Workplace - Globalization Flashcards

1
Q

Globalization

A

Globalization is the process of increasing the connection between the world’s economies, cultures, and populations. It’s driven by the exchange of goods, services, capital, technology, and people across borders.

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2
Q

Ways Globilization has changed the way we work and live

A

Technology is a primary driver Communication
Diversity
Automation (through) Tech
Competition.

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3
Q

Push Factors

A

A push factor is a condition that causes people to leave a place or situation

Economic hardship: Poverty, lack of jobs, and famine

Political instability: War, political conflicts, and religious or political persecution

Social unrest: Anomie
Environmental disasters: Natural disasters, drought, and overpopulation

Lack of opportunities: Poor medical care, lack of educational institutions, and stress

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4
Q

Pull Factors

A

A pull factor is a positive attribute of a place that attracts people to move there

Job opportunities: A booming job market can attract people to a new area

Higher income: People may be attracted to a place with higher wages

Better living conditions: People may be attracted to a place with better public services, higher living standards, and better working conditions

Political or religious freedom: People may be attracted to a place with more political or religious freedom

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5
Q

Perlmutters Four multinational Corporation Orientations (Strategic approach to Globalization)

A

:Ethnocentric, Polycentric, Regiocentric, and Geocentric

representing different levels of a company’s approach to international business, with Ethnocentric focusing on the home country practices, (one best way)

Polycentric adapting to each local market, (many best ways)

Regiocentric grouping similar regions

Geocentric taking a global perspective considering both local and global needs. (team way)

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6
Q

what is Global Integration Vs Local Responsiveness

A

when an org. goes global in an attempt to meet needs of customers the needs are expressed by global integration or local responsiveness

GI-

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7
Q

Global Integration

A

Global integration is the process of coordinating a company’s operations across multiple countries. It allows companies to combine their resources and ideas to improve efficiency and compete globally.

How it works
Standardize products: Companies can use the same products in different countries.

Centralize technology development: Companies can develop technology in one place and use it globally.

Harmonize strategies: Companies can create a unified approach to production, marketing, and distribution.

Benefits

Increased efficiency: Companies can use resources and ideas more effectively.

Better global competition: Companies can compete more effectively against other companies globally.

More trade opportunities: Companies can access new markets and trade opportunities.
L
Attracting new talent: Companies can attract new talent from around the world.

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8
Q

Local Responsiveness

A

Local responsiveness is a business strategy that involves adjusting a company’s products and operations to meet the needs of local markets. It’s a way for companies to gain a competitive edge by customizing their products to local tastes and preferences

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9
Q

Assignees

A

People who work outside their own countries

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10
Q

Drivers in decision for orgs to go GI or LR

A

Market ,
Cost
Governmental
Competitive

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11
Q

Structure for globalization

A

Global: Strong link between HQ and subsidiaries (high GI, low LR

International: Weak links between HQ and dependent subsidiaries (Low GI, Low LR)

Trasnational: High GR, high LR) Strong link between HQ and subsidiaries

Multidomestic: Low GI, High LR weal links between HQ and autonomous subsidiaries

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12
Q

Identity Alignment

A

Exent to which diversity is embraced in managment of people, products/services and branding.

Example: Fast food chaings offering localized menu in addition to standard menu

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13
Q

Process Alignment

A

Extent to which underlying operations such as IT, finance or HR integrate across locations.

Example. Business where units have a common platform.

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14
Q

Outsourcing

A

Sometimes referred to as contracting out.

process by which an organization contracts with third party vendors to provide selected service/activities instead of hiring new employees

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15
Q

Onshoring

A

Relocation of business process or production to a lower cost location inside the same country as the business. sometimes called home shoring.

lower operations cost and having local employees are reasons for this

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16
Q

Off Shoring

A

Relocationg processess or production to another county.

common reasons would be
lower cost, closer proximity to necessary resources, financial incentives, access to talent, round the clock shifts

17
Q

Near shoring

A

Refers to a company contracting part of business process to an external company located in a country that’s close

reasons would be countries share similar values, countries bound by same financial and legal constraints, reduced travel time for employees

18
Q

what are upstream strategies

A

Upstream:
Decisions are made at the organizations headquarters level.

Decisions apply to strategy and coordination and focus on standardization of processes and integration

works for:
workforce alignment
Organizational development
Sharing of knowledge and experience

19
Q

Downstream Strategies

A

Decisions are made at the local level

Decisions aim at adapting strategic goals and plans to local realities -in other words, local responsiveness

Strategies for:
- agreement with local workforce
-adjustment to standard policies on working conditions to reflect local cultural practices
-adjustments based on local legal requirements

20
Q

Turnkey Operation

A

An already existing operation

21
Q

Greenfield Operation

A

a new operation built from ground up

22
Q

Brownfield Operations

A

repurposing an existing disused facility

23
Q

what are perlmutters four orientations for multination corporations?

A

Ethnocentric, Polycentric, Regiocentric, geocentric

24
Q

Describe Perlmutter Ethnocentric

A

Headquarters maintains tight control over subsidiaries, who are expected to follow the strategic pattern, values, policies, and practices expressed by headquarters.

There is “one best way.”

Management will usually share a common ethnic background, different from the ethnic make-up of subsidiaries.

25
Q

polycentric

A

Subsidiaries are allowed a large measure of independence as long as they are profitable.

They may plot their own paths based on the business and cultural contexts of their countries.

There are “many best ways.”

26
Q

What is perlmutters Regiocentric

A

Subsidiaries are grouped into regions (such as Europe, North America, or Asia-Pacific).

Strategic coordination is high within the region but not as high between the region and headquarters.

27
Q

Geocentric

A

Subsidiaries are neither satellites taking orders nor independent bodies setting their own course. Headquarters and subsidiaries are participants in a network, each contributing its unique expertise.

There is essentially “a team way,” transcending national borders.

28
Q

What are the 4 globalization strategies

A

international, Multidomestic, Global, transnational

29
Q

International Globalization Strategy

A

A firm exports a product or service to foreign countries. The company may open production facilities or service centers, but the product/service, processes, and strategy are developed in the home country.

Examples: A German firm that manufactures robotics for specialized industrial purposes around the world; an American-based defense contractor, that, for security reasons, must maintain clear lines of separation among its various international subsidiaries.

30
Q

Multidomestic

A

The organization is a decentralized portfolio of subsidiaries. Goals and strategies are developed locally because of competitive demands. Knowledge is shared on a local rather than global level.

Example: A confectionery company, with different products and manufacturing and sales strategies for each market in which it operates.

31
Q

Global

A

The firm views the world as a single global market and offers global products that have little or no national variation or that have been designed with customizable elements. Strategy, ideas, and processes emanate from headquarters.

Example: A white goods manufacturer whose products are quite standardized (washing machines, dishwashers, etc.).