Think Global, Act Local Agenda

Think Global, Act Local Agenda In this assignment, I will present my views on Think global, act local by giving different examples from different companies. Globalization means developing standardized products marketed world wide with a standardized marketing mix, Essence of mass marketing. Global localization means mixing standardization and adaptation/ customization in a way that minimizes costs while maximizing customer. Product adaptation means customer tests differ, inadequate customer purchasing power, Poor maintenance standards, Local labour costs, General level of technical skills and Product standardization these are the main factors of Think global, act local agenda. 2. Executive Summary :- As example if we see Honda company worlds largest motorcycle Company since 1948 by Soichiro Honda. It produces a broad variety of products ranging from scooters to sports car, and remains on the important edge by providing products of the highest quality that generate new values, at a reasonable price, for international customer satisfaction. In addition, the company also produces cleaner. In its aim to protect the environment, Honda has long-lasting their line up of mixture models, by hire of Japan and the United States of the FCX, which is fuel cell vehicle developed in -house, incorporating the companys inventive next-generation fuel cell stack. Honda increased its sales by introducing new models in the light truck sector in the China, United Status and Europe. Honda responding to the high requires of diesel-powered vehicles, and continues to make bigger and achieve remarkable development with the high profile of the Honda brand. As mentioned, Honda has a huge number of suppliers. Honda continually builds and maintains their relationship for the profit of the company and the consumers. This relationship also leads to supplier development, in terms of perceiving their work and in doing business with Honda. 3. Body Paragraphs :- 3.1 ) Resources Required for Globalisation : Excess capacity : Financial Physical Knowledge Resources 3.2 ) Concept of Think global, act local : There are lots of new things that company have to do to be stable in competitive global environment. People who works in company must be give confidence to become more practical and more globally oriented. Global purchaser must be met at their home local, to find out specific local needs. And the company must respond by adapting products to meet those local requirements. In present situation, markets are global, and the resources to serve those markets have to be global. The companies those are able to design globally for contracted local requirements will produce their growth and success. Presently, customer in different parts of the world doesnt want unfocused products, but rather, products that meet their basic needs. The vision of Honda includes Value Creation and sets them apart from other companies by following their beliefs. It aims to focus on the customer, being artistic, respecting fresh ideas and considerate that change is good. Hondas philosophy is different from other companies. It is based on the concept of the challenging spirit in the company chief. It intends to maintain an international viewpoint, in dedication to supplying products of the highest capability at a reasonable price for worldwide customer satisfaction. This goal of Honda is achieved by setting high expectations for its suppliers. This viewpoint is being perpetuated by evaluating the total cost of their product, improving its excellence by extensive research and cooperation and focusing on the needs of their customers. 3.2 ) Examples of Think global, act local : In March 2000 Douglas Daft, CEO of coca-cola, announced that the next big evolutionary step for the company would be going limited. Coca-Cola popular all over the world and became global company at a time when the market was challenging greater flexibility, responsiveness and local sensitivity. Coke is instituting a strategy of Think local, act global by putting bigger decision making in the hands of confined of local managers. MC Donalds corporation is the major chain of fast-food restaurant in the world. MC Donalds specializes in hamburgers, French fries, and soft drinks. MC Donalds is famed in 119 countries of the world. The method which used by MC Donalds in entering overseas market was Think global, act local describes the aim which MC Donalds follow in overseas countries. For example, in Germany, some MC Donalds outlets offer beer to adult customer. A Maggi noodle is a brand instant noodle pretend by nestle. The brand is popular in India, South Africa, Brazil, Nepal, New Zealand, Australia, Malaysia, Singapore, Pakistan and the Philippines etc. It is also known as magi mee. Maggi noodles are part of the Maggie family. A Nestle brand produces immediate soups, stocks, and noodles with more than 15 flavours in stock. It is widely tasted well-liked is Original Maggie flavour. It is still one of the most extensively eaten flavours of Maggi. There are some other flavours like Chicken, Cheese, Ata, Rice, Masala and Tomato which are very accepted. In fact in India Maggi Noodles is recognized as a sort of products known as Instant noodles. Starbucks is a global company of coffee chain based in Seattle, Washington, United States. Starbucks is the biggest coffeehouse company in the world. There are 17,133 stores in 49 countries. Starbucks sells drip brewed coffee, espresso-based hot drinks, coffee beans, salads, hot and cold sandwiches, pastry, snacks, and items such as mugs and tumblers. From Starbucks beginning in later forms in Seattle as a local coffee bean roaster and retailer. The company grow rapidly. In the 1990s, Starbucks was opening a new store all over workday, a pace that continued into the 2000s. Starbucks has been a target of protests on issues such as fair-trade policies, labour, relation, ecological collision, political views, and anti-competitive practices. These are the different companies examples which followed Think global, act local strategy and by the time they become popular globally. These companies researched local cultures needs, test and they modify their product according them so these companies become popular world wide. There are so many companies in the market which follows this agenda and growing by the time. 3.3 ) Global Strategy : The company chooses to treat the different markets in the whole world as a single market, with the postulation that consumers in different countries are similar regardless of the geographical locator and the culture. Global strategy is a translation of the concept of standardization of marketing strategy across different markets around the world. But the culture differences between countries and the existence of country specific factors must not be ignored by the company. Hence, adaptation is still necessary for effective global. Therefore Think global, act local is suitable. A global strategy makes no distinction (that is, standardization) between domestic and foreign markets. The global marketing company treats all the target markets of the world on an equi-distance basis. This is a geocentric orientation. 3.4 ) Benefits Of Global Strategy : Use of the global strategy levers can achieve one or more of four major categories of potential globalisation benefits: Cost reductions Improved quality of products and programs Enhanced customer preference Increased competitive leverage 3.5 ) Localization : Localization is the procedure of adapting a product to a particular language, culture, and desired local look-and-feel. Ideally, a creation is developed so that localization is easy to achieve- for example, MC Donalds serves only non-vegetarian is available all over the world but still in India MC Donalds serves vegetarian. This is called localization. Internationalized manufactured goods are easier to localize. In localizing a product, in addition to natural language translation, such detail as time zones, money, national holidays, local colour sensitivities, product, gender roles, and geographic examples must all be considered. A productively localized service or product is one that appears to have been developed within the local culture. 3.6) Standardization : A marketing strategy that is standardized for use throughout the world by customers feedback and response. The strategy assumes that the behaviour of many consumers in the world has become very similar, so general positive things which is most likely attract the all customers they have to critical analyse and take care so that the demand of product will increase and thats the reason these days the every organization have its own research and development (RD) department so that after the customer feedback they will try to maintain the product standards and modify as per their suggestions and feedbacks. 3.7) Adaptation : The adaptation strategy is actually different components of their marketing strategies in foreign markets compared with their domestic markets and how such adaptation decisions influence the firms competitive positions and performance in global markets. It also helps to conceptualize that adaptation of a marketing-mix component is a determined process that is influenced by a firms pervious history of adaptation strategy, and they investigate the significance of that marketing-mix component to the firms success. The adaptation process helps also define a firms competitive advantage, which in turn affects its performance in the foreign market and globalization markets. This also increases the productivity and demand of the product. 3.8) The Four Drivers Of Global Marketing : Fall in tariffs (import taxes) and removal of non-tariff trade barrier (quota/maximum import quantity) encourage more exporters around the world to market their goods overseas. E.g. WTO ( World Trade Organization) encourages import and export trade among countries. Competition expands beyond national boundaries (within one country) to global competition as each exporting competition seeks a bigger market. Consumers needs across the globe have increasingly become more similar. For example, more consumers in Asia need Korean products like movies, TV shows, music videos, cars, food, etc Investment by a company in I.T. (Information Technology) to produce products is more economically viable for products that are marketed globally. It is simple too costly for a company to use expensive I.T. in production just to market the product in one country (domestic market) E.g. Producing the Hollywood movie Avatar that was a hot worldwide. 3.9) The Factors Which Competitive Strength : The application of latest technology. The contribution to total profit margin. The ability to effectively conduct market. The service quality of distribution channels. The quality of the product and related services. The extent to which the product fit the needs of customer. The positioning and image building of the products. 3.10) Factors Which Make a Potential Foreign Market : Favourable economic conditions. Promising market growth potential. Stable political situation. Total market size is sufficiently large. There is limited or no competition at present. Rules and regulations set by the local government are acceptable to the company. There is no strong barrier to entry in to the foreign market. 4. Conclusion :- In conclusion, I would like to conclude that the globalisation, based upon a multicultural mixture of diverse groups and social movements. It is reshaping the world. Public relation professionals need to prepare to work globally. Support globally and understand the big global picture. Globalisation renders extraneous traditional borders, boundaries and marketplace definitions for most businesses and non-profit. If the local markets getting better and better in operations that ultimately effect globally, so the general perspective from all the mentioned above examples like MC Donalds, Coca-cola, Maggie, Starbucks etc they work on Think global act local strategy which makes them a top rent in their respective categories like food, cold-drinks etc.