Management Theories and Philosophies

This article discusses the impact of globalization on management theories and philosophies. It explores how multinational corporations are adapting to the global market and the strategies they use. The article also highlights the challenges faced by global corporations.

Management Theories and Philosophies

Globalization
“The globalization of markets is at hand. With that, the multinational commercial world nears
its end, and so does the multinational corporation”.
It can be analyzed that Levitt overestimated and also underestimated globalization. There are
some markets that are not anticipated to respond against globalization, mainly against the
western globalization. Levitt underestimated entire globalization power that brought change in
the nations to hold the aspects related to global capitalism in relation to the former Soviet Union,
China and also the different parts worldwide. According to the statement given by Levitt's, states
that the globalization is expanding on a large scale and there are many companies who are
operating in the number of counties and adjust their products and processes. Due to this, the
companies have to face the high relative cost. The companies are expanding with resolute
constancy and they are offering the same products and service everywhere (Monaghan &
Tippmann, 2018). So, it can be said that the statement given by him have both positive as well as
negative aspects behind the concept of globalization.
Globalization can defined as the term related with growth in trade and investment that is
considered by the international business and it is considered as the integration of economies on
the global platform. It can be said that globalization is the method in which there are individuals,
companies and also the government (Cravino & Levchenko, 2017). Globalization relates to the
spread of products, investment and technology across the national borders and cultures. It can be
examined that there are many companies who are managing their activities on the global
platform. They are mainly focusing on spreading the brands and services on the global platform
(Rusten & Bryson, 2017). One of the best examples can be of Honda Company that conduct the
activities in the United States and also US brand Coca Cola manages its plants in the other
counties such as France and Belgium with almost 80% of the profits of the company are earned
from the overseas sales (LeClair, 2018).
The multinational companies are considered as major globalization drivers as they boost
economic interdependence in the national markets. The companies enhanced their market share
by considering the concept of globalization and it has helped the business to earn more profits in
the business environment. But it can be argued that globalization is considered by the companies
that it is ending the scope for the multinational companies. There are companies such as Wal-
Mart and Starbucks who are operating the same activities in many countries and due to this, the
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Globalization
relative cost has been enhanced by the company. It can be said that these companies have
attained success by expanding their services and products on the global platform but on the other
hand, it can also be argued they face a huge competition worldwide (Andriof & McIntosh, 2017).
For example Wal-Mart has expanded its activities or the operations on the global scale and now
they are facing huge competition in the market. The competitors of the company are Target,
Kroger, safe way and also Kmart. Just due to globalization the company has to face competition
in competitive market. But cost incurred by the company to compete the competitors has been
enhanced. It is observed that to maintain the competitive advantage, Wal-Mart focused on
marketing and also advertising of the products and services that boosted the sales of the products
in the highly competitive market (LeClair, 2018).
Levitt stated that the Global Corporation vs. Multinational Corporation in which he stated that
multinational companies should move to a global corporation as according to him the
multinational market is sinking. It can be said that there is more scope if the activities are
operated on the global platform. To maintain the large market share it is important to maintain
the standardized products so that it could be easy to boost the brand image in the highly
competitive business world. The next concept on which Levitt focused relates to offering high
quality to the customers at low costs. This idea will help to boost the demand and needs of the
customers on the global platform. In the present scenario, people are more focused on preferring
the standardized products so that the products and services can be sold on the global platform
(Steger, 2017).
One of the essential strategies given by Levitt, states that there is no best option like the price.
So, the companies should focus on offering the products at a low price or if the products are
standardized then the people will prefer to spend more money on the products and services
offered by the company. The concept was also given by Levitt related to standardization in
which it has been stated that of the company emphasizes on maintaining the cost of the products
then it could be easy to satisfy the needs of the customers in the competitive market (Steger,
2017). He also stated that "Customers will prefer the products that are standardized". This
statement clearly showcases the link with the strategy analyzed by the Levitt.
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Globalization
If the emphasis is given on the marketing concepts given by him, it can be stated that the
company should know the needs and wants of the customers more as compared to the customers.
It can be said that successful global corporations do not require customization in context to the
market that differs in the preferences of the products and spending patterns. But on the hand
other hands it can be argued that global corporations accept and also adjust the differences. The
perspective related to diversity also has an essential role to deal with confusion and ambiguity
about how to compete on the global platform. If there is no unified framework to consider the
diverse perspective and it always persists and leads to contradicting the theories related to
practical application of the knowledge (Steenkamp, 2017).
It has also been argued by Levitt that advances in relation to communication and transportation
technologies have been enhanced on the global platform. With the increase in the customer
ration in the different parts also boosted the demand for the products and services. In the present
era, the strategic imperative for the companies are competing on the global platform and they are
focusing on achieving the economies of scale. So, it can also be said that the multinational
corporations that give equal waitage to the markets can likely to be disappeared and also
replaced by the global companies that emphasize on selling the standardized products on the
global platform. To maintain the competitive advantage it is important for the companies to
focus on maintaining the quality with the low cost of the products as on the global platform
satisfaction of the customers plays an essential role. Instead of the single standardized products,
the companies emphasizes on maintaining the wide product portfolio with different products so
that the investment on the technologies and also channel of distribution can be changed (Kotler,
Burton, Deans, Brown & Armstrong, 2015).
It is observed that when the producer on the global platform offers the products or the services at
low costs then they have the aim to expand its operations. The company not only wants to reach
distant markets but also wants to attract customers who prefer the low price products. It is
examined that the strategy of standardization not only responds on the global platform but also
enhances the markets with aggressive low pricing ratio. It has been stated by Levitt that global
strategy focuses on maintaining the single standardized products and to sell it by considering the
different marketing program. The present era is of Multinational Corporation and it was also
asserted by Levitt. The global corporation has their future as they do not cater to the local
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Globalization
differences in relation to the preference of the customers. It can be seen that the differences can
also impact the capacity of global corporation in relation to standardization of the products in
maintaining the good quality at a low price. The competitors are enhancing and due to this scale
in economies of products such as production, distribution, marketing and management are
enhancing (Guttmann, 2016).
The global corporations are also considered as the homogenized demand in the present era.
Earlier, globalization was considered as the new paradigm on the international platform but form
the branding point of view, it has lost the efficiency by considering the fact that customers are
not connected anymore in relation to the standardized products of the global corporations which
can also be catered by programs related to marketing communication. The centralized decision,
there are many organizations who stopped by having link with the place and also they have
ignored the emergence. Also, on the other hand, the individuals are gradually focusing on
maintaining the high-quality products just because of the technology and communication
advancement (LeClair, 2018).
Levitt also underestimated globalization power to change the nations to consider global
capitalism as it takes place in the former the Soviet Union and China. The argument given by
him was right in context to the significance of branding and its function in maintaining
preference of the customers on the global platform. The companies in relation to this are Coca
Cola, Google and Starbucks. It can be said that the global product is one of the important factor
in relation to the global marketing strategy. The company can be considered as the global if it is
marketed in the different markets and also with less change in the existing products. It is
analyzed that global products offer advantages to producers and consumers. The benefits attained
by the producers have related to the low cost but on the other hand, the customers enjoy the
benefits of low price, better serviceability and also the good quality (Hirst, Thompson &
Bromley, 2015).
Globalization can be important as it helps in enhancing the trade and also investment which is
also accompanied by international business growth. It can be said that there are many rallies of
anti-globalization forces that attempt to portrait the globalization in relation to the issues of the
world and also the MNE's change their strategies to internationalize the business. The MCE is
considered as the key drivers of the globalization as they focus on boosting the economic
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Globalization
interdependence in the national markets. It can be said that technology is also one of the
powerful drivers in relation to globalization. It has developed isolated places and also
improvises the individuals to maintain the modernity. The global markets have standardized the
products of the customers in the market. The organizations also geared up with the different
advantages from the enormous economies of scale in relation to production, distribution,
marketing, and management. The advantages help to maintain the competition level in the
market and also boost the assumptions about the activities managed on the global platform
(Cunningham & Ferrell,2015).
According to the line "Multinational commercial world near its end, and so does the
multinational corporation" states that the multinational and also the global corporation are not on
the same platform and also not same. The multinational corporation manages its operations in
many countries and also maintains its products and services at high cost. This states that global
corporation manages its operations with proper constancy at low relative cost as a single entity
and also the focus is on selling the same thing in the same way on the global platform (Telò,
2016).
The communication in the modern era is easy and also it boosts the working pattern, living
standard and also entertainment of the individual. There are countries who emphasizes on
recognizing and respecting the individuality of their cultures that helps in wholesale transfer in
terms of products, services, and technologies. The modernity is considered as the widespread
activity among the people who cling and also the emphasis is on the different cultures and
heritages. The organizations many enter on the global platform by different types of international
investments (Dixon & Sybrandy, 2015).
It is examined that organizations can select to focus on FDI (Foreign direct investment) which
helps to manage the assets of the organizations located in different countries. The biggest 500
MNE's accounts approx 90% of the world stock in relation to foreign direct investment and also
the emphasis is on the trade on the global platform. Also, the companies have the option to elect
to consider the portfolio investments by attaining the stock of the organizations in the other
countries and also it helps to gain control over the companies. It could be easy for them to
participate in the international market with the method of franchising. The next way by which the
companies can grab the market share is by creating a strategic alliance with the organizations
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Globalization
located in other countries. The strategic alliance can take place in different forms such as the
company can access the home market of the other country or they can market their products with
the well-known host organizations. This concept of international business helps the company to
resolve the issues related to internationalization in relation to the political, regulatory and social
framework. It can be examined that the home country assist the multinational company to
minimize the complex issues (Taglioni & Winkler, 2016).
The multinational enterprises manage their operations within the home region across the
different triads such as EU, NAFTA, and Asia. The biggest 500 MNE's are emphasizing on
deepening the regional trade and investment agreement in Europe, America, and Asia. There are
also many companies who customized the products and services to fulfill the requirements of
different international markets and also they consider the use of multi-domestic strategy. For
example: The US fast food organizations like KFC, MCDONALDS have considered the
standard approach on the global platform and also they considered the strategy to maintain the
preferences of the different regions and countries such as of China, Japan and Middle East. It can
be analyzed that KFC also introduced the small pieces of the food so that it could be easy to
fulfill the preference to the Japanese (Vogel,2018).
In 2008, it has been seen that McDonald also considered the global standardization blend and
considered local adaption in different countries. Also with the rise in the globalization, there are
companies who have lost the direction and also made mistakes to maintain the global strategy.
There are also better results that can come from the regional strategies and also it maintain the
local and global initiatives and can also enhance the performance of the companies. The numbers
of the companies have been enhanced in relation to the region which also enables the cross
border integration just due to the high level of cross border integration that maintains the level of
regionalization. There are also regional strategies that need flexibility and creativity.
International strategies are related to address the level of competition which exists in the country
but on the other hand global strategy focuses on maintaining the competition level in a holistic
manner. Therefore, multi-domestic international strategies focus on appealing the requirements
of the customers in different countries and the global strategies focuses on maintaining the
standardize products and also marketing is done on the global platform (Yaprak, 2015).
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Globalization
It is concluded that Levitt emphasized on the concept of globalization. In this it has been stated
that globalization has reached its end, now the companies have less scope of globalization. The
companies such as Star Bucks have enhanced its market share and also focused on fulfilling the
needs of the customers. It is important for the small scale companies to consider the concept of
globalization as it will help to attain a large market share. There is a truth behind the statement
by the Levitt to globalization as there are a majority of the companies that are operating its
activities in many countries and also they adjust their products and process in relatively high cost
just because of the high level of competition in the market.
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Globalization
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