CHAPTER 1 - CLOSING CASE

Globalization at General Electric(GE)

1. Why do you think GE has invested so aggressively in foreign expansion? What opportunities is it trying to
exploit?

I think GE acted agressively because if they didn’t then another company would have grapped the opportunity and
purchase the companies that were in trouble. Other companies could have also formed there and that would have
made it harder for GE to establish their business in other countries. Some companies may object to a foreign company
trying to establish a company on their land but by buying out the business that were in financial trouble. GE came out as
the heroes. They helped to save the jobs that these companies also acted agressively because they wanted the revenue
that it would produce.

I think that GE is trying to exploit lower wages. They are always trying to find ways to reduce their cost. Moving to order
countries would mean lower cost in labor hours for General Electric.

2. What is GE trying to achieve by moving some of the headquarters of its global businesses to foreign locations?
How might such moves benefit the company? Do these moves benefit the United States?

By GE moving some of it’s headquaters to foreign countries they are trying to achieve a closer relationship with the
people and government of the country. In many culture like China it is necessary to have great level of cultural
sensitivity in order to be successful. This is very difficult for outsider to obtain, so by having a local office you can gain
this by bringing people of that culture into the company. By getting to know culture and customs of the country GE
would be less likely to make marketing mistake. Making a mistake of any size can be disrespect to the people of the
country and cause them to boycott company’s product.

Moving some of it’s headquaters to foreign countries the main benefit is it gives opportunity to get closer to customer
and can able to know culture and customs of the local people. Another benefit of moving company’s headquaters to
foreign coutry is that people are likely to buy and use a product that is made with in their country. The initial impact of
moving some of it’s headquaters to foreign coutries would hurt the local economy because of the immediate job loss.

I don’t thnk it has bennefits for the United States when GE moved to different countries. The main goal is to have
benefits for the internationalization of the company and to be closer to its customer.

3. What is the goal behind trying to “internationalize” the senior management ranks at GE? What do you think it
means to “internationalize” these ranks?

GE is trying “internationalize” the senior management rank, they has goal behind it. They wante to reduce deep
understanding of local language and culture which is often critical. I think these rank “internationalize” means to make
international or to place or bring under international control. In our case study I read that GE internationalization of
their management rank. One of their activities to internationalize is increasingly traveling overseas for management
training and company event.

4. What does the GE example tell you about the nature of true global businesses?

True global business is a business that is headquartered locally (in overseas) for the aim of getting closer to its
customers. It exploits their local market knowledge as well as their local culture and language knowledge. The General
Electric example tells me that the nature of true global businesses is only to make as much money off of the people as
humanly possible to do so.

Chapter 2 -CLOSING CASE

India’s Transformation
 1. What kind of economic system did India operate under during 1947 to 1990? What kind ofsystem is it moving
toward today? What are the impediments to completing this transformation?

During 1947 to 1990 India was undergoing serious social reforms. During this period India used a system called central
planning. This is basically a system whereby the economic system is decided upon from the top down, and everyone has
a role to play in keeping the system running. It focuses on using homegrown produce and does not import in a lot of
goods. It also sees people less ruled over and more as part of a big machine, to re-iterate the fact that everybody is
more equal. This can also be seen as mild communism.

Today, however, the economy of India is a lot more geared towards the capitalist strategy. This basically means that it is
fashioned more around money and making profit than caring for the people in the system. Because of this, more and
more things are imported and no longer made locally, because more of a profit can be made by buying in. It means that
India's role in the world has changed. It is now used by textile firms and other firms to produce cheap clothing for other
markets.

This is one of the impediments, that its people are sold out and forced to work cheap labor jobs because the system has
changed; now it is solely interested in making money. This is a transformation that has happened worldwide and started
in the west, mainly by America and closely followed by Britain and the rest of the world.

India has not had an easy history; from being ruled by the British in the early 1900s, to being exploited for its cheap
labor, the country is one of opposites. There are those that are well off, and those that are still horrifically poor. A lot
still needs to be done to help India become the country that it can be.

2. How might widespread public ownership of businesses and extensive government regulationshave impacted (1)
the efficiency of state and private businesses, and (2) the rate of new businessformation in India during the
1947–1990 time frame? How do you think these factors affected therate of economic growth in India during this
time frame?

3. How would privatization, deregulation, and the removal of barriers to foreign direct investmentaffect the
efficiency of business, new business formation, and the rate of economic growth in Indiaduring the post-1990
time period?

4. India now has pockets of strengths in key high-technology industries such as software andpharmaceuticals. Why
do you think India is developing strength in these areas? How might success inthese industries help to generate
growth in the other sectors of the Indian economy?

5. Given what is now occurring in the Indian economy, do you think the country represents anattractive target for
inward investment by foreign multinationals selling consumer products? Why?

India has a second population in the world, so it is attractive for foreign investment in selling consumer products.
However, if there is a decreasing of the tariff, China's inexpensive products will overwhelm the Indian market. This will
affect employment in India and make it become an importing country. That's why political oppositions are opposing
reducing import tariffs.

CHAPTER 3: CLOSING CASE

Wal-Mart’s Foreign Expansion

I don’t think Wal-Mart could translate its merchandising strategy wholesale directly to another country and succeed.
Because different countries have different cultures and backgrounds, in order to succeed in another country, it needs to
adapt to these differences and find a way that best fits in the local market. Apparently, the “U.S. style” does not work
for all the countries. For example, Wal-Mart is famous for its low price strategy in the U.S. However, when it shifted its
store with the same strategy to Germany and South Korea, it soon failed. People in the countries like Germany or South
Korea do not care about the low prices as much as its target consumers in the U.S. do. What they care the most is if the
store has higher quality products. So whether succeed in another country or not really depends on how well Wal-Mart
understands the local consumer buying behaviors and how much they could change its merchandising strategy to fit in.
As mentioned in the case, Wal-Mart hired local managers who knows well about Mexican culture to run the store, while
built smaller stores with fresh food products for Mexican consumers so that they could simply walk in and get what they
want. By doing so, they successfully melt in the local market and started to influence Mexican’s shopping habits.

2. Why do you think Wal-Mart was successful in Mexico?

The process of Walmart’s success in Mexico is a long term. First of all, Walmart didn’t entry the Mexico market
impulsively but to choose to cooperate with a local business, the Cifra. And due to the different shopping style, Walmart
noticed that widely carrying out its wholesale strategy with hypemarkets could cause failure in Mexico. As a result, it
adjust its plans quickly to adapt the local conditions by hiring the local managers who are familiar with local shopping
habits and building small stores that people could walk to. Meanwhile, what is more important for Walmart is it insists
on changing Mexican consumers’ shopping culture by promoting American shopping style deeply and also offering the
real low price of the merchandises. The local consumers got the authentic benefits from Walmart, as the same time,
Walmart also achieve its success in Mexico.

3. Why do you think Walmart was failed in South Korea and Germany? What are the difference between those
countries and Mexico?

When Wal-Mart made steps to expand to South Korea and Germany with very little success, there was realization made
in regards to diversity and what Wal-Mart originally offered. Wal-Marts low price strategy is reasonless in a place where
paying more is accepted. Britain, South Korea and Germany cultures have a preference of high end and high-quality
merchandise than what Wal-Mart was offering. The main difference between these countries and Mexico is that Mexico
accepts the low price strategy.

4. What must Wal-Mart do to succeed in China? Is it on track?

In order for Wal-Mart to succeed in China it must do proper research to gain an understanding of the consumers and
their shopping culture. To ensure its success in the country, Wal-Mart has strayed from its traditional strategy to
embrace the notion of unions. This decision has led the company to purchase a stake in China’s Trust-Mart chain, which
should allow Wal-Mart to expand even further. Wal-Mart now considers China its most important growth market. With
that, Wal-Mart does appear to be on track in the country. They just need to continue maintaining and adapting to the
Chinese culture by meeting the needs of the consumers.

5. To what extent can a company like Wal-Mart change the culture of the nation where it is doingbusiness?

A company such as Wal-Mart can change the culture of the nation where it’s doing business only to a limited extent by
providing and offering different products and goods to its consumers; therefore, changing the way they shop and buy
merchandise. However, most countries such as China, already had successful discount chains like Trust-Mart when Wal-
Mart entered the market so the culture wasn’t changed much and in Mexico, consumers weren’t changed by Wal-Mart
either but instead by the global economy. Lastly, Wal-Mart wasn’t even successful or able to change the culture of
Germany and South Korea where consumers preferred higher quality merchandise. Therefore, Wal-Mart has the ability
to change the culture of some nations but it’s still very limited as proven the countries we read about in the text.
CHAPTER 4-CLOSING CASE

Wal-Mart’s Chinese Suppliers

1. Is it legitimate for an enterprise like Wal-Mart to demand that its suppliers adhere to a code ofethics? What are
the benefits of this practice to Wal-Mart? What are the costs?

Wal-Mart is the world’s largest retailer, and with that distinction there is an obligation to act as an example to the
world. Wal-Mart does have a legitimate right to demand that its suppliers adhere to a code of ethics. Actually they have
a legal obligation under the Foreign Corrupt Practices Act to demand that their suppliers adhere to a code of ethics (Hill,
2011, p. 123). If the suppliers fail to adhere to the rules then Wal-Mart can be fined. These penalties are no little slap on
the wrist, fines of several millions have been recorded. Insuring that these Chinese corporations comply can be difficult
because many companies there have a low appreciation of the importance of anticorruption compliance and because
many of them are state owned or controlled (Grime & Guo, 2009, p. 23). Demanding that Chinese suppliers adhere to a
code of ethics can cost Wal-Mart in many ways. There is the higher cost of goods purchased due to higher production
cost associated with compliance. There is also the risk of not being able to purchase the goods at all if the corporation
gets banned from doing business with Wal-Mart due to repeated violations. The benefits that Wal-Mart can gain due to
this practice can range from the reduced risk of being fined to being able tell the rest of the world that acting in an
ethical manner is a requirement for doing business with them

2. Wal-Mart is known for constantly demanding the very lowest prices from its suppliers. Howmight this impact
upon ethical behavior at its suppliers?

3. Is Wal-Mart doing enough to ensure that suppliers adhere to its code of ethics for them? Whatelse might it do?

4. Given that several cases have come to light where Wal-Mart suppliers falsified their books togive the impression
that they are conforming to Wal-Mart’s code of ethics, should the company evenbe doing business in countries
where such behavior is widespread?

CHAPTER 12 - CLOSING CASE

Coca-Cola

1. Why do you think that Roberto Goizueta switched from a strategy that emphasized localizationtowards one that
emphasized global standardization? What were the benefits of such a strategy?

Ideally, a product or service is developed so that localization is relatively easy to achieve. Global Standardization is the
process to push a international company / brand to become more centralized in management. think Roberto Goizueta
switched Coca cola strategy from localization to global standardization in order to pushed Coke to become a global
company, by centralizing a great deal of management and marketing activities at the corporate headquarters in Atlanta,
focusing on core brands, and taking equity stakes in foreign bottlers so the company could exert more strategic control
over them. This one-size-fits-all strategy was built around standardization and the realization of economies of scale by,
for example, using the same advertising message worldwide

2. What were the limitations of Goizueta’s strategy that persuaded his successor, Daft, to shift awayfrom it? What
was Daft trying to achieve? Daft’s strategy also did not produce the desired results.Why do you think this was
the case?
The limitations of Goizueta’s strategy was in the very 1990s is when Coke failing to hit the financial targets for the first
time because the one-size-fits-all strategy was running out of steam, as smaller, more nimble local competitors
marketing local beverages began to halt the Coke business development. So that, Daft shift away the strategy to be
more localization.

Daft was trying belief that Coke needed to put more power back in the hands of local country managers. He thought
that strategy, product development, and marketing should be tailored to local needs. Dafts was so influenced by the
Coke in Japan that localization for coke company in Japan is very successful, but the thing is every country different, and
not all will do as succeed as Coke in Japan.

3. How would you characterize the strategy Coke is now pursuing? What is the enterprise trying todo? How is this
different from the strategies of both Goizueta and Daft? What are the benefits? Whatare the potential costs and
risk?

Now coke strategy is pursuing their markets by reviews and guides local marketing and product development, but has
adopted the belief that strategy, including pricing, product offerings, and marketing message should be varied from
market to market to match local conditions. the differences from Goizueta and Daft strategy is the now CEO combine
both strategy of localization and global standardization, and He has stressed the importance of leveraging good ideas
across nations.

4. What does the evolution of Coke’s strategy tell you about the convergence of consumer tastes andpreference in
today’s global economy?

As back to the different culture in every nation, we need to localization the brand, but as an international brand, we
have to do the global standardization as well. the success of Neville Isdell, Coke CEO in 2004, who make a new
breakthrough of marketing strategy by pull out the middle point between localization and global standardization. The
evolution of Coke’s strategy tell me about consumer tastes in every nation is different. for instant, when coke subsidiary
in China developed a low-cost oncarbonated orange drink that has rapidly become one of the best selling in that nation
and also popular in Thailand, while in Japan, the Georgia coffee is the huge hit.