On globalization
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ON GLOBALIZATION על גלובליזציה PowerPoint PPT Presentation


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ON GLOBALIZATION על גלובליזציה. Corporations without roots . תאגידים חסרי שורשים. GLOBALIZATION IS CHANGE גלובליזציה מסמלת שינוי. Forces that impel individuals, groups, and institutions to engage in similar forms of behavior. (Rosenau, Current History , 1997)

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ON GLOBALIZATION על גלובליזציה

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On globalization

ON GLOBALIZATIONעל גלובליזציה

Corporations without roots.

תאגידים חסרי שורשים


Globalization is change

GLOBALIZATION IS CHANGEגלובליזציה מסמלת שינוי

Forces that impel individuals, groups, and institutions to engage in similar forms of behavior. (Rosenau, Current History, 1997)

גורמים אשר דוחפים אנשים קבוצות ומוסדות לצורות התנהגות זהות.


Four types of change

FOUR TYPES OF CHANGEארבע סוגים של שינויים

  • Stretching of social, political & economic activities across political frontiers.

    פרישה של פעולות חברתיות, פוליטיות ו - כלכליות מעבר גבולות.

  • Growing magnitude of interconnectedness of flows of trade, investment, etc.

    הקף גובר של זרימות מתוקשרות של סחר, השקעות, וכו’.


On globalization

  • Evolution of world-wide systems of transport and communication.

  • התפתחות של מערכות תחבורה ו- תקשורת בכל העולם.

  • Increasing intensity and velocity of global interactions.

  • גידול בעוצמה ובמהירות של פעולות הדדיות.


Types of globalization

TYPES OF GLOBALIZATIONסוגי גלובליזציה

  • ECONOMIC -Integration of economies, through trade and financial flows. Movement of labor and knowledge across international borders.

  • כלכלית - אינטגרציה של משקים באמצאות סחר ומימון. תנועות של כוח אדם ו-ידע מעבר גבולות.


On globalization

  • POLITICAL - Participation in international governmental organizations (IGOs); integration with regional IG networks (e.g., EU, Organization of American States).

  • פוליטית - שיתוף עם IGOs ; אינטגרציה עם מרקמי IG.

    כמו ה - EU וה - Organization of American States.


On globalization

  • CULTURAL - Flows of science, concepts of liberalism, socialism, capitalism, etc.

  • תרבותית - זרמי מדע, מוסגים כגון ליבראליזם, סוציאליזם, קפיטליזם, וכו’.

  • ENVIRONMENTAL - Global warming; ozone depletion; production and reception of cross-border pollutants (e.g. acid rain).

  • סביבתית


On globalization

GROWTH OF TRADE

גידול במסחר

CAPITAL FLOWS

זרימות הון

MIGRATION

הגירה (ניידות)

IT and the WEB

DIFFUSION OF TECHNOLOGY

נפיצות של טכנולוגיה

GLOBALIZATION

גלובליזציה


Benefit versus cost

BENEFITS

Economic Growth

Reduction of Poverty

Improved Health, Life Expectancy

Spread of Knowledge

Flexibility of Production

COSTS

Inequality

Worker Displacement

Risks of Banking & Currency Crises

Domination of Trade & Production by TNCs

Degradation of the Environment

Loss of Authority

BENEFIT versus COSTתועלת לעומת מחיר


Concepts of globalization

CONCEPTS OF GLOBALIZATION

  • GLOBAL INFRASTRUCTURE

    תשתית גלובלית

  • GLOBAL HARMONIZATION

    הרמוניזציה גלובלית

  • BORDERLESSNESS

    בלי גבולות

  • GLOBAL DIFFUSION

  • נפיצות גלובלית

  • DISPERSION OF CORE COMPETENCIES

  • פיזור של יכולות תווך


Engines of globalization

ENGINES OF GLOBALIZATION

  • TRANSNATIONAL CORPORATIONS

  • TRANSNATIONAL MEDIA ORGANIZATIONS

  • INTERGOVERNMENTAL ORGANIZATIONS

  • NON-GOVERNMENTAL ORGANIZATIONS


International accounting standards

INTERNATIONAL ACCOUNTING STANDARDSכללים חשבונאיים

  • International Accounting Standards Comm.

  • ועדת הסטנדרטים החשבונאיים הבינלאומית

  • קובץ כללים חשבונאיים בינלאומיים אחיד

  • Financial Accounting Standards Board (FASB)

  • מועצת הסטנדרטים החשבונאיים הפיננסיים


Example

EXAMPLE

  • Smith Kline Beecham (1993) $1.5 Billion Profits according to British Accounting Standards

  • $1.2 Billion Profits according to United States Accounting Standards


Harmony of vision

HARMONY OF VISION? ?הרמוניה של חזון

The Leaders of the world’s great business enterprises continue to differ in their most fundamental strategic visions. (Keller & Pauly, Current History, 1997)


Multinational strategies

MULTINATIONAL STRATEGIES

  • AMERICAN - SHORT-TERM PAYOFFS

  • GERMAN - FOCUS ON A NARROW BAND OF INDUSTRIES IN WHICH THE BENEFITS OF NEW TECHNOLOGIES TEND TO BE DIFFUSED WIDELY.

  • JAPANESE - LONG-STANDING CORPORATE NETWORKS.


Globalization then and now

GLOBALIZATION - THEN AND NOW

“The World is a City”

Karl Meyer Rothschild (1875)

  • The Workforce is less mobile today then in the 19th century.

    Example: There was no need for passports and most people moved freely from one country to another. 60 million Europeans migrated to North and South America, Australia. In 1900, 14% of the American population were immigrants, compared to 8% today.

  • In the 1860s and 1870s, many goods were traded freely.

    Example: 95% of German imports were customs free. According to the “Capital Mobility Index” of the IMF, the volume of capital movements in relation to GNP is less today than in the 1880s.


Yes but

YES, BUT...

  • 19th Century trade was primarily in commodities, today it is primarily in goods and services.

  • 19th Century capital movements were concentrated in the hands of small groups of wealthy people for long term investment.

  • Capital movements today are faster, but shorter term.


What is a global industry

WHAT IS A GLOBAL INDUSTRY?מה היא תעשייה גלובלית?

“An industry in which there is some competitive advantage to integrated activities on a worldwide basis.”

כאשר פעילות משולבת

במישור הבינלאומי תתרום

ליתרון תחרותי

Michael Porter


The multinational corporation

THE MULTINATIONAL CORPORATION

  • A company with significant operations and market interests outside its home country.

  • Affiliated firms are linked by ties of common ownership.

  • The MNC draws on a common pool of resources.

  • Its affiliates are linked by a common strategic vision.


Global industry

GLOBAL INDUSTRY

  • One MNC’s entire worldwide system of product and market is positioned against a competing MNC(s).

  • Strategy is centralized.

  • Response to local market needs where and when necessary.


Two industries two strategies

TWO INDUSTRIES: TWO STRATEGIES

MULTIDOMESTIC INDUSTRY

  • The MNC pursues separate strategies in each of its foreign markets.

  • Each overseas subsidiary is strategically independent.

  • MNC headquarters coordinates financial controls and marketing worldwide.

  • Each subsidiary is a profit center.


Some industry examples

GLOBAL INDUSTRIES

Caterpillar & Komatsu (heavy construction equipment)

Timex, Seiko & Citizen (watches)

GE, Siemens & Mitsubishi (heavy electrical equipment)

MULTIDOMESTIC INDUSTRIES

P & G (household products)

Honeywell (controls)

Alcoa (aluminum)

General Foods (branded foods)

SOME INDUSTRY EXAMPLES:


Global strategy levers

GLOBAL STRATEGY LEVERS


Organization features for types of geographic businesses

ORGANIZATION FEATURES FOR TYPES OF GEOGRAPHIC BUSINESSES


Integration responsiveness grid

INTEGRATION - RESPONSIVENESS GRID

  • High

Integrated Product Strategy,

Worldwide Business Management

Need for

Integration

Product Emphasis

Multifocal Strategy,

and Organization

Area Emphasis

Locally Responsive

Strategy, Autonomous

National Subsidiaries

Low

Need for Responsiveness

High

Low


Sales

Sales

increased market reach

broadens volume base

falling costs and prices,

as a result of globalizat-

ion, improve sales

increasing sales


Margins

Margins

increasing

sales

higher

margins

decreasing

costs

+

expansion into “virgin markets” allows firms

to set higher margins to take advantage of

the imbalance in supply and demand


How globalization affects costs sales and margins

How Globalization Affects Costs, Sales and Margins

Costs

competitive pressure

drives firms to cut costs

synergetic gains result from the

consolidation of acquired businesses

overseas in a globalization initiative

exposure to best

practices improves

productivity

productivity gains and

the capture of R&D

spillover result from

operating in “lead country”

catering for demanding

clients in different

jurisdictions

decreasing

costs

scale economies via global participation

spread R&D costs over large volume base


Analysis for strategy development

ANALYSIS FOR STRATEGY DEVELOPMENT

Global Businesses

Electronic Components, Medical

High

Multifocal Businesses

TV, Ophthalmic Products

Global

Locally Responsive

Businessses

Corningware, labware

Low

Local

Low

High


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