Globalization
-Globalization is the integration of economic, cultural, political and technological systems across the globe
-There is current emphasis on the economy (corporations, markets, free trade), sustainability (environment, health, technology), and universal humanity (identities, cultures, politics, post-colonialism, poverty)
-Globalization also includes everyday aspects like time zones, holidays and varying cultural businesses styles
Official bank holidays
-Risk management
The over-extension of credit before the recent crisis has encouraged businesses to be cautious.
-Global interconnectivity & transparency
From Facebook to Skype, increased connectivity and more information about everyone means businesses must change strategies.
-Global responsibility
Businesses are becoming increasingly accountable for their production if harmful to others or the environment. The green trend is strong, along with humanitarian kickbacks.
-Global brands for global consumers
Do largely to the internet and increased travel, businesses must now attract anyone, anywhere. The wordless image only logo is increasing.
-Global partnerships & sponsorships
Mergers happen in every era but there is a current increase in non-merger, international partnering. This can happen between two companies share resources as they are providing the same service in separate countries (Delta-Air France) or as we discussed, partnering with non-profits. Businesses are also interested in sponsoring major cultural events and associating with celebs.
-Role transformations
It used to be simple to contact a CEO or CFO, but now positions are being combined and re-named on a regular basis due to changing technologies and cost cutting and combining roles.
Ferretti, 2008
Case Study: Luxury Industry
-The luxury industry is in many ways the first “global” industry because the origin is in high quality goods, like precious gemstones or metals, that were worth the effort of importing/exporting.
-The most recognized luxury brands in Asia today are from Europe and the US - Rolex, Lacoste, Valentino, Chanel and Dior. Luxury travel is also one of the original global businesses as top hotels have long attracted international guests.
- The luxury industry is important to global business because it includes many other industries (autos, beauty, fashion, travel) and it sets the highest production standard and top price point. Luxuries are not only seen as useable assets but they are also global investmentsbecause they can almost always enter the international market for trade at a later date, they accrue value as they become vintage
-Concerning the global trend in financial management, it is hard to cut costs in luxury because of the sourcing of rare materials and the training of craftsman who demand a higher pay rate, which means luxury can suffer in crisis
-Concerning global trends in image branding, luxuries fare well as most of them have a single shape or few letter monogram and advertise with simplicity.
-Luxuries also do well in sponsorships of major sporting and cultural events. However some ventures are financial failures such as the Chanel Mobile Art project.
-Concerning global trends in being green, many luxuries do not fare well (such as fur!) though some are making efforts to change materials and some are buying smaller green companies. Many organics are so high priced they are considered luxuries.
World’s Top Luxury Brands
The Robb Report
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