Globalization Effect on Local Business Environment

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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Introduction1

Problem statement1

Theoretical framework2

Aims and objectives2

Research questions3

CHAPTER 2: LITERATURE REVIEW4

Glocalization4

Relations6

Creating causal ambiguity for a competitive advantage7

Flexibility in strategy as a means toward causal ambiguity9

Flexibility in strategic direction10

Competition in world market11

CHAPTER 3: METHODOLOGY13

Research Design13

Data collection13

Validity14

Significance15

REFERENCES16

CHAPTER 1: INTRODUCTION

Introduction

The concept of financial globalization is undoubtedly one of the most commonly used in the late twentieth century. The globalization of the economy has upset the order of things: it acts on the changing the rules of competition, the expansion of trading zones (transition a business "inter-national" trade "inter-regional"), the Uniform cultural but also on the exploitation of poorer countries. Competitive forces have caused the global market to become more volatile. This has increased the market complexity. The complexity of the market complicates the decisions germane to the management of resources and the establishing of relationships that support the firm's strategic direction. This thesis develops and tests a conceptual model that is proposed to address the complexity of the global market (Robert 2008, 24-28).

Problem statement

The mobility of resources and the changing nature of the competition make those assets that a firm considers necessary for a sustainable competitive advantage, precarious. Firms can no longer define competition as solely those that currently compete in their existing markets (Robert 2008, 24-28). They need to incorporate world market views and technology dynamics from new competitors as they diversify into the firm's markets. Organizational processes, on the other hand, are not easily duplicated because of their complexity. In addition when firms try to acquire resources externally, they lose some of the benefits of their internal processes because of the difficulty in merging two organizations. Thus, rather than focusing solely on resources that are not easily imitated, firms can best sustain their competitive advantage by focusing also on processes that are not easily imitated (Evans 2007, 70-86).

Theoretical framework

The nature of social and economic arrangements that foster global and local relations are complex, though if used appropriately can respond to a growing demand from consumers. The boundary of localization will depend on what goods and services are being considered, though local reflects the views and needs of the community. Significant community development tends to take place when people are committed to investing their time, skills and resources in the effort. Those who believe in a global economy built on trade liberalization describe it as a win-win for everyone. The theory is that the economies of all participants grow as countries specialize in what they are good at providing. Then they import what they are less proficient at developing

Aims and objectives

The aim of this research is to gain a better understanding of the effects of globalization on local businesses. The objectives of the dissertation are:

To know that how globalization affect local business performance

To find how local business can stay competitive to manage globalization

To understand the marketing strategies of local businesses

Research questions

In what way does globalization affect local business performance?

Does globalization affect marketing strategy of local business?

How local business can maintain their performance and ...