Sunday, June 9, 2019
Business Globalisation in Central and Eastern Europe Assignment
Business Globalisation in Central and Eastern Europe - Assignment ExampleThese changes concord occurred in different stages and businesses have undergone various transformations in order to remain relevant in the market. This paper explores different stages of globalization with a special counselling on how Coca-Cola Company has responded to every phase of liberalization. Pearce (2006 28) argues that every institution and business must commit to enhancing its global competitiveness as a crucial strategical goal. In the current business environment characterized by intense competition, no business organization can succeed if it fails to match with the high standards set by its competitors in the particular market niche. There are two phases of globalization recorded in the history of international trade namely old and in the raw globalization (Manea and Robert, 2004 203). International trade undertaken from 1893 to 1913 is classified in the old phase while the saucily phase entai ls trade from 1915 to the present. Although these phases are defined by an change magnitude gross domestic product ratio and growing international investments, there are distinct differences. In the old phrase, there were high barriers to trade caused by high tariffs. However, the new phase has witnessed a drastic reduction of tariff barriers, resulting in the opening international borders to a high volume of trade (Manea and Robert, 2004 215). The new globalization has witnessed the expansion of new markets, services and the emergence of global brands. Many countries are members of international trading organizations formed to set the norms and standards of trade. In addition, emerging issues such as democracy, human rights, and market economy are increasingly defining the norms and rules of new globalization. At a business level, the new globalization creates the necessity of expanding from topical anaesthetic to regional levels. This implies that businesses should no longer di stinguish between foreign and domestic market, but concentrate on enhancing the quality of their products, because of intense competition at some(prenominal) levels (Anderson, 2000 62). Businesses undergo five stages before becoming global firms. Generally, exporting goods or services is the initial stage of engaging in international business by local firms. In later stages, most businesses establish ventures in foreign countries (Anderson, 2000 86). Narula (2003 35) identified five stages that businesses undergo before developing into a global corporation. The scratch line stage entails exporting using overseas dealers and distributors. In this stage, the business is predominantly domestic and it engages the services of foreign dealers as it expands into new overseas markets. In the wink stage, the company has already complete a foothold in foreign markets and therefore exporting its products using its own distributors and dealers (Narula (200343). During the third stage, the c ompany is more established in the foreign markets. The firm begins undertaking to manufacture its products, sales, marketing, and other activities on its own (Pearce, 2006 57).