Prof.

Naval K Bhargava
naval.bhargava@gmail.com Cell: +919825714815

Prof. Naval K Bhargava

Globalization must be taken for granted. There will be only one standard for corporate success: International Market share. The winning corporations will win by finding markets all over the world.
Jack Welch CEO GE - 1994

Prof. Naval K Bhargava

The Growth Of Global Trade Scarcity /Availability Of Resources And Manpower

Go Global & expand i.e. take adv of global growth & expansion
opportunities domestic growth rates ?? Fight global competition & survive. If u fail to have a Global Outlook u risk loosing domestic business to competitors having lower costs,

greater experience & better products

Give better stake-holder (consumer) benefits leading to > profits 19th East Asia Summit at Bali Nov. 2011 G20 Summit at Los Cabos June 2012

The changing nature & geography of Global business

Prof. Naval K Bhargava

Customer value
Value = Benefits / Costs = (Functional tangible benefits + Emotional intangible benefits ) / (Monetary costs + Time costs + Energy costs + Psychic costs)

We are united in our resolve to promote growth and jobs.

Supporting economic stabilization and the global recovery

Employment and Social Protection Trade: We are firmly committed to open trade and investment, expanding markets and resisting protectionism in all its forms, which are necessary conditions for sustained global economic recovery, jobs and development. We underline the importance of an open, predictable, rules-based, transparent multilateral trading system and are committed to ensure the centrality of the World Trade Organization (WTO). We are deeply concerned about rising instances of protectionism around the world.

Prof. Naval K Bhargava

Strengthening the international financial architecture We welcome the firm commitments to increase the resources available to the IMF. This is the result of a broad international cooperative effort that includes a significant number of countries. The commitments exceed $450 billion and are in addition to the quota increase under the 2010 Reform.

Reforming the financial sector and fostering financial inclusion

Enhancing food security and addressing commodity price volatility The Action Plan on Food Price Volatility and Agriculture adopted by the Ministers of Agriculture in 2011 underlined that to feed a world population expected to exceed 9.3 billion by 2050, agricultural production will have to increase between 50 and 70 percent, and by almost 100 percent in developing countries.

Prof. Naval K Bhargava

Meeting the Challenges of Development Eradicating poverty and achieving strong, inclusive, sustainable and balanced growth Promoting longer-term prosperity through inclusive green growth The long-term development and prosperity of current and future generations requires ..Inclusive green growth in the context of sustainable development and poverty eradication can help achieve our development and economic goals, while protecting our environment, and improving social well-being on which our future depends. Inclusive green growth should not be used to introduce protectionist measures. Intensifying the fight against corruption

Prof. Naval K Bhargava

Reforming the International Monetary System (IMS) Strengthening financial regulation Supporting employment and strengthening the social dimension of globalization Combating commodity price volatility Fighting corruption Working on behalf of development
1. 2. 3. 4. Strengthen infrastructures in developing countries Ensure food security Extending social protection Mobilising resources for development

Prof. Naval K Bhargava

Cos response to global opportunities depend on conscious & unconscious assumptions & beliefs Worldview of the company management can be:
o Ethnocentric o Polycentric o Regiocentric o Geocentric

Prof. Naval K Bhargava

Ethnocentric: o home country products are superior & can be sold anywhere without adaptations, sees similarities in foreign countries o Opportunities outside the home country may get ignored o Foreign mkts are for disposing off surplus o Opportunities outside the home market are pursued by extending various elements of the marketing mix o Valuable managerial knowledge in foreign markets is ignored o 50 years ago ethnocentricism of large markets worked today it is the biggest internal threat

Prof. Naval K Bhargava

Polycentric: o Opp of ethno o Each subsidiary to develop its own business plan by autonomous country managers o Characteristic of multinational companies Regiocentric: o Each region is considered unique and similar o Develop regional business strategies o Opportunities are pursued by both extension & adaptation strategies in global markets

Prof. Naval K Bhargava

Geocentric: o World view, sees differences & similarities o The world is a potential market o Develop world market strategies o Goe orientation is a synthesis of Ethno & Poly o Is called Global or Transnational In ethnocentric organization various managerial functions are centralized, in Poly they are decentralized & in the regio and geo they are integrated on a regional & global scale

Prof. Naval K Bhargava

Driving forces
o Management Vision o Market Needs & Opps o Economic Integration (within the country & with the Global economy) - Myanmar o Technology o Product development costs & quality o Trade Agreements & Movement Towards Privatisation & Deregulation o Transportation & Communication Facilities o World Economic Trends (need for resources from other countries & emerging mkts)

Prof. Naval K Bhargava

o Leveraging Of Skills & Global Resources to give better Value Propositions By Large Cos
o o o o Experience transfers Scale Economies Resource utilization Global strategy

Restraining forces : o Management Myopia o Organizational Culture o Large domestic market o National controls & barriers

Prof. Naval K Bhargava

Discuss Which company is Transnational Part 1 case The death of the global manager ! What is Global localization ? E.g.? Discuss the status of globalization of business in countries you know i.e. lived in / worked in What do you think are the reasons/benefits for globalizing or not globalizing ? Why some Jap cos lost out ? (from the reading) Explain the ethnocentric style of Jap Cos Discuss the last sentence of the reading The worlds economy may be globalizing; that doesnt mean it is becoming any less diverse. Discuss the table highest risk of failing overseas

Prof. Naval K Bhargava