Assessing the strengths and weaknesses of globalization

Assessing the strengths and weaknesses of globalization Globalization can be defined in a variety of ways since it is a very important term as it influences the global economies. It can be defined as the movement toward communications, financial, economic, and trade integration. Globalization entails opening out beyond nationalistic and local perspectives to a wider outlook of an interdependent and interconnected world through free transfer of goods, services, and capital over national frontiers. Globalization is a term that is frequently employed to place a trend in the direction of increased flow of ideas, money, goods, and services across national borders and the resultant consolidation of the global economy (Waters 2001, pg.36). Globalization is closely related to international trade which can be defined as the exchange of goods, services, and capital across territories or national border. The increase in the international trade enhances the continuance of globalization. If there were no international trade, then apparently nations w ould not get access to the variety of goods and services produced in different nations of the world (World Bank 2008, pg.56). It has been found that globalization does not involve unhindered labor movement, and as intimated by some economists, globalization may hurt fragile or smaller economies if practiced indiscriminately. Globalization is generally recognized as being goaded by a combination of technological, political, economic, biological and socio-cultural factors. From some other perspective, globalization can refer to the multinational circulation of languages, popular culture, or ideas by acculturation (Tomlinson 1999, pg. 123). This paper will provide an outstanding analysis of the weaknesses and strengths the term globalization. Strengths of globalization Supporters of globalization contend that globalization can possibly better the world economically by solving many problems which are deep-seated for example poverty and unemployment. According to the economic theory, inc reased globalization will lower the wage of unskilled labor in developed nations and raise the wage of unskilled labor within the developing nations as the two groups start to trade with each other. Globalization generates resources and encourages the transfer of ideas that can be utilized for both individual and community improvement. Among many other things, globalization makes rural economic diversification and agricultural productivity gains more achievable. Globalization also makes environmental stewardship, improved conditions of living, and food security more attainable. Due to globalization, the marginal can now get the opportunity to exhibit themselves in the world market (Bauman 1998, pg.121). Globalization encourages the industrialized nations to provide significant market places for exports of poor individuals within poor countries. The global agricultural and food companies can assist the third world countries incorporate required safety, and quality practices by gettin g access to markets in developed nations. Since globalization means delocalization of various enterprises within the word, many people can get access to many industries and in due course globalization promotes economic growth in the global world, brings about competition among companies, enables producers and retailers to reduce the prices of various commodities so that consumers can afford them and therefore increases the demand on the commodities. Because of the increased efficiency, the welfare is raised by offering more affordable goods and services such that the purchasing power is increased. Globalization reallocates capital and labor to more efficient and effective lines of production. Globalization helps poor countries by infusions of technology and foreign capital which enhances economic development. The economic development due to globalization brings modern ways of connecting people, from roads to electricity to telecommunications. The global companies offer training to e mployees and provide time, money and talent that helps them to address needs of the community, lifting communal and individual aspirations and providing ways for accomplishing them. Since globalization brings about spreading of prosperity, it enables various countries to possess conditions in which respect for human right and democracy can flourish (Appadurai 1996, pg.65).

The Loyalty Effect of the Tesco Club-Card Toward its Members Essay

The Loyalty Effect of the Tesco Club-Card Toward its Members - Essay Example The marketer factor is also much considered in customer retention while with customer loyalty, the intrapersonal part of customer behaviour is the point of consideration. Moreover, many other reasons were found to prod customers to buy outside of loyalty, for example during sudden change of prices, or when there is a risk involved, or because there is no other choice(www.bestofbiz.co.uk, cited in Morgan et al., 2000). In cases where there is competition among marketers, alternatives made available to customers may make them ex-customers if they fall short of loyalty (Morgan et al., 2000). There are two approaches to defining and measuring customer loyalty as gleaned from literature. Rundle-Thiele and Bennett (2001) describe the stochastic approach as considering the concept in behavioral terms, with the deterministic approach considering it in attitudinal terms. "Stochastic" is defined as having a pattern that can be analysed statistically but not predicted precisely (Reader's Digest Great Dictionary of the English Language, 2001), while "deterministic" has something to do with the doctrine that all events and actions are determined by external forces acting on the will (Ibid). Between these two approaches, there appears little disagreement contrary to the aspect of measuring it (Rundle-Thiele and Bennett (2001). Some 30 years ago Jacoby and Kyner were said to have started the debate which is still going on up to the present time. The drawbacks of the stochastic approach are presented by O'Malley (1998) and Odin (2001). The rather narrow technical definitions of the stochastic approach "does not capture the full richness and depth of the loyalty construct," according to O'Malley (1998) For instance, it does not indicate if repeat orders come about out of habit, or due to situations obtaining, or to psychological reasons on the part of the customer. Instead of a 100 per cent loyalty to a single brand, according to O'Malley (1998) which may characterize only a few, customers tend to select from two or three brands within any product category, which have become their regular fare. On the other hand, according to Odin (2001), a customer who buys the same brand over time is loyal, but that loyalty is too complex to be understood on account of many variables that tend to recur at various times. As such, the concept of loyalty comes at a point where it divides two ways at their end points: loyalty vs. disloyalty necessitating the categorising of the customers into one of these in an arbitrary way. The determinist approach looks at loyalty more as an

Royal Dutch Shells Innovation Assignment Example | Topics and Well Written Essays - 1000 words

Royal Dutch Shells Innovation - Assignment Example There are a lot of financial bearings which must be met by the innovative firm. The process of innovating a firm involves proper analysis of the market (especially in a perfectly competitive industry) which covers from products/services to management strategies. Shell being one of the firms which operates in an open economy is not left behind in adopting new technologies and innovations in exploration, production, and marketing of oil and gas products globally. As noted by Hamel & Skarzynski (2012, p.14), the future of an organization in this stiffly competitive world is bestowed on the ability of the firm to effectively and flexible use technology which stands the potential of enhancing its innovativeness. Royal Dutch Shell has been a pace setter in production and management innovation. Through its technological innovations and flexibility, Royal Dutch Shell has revolutionized the Energy sector for decades. However, like other firms in the industry, the innovation structure adopted by the Royal Shell has certain drawbacks and strengths. The innovation management structure of the Royal Dutch Shell builds on its strengths as a key tool to satisfy its customers and the well being of the employees. The success of the innovation initiated at Shell is believed to be supported by the senior management team. Unlike other organizations (which are rigid to change), every at Shell (from top to bottom) are opposed to old school production and management technologies especially in this competitive economic era. Therefore, the management leads the path towards eliminating technological hurdles which stands on their way to success and market dominance. The level of openness to new ideas, concepts, and technologies is evidenced by the degree at which the management is ready to take the risks of investing in modern technologies both in service delivery and production units. For instance, the scenario planning strategy which has been used by the company over the last forty year s has been successful in solving energy crisis. With the uncertainty facing the future of petroleum and oil products, orchestration of probable uncertain scenario rests on how well the management is open to innovation and technological changes both in operations and service delivery. Besides, Shell uses more environmental friendly solutions such as blueprints. Blueprints advocates for electronic engines in the transportation process as a way of reducing pollution. The success of Shell is also explained by its innovational culture which promotes change and technological advancements. Little cultural residence to change technology at Shell has been essential in helping the company to remain competitive and reputable in the oil industry. The company welcomes ideas and concepts from all its staff and goes ahead to reward the employees for their innovative efforts. A perfect example of cultural innovation at Shell is game changer program and social audit (Hamel & Skarzynski, 2012, p.12). Shell has been undertaking a number of management restructuring and product quality to remain competitively relevant in the global energy market .However, its efforts are being marred by some potential gaps that needs further consideration for it to achieve its goals of greater global market share. The basic asset of any firm is the effort of human capital which equally depends on the mode of co-operating and interaction. This company has invested averagely high in technology to improve the quality of its products at a lower value creation cost. On the other side of the coin, this company has given the interest of its staff the least attention