Samenvatting
Summary Chapter 2
- Instelling
- Erasmus Universiteit Rotterdam (EUR)
Chapter 2 of Introduction to Business: Processes and Context
[Meer zien]Voorbeeld 2 van de 8 pagina's
Voorbeeld 2 van de 8 pagina's
In winkelwagengesponsord bericht van onze partner
2 beoordelingen
Door: lisabasiglio • 6 jaar geleden
Door: sheilashukla • 6 jaar geleden
Voorbeeld van de inhoud
Globalisation A process in which the world appears to be converging economically, politically and
culturally.
Environmental context:
o World economy is closely interlinked
o Trade increased
o Nation states from alliances
o Faster technology/information flow
o Increased flows of services, money, ideas and people
o Cultures grow together
Organisational context:
o Ownership patterns are more complex due to cross-border acquisitions.
o Many changes in the small business sector
o In organisations: new structures and cultures emerge
Strategy: shift from a national competitive focus to a global one. This affects business
activities.
o The ease of technology transfer
o Operations involve the coordinated efforts of a number of organisations
across the globe
o Marketing: global activity
What is globalisation?
Global circulation of goods, services and capital, but also information, ideas and
people.
Scholte identifies 5 elements that define globalisation. Keep in mind,
deterritorialisation provides the true understanding of globalisation according to
Scholte.
o Internationalisation: rapid growth in international trade of goods and
services, money, information and development of global networks for
production and finance
o Liberalisation: creation of free markets around the world. Also liberalisation
of information (e.g. internet)
o Universalisation: process of convergence due to regulatory frameworks. WTO:
rules for free trade. EU: legal framework
o Westernisation; dominance of western values, with particular influence from
the USA
o Deterritorilisation: process that places less emphasis on
national/geographical boundaries. This creates a better flow between
countries
Scholte & Waters see globalisation as a fundamental change in social relations at all
levels.
Castells: “a global economy is something different: it is an economy with the capacity
to work as a unit in real time on a planetary scale”.
Changes took place due to transportation and communication technologies.
, The start of globalisation
Michael porter: 19th century: industrialisation and expansion of trade.
Marx identified that capitalism was concerned with accumulation
o Firms must increase the scale of production to continue to accumulate profit
Also: commodification: broadening the scale of consumption: develop new goods and
services
As result: firms seek to develop new goods and services and increase sales volumes
Through global production/global markets, firms achieve economies of scale.
World bank claims we have ‘cyclical variations’, but also a reduction in trade and
foreign direct investment.
Causes and drives
Importance of rational knowledge
o Emphasises knowledge derived from scientific, objective methods, and sees
the importance of knowledge to solve problems
Trade growth
o Individual national economies have become interconnected through trade
Growth of FDI
o The investment and management of overseas operations by companies,
leading to the growth of multinational companies
Multinational corporations
o Products/drivers of globalisation.
o They have contributed towards the diffusion of technology and ideas, and the
convergence of processes and management practices.
Costs
o Global sales mean that economies of scale in production can be achieved
o Costs of R&D has risen disproportionally
o Global sourcing: raw materials can be accessed anywhere: price is the key
driver
o Competition increases the cost
Technology innovation
o Development in computer technology and decrease of cost to store
information
o Improvements increase the flow of people, goods, money, information and
ideas
World politics
o Political transformation leads to free market economies
o Changes toward liberalisation lead to more trade
Changing markets
o Emergence of groups of customers around the world with similar needs
satisfied by the global products
Regulations
o World economy: easier to achieve with an agreement on certain standards
o Standardisation: e.g. property rights on computers.
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper StraatenLI. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €3,49. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 52928 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen