University Marketing Report: Globalization and Strategies

This report provides a comprehensive analysis of globalization and its profound impact on marketing strategies. It begins by defining globalization and exploring the reasons companies choose to expand globally, emphasizing key drivers and their effects on marketing practices. The report then evaluates both the internal and external business environments of global companies, utilizing frameworks like SLEPT to assess social, legal, environmental, political, and technological factors. It also analyzes national and industry-based competitive advantages using the CAGE framework. Furthermore, the report delves into the process of internationalization, examining factors that facilitate it, associated risks, and mitigation strategies. It then develops marketing strategies for global markets, analyzing market potential, information, and segmentation. The report also evaluates product and service innovation, discussing management techniques, protection methods, and associated risks. Overall, the report provides valuable insights into the complexities and opportunities of marketing in a globalized world, offering practical strategies for business expansion and innovation.

Running head: GLOBALISATION AND MARKETING
Globalisation and Marketing
Name of the student
Name of the University
Author note

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Table of Contents
1. Evaluation of phenomenon of Globalisation..........................................................................3
1.1 Concept of Globalisation..................................................................................................3
1.2 Reasons for Companies to go Global...............................................................................4
1.3 Key Drivers of going global and its impact on marketing...............................................4
2. Evaluation of global business environment...........................................................................6
2.1 Internal business environment of global companies........................................................6
2.2 External business environment of global companies.......................................................6
2.3 Critical analysis of national and industry based competitive advantage..........................7
3. Analyzing the process of internationalization........................................................................8
3.1 Factors that facilitate internationalisation for a selected organisation.............................8
3.2 Issues and risks of Internationalisation............................................................................9
3.3 Appropriate measures to mitigate risks in internationalisation......................................10
4. Developing marketing strategies for global markets...........................................................11
4.1 Global market potential for business expansion............................................................11
4.2 Analysis of market information.....................................................................................13
4.3 Global segmentation and communication strategies......................................................14
5. Evaluation of process of innovation of products and service..............................................15
5.1 Management of innovation of products and services within international organisation15
5.2 Innovation protection method for a new product or service..........................................15
5.3 Evaluation of the risks associated with not protecting...................................................16

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6. References:...........................................................................................................................18
Executive Summary
The purpose of this report is to talk about the concept of globalization and the major reasons
that force a company to go global. It discusses about the internal and external environment of
that of global companies and the factors that helps in internationalisation of Denmor
Garments Manufacturing Inc. It also illuminates about the risks of internationalization and
the measures that can be adopted that can help in mitigating the risks of internationalization.
It elaborates about the global market potential for that of business expansion and discusses
about the international marketing mix of Denmor Garments Manufacturing Inc. It elaborates
about the innovation of products and the methods that can be implemented in order to
innovate the products of Denmor Garments Manufacturing Inc.

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1. Evaluation of phenomenon of Globalisation
1.1 Concept of Globalisation
Globalization refers to increasing interaction between people and countries with the
help of that of international flow of that of money and ideas. It is indicative of a process of
integration which has different social along with cultural aspects. The term “globalization”
has been derived from the word “globalize” that pointed out to the growth of an economic
system that worked in the international platform. It is inclusive of goods and that of economic
resource of technology and data (Goto and Endo 2014). The advancements made in the field
of transport have produced steam locomotive and that of container ships. A business can take
the advantages of this mode of transport and enter business in a different region. Rise of
telegraph along with that of internet has thrown open windows of opportunity for different
business. The development in the field of telecommunications infrastructure has greatly
benefitted the aspect called “globalisation” (Tesfaye 2017). The improvements that are
enjoyed in the modern era are the factors that have given rise to globalization and it has
generated the interdependence of that of economic along with cultural activities.
There are many scholars who are of the opinion that globalization has originated in
the modern era. There are others who have opined that it existed before that of European Age
of Discovery and some have attributed the rise of globalization in that of the third millennium
BC. Globalization of large scale started in the 1820’s. The late 19th century witnessed
connectivity between that of economies of the world. International Monetary fund in the year
2000 specifically identified four aspects that were key to globalization: trade, movement of
capital, migration and that of spread of knowledge. The process of globalization is affected
by that of work organization, economics and that of natural environment.

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1.2 Reasons for Companies to go Global
The domestic market is often found to be saturated and the business feels the pressure
of raising sales along with profits. The companies have profit target and in order to reach it
the company has to move out of domestic market. Companies that harbour ambitions of
earning more profits have to look for bigger market outside that of their boundary. The
domestic markets grow at a slow pace and most of the companies are not content with the
slow pace of growth (Crinis 2017). In order to achieve the objective of that of high growth
rates the companies have to get sales from that of international markets. The customers want
that their suppliers should have international presence so that the suppliers can effectively
contribute in all the markets in which the buyer is operating. A multinational company that is
looking for materials would want the suppliers to provide to all the global manufacturing
locations.
The companies have to move out of global market so that they can maintain their
market share. It is found that the global markets have high structure of cost that can compel
the companies to look for a region where the cost of production is considerably low. It can
help the company to earn profit and grow at a steady pace. Companies are found to have
different stages in relation to development. The growth rate along with that of potential
differs in different countries. Businesses do not like to focus their effort within limited region
and they want to spread out the factor of risk. The companies want to look for a market that
behaves in a different manner from that of the existing ones. They want a market that is
different in terms of economic parameter like that of growth rate and size (Dabija, Pop and
Postelnicu 2016).
1.3 Key Drivers of going global and its impact on marketing
The primary driver of going international is that of expanding the sales. Globalisation
can help in diversifying the business and increase the customer base. A company can reap the

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advantage of being a first mover and gain benefit from it. The innovations of the product or
services of the global company can help in drawing a huge range of customer base that can
increase the revenues of the company manifold. In the event of the product or service
becoming a success, the company can earn more revenue from that of the new customers if
their domestic markets have become saturated. The solutions that are offered by the business
can prove to be advantageous for people as it can help to a significant extent in improving
their lives (Vezzetti, Alemanni and Macheda 2015). The company can significantly
contribute to a great extent in bringing a change in the lives of the people in a positive
manner. When a business goes global, it can gain access to potential skills who have unique
skills. The skills can prove to be of great merit for the company and help in the growth and
development of the company. It can provide the company with a competitive edge that can
help them in winning global recognition (Haque and Azmat 2015).
Co-marketing alliance requires the co-ordination of different aspects of marketing-
from that of research and development to that of production. Co-ordination of the marketing
activities can help a company in achieving market performance that is superior. Sales,
profitability along with market share are the three different aspects that will be greatly
benefitted by that of globalisation. Co-marketing alliance is a strategic alliance the main
focus of which is to create competitive edge in relation to a specific product market (Goto
2017). The resources along with capabilities of firms that has the same value chain can be
pooled in for earning more profits in the market. The firms develop co-marketing alliance in
order to develop market power that helps them in achieving sustainable competitive
advantage.

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2. Evaluation of global business environment
2.1 Internal business environment of global companies
The internal factors in relation to globalisation highlight how the firm changes the
practice in order to compete on a global scale. Production, customer service, marketing
strategy and development are the four internal factors that are integral to global companies.
The company should be able to develop branding strategies that can align the logo with that
of external presence in that of the new market. The brand should be associated with that of
quality products that can help in the marketing of the brand. A brand of a company is the first
thing that the customers notice and the perceptions towards the brand play a major role in
determining whether the company would be able to earn profits in the global market
(Marshall 2015). Companies should evaluate the work that is being done by their employees.
Companies should assess the strength along with weakness of the employees and the
constraints that the global competition can create. They can re-organize the company so that
they can earn the benefit of maximum efficiency out of the present scenario of world
economy (Pickles et al., 2015).
2.2 External business environment of global companies
The SLEPT factor can help in analysing the external business environment of a
business. SLEPT is an acronym for Social, Legal, Environmental, Political and that of
technological. These external factors help in determining the external factors that can have an
impact on the strategic decisions of a company. The social factor is indicative of the pattern
of behaviour along with lifestyles of the people belonging to a particular region (Price and
Lewis 2015). Age structure in relation to that of the population undergoes change over the
course of time. Laws are continuously being changed from time to time in different arena like
that of consumer protection and environment legislation. The legislation of a country keeps
changing and in order to abide by such legislation, the business has to adjust itself to the

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changing times. Health and safety is another aspect that a business has to be concerned with
and the employers of a business should be concerned about the employees. The employees
are safeguarded by the laws of the government and a business has to look after these factors.
Business should take a pro-active approach and make suitable alterations to that of the
products along with process of a business.
The economy of a country has to face fluctuations on account of the world economic
environment. Business is affected by the changes in that of interest rate and that of wage
rates. Inflation also has a great amount of impact on the performance of a business. Business
will be able to expand and face risks if the economic condition is found to be right. Political
changes is indicative of the changes taking place within the government. These changes are
extremely important as the regulations that are adopted by the country will also affect the
business. Political changes are related with that of the legal changes of a place. Change in the
field of technology has led to drastic changes in the structure of a business. The creation of a
database has enabled the sharing of information and has created improvements in the service.
Organizations should be cautious regarding the relevant technology in relation to the business
that can help in improving the quality of service of their business.
2.3 Critical analysis of national and industry based competitive advantage
The CAGE framework can help in determining the differences between that of
domestic along with that of foreign business environment. The CAGE framework helps in
highlighting four differences between that of the home and that of the foreign country that
can have an impact on the performance of business (Myers Jr 2014). The CAGE framework
highlights the four different factors:
Cultural distance: It signifies the difference in that of language along with customs.

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Administrative distance: It highlights the differences in policies related to foreign
investment, political proximity and that of currency that can have an impact on the
performance of an organisation.
Geographic distance: It emphasizes the difference in that of transportation cost and that of
time zones (Crinis 2017).
Economic distance: It highlights the differences in that of corporate system and that of
income level.
3. Analyzing the process of internationalization
3.1 Factors that facilitate internationalisation for a selected organisation
The different factors that can compel a company to go international can be attributed
to that of “initiating along with auxiliary forces”, “triggering cues”, “stimuli”, “drivers” and
that of “ antecedents”. The push drivers relate to that of the negative aspect in relation to the
domestic market and the pull driver is related to that of the attractive aspect of that of the
foreign market. The push factor encourages the companies to adopt the process of
internationalization on account of different factors present within the domestic market. The
different conditions in Denmor Garments Manufactures Inc that facilitates their process of
internationalization is that of small market and that of lack of demand (Denmor.gy, 2018).
The economy of Guyana is dependent upon the export of that of sugar, timber and that of
rice. The manufacture of these commodities is susceptible to that of the weather condition.
On the event of the weather not being good, the business have to incur heavy loss and hence
the economic condition of people in Guyana is poor that leads to poor lifestyle of the people.
Lack of demand in relation to the garment is thus one vital reason for the internationalization
of Denmor Garments Manufacturers Inc (Myers Jr 2014). The people cannot buy the

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products of Denmor Garments within the domestic market that causes the business to
undergo heavy loss.
The entrance of Guyana into that of the Caricom Single Market has broadened the
export market of the country and this is primarily in the sector of raw materials. It facilitates
the process of internationalisation of Denmor Garments. The network theorists highlight the
process of internationalisation as that of natural development that can develop out of network
relationship with that of foreign firms. The relationship of Denmor Garments will be based
on mutual trust along with that of commitment (Khan et al., 2015). By building on trust and
increasing the commitment in relation to foreign networks the firm will be able to easily enter
the foreign market. After the public exposure, the firms will be able to reap the advantage of
international integration by making use of the network. Denmor Garments will be able to
make a lot of profit on account of its internationalization process.
3.2 Issues and risks of Internationalisation
The risks in relation to internationalisation of Denmor Garments Inc is in relation to
the planning along with that of the decision making process. Human resources along with
financial resources are the two necessary prerequisites for the process of internationalization.
The planning and that of decision making process is inclusive of the strategic and the issues
related to operation (Muldrew 2016). Operational decisions that are crucial for the process of
internationalization relates to target market and that of entry modes. In order to enable the
process of successful internationalization, the company has to know about the current
condition of the company along with that of the situation in that of the target market.
The major risks pertaining to globalization pertains to the factor of static thinking.
Demner Garments Manufacturing Inc is based on Guyana and the cultural and mindset of
people of the domestic country will be different for that of United Kingdom. The knowledge

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of the owner of Denmer Garments will be different from that of any other country. It will
prove to be difficult for Denmar Garments Manufacturing Inc to adapt to the corporate
culture of a foreign country. Denmar Manufacturing Inc will face the challenge that is
associated with that of global manufacturing. They do not have the capital that is necessary
for a company to enter into the international market. Cheap labour is another vital factor that
the people in the developed along with developed countries tend to look out for when they
want to enter into alliance with that of a small industry of a country (Srinivasan 2016).
In the modern era of globalization, power balance has shifted and it has moved from
that of the producer to that of the retailer. In the present age, the buyer is responsible for
setting the terms in relation to what is to be produced. The socio-cultural milieu of the
developed countries will be drastically different from that of a developing country called
Guyana. The global production is largely controlled by very few corporations. The large
manufacturers build decentralized production network with the help of which goods are
ordered. It is demanded from that of poor countries that they would be able to supply
cheapest workers along with unregulated conditions. Firms like that of Denmor Garments
Manufacturing Inc may not be able to maintain profit and will lose out when it competes in
the international arena (Islam et al., 2017 ). When the goods are purchased for the operations
of overseas business there can be uncertainty regarding the ability of the supplier to deliver
within time and that of budget.
3.3 Appropriate measures to mitigate risks in internationalisation
Internationalization of Denmor Garments Manufacturing Inc will be subject to
financial along with political risk. The foreign currency exchange rate along with that of
international laws will serve as major barriers in relation to internationalization. The risks in

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relation to ability of the supplier can be mitigated if the supply chain of Denmor Garments
Manufacturing Inc is diversified by spreading the orders between different suppliers (Nayak
et al., 2015). Suppliers should be distributed over that of several regions that can help in
reducing the risk in relation to unforeseen problem like that of weather. A fail-safe measure
like that of a back up supplier can be taken recourse to by that of Denmor Garments
Manufacturing Inc in order to mitigate the risks in relation to internationalization.
Environmental regulations pose a threat in relation to internationalisation of Denmor
Garments Manufacturing Inc. A local business lawyer and accountant can be taken recourse
to by Denmor Garments in order to cut through that of red tape. Banking should be carried
out with that of an institution that has branches in the domestic sector (Guyana) along with
that of the country where it will operate business. Denmor Garments Manufacturing Inc
should ask the bank whether it will be able to manage For Ex trading along with that of the
conversion that can help them in avoiding the future issues (Nayak and Padhye, 2015). The
political risk in relation to international business relates to nationalization along with that of
seizure of assets. The local authorities sometimes fail to enforce the contracts in the region
where the business is expanding to. Denmor Garments can work with that of the MIGA
(Multilateral Investment Guarantee Agency) when they would undertake that of overseas
investment. The World Bank Agency possesses of a team of experts that can create an
insurance policy that would be customized to the needs of Denmor Garments that can help in
promoting growth of the business (Vezzetti, Alemanni and Macheda 2015).
4. Developing marketing strategies for global markets
4.1 Global market potential for business expansion
Market research can prove to be effective that can help in analyzing data in relation to
a market. Denmor Garments Manufacturers Inc should know the about the competitors