Explain the term ‘globalisation’ and the role that multinational companies play in the development of globalisation. Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services and has therefore lead to increased trade between countries. This trade encourages countries to work together and removes trade barriers such as quotas and tariffs. This increased openess allows countries to specialise in producing goods which they have a comparitve advantage in (this means they can produce goods at lower unit costs) A multinational Company is a corporation that has its facilities and other assets in at least one country other than its home country.
This concept is best exemplified by the causes and effects of Henry Ford’s Model T. Undoubtedly, The Model T was a great advancement in Technology, but it also marked a major turning point in the advancement of the middle class in the United States. The Model T improved the lives of rural families, urban middle class families and industrial worker and also created a more defined
2013 EC3203 Economics of Corporate Strategy Shane Finnegan 109694919 | Word Count excluding references & cover page: 2,049 Word Count excluding references & cover page: 2,049 | Volkswagen Group | | Volkswagen Group | Contents Introduction 1 Describe the boundaries of the firm 2 Identify the sources of competitive advantage achieved by this firm 4 Describe how the firm positions itself 9 Discuss how the corporate parent creates value for its component businesses and ability of the firm to sustain its competitive advantage relative to competitors 11 Bibliography 13 Introduction VW Group was founded in Wolfsburg Germany in 1937 and is the second largest automobile manufacture in the world. VW group is a conglomerate with twelve different brands of automobile in its portfolio. In recent years it has established a worldwide network with manufacturing plants in Europe, America, Asia and Africa. VW Group also provides financial services such as insurance, car finance and banking facilities. In 2012 VW Group had a net profit of €15.4 billion.
This is only one of the lasting contributions that Ford made to American society. The effect of automobiles on America is incalculable. What had once been a horse-and-buggy society became a fast-paced, mobile culture. As the Model T became a household name, the prospect of travelling across the country in an easier, more efficient manner came closer to reality than ever before. In 1909, President William Taft started an automobile race that ran from New York to Seattle.
In fact, college students ranked Ford the third greatest figure of all time, behind Napolean and Jesus Christ. "In 1892 he joined the Edison Company in Detroit as an engineer. (346) "By 1896 Ford had his automobile. (346) He created the model T and than realized he could build a car for the masses. By
Mercedes would pay $4000 and the Traveler would pay $3200. I included a rebate for both brands in the third quarter so the sales would increase and they did. The Speed computer included engineering applications, office applications; ability to link with other computers and a fast and powerful machine these features met all the needs of the Mercedes customer. The Aloha included office applications, portability, ease of use ability and ability to link with other computers; these features met the needs of the traveler population. I chose to place offices in NY - North America and Tokyo- Asia because both brands had the greatest demand in both of these locations.
It's both a positive and a negative for FedEx that it provides services around the world, since it must respond to varying economic factors as a result. FedEx must be flexible with its charges, basing them on the economic status of each country it serves. Social Factors * Social factors that affect an organization are population and educational perspective of the international and macro-economical society. These pertain to decisions organizations make to meet the needs and demands of a specified number of consumers in certain countries. Populated countries are favorable to FedEx because they have more consumers who require their services.
Examine the main factors that have accelerated globalisation Globalisation is the process by which people, their culture, money, goods and information can be transferred between different countries around the world with few or no barriers at speed. Globalisation presents countries, companies and individuals with numerous opportunities. There are many factors which have contributed to our increasingly globalised world. One example of this is the introduction of international organisations which bring people, money and information together to help accelerate globalisation. The Wold Bank offers money to poorer nations to help them improve and develop.
With only eleven men, the Ford Motor Company was only able to produce three cars per day. Later in 1908 Ford developed the famous Model T and with expansion on Henry Ford’s mind he turned his production procedure into a moving assembly line. This move played a vital role on the Ford Motor Company’s major success. The assembly line not only greatly increased their daily output but it also cut costs on shipping and supply expenses. The production of the assembly line gave the Ford Motor Company a huge advantage in succeeding in the U.S. market.
In going global, they must be familiar with the laws & political stability of a country. They must also be aware of its economy and monetary factors such as exchange rates, inflation rates and tax policies. The different cultural environment around the world is also a major factor to be considered in going global. The business strategy must be sensitive and adaptable to the situations faced by each unit of the company around the world. The strategies are said to be successful if not only does it increase the company’s profit but it maintained the company’s image and also improved different aspects of the