Global Business Strategy Essay Example | Topics and Well Written Essays - 2000 words

Global Business Strategy - Essay Example Globalization of firms of all sizes and from a variety of industries is a watch word which must be reckoned with in today’s competitive world markets. To be successful a company should have a, a consumer – oriented approach and should understand customer needs worldwide, along with a comprehensive global business strategy As the world becomes smaller and smaller, it is becoming more and more evident that business firms will increasingly face stronger competition. The purpose of utilizing different types of business strategies on a global scale is to increase the firm’s ability to produce a higher quality product at a lower cost on a world scale. A global business strategy usually comprises of a global product and a brand name, presence throughout the world market. The production activities of the business also will be located worldwide so as to gain maximum advantages, co – ordination of strategies and activities.The global business strategy must be based on standardization of product, branding and advertising. Globalization and business From the perspective of business, interest in globalization centers on two major facts; globalization of markets and globalization of supply chain. The globalization of markets suggested that technological change, social, political and economical development have, in recent decades driven the world towards a ‘global village’ or ‘converging commonality’ – a homogenized unified global market in terms of consumer taste and product preferences. While there is strong evidence that many markets are becoming increasingly global in certain aspects, an approach to strategy that concentrates almost exclusively on standardization and costs represent an oversimplification of the situation. The global environment is becoming increasingly complex and requires more sophisticated approach to strategy.† As per (Ali, 2000, pg.8) â€Å"Global corporations should treat globalizati on as a view and outlook that broadens and energizes human mind and perspectives† As the market become global, consumers are becoming more sophisticated, demanding products that are differentiated rather than standardized. A further complexity is that globalization is not confined to simply to consumer markets but also relates to the global scope of all of organizations’ business operations and its ability to compete on a global scale. Global business strategy is an approach to strategy that embraces the worldwide scope of organizations activities, a view that the whole world is a potential market. Globalization has given business the opportunity to configure its activities so as to take account of vocational and other advantages arising from difference in resources, skills and economic conditions in different parts of the world. The Concept of Strategy with Relate to Business Strategy concerns organizational learning about the business and its environment and the devel opment of knowledge that produces core competences which position the organization favorably with regard to the variable in the environment. Strategic management is comparatively young discipline and, in consequences, there is considerable debate over which approach manager should adopt in devising their strategies. Strategic management is the ongoing process companies use to form a vision, analyze their external environment and their internal organization, and select one or more strategies to use the

Marketing Communications Assignment Example | Topics and Well Written Essays - 2750 words

Marketing Communications - Assignment Example The project makes a study of the external environment. The external environment looks favourable, especially because the world has been gradually moving out of the recession. The most favourable situation is the rapid technological advancement across countries. The use of internet has increased drastically over the years and thus has become the most popular medium of communication by most organisations. Also, there have been an increasing number of teenagers using the internet which makes the internet the most effective medium of marketing communication for brand development (Neuez, 2003, p.4). It is also seen that teenagers are the largest consumers of chocolates. The conventional method of marketing communications in the chocolate industry in UK has been the electronic media. However, the chocolate market in UK looks bright. There is also a high demand for fast food in the nation. One of the close competitors in the field is Cadburys. However, the market share of the company has re cently fallen. â€Å"Data from Nielsen, the market research company, showed Cadbury’s chunk of the chocolate market by value slipped 1.7 per cent to 29.8 per cent last month, the first time that it has fallen below 30 per cent all year† (Boyle, 2009). This situation could be used to the company’s advantage. However, there is one drawback that it would be confronting with. It might confront with a dip in the demand for chocolates as majority of the population greatly suffers from obesity. Application of Theories to Practice Scholars and marketing practitioners have been abandoning the approach of marketing mix and increasingly focussing on the process of relationship marketing and marketing communication strategies. Relationship marketing is defined as the process of establishment, development and maintenance of successful relationship exchanges. The activities involved focuses on decreasing exchange uncertainties and creating customer collaborations and commitme nt by gradually developing and adjusting with the mutual norms and routines (Andersen, 2001, p.168). If the customers can be retained over a number of transactions, both the sellers and the buyers may gain profits resulting from the previous transactions. The aim lies in the attempt to maximise profits as much as possible through the increase in the customer’s lifetime spending instead of generating profits from a single transaction. Thus the process of development of buyer and seller relationship is considered to be the numerous phases in which the trustworthiness of buyers and suppliers are put to test and â€Å"mutual norms governing exchange activities are developed† (Andersen, 2001, p.168). Scholars agree that communication is the fundamental aspect in relationship development. Communication is considered to be the quintessence behind the coordination of behaviour in an organisational setting. The entire inter-organisational distribution channel is held together b y the process of communication. Communication is defined as the way in which a message is transferred to others and also giving it an understandable meaning for everyone. The definition primarily focuses on the way in which communication