Introduction to Global Business Management-1

5/19/2018 Introduction to Global Business Management-1

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AMITY INTERNATIONAL BUSINESS SCHOOL

Dr. Namrata Pancholi Vinayak

MBA Sem- I

Introduction to Global Business Management


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Learning Objectives

To discuss the Changing Business Environment

Role of Globalization and Changing work places of

today

Role of Global Events and ctivities in governing the

economy of a country

To learn the principles! guidelines and practices of

Global Business "anagement#


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Students should be able to learn and

$nderstand the %mpact of Globalization on

Governments! Businesses and Consumers#

They should be able to trace the evolution of the

%nternational geo&political and economic system

ppraise the role of %nternational %nstitutions and

Regional %ntegration in %nternational Business

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Changing Business Environment

'#(iberalisation

)#*rivatisation

+#Globalisation

,#Technology


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-globalizationmust be taken for granted#

There will be only one standard for corporate

success. international market share# /inning

corporations will win by finding markets all

over the world#

&0ack /elch

CE1! GE

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)2T3Century

%nternal organizational focus

4omestic market orientation

Competitive advantage

5ustainable competitiveadvantage

Competing for today6smarkets

)'stCentury

7ocus on comp8titiveenviron ment

%nternational focus!collaborative advantage

3yper&comp8tition! constantre&invention of advantage

Creating tomorrow6s market


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echnology and !ork Places

&9irtual "anagement

Challenges of keeping employee accountability and

motivation

&%T %ndustry

a# %T 5ervices

b# B*1Contribution to G4* is :#;< 7=)2'+

& >#;< by )2)2

'2< of total 74% funding in %ndia# 7


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Traditional Role Transformational Role

Back 1ffice and Business *artner RoleCost Cutting

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BPO Industr

-*resence in :2 countries

&:;< of 7ortune ;22 companies as clients

&?'2'billion industry today

&?+'2 billion by )2)2

&employment of )#> millions directly

&''#: millions indirect#

&Transforming public services&&&& $%4

&Transforming gri! local farmers! weather forecasting

etc# 9


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Indian E!onom'#%n the past years! the %ndian rupee has been loosing

momentum continuously #

)# /hile a weak rupee may be good for certain sectors!

it certainly is bad for the %ndian economy on the

whole#

+# The rupee&dollar e@change rate A

,# Rupee depreciation is makinga# %mports e@pensive

b# ot helping e@ports because of global economic

slow down#


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To some e@tent! depreciation can be good for

the economy as this will help to increase our

e@port competitiveness and discourage

imports#

There are many sectors which are regaining

competitiveness in e@port markets as a result

of the fall in the e@change rate.(Source:Business Standard.Dec.2013)

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The three key risks arising from longer durationslowdown would be .

a# the sharp rise in non&performing assets in banking

system!

b# challenges in managing fiscal deficit and

c# the e@ternal funding risks would remain high#

*" ddress

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"ACTORS A""ECTIN# THE RUPEE

MO$EMENT

%& "is!a' de(i!itof a country is an important

factor that drives the currency of that nation#

a.3uge import of gold

b# Rise in prices of crude oil

c# nd recently of coal


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%mport of Gold.

&4emand for yr#)2'+ &&&&D;2 tonnes#

%mport is only ,22 tonnesRest through smuggling#

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)&*o''ar *emand+Su,,'

Rising oil prices mean more dollars are

reuired by %ndian oil companies to import

crude oil since oil price is uoted in the $5

dollar in the international market#

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"ACTORS A""ECTIN# THE RUPEE MO$EMENT-!ont.&

/& #'o0a' "a!tors

&&&&/ar in %ra

The crisis in the Euro zone triggered& political uncertainty in Greece and current debt crisis

& the election results in 7rance and Germany are pointing towardsnegative sentiments for austerity measures taken by thegovernment#

& 1verall! there may be more bad news coming from the Eurozone# 3ence! the dollar is getting stronger against othercurrencies! including the rupee


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G &)2 committed to fight the global slowdown and

achieve global economic stability! sustainable growth

e@t meeting in Brisbane in ovember )2', under

the ustralian *residency


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TheFth BR%C5 summit held in Brazil#

7ortaleza! the northeastern coastal city of Brazil

3e will be meeting leaders from the four nations

and it is e@pected that the blueprint for a

development bank and reforms of $nited

ations and international financial

organizations#

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1h go g'o0a'

%nternational Business& Comprises a large and growing portion of the world6s total

business#

& Today! global events and competition affect almost allcompanies#

& ot all companies operate globally but cannot avoid pressuresfrom around the world#

&5"E65 contribute to D;< of business in sia *acific region ! ,2&;2< of trade activities#


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7actors for growth in %nternational "arkets

*rofit *(C 5tage Competition

E@cess Capacity Geographic 4iversification %ncrease in "arket 5ize %CT and transportation facilities

%ncome Growth (ower trade barriers 4esire for new productsconsumesH and new

marketsmarketersH


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IPLC Con!e,t

%nnovation

1verseas %nnovation

"aturity

/orld&wide imitation

4ecline


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Evo'ution o( Internationa'

Business

*omesti!market e@tensionI Ethnocentric

"ulti&domesti!market I *olycentricGlobal mar2etingI Regiocentric J

Geocentric

Transnational mar2etingI "i@ed


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4omestic "arketing

Mar2et "o!us *omesti!

1rientation Ethnocentric

"arketing "i@ 4ecisions 7ocused on 4omesticCustomers


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E@port "arketing

Market Focus

"arket 7ocus 1verseas Targeting and Entering7oreign "arketsH

1rientation Ethnocentric

"arketing "i@ 4ecisions 7ocused on 4omestic Customers1verseas "arketing&Generally

e@tension of 4omestic "arketing4ecisions made at 3eaduarters


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%nternational "arketing

Mar2et "o!us Caters to specific needs of afew overseas market

1rientation *olycentric 1rientation

"arketing "i@ 4ecisions *roducts manufactured in homecountry with separate productadaptations for different markets*roduct 4ecisions made byindividual subsidiaries


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"ultinational "arketing

Market Focus DomesticMar2et "o!us Conso'idation o( o,erations onregiona' 0asis

#ains (rom E!onomies o( S!a'e

1rientation Regio!entri!

"arketing "i@ 4ecisions *roduct 5tandardization withinregions but not beyond them1n regional basis


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Geocentric

Mar2et "o!us Consolidating firms operations onGlobal Basis

1rientation Geocentric

"arketing "i@ 4ecisions Globalization of marketing mi@decisions with local variations0oint decision making across firmsglobal operations


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Thank =ou

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Introduction to Global Business Management-1

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