Adam El Masmoudi Garcia
D1
Today, the economies of most countries are so interconnected that they form part of a
single, interdependent global economy. The world economy has become increasingly
interdependent. Globalization has impacted almost all the companies. Some of who
managed to survive the various incidences of history like the world war and the great
depression have set industry standards for the companies to follow. The motor vehicle
industry offers a unique perspective on globalization because of its massive
employment, huge corporations and iconic product, it seems to reflect the countries
identity.
An advantage of globalisation is that it allows UK manufacturing businesses a chance to
gain greater market share and growth due to being able to expand in to both developed
and emerging economies. An example of a multinational company, would be Aston
Martin, which have not only gained strong growth in the UK, but also a greater market
share in the Middle East and Europe, which both of these are the biggest economies in
the car market.
On the one hand, I believe globalisation to have a negative impact on improving the
competitiveness of UK manufacturing businesses due to the fact that when businesses
make their products offshore, they do not have the same control over the quality of the
product made. An example of this would be when Aston Martin had to recently recall
18.000 cars due to their offshore supplier in China using faulty parts. This has not only
damaged the brands reputation meaning people may look at buying other brands, but
will also have huge cost implications due to the cars being a high-end product. This is
money they could have used on innovating new products or improving the quality of the
products they already have. This has now led to Aston Martin making the decision to re
shore back to the UK to ensure this does not happen again.
John Lewis is one of Britain’s biggest retailers. It operates a chain of department stores
and a sister network of high-end supermarkets called Waitrose. What makes the
company distinctive is that it is owned by the employees. Everyone that works at John
Lewis is a partner. Retail market in UK is becoming highly saturated and this situation
makes long-term growth prospects for John Lewis in local market obscure. Therefore,
engagement in international market expansion is an appropriate strategy to be adopted
by senior level management in current situation.
“China is being perceived by many as a rapidly emerging superpower. Moreover, it has
been estimated that “sales of luxury goods in the country reached 212 billion yuan in
2010 and probably grew 25 to 30 percent in 2011, with new customers accounting for
more than 60 percent of the purchases” (Roseman, 2012, online).”
This can be viewed as a signal for demand in Chinese market for products and services
offered by John Lewis.
Technology during the years has improved, and now, it easier to communicate and share
information around the world, as well as transportation, and these two factors has made
globalisation a key factor in businesses.
D1
Today, the economies of most countries are so interconnected that they form part of a
single, interdependent global economy. The world economy has become increasingly
interdependent. Globalization has impacted almost all the companies. Some of who
managed to survive the various incidences of history like the world war and the great
depression have set industry standards for the companies to follow. The motor vehicle
industry offers a unique perspective on globalization because of its massive
employment, huge corporations and iconic product, it seems to reflect the countries
identity.
An advantage of globalisation is that it allows UK manufacturing businesses a chance to
gain greater market share and growth due to being able to expand in to both developed
and emerging economies. An example of a multinational company, would be Aston
Martin, which have not only gained strong growth in the UK, but also a greater market
share in the Middle East and Europe, which both of these are the biggest economies in
the car market.
On the one hand, I believe globalisation to have a negative impact on improving the
competitiveness of UK manufacturing businesses due to the fact that when businesses
make their products offshore, they do not have the same control over the quality of the
product made. An example of this would be when Aston Martin had to recently recall
18.000 cars due to their offshore supplier in China using faulty parts. This has not only
damaged the brands reputation meaning people may look at buying other brands, but
will also have huge cost implications due to the cars being a high-end product. This is
money they could have used on innovating new products or improving the quality of the
products they already have. This has now led to Aston Martin making the decision to re
shore back to the UK to ensure this does not happen again.
John Lewis is one of Britain’s biggest retailers. It operates a chain of department stores
and a sister network of high-end supermarkets called Waitrose. What makes the
company distinctive is that it is owned by the employees. Everyone that works at John
Lewis is a partner. Retail market in UK is becoming highly saturated and this situation
makes long-term growth prospects for John Lewis in local market obscure. Therefore,
engagement in international market expansion is an appropriate strategy to be adopted
by senior level management in current situation.
“China is being perceived by many as a rapidly emerging superpower. Moreover, it has
been estimated that “sales of luxury goods in the country reached 212 billion yuan in
2010 and probably grew 25 to 30 percent in 2011, with new customers accounting for
more than 60 percent of the purchases” (Roseman, 2012, online).”
This can be viewed as a signal for demand in Chinese market for products and services
offered by John Lewis.
Technology during the years has improved, and now, it easier to communicate and share
information around the world, as well as transportation, and these two factors has made
globalisation a key factor in businesses.
