Globalization Essay, Research Paper

Research Paper Introduction For me “globalization” is not just more than doing business all around the world. It is the new era of business opportunity. Globalization is changing the way of doing business. Being a global-player is the concept to create an opportunity in expanding its service and product market into global market place. Also, “Being global enable you to create or capture a new market well ahead of your competitor” (Dr. N. Caroline Daniels and John L. Daniels, 30). In Asia, Europe, and many part of the world, there are thousand of service and product markets wait to be filled. Especially, the Chinese consumer market has a awesome demographic. The Chinese economic has been growing rapidly in past decade under the policy of “open-door” toward foreign trade, investment, and finance. I think that Chinese consumer market is one of the most attractive countries for the global-player.Literature In order to approach the discuss topic on Globalization management opportunities, I found and read many interesting books, literature, and research are: 1. The “Global vision” by Dr. N. Caroline Daniels and John L. Daniels. This book is focus on the important of globalization and its impact on business environment. The authors believe that become global allows business to “Keep up with the competition, Keep abreast of new trends in technology and create an take advantage of developing business opportunities” (Dr. N. Caroline Daniels and John L. Daniels, 8). According to Jonh L. and Dr. N. Caroline Daniels, they suggest that to be global every company should:- Create a Clarity of Vision and Mindset- Know your global customer- Understand Global-Local Balance and Constantly Adjust It – Move from Isolation to partnership- Nurture Global Employee- Key on Information TechnologyCompanies going global need these requirements in order to be success in the globalization era. 2. The “Global Marketing Imperative”, by Michael R. Czinkota, Iikka A. Ronkainen, and John J. Tarrant. This book explores the global marketing and the key to success strategy. The authors also suggest that “Global marketing is an issue for all companies, even very small one” (Michael R. Czinkota, Iikka A. Ronkainen, and John J. Tarrant, 5)3. The “Global Challenge”, by Robert T. Moran and John R. Riesenberger. This book offers some practical recommendations on how to assess and improve global organization. The authors said “It ‘must-read’ for current and future global managers.4. The “Strategy&Business and The right way to Achieve Profitable Growth In the chinese market” by Edward Tse is the discussion on the growth of China’s economy and how to approach Chinese consumer market.5. The “Globalization of Business” by John.H Dunning is the discussion of global strategy and current theoretical frameworks. It also includes the latest issues in the world of international business and identifies the challenge of the future.6. The “China in the Twenty-first century” by Fumio ltoh, it talks about after China opened the “opening-door” to the outside world. The author said that the moving towards the twenty-first century would make China changing rapidly. Strengths of the literatureAs I mention in the beginning, globalization involves doing business around the world in a new way. These give company an opportunity to explore the world market. The idea of global-player is also a low-cost and new customer. For example, China is one of the most discussed topics of a business opportunity for global-player around the world. This is because China has a huge and fresh consumer market wait to be filling; “China is a major imperative for most big multinationals. Indeed for some, such as Coca-Cola, Erison and Procter & Gamble, the country has become one of their largest market in Asia or even the world” (Edward Tse, 11).China is in the eastern part of Asia by the Pacific in the east. It is the third largest country in the world. China is the country that next to Canada and Russia, it has the area of 9.6 million square miles. China’s population is about 20 percent of the world’s population. Since 1979, China has entered the new era of creating an open-door policy to carry out the construction of modernization. Opening the door to the outside world have developed the new established special economic zone, such as coastal area, the area along the Changing River and much more. “With the progressive improve of the investment environment and the completion of laws and regulation concerning foreign affairs, more and more foreign investor have come to China” (Fumio ltoh, 5). As the resolve, import and export has increased from US$20.6 billion in 1978 to US$195 billion in 1993.From the report of China Ministry of Foreign Trade and Economic Cooperation (MFTEC), “during the first seven months of 1997, there are 26 billion U.S. dollars flows in to China as investment, and it is 15.75 percent more than the same period of last year” (http://www. ChinaTocay.com, 6/27/98). China’s G.D.P. has been growing at about 9 to 10 percent a year for last 15 year. “Per-capita G.D.P. has been reached about $600. Adjust for purchasing power party, China is one of the highest in the world” (Tse, 11).

Since the opening of China, people have been adapt to new cultural values. Chinese consumers are willing to spend more money on purchasing goods and serviced. Many international products and services have been succeed in this revolution because most of the Chinese consumer’s decisions are influenced by promotion, and advertising through the television. Actually, there are the increasing numbers of china’s population have their own TV. By 1995, official statistics said that more than 80% of Chinese have their own TV. Also the advertising spending in China has been growing at around 60% a year since 1990. In a survey, more than half of the respondents said that “television ads influenced their firs-time purchase of the brand they used most of ten for a home-care product” (Tse, 13).There are a lot of companies have been presented into China, such as Procter & Gamble, S.C. Johnson, Henkel, Unilever and Kao. I also believe those companies are going to China as a global-player, they need a powerful global vision to lead their organization into the future success. Arch McGill, the former president of AT&T Advanced Information System said that “Change in business starts with a vision” (Jonh L. and Dr. N. Caroline Daniels, 18). Company should has a right global vision address such an important issue, such as how will they serve customer, finding local business partner and geographic concern. For example, ” Henkel has several join venture across China manufacturing cosmetics, detergents and other product” (Tse, 13.Weakness of the research and literature Globalization is one of the best opportunities in business but it also creates its own risk. This is because of the different in social, culture, and the different economic if foreign country. Every company becomes global should be concern about market research, information, and beware of the cross-culture in management. In China, the conflict in management has been addressed as a major problem for global-player, such as US and Chinese join venture. Actually, join-venture design to improve and eliminate misunderstanding of global-culture different and management. Some Chinese and American companies try to adapt to one another, but it wan not easy. Both sides may found that cultural difference is difficult to control. For example, Babcock & Wilcox (B&WBC) Chinese company, join-venture with Grub and Lin. In both join venture, Workers (at B&WBC) evaluated Chinese managers by a simple standard: where ever quarreled with American the most aggressively would be considered comrade in arm, and whoever cooperated with the Americans would be nicknamed ‘Er Gui zi’ (fake foreigners). The atmosphere become so tense that evens most trivivial business dealings between the American and Chinese became bogged down in charges and counter charges. (John Child and Yuan Lu, 90) The example of cross-culture conflict management of China-American join-venture shows that the global-player should be aware of the conflict. The company should be fast respond to the problem, such as providing information about the impact of individualism, communication, and face the management conflict behavior. This is because American and Chinese differ on these three bases. So, I think the global managers have to understanding of nation and organization culture and avoiding cultural error. Even though there are many global-players have been succeed in managing culture-conflict China. But there is the other major problem in being global-player in China. This is because the company might lack of real understanding of the Chinese consumer, beside Chinese consumer market is vast size, regional diversity, and poor infrastructure. So, many multinationals companies might have found themselves make mistake in managing their businesses. The mistake that company usually made in China is that they think that there are about 1.2 billion Chinese and if each person buys one product per year, then it is a very big sale. However, the characteristics of various market segments in China are different. There are the different between the major city Beijing, Shanghai, and Guongzhou. Also, there are some small cities and rural area within the same geographic region. For example, the household income of Beijing, Shanghai, and Guongzhou is “seven times greater that surrounding rural area” (Tse, 16).