GLOBALIZATIONABHISHEK SHRIVASTAVA (004)

AJIT SINGH (007)

AKASH SRIVASTAVA (012)

AKSHAY SHUKLA (013)

GLOBALIZATION

Globalization is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture. 

Advances in transportation and telecommunications infrastructure are major factors in globalization.

WALMARTOperates in countries including China, India, U.K., and Latin America. Most of those stores operate under names other than Wal-Mart. 

1962 Wal-Mart opened the first store In Rogers, Ark.

1972 Wal-Mart approved and listed on the New York Stock Exchange.

1985 Wal-Mart has 882 stores with sales of $8.4 billion and 104,000 Associates.

1996 Wal-Mart enters China.

January 2014, Walmart's international operations comprise 6,337 stores and 800,000

workers in 26 countries outside the United States.

There are wholly owned operations in Argentina, Brazil, Canada, and the UK.In the financial year 2010, Walmart's international division sales were $100 billion (equivalent to $108 billion in 2015), or 24.7 percent of total sales. Total revenue: $420 billion.

Wal-Mart and Globalization at china Wal-Mart accounted for approximately 9.3% of total U.S. imports from

China between 2001 and 2006 which is equal to $185 billion

Wal-Mart exports only a negligible amount to China, accounting for at most 0.2% of total U.S. exports to China.

Wal-Mart was responsible for a $17.1 billion increase in the U.S. trade deficit between 2001 and 2006.

REASON

80% of Wal-Mart’s global suppliers are based in China. From toys to apparels to household goods, most of the Wal-Mart’s products are either manufactured in China, or have Chinese components in them Because labour cost is very less in china and there are industry friendly policies framed by the government.

WALMART AND INDIA In November 2006, the company announced a joint venture with Bharti Enterprises

to open retail stores in India. As foreign corporations were not allowed to directly enter the retail sector in India,Bharti Walmart operates stores in India under the brand name "Best Price Modern Wholesale.

Wal-Mart has its eyes on India after the currency re-evaluation problems with China, which could make producing goods in China costlier.

Apparels from India make up 30% of sourcing from India and its likely to rise even more.

Cheaper raw material and availability of labour allow Indian companies to reduce production lead time, which is important to the retail industry.

With China’s higher tax on exports and Yuan revaluation, the Chinese textile suppliers to Wal-Mart have already relocated to India for manufacturing.

Wal-Mart itself buys $1billion worth of goods from India. Not only the Chinese, but also suppliers from Singapore and Middle East are opting to shift production to India.

McDonalds

McDonalds is the words largest fast food corporation, serving more then 57 million people in 119 countries daily with more then 31,000 restaurants world wide in which 6,899 are owned by company and 20,499 are operated as franchise and 3,960 are operated by affiliates McDonalds operates in 118 Countries.

66% of sales were from international operations. McDonald’s has successfully been able to open fast food restaurants in every region of the world.

Before opening up a restaurant in a new country or society, McDonald’s researches and analyses the local taste developments and foods of the area.

Since these preferences and tastes vary from region to region, depending upon the geography, seasons, religions and cultures of the regions. This way the managers of McDonald’s ensure that their products are in accordance with the local tastes and would not offend the native culture or traditions.

In India, McDonald’s did not introduce beef or hamburgers and focused on chicken and lamb meat only, sine the Hindu religion forbids red meat. Likewise, spicy flavoured food was the local trend, and McDonald’s instantly adopted the local culture.

WORLD LOCATION YEAR WISE

RANBAXY

  Ranbaxy was founded in the year 1961, acquired by sun pharma

in the year 2014. covers a market share of 9% world wide.

It has its manufacturing facilities in countries like china,india,brazil,south Africa and Nigeria.

Ranbaxy operations are handled by 17500 employees and the company holds a worth of $200 billion.

In the year 1993 Ranbaxy made a joint venture in China and also established its regional headquarters in United Kingdom and U.S.A.

IMPACT OF GLOBALIZATION ON RANBAXY Ranbaxy acquired South Africa's fifth largest generic player Be-Tab Pharmaceutical for $70 million

(Rs.315 crores) gave it access to Africa's largest Pharma market valued at close to $ 2 billion.

Ranbaxy acquired Romanian Pharmaceutical Company Terapia for Rs.1445 crores to further its access into European market giving it access to two manufacturing plants and about 157 drugs.

Ranbaxy acquired Germany's Merck estimated to be worth more than 4 billion Euros (US $ 5.2 billion). Ranbaxy acquired business in Germany and entered into Brazil and South Africa.

In the year 2003 it entered into an alliance for drug discovery and development with GlaxoSmithKline.

In the year 2004 it acquired a wholly owned subsidiary RPG SA and started functioning in France as a top 10 generic company.

In the year 2005 Ranbaxy acquired generic product portfolio from EFARMES of Spain and launched operation in Canada.

REASON FOR INCREASED GLOBALISATION

Indian market is attracting Boots with new capital investments and very good incentivise. Some of the reasons for increased globalisation of business are:

Trade barriers Customer demands Regulation and restrictions Globalisation of competitors

The aggressive reasons for globalisation are:

Growth opportunities Resources asses and cost saving Economic of scale Incentives

TATA STEEL

Fortune 500 company

Sixth largest steel producer in the world

Self sufficient in iron ore through its captive mines

It is 60% self sufficient for coking coal

Bought 19.9 % stake in new millennium capital corporation Canada for iron ore mining

Global mining portfolio in India ,Canada, Mozambique ,south Africa ,ivory cost and Australia

Presence in 50 markets ; manufacturing operations in 26 countries

POSITIVE IMPACT OF GLOBALIZATION Greater competition among producers resulting from globalization is a great

advantage to consumers as there is greater choice before them. Consumers now enjoy improved quality and lower prices for several products.

Due to globalization many MNCs have increased their investments in India. This means thousands of people are getting highly paid jobs .

Local companies supplying raw materials, to these industries have prospered.

Top companies have benefit from increased competition ,they have invested in newer technology and production methods and raised their production standards.

Some Indian companies have gained from successful collaborations and foreign companies, Large India companies have emerged as multinationals like Tata motors.

Created new opportunities for Indian companies providing services ,particularly in the IT fields. Services such as data entry ,accounting, and administration tasks are now being done cheaply in India and exported to developed countries.

NEGATIVE IMPACT OF GLOBALIZATION

RISING COMPETITION

Liberalization of foreign trade policies allowed the import of electronic goods at a very cheap cost. Local producers of electronic goods were not able to meet with this challenge.

MNCs flooded the market with quality products at a cheap price. Local producer are notable to compete with this and are put to hardship as their goods do not have a market.

UNCERTAIN EMPLOYMENT

In order to compete in the world market exporters try and cut labor costs. Workers are denied their fair share of benefits as manufacturers are always on the look out for cheaper labor.