Globalisation ( Week 6 )

Today's Topic Is GLOBALISATION !!!

Globalisation is when businesses operate in lots of counties all over the world. It means that companies can be based anywhere in the world and can buy from and sell to any countries in the world.


Firms can increase their market size by selling existing products to new countries. They can reduce costs by getting their raw materials form countries with the cheapest prices. Also, manufacture components in overseas countries where labour is cheaper, before putting the final product together.


International trade offers businesses lots of opportunities to make money by selling their products abroad in order to increase their turnover by increasing the size of their market and buying raw materials abroad or relocation production abroad can cut costs.



For Example :


McDonalds

The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. A McDonald's restaurant is operated by either a franchisee, an affiliate or the corporation itself.

McDonald's has become emblematic of globalization, sometimes referred to as the "McDonaldization" of society. We can find McDonalds very easily in all over the world.

Communication will be one of the biggest challenges for international businesses because the managers may have to share ideas to different store in different countries.

McDonald's has an  internal  communications team that deals with communications to all of our staff, and stakeholders. A number of different communication channels are used such as the intra net and weekly newsletters for staff to stay connected.

Externally  we run a number of different advertising campaigns throughout the year to ensure our customers are aware of the great products on offer as well as informing them about other areas of the business such as our training and education opportunities. We also have a media team who deal with all press enquirers.

Advantages :

• cheaper prices
• improvement in economic
• higher rates of growth
• increase customer choices
• greater employment opportunities

Disadvantages :

• culture in different countries ( e.g. China and Hong Kong )
• health problems ( e.g. SARS, flu )
• conflicts ( e.g. China and Japan )
• disparity

In conclusion, international businesses are the companies that operate anywhere in the world such as McDonalds. Communication is important for the international business as the stores will be in different countries and they must communicate with each other in order to get the ideas and the profitability that the store has got.