the Global Transportation and Logistics Industry, it focused on long-term investment on IT and led the company to have the specific position in the area. For the intense competition, the company paid more than $2 million to purchase Caliber System. It could effectively increase their market share in business-to-consumer delivery service. Hence, the investment partly made up the weakness against with UPS.

    Secondly, flexibility, the Internet service, and e-tailing provide the convenience for the customers, increase an easy and quick channel for the transportation and e-tailing business. For instance, in the year 1999, FedEx Marketplace created a link to the online shopping, the online shopper could click to the top online stores and with FedEx delivery.

    Thirdly, dependability, the establishing of the website enhanced the dependability between the organization and customers. The computer system supported the customers to know their goods conditions during the whole delivery process. For example, the company created software called FedEx Virtual Order in 1999 which provide Internet order and also provide the customers’ catalogs for them on the website. Moreover, the IT system also enhanced the internal management of FedEx Corporation. For the enormous organization, the dependable information system should be the basis for the busy operation process.

    Fourthly, speed, for the transportation and logistics industry, speed is one of the crucial elements for the customers choosing a transportation company. The online order and the unique information system in FedEx deal with the order and storage, goods and shipping process, every process could reduce the time than before. For example, the FedEx Marketplace provided easy access to online merchants to offer fast FedEx shipping.

    Last but not least, quality, all of the strategies and performances about Internet and e-tailing could be linked to improving the quality providing for the customers and partners. For instance, the FedEx created e-business Tool in the year of 1997 which could support an easier connection with FedEx shipping applications. And the EuroOne network established also provide a powerful transportation routing system which linking more than 30 cities. All of this would enhance the service quality of FedEx’s Internet and e-tailing.

    Consequently, the FedEx had an explicit objective in the Internet and e-tailing market, for both financial and non-financial performance of an organization in this area was the focus on achieving their objective. For the customers and partners, FedEx tries to provide more flexible, convenient, fast service by the Internet and e-tailing channel, created dependable and loyal relationships with them and build a perfect reputation in the market. For the own organization, it insisted on long-term investment on the Internet and e-tailing area, it would lead to earning a long-term benefit.

    Besides, the organization continually emphasized the infrastructure building and technology improvement, to create a dependable operating system and transportation team which could support the smooth operation of the Internet and e-tailing market. All of these performances lead the development of FedEx. It could not satisfy only by the pioneer of Internet business in the Global Transportation and Logistics Industry but try to be the long-term leadership in this market.

    Evaluation of FedEx Acquisition of Caliber System.

    To evaluate the success or failure of FedEx Corporation acquired Caliber Systems in 1998 should also form different points of view. From the positive side, the company use $88 million acquired the Caliber System, Inc., it could provide the company with a powerful technical support on Internet commercial at that time. In the period, the e-commercial was on the development stage in the Global Transportation and Logistics Industry, the long-term investment, and acquisition of Caliber System made the FedEx Corporation own the abilities and opportunities to be the pioneer and leader in this area.

    According to the summary of benefits for M&A, The strategy helped FedEx Corporation enter a new market, broaden the business range, develop the new product and also gain new information technology. From the result, after the acquisition, in the following year, the company had an excellent performance, the net income increased 30 percent and posting record earning risen 73 percent.

    However, as the passage of time, the competition in the market became more intense, despite the e-tailing and electric commerce supporting, the report showed that both the volume and the income have a negative trend. From the view of the financial report, the result had an obvious falling. This condition was the cause of several factors.

    • Firstly, the fuel pricing jumping was unexpected, it will increase the cost for the company.
    • Secondly, it also meant the Caliber System did not blend into the organization completely.

    The organization was enormous, the operation was complicated, hence, just acquisition strategy without good association could not make the new party perform perfectly. For solving the problems, the FedEx Corporation announced reorganization on 19, Jan 2000.

    Consequently, it is hard to simply judge whether success or failure for the acquisition of Caliber System. The acquisition brought benefits, opportunities and also new operation method for FedEx Corporation. The negative result in the following years was also caused by multiple factors, i.e. the competition in the industry, the fuel price rapid rising and etc.

    Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx - ilearnlot
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  • Explain the Types of Faced Challenges in Global Advertising.

    Explain the Types of Faced Challenges in Global Advertising.

    What are some Challenges Faced by Global Advertising? International Marketing Essay can be a tricky business. With the increase in global trade, international companies cannot afford to make costly advertising mistakes if they want to be competitive and profitable. Understanding the language and culture of target markets in foreign countries is one of the keys to successful international or global advertising.

    Here are Explaining the Types of Faced Challenges in Global Advertising Essay.

    Too many companies, however, have jumped into foreign markets with embarrassing results. Out of their blunders, a whole new industry of translation services has emerged. Also Learn, What do you understand about International Advertising? the Types of Faced Challenges in Global Advertising. American companies have identified huge markets internationally for their products and services. The markets are huge in terms of population, in countries such as China and India.

    The purchasing power of consumers and businesses in many countries is also significant enough for American firms to want to compete in these markets. However, international marketing is not without pitfalls, and U.S. companies have made costly mistakes by not adequately researching international markets before they commit resources there. How to Explain The Concept of International Advertising?

    Global Advertising deeply discusses their types of Challenges:

    The following Challenges below are;

    Identifying a True Market Need.

    A key to success in business is offering products and services for which customers have a compelling need. The customer has a problem that needs to solve, and the product or service provides the solution in such an effective way that its benefits are not difficult to communicate. Identifying the true needs of large numbers of people in a foreign country is not easy. Not having lived in their culture experiencing their day-to-day lives, American marketing executives can err by assuming that what people in other countries want or need exactly matches the wants and needs of American consumers.

    Dilution of Brand-Name Power.

    Due to the Internet, movies, and other forms of entertainment, American culture and the corporate symbols of that culture–brand names–are well known across the globe. This does not mean the American companies & rs quo; products will be popular when introduced in other countries. Being aware of a brand name isn’t the same as preferring it. It can be a long and expensive process to gain the trust of consumers who have used their own local companies’ products for years or even generations. The American companies can perceive as attempting to take over the position long held by local companies, causing resentment.

    Cultural Nuance.

    Consumers are influencing to purchase products by marketing messages delivered through the media, including print media such as magazines. Humor often use in commercial messages to get the consumer to pay attention. But what considers extremely funny in one culture can perceive as confusing or insulting in another. To produce effective advertising requires more than an accurate translation of the message from one language to another. It requires a deep understanding of the culture, customs, morals, and even religious views that predominate in that country. What motivates consumers to buy products varies from country to country.

    Communication Style.

    Business executives from different countries can encounter several barriers to effective communication besides obvious language differences. The traditional pace of business negotiations can be different. Americans sometimes want to hurry negotiations along, whereas in some other countries emphasis places on building relationships before a business deal seriously considers. Executives from other countries may place a higher value on things such as facial expression instead of just the words that are saying.

    Distance and Time.

    Even with technologies such as video conferencing, executives in other countries may prefer to establish relationships on a personal level. For a smaller American company, this can mean a significant investment in travel costs and having key executives out of the office for extended periods. Time zone differences can make it difficult to coordinate projects where collaboration requires. Executives on the West Coast of the U.S. are just getting to work in the morning when their European counterparts are winding down for the day.

    Finding Reliable Partners.

    American firms often establish relationships with distributors located in the countries whose markets they are seeking to enter. They hire sales reps based in those countries. They may engage in local marketing and public relations firms to assist them. Because the American firm might have no prior experience in that country, finding people who are trustworthy and competent can be a challenge.

    The faulty Translations.

    The value of understanding the language of a country cannot overestimate. Translation mistakes are at the heart of many blunders in Global advertising. Since a language is more than the sum of its words, a literal, word-by-word dictionary translation seldom works.

    The following examples prove this point. Otis Engineering Company once displayed a poster at a trade show in Moscow that turned heads. Due to a poor translation of its message, the sign boasted that the firm’s equipment was great for improving a person’s sex life.

    The Parker Pen Company suffered an embarrassing moment when it realized that a faulty translation of one of its ads into Spanish resulted in a promise to “help prevent unwanted pregnancies”.

    Automobile:

    Automobile manufacturers in the United States have made several notorious advertising mistakes that have been well-publicizing. General Motors learned a costly lesson when it intro­duced its Chevrolet Nova to the Puerto Rican market.

    Although “nova” means “star” in Span­ish, when it spokes, it sounds like “NOVA” which means it doesn’t go. Few people wanted to buy a car with that meaning. When GM changed the name to Carrie, sales picked up dra­matically.

    Ford:

    Ford also ran into trouble with the name of one of its products. When introducing a low-cost truck called the “Fiera” into Spanish-speaking countries, Ford didn’t realize until too late that the name meant “ugly old woman” in Spanish.

    Another American auto manufacturer made a mistake when it translated its Venezuelan ad for a car battery. It was no surprise when Venezuelan customers didn’t want to buy a battery that was advertising as being “highly over­rated.”

    Airline:

    Airline companies have also experienced problems with poor translation. A word-by-word translation ruined a whole advertising campaign for Braniff Airlines. Hoping to promote its plush leather seats, Braniff ad urged passengers to “fly on leather.” However, when the slo­gan was translated into Spanish, it told customers to “fly naked.”

    Another airline company, Eastern Airlines, made a similar mistake when it translated its motto, “We earn our wings daily” into Spanish. The poor translation suggested that its passengers often ended up dead.

    Pepsi’s:

    Marketing blunders have also been made by food and beverage companies. When translated into German, Pepsi’s popular slogan, “Come Alive with Pepsi” came out implying “Come Alive from the Grave.” No wonder customers in Germany didn’t rush out to buy Pepsi. Even a company with an excellent international track record like Kentucky Fried Chicken also suffered from faulty translation. A lot of sales were lost when the catchphrase “Finger Lickip good” became “eat your fingers off” in the Chinese translation.

    A manufacturer of one laundry detergent made an expensive mistake in a promotional cam­paign in the Middle East. The advertisements showed a picture of a pile of dirty clothes on the left, a box of the company’s detergent in the middle, and clean clothes on the right. Unfortu­nately, the message was incorrectly interpreted because most people in the Middle East read from right to left. It seemed to them that the detergent turned clean clothes into dirty ones.

    Cultural oversights can be Disastrous.

    Successful international marketing doesn’t stop with good translations—other aspects of culture must research and understand if marketers are to avoid blunders. When marketers do not understand and appreciate the values, tastes, geography, climate, superstitions, the level of literacy, religion, or economic development of a culture, they fail to capture their target mar­ket.

    For example, when a popular American designer tried to introduce a new perfume in the Latin American market, the product aroused little interest and the company lost a lot of money. Ads for the new fragrance highlighted its fresh camellia scent. What marketers had failed to realize was that camellias are traditionally using for funerals in many South American countries.

    Deeply Discussion:

    Procter and Gamble have been successful in marketing their products internationally for many years. Today, overseas markets account for over one-third of its sales. However, the company’s success in this area didn’t happen overnight. Procter and Gamble initially experienced huge losses because marketing managers did not recognize important cultural differences. For instance, when P&G first entered the Japanese market with its popular Cheer laundry detergent, most Japanese housewives weren’t interested.

    The promotional campaign that emphasized Cheer as an effective “all temperature” detergent was lost on the Japanese who usually wash clothes in cold water. Although the ad had been quite successful in the United States where clothes are washing in all temperatures. It fell flat in Japan. All of this could have been avoiding if P&G marketers had done more preliminary research before launching the campaign. Once P&G changed its strategy and promised superior cleaning in cold water, sales of Cheer picked up dramatically.

    Extra information:

    The use of numbers can also be a source of problems for Global Marketers. Since every culture has its own set of lucky and unlucky numbers, companies need to do their homework if they want to avoid marketing blunders. A US manufacturer of golf balls learned this lesson the hard way when it packaged its product in groups of four for export to Japan. The company couldn’t figure out why the golf balls weren’t selling well until it realizes that in Japanese the word for the number four also means death. In Japan four and nine are very unlucky numbers which should avoid by marketers.

    Even illustrations need to carefully examine. A culturally offensive picture can ruin an advertisement even if the written message properly translates. McDonnell Douglas Corporation made an unfortunate error in an aircraft brochure for potential customers in India. It included a picture of men wearing turbans, which was not appreciated by the Indians. A company spokesman reported, “It was politely pointed out to us that turbans were distinctly Pakistani Moslem”. The artist for the ad had used an old National Geographic magazine to copy the picture.

    Preventing Blunders.

    Having awakened to the special nature of international or global advertising. Companies are becoming much more conscientious in securing accurate translations. They are also becoming much more sensitive to the cultural distinctions and variables. That play such an important role in any international business venture.

    Above all, the best way to guard against errors is to hire trained professional translators. Who thoroughly understand the target language and its idiomatic usage. These translators should be very familiar with the culture and people of the country and have a grasp of the technical aspects of the industry.

    Extra Things:

    Many Global companies are using a technique calls “back translation,” which greatly reduces the possibility of advertising blunders. The process of “back translation” requires one person to translate the message into the target language and another person to translate the new version back into the original language. The purpose is to determine whether the original material and the re-translated material are the same. In this way, companies can ensure that their intended message is conveying.

    Effective translators aim to capture the overall message of an advertisement. Because a word-for-word duplication of the original rarely conveys the intended meaning and often causes misunderstandings. In designing advertisements to use in other countries. Marketers are recognizing the need to keep messages as short arid simple as possible and to avoid idioms, jar­gon, and slang that are difficult to translate.

    Similarly, they avoid jokes, since humor does not translate well from one culture to another. What considers funny in one part of the world may not be so humorous in another? The bottom line is that consumers interpret advertising in terms of their own cultures. As the global marketplace opens up, there is no room for linguistic or cultural blunders.

    Explain the Types of Faced Challenges in Global Advertising - ilearnlot
    Explain the Types of Faced Challenges in Global Advertising.