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internationalisation agenda
1. Introduction
isolation, and provincial views regarding globalisation. The terms and its
in Czinkota and Ronakainen (2005) as, “the increase in the frequency and
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political, economic influencing the performance of retail firms and it
internationalisation agenda
2. Understanding Globalisation:
Levy (2007) cites in this work that, “Globalisation, widely cited as the
today has promised success to many companies and business that are
(2005) that, “It’s not only the executives but also the governments and
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macro-level phenomenon which is of major importance to many others
development and the role of MNE cannot be put aside any longer”.
MNE’s today play a major role in developing world economy. Since last
cites (Caves, 1974; Lowe & Kenney, 1999; Teece, 1977; Rugman, 1981)
that, “MNEs are important agents, they argue, for promoting economic
MNE’s with their products and services. Having wine from France, fruits
from Amsterdam etc are all result of globalisation with MNE’s acting as
the media. Using laptop, iPods, cell phones and other electronic products
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are all result of globalisation, where MNE’s identify the best resources
throughout the globe like, technology from Japan, workforce from India
and china and many more which helps in developing excellent product or
that, MNE’s more likely to congest out local firms, incorporate technology
capital stock and tax basis due to transfer price manipulation and
excessive profit repatriation”, (De Backer & Sleuwagen, 2003; Go¨ rg &
(Ghauri & Buckley, 2006; Ghauri & Cao, 2006, Stiglitz, 2002; Dalgic,
2005, Eden & Lenway, 2001). At the same time MNC’s are built upon
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diverse and geographically disseminated subunits, that encounter
relationships.
the world’s economic nature and has tuned the globalisation processes. In
this context, (Baldwin and Gu, 2004) cites in (levy, 2007) that,
are politics, economics and technology where the major actors are
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governments, MNE’s and international organizations. Here in this report
have been the key for global activities. Where of technology identifies the
(Cantwell and Janne 1999). (Cantwell and Dunning, 1991) suggest that,
geographically for MNEs to establish network linkage between all. This has
pushed the MNEs to far much globalize the operations. In this context,
other researchers like Luo (2005), comments that, in the recent decade
differences which are very complex in global scale. Also with the proper
foreign direct investment (FDI) and trading modes, MNEs have effectively
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geography, markets etc. Has been a matter of concern for the MNEs. In
within the MNC”. At the same time MNE emerge from diverse and
competition. To add worse, the gob economic downturn, has forced the
consolidation and even business continuity. Over past few years, few
multination’s like Wal-Mart etc. Also according to the Global Retail Trend
(2010) reports key finding, decline has been noticed in the US and UK
time Asia is viewed as the best growth for retailers. According to Global
Economy Report 2009, retail has faced some worst year for economic
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performances but as for the world’s retailers, economic recovery will
return the industry to a growth path- but the nature and geographic
distribution of that growth will be quite different than the recent path”.
at cheap cost like computers usage, internet and data storage systems,
retail has opened great opportunities for firms in this industry to operated
Relating to the financial turmoil and credit churches that forced the
entire global economy into threat, retail has been one amongst that still
sales have crossed over £285 billion in 2009 and by now have created
12.750 full time jobs alone in the UK. Moreover in 2010, the retail units
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have crossed over 286,000 in the UK, making it as UK’s largest private
and the revenue generated, in past few years, due to which the mass
large and compact market which closes proximity of the major urban
centres. Whilst, larger firms have not felt too constrained and
development have occurred in many towns and cities (Guy 2010 cites in
Schnedlitz 2010).
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The internationalisation agendas of retail have been debated from
variety of perspectives. There has been more focuses on the entry modes
1990, Myers and Alexander, 1997, Williams, 1991, Quinn, 1999, Muniz-
1991, Quinn, 1999, Simpson and Thorpe, 1995, Helferich et al., 1997,
most every well established retailer, competing with strong retailing offers
Foreign direct investments on the other hand play major role in MNE’s
global relations. The change or increase in the worlds FDI’s and real
impressive
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Figure 1. World Industrial Production, World Trade and Foreign Direct (Source: Siebert
1999)
the transducer in linking all factors. With proper utilization of the three
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advancement, and trading channels have introduced new era of
trade is related to at least one MNE. A third takes place within MNEs. A
enterprises have turned individual focus into one which helped all around
“The dominant role of large players in the globalisation process calls for
incomparable. MNE have rolled off all barriers around the globe, thereby
and knowledge into a single insight which shows a common goal and
incentive.
Facing the histories noted financial turmoil; firms in all industry types
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value conscious, expecting for more product details for value, less
worlds customers are now very value for money cautious. These prime
a world class emerging retailers. Firms in these sectors are getting well
equipped to contend the global giants in their own home markets. With
amount of profit in all regions. The detailed report of profit and sales
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America. In context to internationalisation of retail, Global Power of
Retailing report (2010) says that, “The global playing field of retailing is
becoming more level. Many emerging markets now have sufficiently large
home-based retailer. Such retailers are now able to tap into global
expertise, often hiring reverse expats who have spent time in affluent
have benefit of easy access of domestic and global market capitals. The
below.
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On geographically analysing the retail industry, firms not only
convert 100% of sales from their home country but also contribute a
Figure 4 Share of Top 250 retailers by region/country, 2008 (Source: Global Power of
Retailing 2010)
increased slightly to 6.9 from 6.9 in just one year which has presented a
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Figure 5. Shares of Top 250 saes by region/country, 2008 (Source: Global Power of
Retailing 2010)
It’s mandatory for the retailers to have a physical presence in the foreign
market while other firms can even operate from home country. Also
For example the Playboy magazine in late 80’s did launch its editions in
some anti cultural impact on the market. With some other incidences, it
has been cited by the researchers that, social behaviour and culture are
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the major matter of concern for every retailer when expanding across the
religious believers and does and don’t of the geographic region for the
the external environment combines with all factors like cultural, legal,
political and economic factors that affect the decisions made by the
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and they accordingly need to adjust and reframe their operations in every
foreign market. Both legal and political factors are different and specific
for every country. In this context, (Scott, 1995 cites in Huang and
Sternquist 2007), that “Legal regulations in the home and host country
according to the goodwill of its citizens for which the retailers have to
rules for retail pricing, opening times and planning’s when compared to
that of UK. Even in the home country persists a different law for
operations for a retailer which becomes mandatory for the firm to operate
at. For example, the Scottish Government follows under 25? Policy for age
restricted products where as England follows Under 21? Policy. Also two
regions have different operating times of the age restricted products like,
Midnight. Retailers also face different import and export charges and also
subsidies depending upon the country’s economic factors and the cartel
membership. Like for companies with origin of Europe feel easy to expand
(1997) cites in Huang and Sternquist (2007) that, “In the past two
decades, China has introduced dozens of laws and regulations that reduce
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the level of risk and Uncertainty for foreign firms. These rules increase
foreign laws, (Grewal and Dharwadkar 2002) comments that, for every
as it forces retailers to follow the law. For example (Evans & Mavondo,
significantly impeded the expansion of Toys ‘R’ US.” Germany on one side
follows four major laws then India on the other hand Restricts foreign
10. Conclusion:
The purpose of this report is to provide an insight to the role of
the report draws the facts that, retailer today have some major
advantages like technology to expand across the borders which over time
retail expansions. On the other hand this report also critically analyze the
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of these factors like economic and technological can be controlled by the
retails, factors like culture and political constrain the operations of these
Minsky and Keller have made major predictions on future of retail, which
and also attracting firms to enter every corner of the global market.
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11. References:
Global/Local%20Assets/Documents/Consumer
%20Business/dtt_globalpowersofretailing2010.pdf
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vol 18, pp. 555-566, Available from:
www.elsevier.com/locate/ibusrev
Hadjikhani, A., Lee, J.W. and Ghauri, P.N. (2008), “Network views
www.elsevier.com/locate/ibusrev
427-433
pp.117-124
1069
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Kobrin, J.S. (2005), “Sovereignty @ Bay: Globalization,
www.elsevier.com/locate/ibusrev
329
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