With the progression of industrial developments, the way of communication and life standards have began to change. Globalization can be perceived the process of political, cultural and economic integration between all countries, which converted the world into a small village. Globalization includes interrelated dimensions as demography, economics, technology, politics, culture and society. After the industrial revolution, globalization went though different stages due to changing needs and developments. Globalization involves profound transformative change and is a central driving force behind changes reshaping the world (Held, 1999).
The term globalization, refers to businesses or companies who develop worldwide interactions or start managing the movement of money, people, goods, and ideas within and across national borders. In other words, globalization is connections (economic, political, social, and cultural) between people across the globe. And there are powerful forces that reshape local conditions on an ever-intensifying scale. Globalization has been increasing rapidly due to the integration of the global economy. Organizations are relocating factories.
1.1. Background Over the last decades, the increasing globalization of the manufacturing and distribution companies have driven significant changes regarding their business environments. Being one of the main drives behind these changes, globalization leads to a more affordable international market but also to a dramatically change in the competition situation between emerging and developed nations as well as between companies (Moavenzadeh et al, 2012). Jeffery (2002), made an approach regarding the meaning of it, saying that ‘’Globalization can be seen as a positive, negative or even marginal process’’. He further states that despite the fact if it works for good or not, its exact meaning will continue be the subject between those who oppose,
However, nowadays, globalization due to the Industrial Revolution and the advances in transport and technologies has reached an unprecedented scope. Globalization can be explained in mainly 3 different areas: in politic, social and economic terms. In politic terms, globalization can refer to the shift of political activities from a single-nation level to a global level and it has been created international organization such as the United Nations. It has also tried to spread democracies all over the world. Social globalization describes an exchange of values, ideas and it has facilitated the promotion of equality, dignity and human rights.
Besides, those multinational companies have to follow the market demand or utilize those country local image and products because the loyalties of that market. Followed by the increasing of globalisation, not only western that dominate the globalisation but China, India, Russia, Brazil are growing their economic and developing the country, they actually essentially changing the balance of world economy. Other than economic, travel, media and get to contact with foreign culture or ideas are from the internet. Internet is one of the main reason of the boosting globalisation and it is frequently being use by individual and those companies. Due to the impact of globalisation there is an anti-globalisation organisation all over the world.
According to Mark Gottfredson (2005) in Strategic Sourcing: From Periphery to the Core, there are many companies have transformed its businesses through means of globalization and technologies, which eventually increase their competitiveness level in the industry. Saudi Aramco shall focus on its core strategic capabilities, which differentiate its uniqueness and empower it to stand out from the crowd. Through the transformation, Saudi Aramco is in need to elevate its sourcing strategy that will support its ability to control and make the most of its critical
They often rely on powerful distributors (hypermarkets, supermarkets, convenience stores, independent proximity stores…) as well as smaller sub-channels such as restaurants, businesses, schools, hotels, vending machines etc While these channels have become standard and unavoidable, especially in developed countries, they have reached in the past decade a certain maturity and companies often look for new growth levers in order to stay competitive. As a result, companies are always seeking for new profitable and innovative ways to distribute their products to the consumers. One of the most innovative business model in that sense is the direct-to-consumer (DTC) model, which aims to generates additional sales (on top of the existing channels) and create a proximity with the consumers by distributing the products directly, without resorting to the usual intermediaries. The direct-to-consumer has known a real boom in the past years, thanks to the Internet and the rise of e-commerce. But how do these companies, relying strongly on distributor giants such as Carrefour, Walmart and Tesco, adapt to this new trend ?
As a step of expanding current operations in a business, companies should take some strategic decisions towards its investments. A number of factors will influence an organization’s ability to operate effectively as a global player, for example in terms of organizational structure, cultural issues and the need for a set of specific leadership skills. All these factors have implications for global effectiveness and development and implementation of strategies. B. There are different methods of globalization which companies should be consider such as mergers, Exporting,licensing, outsourcing, network organizations Strategic alliances and direct overseas branches.
Introduction Globalization changes many concepts in international trading and forced all international companies to change their concepts in marketing to survive, therefore, globalization has affected strategically the process of marketing on the global scale whether directly or indirectly especially if we take account the spread use of the Internet which is now considered one of the most important tools of globalization in the economical field which marketing processes comprise one of its basic elements. One of the most important concept that revolutionized the whole of market concepts at the present time is called Service Dominant logic (SD Logic). This concept has changed the method of marketing by emerges the importance of service and
Introduction While our world has always experienced change, the rate of change is speeding up (Becky, 2010). The rapid changes in the world today have had a tremendous impact on human behaviour, market trends and the economy. Under the general trend of increasing global economic integration, informationisation and networking, the rapid advances in science and technology have been the central driving force behind economic growth and development. It is important for every business to be able to identify its strengths and weaknesses and to overcome any shortcomings through reforms and innovations while also developing its own competitive advantages. Innovation is crucial to the electronics industry because if an electronics company can move to