Mastering the Globalization of Business

Frontmatter

Introduction

Abstract

In June 2001 there were riots in the streets of Gothenburg, Sweden during a meeting of the European Union (EU) held in the city. In August/September 2002 there were demonstrations at the Earth Summit in the South African city of Johannesburg with Colin Powell the US Secretary of State being booed. These were just the latest in a series of protests that were becoming a feature of meetings of the World Trade Organization (WTO) and other such bodies. The protesters were expressing concerns about the dangers of globalization.

Roger Cartwright

1. A brief history of globalization

Abstract

Globalization, as the term is used in this book, is the process whereby organizations offer their products and services on a global rather than a local basis. As part of this process trade barriers are dismantled giving globalization a political as well as an economic impact. As stated in the Introduction Ellwood (2001) believes that globalization began with the launch of the European colonial era five centuries ago.

Roger Cartwright

2. A shrinking world 1 — global governance

Abstract

It is often said that the world is becoming smaller. While this is not true in a literal sense most people know what is meant — that transportation and communication technologies allow us to reach places far more quickly and with less effort than was the case in the past and to communicate across the globe very quickly indeed.

Roger Cartwright

3. A shrinking world 2 — global markets

Abstract

The previous chapter was concerned with global institutions and governance. This chapter examines markets, regional trade blocs and customs unions. The European Union (EU) and the North American Free Trade Association (NAFTA) are the two best known but there are a number of others. The EU differs from other free trade associations in that it is concerned not only with trade but also with ever closer political ties between its members. It is the political integration within the EU that has caused much heart searching within the UK over the past decade, heart searching that has increased with the introduction of a common currency, the euro by a number of EU members.

Roger Cartwright

4. A global takeover?

Abstract

To the average person in the developed world the riots in Prague, Seattle and Gothenburg at recent meetings of world leaders may seem inexplicable. To the majority of consumers in the developed world, globalization has brought immense benefits not least of which has been the increased access to a huge range of consumer products. Why should we fear something that has brought increased choice?

Roger Cartwright

5. Think global, act local

Abstract

One of the case studies in this chapter is on Ford, one of the largest motor manufacturers in the world and one of the first corporations to act globally but think locally. Ford is undeniably a major US corporation but a whole generation of motor cars, e.g. the Popular, the Cortina and the Anglia, were considered in the UK to be quintes-sentially British. Ford appeared to many in the UK to be a British company — hardly surprising as it acted as if it was by having a major UK manufacturing base that not only produced vehicles for the UK market but also exported from the UK.

Roger Cartwright

6. Globalization and the human resource

Abstract

Organizations exist to fulfil certain objectives. In the case of commercial organizations these objectives usually centre on profits and shareholder value. There has been much criticism in recent years of the short-term attitude of many Western companies and investors — typically demanding 15 per cent ROI (return on Investment) year on year rather than making long-term investments in the operation. It has been pointed out that many Far Eastern companies and investors have used market share as a better guide to performance, the argument being that high market share (provided it is a large enough market) is likely to be profitable.

Roger Cartwright

7. Finance and globalization

Abstract

It is said that ‘money makes the world go around’. Whether this is true or not it is certainly a fact that the free movement of capital around the world is what drives globalization.

Roger Cartwright

8. Global communications and the impact of e-commerce

Abstract

Technological innovation has contributed to globalization by supplying the infrastructure and means for trans-global world connections and networks. In particular, developments in means of transport, communications and data processing have allowed global links to become denser, faster, more reliable and much cheaper. Physical transport is as important as the Internet, as while there are goods and services that can and are delivered electronically, large-scale and rapid globalization has depended on a host of innovations relating to coaxial and later fibre-optic cables, jet engines, packaging and preservation techniques, semiconductor devices, computer software and so on. In other words, global relationships could not develop without the physical tools to effect pan-global contacts.

Roger Cartwright

9. The global customer

Abstract

‘The customer is always right’ has entered common usage both by customers and those who seek their custom. Like many well-known sayings its origin is not completely straightforward. It has been attributed to Lord Sainsbury in the UK but also to a Philadelphia department store owner, John Wannamaker, who is reputed to have first used the phrase as early as the 1860s.

Roger Cartwright

11. Key thinkers on globalization

Abstract

Listed below are some of the key thinkers on globalization. The key texts referred to are those relating to globalization. A number of the thinkers listed have also written on other business, management, political and social issues. Full details of the books referred to will be found in the Bibliography.

Roger Cartwright

Backmatter