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Strategic Marketing > Globalisation > Flashcards

Globalisation Flashcards

1
Q

What is globalisation?

A

The widening, deepening and speeding up of worldwide interconnectedness in all aspects of contemporary social, cultural and financial aspects (Held & McGrew, 1993).

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2
Q

How many steps are there to internationalisation?

A

6 steps

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3
Q

What are the steps to internationalisation?

A
  1. Casual Involvement: Does no try to internationalise: one off trades.
  2. Indirect Export: does no intent to go internationally but is then by resellers.
  3. Direct Export: Firm has an export department.
  4. Foreign Involvement w/o Investment: Launch a product in a foreign market but doesn’t want to establish production but uses a domestic investor.
  5. Foreign Involvement w/ Investment: Firm finance the establishment of production facilities.
  6. Multi-national operations: Firms see globe as their market place with production & establishment all over the world.
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4
Q

According to Yip (2002) what 2 factors need to be balanced in order to have a good strategy to globalisation?

A
  1. The globalisation of the potential industry

2. The degree of standardisation which needs to be adopted to the selling strategy/product

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5
Q

What might influence the standardisation/adaption of a product trying to globalise?

A
  • Political & regulatory elements may differ
  • The economic development of the country
  • Culture & market segments
  • How the consumers, channels & advertising may differ
  • Industry contains
  • Product life cycle stage
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6
Q

What might influence the standardisation/adaption of a product trying to globalise?

A
  • Political & regulatory elements may differ
  • The economic development of the country
  • Culture & market segments
  • How the consumers, channels & advertising may differ
  • Industry contains
  • Product life cycle stage
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7
Q

What might influence the choice of a firm to globalise? And affect the choice to standardisation/adaption of the product/service.

A
  • Political & regulatory elements may differ
  • The economic development of the country
  • Culture & market segments
  • How the consumers, channels & advertising may differ
  • Industry contains
  • Product life cycle stage

PESTLE

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8
Q

What are some benefits of standardisation?

A
  • Economies of scale; reduced costs
  • Keeping brand image intact
  • Might be no need to standardised
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9
Q

What are some elements that are considered when thinking about standardisation/adaption?

A
  • Distribution channels
  • Local tastes
  • Demographic profiles
  • Packaging (language/info requirements)
  • Marketing
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10
Q

Explain Doole & Lowe’s 2008 risk and control to market entry?

A
  • Indirect exporting: piggybacking/trading companies (LOWEST RISKxLOWEST CONTROL).
  • Direct exporting: Distributors, agents, direct marketing.
  • Cooperation Strategies: Joint ventures, strategic alliances
  • Direct Investment: Acquisition (HIGHEST RISKxHIGHEST CONTROL)
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11
Q

Explain globalisation and the level of cashflow.

A
  • More markets a business is in the more potential volume of sales
  • Reduced costs through economies of scales = higher margins
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12
Q

Explain globalisation and the duration of cashflow.

A
  • Product life cycles can be extended (incremental .v. radical, i.e. new product flavours)
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13
Q

Explain globalisation and the timing of cashflow.

A
  • Has the potential for the rapid growth of new products (i.e. franchises)
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14
Q

Explain globalisation and the risk of cashflow.

A
  • The risk is spread throughout various markets

- There is greater access to different types of technologies

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15
Q

What are some of the risks of globalisation?

A
  • Higher competition
  • Faster followers
  • Vulnerable supply chains
  • Political and economic instability
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16
Q

What types of businesses don’t need to internationalise?

A

Ones who focus on targeting the immediate foreign markets i.e. Skype, WhatsApp

17
Q

What are the different drivers for globality?

A

Market Drivers - Developing economy
Competitive Drivers - Environmental scanning shows an opportunity
Government Drivers - Subsidies/red tape/incentives

18
Q

How do you balance a global strategy formulation?

A

3 factors need to be considered and balanced:

  • Industry globality/locality
  • Strategy globality/locality (market participation, products/services, marketing)
  • Response strategies (shape strategy, shape industry)
19
Q

Why go global/internationalise?

A
  • Increased revenue
  • Expand market
  • Expand reach
20
Q

Give some examples of businesses who have successfully globalised.

A
  • TKmaxx/TJ Maxx

- McDonalds

21
Q

Give some examples of successful standardisations of globalised products.

A
  • iPhone

- Coca-Cola

22
Q

Give some examples of businesses who have failed to globalised.

A
  • Tesco: expanding into America

- Chrysler: Does well in USA not UK

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