Explore BrainMass

Changing globalization operations and business strategies

1. Multinational enterprises (MNEs) have an impact far beyond their firm boundaries. Assume you are working for a small firm that supplies a product or service to an MNE. How might your relationship change as the MNE moves from Globalization 2.0 to Globalization 3.0 operations?

2. What are some drawbacks and risks to a broad generic business strategy? To a focused strategy?

3. Assume you work for a small firm that developed a better and faster operating system for netbooks than Microsoft Windows. What strategy might the firm use to unseat Windows in this market?

4. Horizontal integration has benefits to the firms involved. Consider the consolidation in the event-promotion business when Live Nation bought Ticketmaster in 2010. List some specific advantages of this acquisition for Live Nation. Do you see any downside to the merger?

Solution Preview

1. Dividing the history of economic development into three Globalization epochs is the theory suggested by Thomas L Friedman, in his book 2005 "The World is Flat: A Brief History of the Twenty-First Century" called Globalization 1.0, from 1492 to 1800, when the world's economy grows on the strength of big companies; Globalization 2.0, from 1800 to 2000, when "the key agent of change, the dynamic force driving global integration, was multinational companies" driven to look abroad for markets and labor, spurred by industrial-age "breakthroughs in hardware," and Globalization 3.0, from 2000 to the present, when "individuals are the main agents doing the globalizing, pushed by "not horsepower, and not hardware, but software" and a "global fiber-optic network that has made us all next-door neighbours." (Warren Bass, Washington, 4/13/2005)

Given those definitions, if I was working for a small firm that supplies a product or service to an MNE, my relationship with that enterprise would change by my becoming much more accessible to it whenever it needs more of what I supply to it. The communications systems made possible through the internet and work-processing software available to me in my business will allow me to know immediately what they want, how much, and how soon. These capabilities could also allow me to provide supplies each location with similar swift location. Language software would assist in communication with those locations where English is not spoken, and changes in orders could be accomplished with a minimum of lost time. The ...