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Global Business

Global Business. Get ready for questions after each main section!. Transnational companies. Trans sell goods to a few countries wheras global companies sell around the world. E.g Dell and CRH (HQ Dub but branches in 28 other countries) Why have transnationals developed; More power

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Global Business

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  1. Global Business Get ready for questions after each main section!

  2. Transnational companies • Trans sell goods to a few countries wheras global companies sell around the world. • E.g Dell and CRH (HQ Dub but branches in 28 other countries) • Why have transnationals developed; More power Spread Risk Increase sales Advances in ICT and transport To overcome trade barriers E.g Jap cars made in Eng

  3. Adv of Trans.. • Jobs and higher standard of living • New ideas, training, technology etc • Competition can lead to better prices and better quality • Taxes – income tax, corp tax, vat etc build infrastructure • They buy from Irish suppliers

  4. Disadv • Can move to cheaper cost countires • So powerful they put pressure on government • Send a lot of their profits back home • Irish interests might not be their priority

  5. Global Companies • Coca Cola, Nike • Buy materials and labour from the cheapest countries E.G American car made in korea parts bought from Japan designed in Germany advertiment company from the UK

  6. Why have G Companies developed? • Economies of scale (cheaper per item the more u make, buy and sell in bulk) • Mass production technology has improved e.g CAM • Sales, ICT and Transport improved • Deregulation by the WTO: Free open trading. China only relatively recently did not trade with the world.

  7. Global marketing • ICT, SAT TV –Sky, Internet marketing. • Standardized marketing mix e.g Coca Cola • More often the marketing mix is localised(customised) to suit local culture which is more expensive. • Mc Donalds can’t sell beef burgurs in india as the cow is sacred

  8. Global Price • Price depends on local standard of living • Higher transport costs • Might have higher taxes and tariffs • Local competition might be intense

  9. Global Promotion • Standardised approach is cheapest. E.g Coca Cola at the world cup • Usuallly you must localise so it makes sense to youe local target audience. E.g language interpretations, culture, laws. Could offend locals and lose sales

  10. Global Place • Local agents, distributors. E,g Coke have a bottling and distribution plant in ireland. And bottling partner is the nigerian bottling company

  11. Importance of Global marketing • Economies of scale • Research and development can make the quality the best in the world. E.g Sony • If customisation is ignored massive sales can be lost. Need market research of local markets. • Consider local culture or face negative PR.

  12. Questions • Adv and Dis adv of trans and Global companies • Why have they developed? • Explain Global marketing, standardised approach vrs customised and importance?

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