Globalization's Impact on Digital Marketing

This assignment examines the effects of globalization on digital marketing agencies. It analyzes both benefits and drawbacks, considering factors like changing norms, legal landscapes, and market trends. The text also delves into recommendations for agencies to navigate these challenges effectively.

Running Head: Globalization 1
Management and business context
Globalization on digital marketing agency

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Introduction
Globalization is considered as the process of integration and exchange of different aspects such
as economic, social and cultural of people beyond boundaries of national. It is the development
of businesses to the global markets throughout the world. It needs wide range of international
investment to enlarge the multinational corporations for the global economic integration. It has
been evaluated that in the present condition of the globalization, the economic condition of every
company is interdependent and falling of one country can be felt by other country. There are
number of multinational companies such as ford, Toyota, coca-cola and many more that operates
its business globally (Raluca, 2010). The report will reflect the impact of globalization on new
business that is “Digital Marketing Agency”. The benefits and challenges of contextual factor
“Globalization” on the new business will be defined. Internal and external contextual factors and
their affect on business strategy and structures will be mentioned in this report.

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Internal and external contextual factors and their affect business structures and strategy
The role of globalization is empirical in the organization and the impact of globalization on the
businesses can be elaborated into two terms that is market globalization and product
globalization. Market globalization is considered as the reduction of the selling barriers of
products as well as services to other countries in the comparison of home country. It is vital for
the company to make growth easier by efficiently globalizing selling products to the
international market. The internal and external contextual factors and their impacts on the new
business “Digital Marketing Agency” will be elaborated in this section along with the benefits
and challenges of the contextual factor on the business.
Internal factors of globalization
Technology
The up-gradations and advancement has taken place in the technology which is deemed as
crucial component for the growth and the success of new business “Digital Marketing Agency”.
The idea of starting this business is to deliver quality experience to start ups by ensuring their
brand’s awareness among the larger markets. The role of globalization is wide in that context
because it brings the amendments in the technology which would have the positive as well as the
negative impact on the strategies and the structure of the organization (Hemann & Burbary,
2013). As it is discussed, the main aim of the company is making aware customers about the
brands along with the well positioned in the minds of the customers as per the requirements of
the brand. The positive impact of globalization on the business is that it can make feel closer
with foreign people and it helps to increase the literacy and promote the education. The
international realisation of the company as well as the country can be improved due to

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globalization (Cavusgil, Knight, Riesenberger, Rammal & Rose, 2014). It can bring the
challenge such as a decline in demand of one country can influence the overall performance of
other companies of different countries.
Production
The sourcing of goods and products are done from all over the world for the purpose of taking
benefits of the national differences in the quality as well as cost from the factors of the
production such as labour, capital, land and energy. Company are made to provide the marketing
plan to the new firms with less than 2 years in the market. In general terms, Digital Marketing
Agency will have to make amendments in the structure of making marketing plan for new
business as per the change in the regions and locations due to globalizations. The positive impact
of this factor is that company will get new opportunities to learn new strategies globally which
make it famous worldwide (Czinkota &Ronkainen, 2013). Various challenges have to suffer by
the company due to different strategies and government rules of different country. The company
need to understand the demands of the company for making marketing plan for them.
Diversity
Diversity is the major element which is brought by the globalization. Diversity at the workplace
may bring the positive as well as negative consequences. The Digital Marketing Agency are
established for making the marketing plan for new start-ups and for expanding its business, it has
to meet with different people with various trends in the marketing. The benefits of this factor on
the structure of the business is that company can handle the various difficult situations due to
diversity at the workplace and the negative influence of this factor is that due to different
attitudes, interests and ideas, conflicts can be arisen in the team (Enderwick, 2013).

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External factors of globalization
Political
Political and legal factors are necessary to considered while developing the business into another
country because it is imposed by the government authorities of the concerned nation. It would be
necessary for the “Digital marketing agency” to analyze the political and legal terms of the
country for the purpose of coping up with the political environment of the different regions in
which the organization wants to expand its business. The political influences can be proven
favourable if the corporation is coping-up with the same (Hill, Udayasankar & Wee, 2008). State
sponsored online companies can be the reason of threat for the organization.
Social
Societies and the stakeholders are the empirical component of the social factors because they are
considered as the important contributors in stimulating the business. The emergence of the
globalization will bring the new attitudes, interests, thoughts and beliefs in the nature of buying
(Ghemawat, 2008). It would be necessary for the Digital Marketing Agency to adopt new
strategies for fulfilling the requirements of the customers. Training session has to be provided by
the company to provide the efficient learning about the new trends; it will be helpful for the
company to understand the nature and beliefs if customers and will increase their productivity
(Ferraro & Briody, 2017).
Economical
The globalization has impact on the economic condition of the concerned regions and nations
and it is helpful to develop the job and income opportunity. The factor of economic encompasses
exchange rates, interest rates, GDP and income scale of the population. The company can get

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experience of the fluctuation in the exchange and interest rates due to globalization. It will
certainly influence the activities of the business. For instance, if Digital Marketing Agency deals
with the country which GDP is weak, it will influence on the on the income level of the
individuals due to low purchasing power. The sale of the company will be impacted due to this
reason. On the other hand, the bonding of the company with strong GDP will bring the premium
revenue.
Legal
The factors related to laws and norms that affect the business structures and strategies are come
under the legal factors. Internal and external are two major elements of this factor. In the context
of internally, the laws are formulated by the management which should be followed by the
employees (Artis & Hoffmann, 2008). On the other hand, external form of laws are levied by
governing authorities should be ethically followed. Globalization will be able to provide the
great experience in the context of changes in the norms and regulations and the laws of the
various governing bodies (Dunning, 2014). For instance, the business will have to bring number
of changes in the pricing strategies, there are number of laws on maintaining the management
system such as protection of the data, hiring policies and many more which maintenance will be
proven more expensive.

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Recommendations
The following recommendations will be helpful for the company to improve the conditions of the
resources. The recommendations are given below:
 The impact of the globalization can be seen on the environment, lifestyle, security, ideas
and tradition and in such case company should provide the training and developing
program so that employees of the company can get better understanding about the trends
and market of the new country for making the marketing plan.
 The main task of the company is to build the marketing plan for the new firms with less
than 2 years in the market. There can be various threats such as losing trust in investors,
lack of trust for sharing the confidential information about the company and threats of
new entrants. In such case company should follow the strict rules and regulations and
implement the strategies to make rely on the services.

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Conclusion
It has been concluded that the globalization is the process of movement of the products and
services globally. The benefits and the challenges have been elaborated of the globalization on
the business of Digital Marketing Agency. An internal and external factor has huge impact on the
structure and the strategies of the company. Recommendations have been provided in the context
of improving the negative impacts on the company due to contextual factor.

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References
Artis, M. J., & Hoffmann, M. (2008). Financial globalization, international business cycles and
consumption risk sharing. The Scandinavian Journal of Economics, 110(3), 447-471.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014).
International business. Sydney: Pearson Australia.
Czinkota, M. R., &Ronkainen, I. A. (2013).International marketing. Mason OH: Cengage
Learning.
Dunning, J. H. (2014). The Globalization of Business (Routledge Revivals): The Challenge of the
1990s. Routledge.
Enderwick, P. (Ed.). (2013). Multinational Service Firms (RLE International Business). Oxon:
Routledge.
Ferraro, G. P., &Briody, E. K. (2017). The cultural dimension of global business. London:
Taylor & Francis.
Ghemawat, P. (2008). The globalization of business education: through the lens of
semiglobalization. Journal of Management Development, 27(4), 391-414.
Hemann, C., & Burbary, K. (2013). Digital Marketing Analytics. Making Sense of Consumer
Data in a Digital World," Que Publishing,.
Hill, C. W., Udayasankar, K., & Wee, C. H. (2008). Global business today. New York:
McGraw-Hill Irwin.

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Raluca, P. (2010). Advantages and Disadvantages of Globalization. Ovidius University Annals,
Economic Sciences Series, 10(1), 768-771.