Lecture 1- Introduction and Globalization 2025
Uploaded by
Naboth TwinamatsikoLecture 1- Introduction and Globalization 2025
Uploaded by
Naboth TwinamatsikoGlobal Business Environment and International Strategy
MOD007191
Lecture 1
Introduction to the Module
Globalization
Dr Andre Samuel
andre.samuel@sam.edu.tt
Resources
• My lectures are available at:
http://samuellearning.org/ ---->
• ARU Resources:
https://canvas.anglia.ac.uk/courses
/40918
Books
Main Text:
• Hamilton and Webster, The International
Business Environment , Fourth Edition
Supplementary reading :
• Mike W. Peng, Global Strategy, Fifth
Edition
• David Needle and Jane Burns, Business
in Context, Seventh Edition
What to expect from this module
LO 1 Identify describe and assess the factors that shape and change the global
business environment.
-political, economic, social, legal, ecological and technological factors
- the competitive environment
LO 2. Demonstrate an understanding of globalization and key developments in the
global economy.
LO 3. Demonstrate an appreciation of the key factors of the external environment of
the international businesses
LO 4. Demonstrate the ability to apply fundamental economic models to scenarios and
data sets
LO 5. Demonstrate development in research skills, critical thinking and essay
construction
4
Organization of the topics
• Week 1 Introduction to globalisation
• Week 2: Business and strategy around the globe
• Week 3: Economics as a Driving Force
• Week 4: The Global Marketplace
• Week 5: Managing the Global Competition and Market Entry
• Week 6: Developing Strategy
• Week 7: Presentation
• Week 8: Institution – Entrepreneurship – Strategic Alliance
• Week 9: Diversification – Merger – Managing Risk
• Week 10: Innovation and Change
• Week 11: Sustainable Practices, Governance & Ethics
• Week 12: Time for revision
Assessment
• 010 (60%)– Presentation. 10-minute live PowerPoint
presentation
• 011 (40%)– Reflective Essay ( 1000 words). Using the Gibbs
Reflective Cycle, examine your learning experience on this
module by reflecting on assessment 010
Business in Context
What do you think of when you hear the word
‘Business’ ?
• Go to:
• Enter up to 3 words
What is Business?
• Milton Friedman :
“the business of business is business”
The Business in Context
Needle and Burns (2019)
• Businesses are complex Globalization
Environmental Level
• They can only be
understood fully when those Organizational Level
contexts within which they
operate are also understood Strategic Level
Activities Level
The Business in
Context Model
Needle and Burns (2019, pg.2)
Why Starbucks Failed In Australia
https://www.youtube.com/watch?v=_FGUkxn5kZQ
Why McDonald’s Flopped In Vietnam
https://youtu.be/l9pthhpd7So?si=PGaA8ZYezRH_xGM7
Global Business and
Globalization
Global Business
• It means moving from
local/domestic to international
• Involves the trade of goods
and services, capital,
knowledge and technology
across borders on a global
scale
• The production or distribution
of goods or services in many
countries
Apple goes Global
• Apple opened its first international location in
Tokyo, Japan, in 2003
• 2004- UK
• 2005- Canada
• 2007- India
• 2014- Brazil
• 2015- UAE
Apple iPhone
• The company designs the
iPhone in California
• Purchases components from
suppliers in 43 countries
across six continents,
• Sends the parts to factories
to be assembled in China,
• Then ships completed
iPhones to warehouses and
then to retailers around the
world
Apple iPhone Global Supply Chain | CNBC
https://www.youtube.com/watch?v=Cw3V2x5u54Y
Global Supply Chain for cotton T-shirts
SM Jaleel goes Global-
distributes its beverages to over 60 countries
1986- Caribbean Cool Drinks Launched
in the UK-
1997-2000 Subsidiary in Guyana, Jamaica,
SMJ Barbados, St Lucia, Mexico, Brazil
From
Domestic to
International
2004- operations to bottle and distribute Chubby in
Damam Saudi Arabia
2010- SMJ Asia Limited was formed in India, producing and
distributing the Maaee brand of water
Globalization
• Globalization confronts business with significant new threats
and opportunities to which business must respond.
• So, globalization is important for business
• What is it and why is it so important?
What is Globalization?
• The global circulation of • Creation of linkages or
goods, services and capital, interconnections between
but also of information, ideas nations
and people •
(World Bank 2000) Hamilton and Webster (2018)
• There has been 400% growth
in the value of global trade
since the Global Agreement
on Tariffs and Trade removed
numerous trade barriers and
quotas in 1947.
What is Globalization?
• Creation of linkages or interconnections between nations in which
barriers (physical, political, economic and cultural) separating
different regions of the world are reduced or removed, thereby,
stimulating exchange in goods, services, money and people
• Globalization is the widening set of interdependent relationships
among people from different parts of a world divided into nations.
• The term sometimes refers to the elimination of barriers to
international movement of goods, services, capital, technology,
and people that influence the integration of world economies.
Key Elements of Globalization
• According to Hill (2005) and Wall, Minocha and Rees (2010),
the key elements of globalization are:
Shrinking Shrinking
space time
Disappearing Creation of a
borders global market
Scholte (2005) identifies five elements:
Internationalization Liberalization Universalization
Westernization Deterritorialization
Group Activity- Support or Reject?
•In your group debate:
‘Globalization changes the total culture
of a country’
Globalization is All-pervasive
• Held et al. (1999) define globalization as:
“the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life,
from the cultural to the criminal, the financial to the
spiritual.”
• Globalization can influence culture through the transfer of
knowledge, ideas, and beliefs across national borders.
(Hamilton and Webster 2018)
Conduit for transfer of Culture
Mass
Migration Education
Media
Religion Sport Crime
Health
Popular Regional Trade Blocs in The World
Group Activity
1. In groups select one country and
2. Identify key exports and imports from that country,
3. Pick a group representatives who will present the key
points to the rest of the class.
• A data source has been provided at the next slide
The Observatory of Economic Complexity (OEC) World
Trade Data
https://oec.world/en/data-availability
Drivers of globalisation
• Economic: Growth of international trade, increase in capital, goods and
information flows & growth and risk management in emerging markets.
• Political: Changing political situations, government policies & emergence of
new forms of governance, regionalism.
• Social: Rise of a global culture, consumer pressures & domination of media.
• International/ legal: Expanded cross-national cooperation/ competition,
trade regulations, tariffs & subsidies.
• Technical: Application of technology- Digital commerce.
Main Driver of Globalization
• From a production and
Distribution viewpoint,
• Globalization offers
companies opportunities to
simultaneously grow
revenues and decrease
costs
Christopher (2013) Trade-offs in global logistics
Barriers to globalisation
• Government regulation
• Tariffs and subsidies
• Controls on Capital
• Border/ Immigration Controls
• Technical Standards
• Protection of Intellectual Property Rights
• Lack of familiarity to the target location/society
• Wrong or misguided perception
Costs of globalisation – Some examples
• Threats to national control • Ethiopia / Kenya / Sri Lanka
or even sovereignty
• Economic growth causing • Indonesia/ China / UK
environmental stress
• Hyper-growth eating up
non-renewable natural • Globally
resources
• Possible income inequality • Bangladesh / Sri Lanka / ???
at organisation and
individual level
Activity- Poll
•Will opening the
local market to
foreign
companies kills
local business?
•Scan QR code to
cast your vote
Global Business Environment
What is the Global Business Environment
(GBE)?
• The GBE has been brought about as a result of Globalization
• When operating in different sovereign countries, firms must align
and adapt to the different cultures of each country
• As well as its wider external environment
• It is more complex than individual territories
• Think of the trading blocs and Regulatory frameworks they create
Factors of the GBE
Question and Answer
• What are two significant issues in the current global
business environment?
Major Challenges in the Contemporary
World
• Political populism, conservatism & isolationism: Weak
economic growth, low productivity, job insecurity &
unstable markets? (In Europe)
• Refugee crisis - ‘The refugee crisis is both a consequence
of a more interconnected world, and a cause of the revolt
against globalisation’ (David Milliband, WEF)
• Geopolitical conflicts and changing political climate.
• Global competition.
• Climate change - How to create the balance of good lives
with sustainable limits?
Next Step
Read Chapter 1 of the Recommended Text book:
- Hamilton and Webster, The International Business Environment
- David Needle and Jane Burns, Business in Context
Exit Poll- Post Lesson Reflection
• Scan QR Code to provide
your feedback