Group5 @ Raleigh – Pros and Cons of Globalization

What is Globalization in brief?
Globalization is a process of interaction and integration between people and general entities. International technology, trade and laws mostly impact it.

Pros of Globalization

Proponents of global free trade stresses the fact that globalization promotes global economic growth, and foster employment. According to them, infusion of foreign capital and technology permits poor countries to develop economically. Moreover, ideal values are spread out through globalization and enable to diffuse democracy and human rights.

Labour aspect
• Easier for companies to find good international workers
• Global mobility for workers (enhance their skills, learn overseas)

Cultural aspect
• People are more open minded about cultural differences
• Brains working and studying around the globe helps innovation
• It helps education by sending students overseas
• Decrease of ignorance thanks to information sharing

Economical aspect
• Opens new markets for businesses
• Availability of wide range of products
• Increases the amount of foreign direct investments
• Competition between companies: the average quality of products is better
• Improves transports (cost and speed)

Political aspect
• Globalization helps protect human rights: interconnection between economic freedom and political freedom
• It fosters the growth of democratic governments

    Cons of Globalization

But globalization has obvious cons that have been raised numerous times. Evoking Globalization cons led one to raise questions about employment, labour, economy, finance, politics etc.

Economical aspect
• Wealth discrepancy between Western countries and developing countries has increased
• Disorganization of the financial system, which is no longer, linked to real figures
• Fierce competition: difficulties for local businesses
• Merging of black markets and forgery
• Hyper-interdependence between countries: snowball effect

Labour aspect
• Negative outsourcing: use of cheaper workforce in merging countries which leads to inequality, because of fierce competition
• Lower labour standards

Cultural aspect
• Loss of cultural specificities
• Pressure on little cultural groups: westernization of the world

Political aspect:
• Threat for sovereignty of the nation-state by undermining national laws and regulations by claiming world trade and finance regulations

Group 5 @ Raleigh : Pernod Ricard Internalization Success

Success of the internationalization of Pernod Ricard in Japan (1991-2014)

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A world co-leader in the field of wine&spirits, Pernod-Ricard operates autonomously in Japan since more than 20 years. The company is succeeding in this country where people tend to drink less but better. Its strategy is to establish a brand port-folio linked to the market tendencies and consumption habits. In order to do this, Pernod-Ricard Japan rely on 3 main points deeply well-established in the group culture :

  • Decentralization of decision
  • Creation of value through innovation
  • Team spirit.

The Business Model is based on their ability to take decisions and act locally to increase their responsiveness in the market. P-R’s particularity lies on giving to its subsidiary the entire responsibility for Profit&Loss while they get support from the brand owners who are in charge of the production and the global strategy of the brands. It enables the teams to ensure consistency between global brand’s strategies and their local application. The strategy of Pernod Ricard Japan has been to focus on product value in terms of marketing placement based on reputation and image of the product. This strategy has been implemented thanks to a huge and continuous investment in innovation, to response to a decrease in consumption volume of spirits. On one hand, Pernod Ricard has decided to launch product related to different age criterion and on the other hand, products related to different type of consumers. For instance, Café de Paris, a product with different flavors and that can be customized, has been launched for entertainment purpose and got a huge success.

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An other example to quote is the “premiumization” of a product, as Pernod Ricard did with the Chivas 18 years Gold Signature in order to reach the upper class and their need for quality.

chivas

Moreover, the group has succeeded in mixing the brand image with Japanese food culture. They had called for a famous Japanese chief to innovate a wine that can be in accordance with Japanese food tastes. Pernod Ricard has succeeded in creating a strong link with the country and not only insert the brand in the spirits market. This advantage enabled the group to be able to deeply understand how a Japanese consumer reacts to a product or to a trend. It is the reason why Pernod Ricard’s implementation has been an upward trend and embodies one of internalization success example.

Sara Faraj / Clément Cheiroux / Louis-Maxence Harb / Robin Sbai / Simon Coin / Hadrien Breux

Group 5@Raleigh: Globalocalization

Topic
The Internet has been created to enable information sharing between people far from each other. Nowadays, one can notice a shift : the Internet is gathering entities from close-by areas.

Problematic
Internet usage is shifting. To what extent this Internet usage shift has spread out globally ?

Scheme
I. From a global use of the Internet to a local use

A. From a global village idea to the territorial community reality

B. How does the Internet localization phenomenon take shape ?

C. A global phenomenon closely linked to a country development

II. “Globalocalization”

A. How people everydaylife has been impacted by “globalocalization” ?

B. The drifts of excessive Internet localization

C. The potential outlook of globalocalization

Globalization – Group 5 Msc IB Raleigh Fall

Globalization Cheiroux-Coin-Breux-Harb-Faraj-Sbai

globalization

Globalization has already started to affect our careers. We are writing this essay as NC State students, which says a lot about the impact of globalization on business schools’ students.

We think that there are two major ways our careers will be affected: French businesses are starting to be more global., trying to enter foreign markets. This gives us the opportunity to deal with companies abroad, to travel, to speak foreign languages. We might be sent overseas to develop a subsidies for a few years. Globalization is not only about living abroad our speaking a different language, but trying to deal with a new culture. This is the most difficult part.
Each and every company trying to develop its business abroad must take into account the cultural aspect.

The other way globalization might affect our careers, is by working for a foreign companies. In this group, a lot of us have been interning into american companies who have headquarters in France. They need to hire a local workforce to understand quickly the market.
We could also work for a company abroad. More and more companies are looking to have international profiles, they see this as an asset which is a good thing for us. Even third world countries are developing their businesses and might be interested by hiring graduates from well developed countries such as France.

Globalization is not a new trend, it has been going on for a few decades now, but we might be the first generation who will be affected from the beginning of our careers. Must of us already had international profiles even entering our business school. Last but not least, we want to be affected by globalization it is nos something that we fear.

Team Leaders – Group 5 – Raleigh (MSc IB)
Week 1 : Sara Faraj & Clément Cheiroux
Week 2 : Robin Sbai & Simon coin
Week 3 : Louis-Maxence Harb & Hadrien Breux