Globalization Localization Product

Globalization Localization Product1. The paradoxes of globalisation vs. localisation and remunerationability vs. parentage In todays continuously changing world, globalization is what every vexation, organization, and nation should seek and welcome as a constructive adjustment. However, many people be unaw ar of the important focus and meaning of globalization, especially in comparison to localisation of function. A large number of people believe that globalization is just an some early(a) customary word used to refer to changes and differences that atomic number 50not be explained. Therefore, many varied activities or changes atomic number 18 improperly tagged to be a break in of or caused by globalization.Localization is the exhibit of adapting a product or answer to a particular language, culture, and desired local preferences. Ideally, a product or service is genuine so that location is relatively easy to achieve for example, by creating technical illustrati ons for manuals in which the text can easily be changed to an some other language. The process of first enabling a product to be localize and then localizing it for different national audiences is sometimes known as globalization. In localizing a product, in plus to language translation, such details as time z unrivalleds, money, national holidays, local color sensitivities, product or service names, gender roles, and geographic examples must all be considered. A successfully localized service or product is one that appears to wee been developed within the local culture.Globalization is also a term that refers to the process of global integration of the economies of nations by allowing the unrestricted flow of goods, services, investments and currencies between countries. The process of globalization has both positive and negative impacts on behavior at the individual and nationals levels. Globalization and localization be al close opposite concepts but can coexist.Globalizatio n can briefly be defined as something that affects and changes the traditional ar mountain chainments. It is a term that directly implies change and therefore is a continuous process over a long period of time as comp atomic number 18d to quickly changing into a wanted or desirable end business system. Globalization, focusing on a narrow-mindeder scale, refers to sequences that occur in ones mind or behaviour that lead to processes that evolve as people or organizations pursue their daily tasks in a hopeful attempt to accomplish their specific goals.Both globalization and localization have many be and benefits, although not always considered when making decisions that significantly affect a group or countrys outcome. Two main benefits of globalization include it being a good way for a telephoner to make more than money and also initiate more openness between countries on the economic level. Moreover, other positive aspects of globalization include the increase in productivity and improvement in standards of living. On the other hand, the benefits of localization ar more beneficial to a single state/country because it involves and allows a country to have its own specific national style of economic practices that reflect upon the countrys distinctiveness.The costs of globalization mainly even up of giving up a countrys distinction of its politics, culture, economy where as costs of localization involve less(prenominal) trade and international investment. Although many people view a decrease in a countrys involvement with trade and investment as a benefit, in the long run it is a cost because it denies the country the ability to communicate with other countries and to increase its technology and status (by importing and learning about other countries products). An increase in trade would also allow a country to advertise its products and abilities and export items to different countries with towering odds of making a profit. Another cost of localizatio n is its evolution from the pressures that lead organizations to narrow their horizons and participate in dissimilar forms of behaviour not always accepted and approved by globally integrated countries. The costs of globalization are not weighed as heavily as those costs of localization because time go forth override many of the un ward offable problems. Therefore, globalization cannot be stopped and as the semipolitical and cultural changes occur, organizations with vigorous economic performances give survive, succeed and replace those less productive.From an economic point of view, globalization focuses on the expansion of production and trade whereas localization focuses on more narrow and specific activities of consumers and producers. These 2 dynamics operate in all human activity from cultural and hearty to economic and political activities. From the social and cultural aspect, globalization attempts to extend its ideas and practices beyond its original and present setti ng whereas localization discourages cutting ideas, norms and practices.In addition, these two sets of dynamics are linked in a way that it seems every change in globalization causes a change in localization and vice versa. Todays world affairs and processes are greatly affected by the tensions between the different aspects and characteristics of globalization versus localization.In my opinion, the benefits of globalization discussed in this opus are far more important than its costs or the costs and benefits of localization. Although, localization and globalization will continue co-existing, globalization will continue to increasingly dominate over time because most countries are generally leading to and becoming more accepting of the idea of globalization. The benefits gained by globalization are the most important to peoples lives because it aides in the learning process of people expanding their horizons and understanding the benefits to countries, organizations, and groups fo rgeing together. Although losing some part of ones national identity can be a disadvantage at times, the advantages of being able to work together and help each other in a globally integrated world are much more.It is widely known that for a business to be successful it needs to provide a good or service that is desired by the public and also to obtain a profit in providing said well or service. Now while these are the most important components to a successful business, they are not the only ones. The social responsibilities of a business include the following milieual protection and preservation, employee safety and goode, product safety for the consumer. The financial manager must keep these three social responsibilities in mind when making any and all decisions.The purpose organizations should distribute has been a puzzle for strategists over years. There are two perspectives from which this paradox could be viewed shareholder nourishprofitability oriented and stakeholder val uefocused on responsibility. According to the shareholder value perspective, each company is established to serve the purposes of their owners. In other words, an organization should focus on increase of its stock value through the implementation of gainful business strategies. take down though it might be in the interests of shareholders to treat stakeholders well, there is no moral obligation to do so.On the other hand, stakeholder value proponents argue that a company purpose should be seen as an agreement among shareholders, employees, banks, customers, suppliers, governments and community and an entity should orient on the interests and values of its stakeholders. Stakeholders value perspective assumes that an organization should serve the interests of all parties that can be influenced by its activities or are somehow involved into the company operations. Even though all stakeholders are interested in the company profitability, there are also other business areas on which s takeholders place high value such as quality is demanded by customers agate line security, occupational safety, good working conditions are required by employees prompt payments, shared risk taking, get demand are preferred by suppliers. Therefore, maximizing shareholders value to the detriment of the other stakeholders interests would be unjust. That is the fierceness that major shareholders place on stock price appreciation and dividends must be balanced against the lawful demands of other parties.The choice of the major company purposethe reason for which an organization exists is the essential one because it defines what will be the company mission i.e. the business philosophy that should guide strategical choices i.e. who should ensure that the strategies pursued are in accordance with the mission. If the company purpose is clearly specified, it will give direction to the strategy process and influence the strategy content. Moreover, the values share by an organizations me mbers may have an impact on strategic choices and thus the company mission.2. Grupo Elektra analysisFor analyzing the performance of Grupo Elektra one of the helpful techniques is to scan the internal and external environment of the company with application of the SWOT analysis at different stages of its development in a chronological put in. Environmental factors internal to the company can be classified as strengths (S) and weaknesses (W), and those external to the firm are opportunities (O) and threats (T). The following is the SWOT analysis for Grupo Elektra.Internal environmental factors STRENGTHSGrupo Elektra was the first Mexican manufacturer of TV sets that allowed introducing a new product at the market.Ricardo Salinas, Elektras new CEO, employed a group of talented and competent superior managers. As a result the company had a competitive advantage in proximo business development based on the excellent management team that allowed achieving quality levels with greater e fficiency, while other competitors was based on the trial and error approach. The company profits were properly divided for distribution to employees, for technical reinvestment and the product/service development. This rational division of profits allowed further continuous development of the company attended with employees motivated to put much effort into there work.In 1995, the company had extended its service range (domestic wire transfer, extended warranty program, photo products and processing services, as well as saving accounts) that alter its position at the market.The distribution network was increased to more than 500 stores all over Mexico that make Elektras products more available to customers.With four different chains (Elektra, Bodega de Remates, Salinas y Rocha and The One) Grupo Elektra covered 87% of the Mexican community it means that the company was monopolistic.The business plan for the international expansion is made by Filiberto Jimenez in order to attack the main competitor La Curacao. The plan successfully worked and in 2001 La Curacao went ruin that allowed Elektra redouble companys position at the Latin America market.Elektra offered 20% lower prices than it closest competitor La Curacao that gave a possibility to deserve the customers loyalty.The major factor in Elektras success was the partnership with TV Azteca. The channel did not advertise any of Elektras competitors that allow company to create unique image and to be very effective with advertising efforts.Elektra had a huge media budget of $27 million per year and it was the largest adman in Mexico, in terms of airtime.The strategy followed by Elektra requires careful analyses to begin with any merger or acquisition is made and any acquisition should result in the additional value to the whole company.The strong side of the Grupo Elektra management is a well prepared and experienced management team and motivating techniques utilise to employees, people are allowed with freedom to express themselves.WEAKNESSESIn the management of the company there is only one person, Alvaro Rodriguez, who makes final decisions. This limited decision power may lead to difficulties in further management of Elektra.The company has a problem with the production of cloth for the clothing chain The One. The production capacity was not enough, so there were the shortage of stock level, colors and sizes of cloths.The company is not concentrated on one physique of business, there are many business directions and not all of them are enough qualified. In El Salvador and the Dominican Republic the existed Elektras business model didnt work. The main source of companys income is financial services, such as credits. The Elektra tries to take up more and more people to live on a credit and to pay quite high interest rates.External environmental factors OPPORTUNITIESOffering Elektras services internationally provided the opportunities to compete at the worldwide market.In year 2 001 Grupo Elektra was already a well recognized in many countries.THREATSEvaluation of management and suggested solutionsAs SWOT analyses demonstrates strengths prevail over weaknesses in Elektra case that explains continuous prosperity and success of the company in the market. However, certain weaknesses still present and are better to be eliminated.First of all, the management is performed by a group of well prepared managers while the final decision is always made only by one person, while others are not informed what principles and criteria are followed in making decisions. It is a unstable strategy since biases the success of the company toward the decision of Alvaro. Moreover, it will be rather difficult in the future to replace Alvaro Rodriguez with anyone who will be equally active, smart and so well informed about the business of the company. More people should participate in the decision making process in order to avoid subjectivity and provide necessary support to the ne xt CEO if something happens to Alvaro Rodriguez.From one side, the Elektra system perpetuates such flake of culture where lower-income groups owe their lives or earnings to a central figure in this case Elektra owner Ricardo Salinas Pliego. For example, Elektra employs 4,000 investigators so every potential credit client can be visited at home before a credit sale is approved. From another point of view, the Elektra gives the chance of purchasing new things immediately and it makes peoples life better.