Concepts of Global Consistency and Local Adaptation Free-Samples

Question: Explain how the Concepts of Global Consistency and Local Adaptation are relevant to Success of a Global Business. Answer: Introduction Globalization has open new opportunities for organizations to trade globally and work in different parts of the world (Qu, 2012). Employees are able to move and work in organizations branches and subsidiaries on transfer or promotions. Global business has opened large markets for businesses, increased location base, enabled efficiencies and exchange if ideas. It has also led to interactions of employees from different backgrounds and countries who are brought together to work on the organizations objectives. Global consistency is the ability of an organization to keep trend to the global expectations and influences in it operations and product. This involves companys producing high quality products and services to the world market by use and access of highly skilled experts in the organizations (Smale, 2008). Global consistency allows firms to integrate its operations with the global economy. Local adaptation is a practice of foreign organization integrating with local markets and co mmunity to achieve its objectives. It refers to influences in the organization caused by the surrounding that have to be incorporated in the products and operations for the business to succeed in the foreign location. The following paper will explain the concepts of global consistency and local adaptation relevance in success of global businesses. The essay will also out a good that is likely to succeed with global consistency and a good that is likely to succeed with local adaptation. Background information Globalization of the world economy increasingly created global interactions and integration ns of culture, people and economical activities. Globalization leads to distribution of the production of good and offering of services. This was made possible by removal of barriers, high tariffs, export fees and importing quotas. This allowed business to locate their manufacturing plants and offices in different part of the world. Organizations located to regions that they could easily access raw materials, access market, labour and favorable taxes and government terms. These factors led to organizations relocating to new locations where there were resource endowments (Smale, Bjrkman and Sumelius, 2012). Globalization also leads to growth and development of organization in terms of production capacity, market share and number of employees. Organizations rapidly increased their capacity as a result of large market. Large organizations started facing management problems due to increased cost o f operation and human resource management. This resulted to decentralization of the companies to other countries to reduce the distance to the market. The firms also decentralized in order to make the organizations manageable. Globalization of the world economy has led to emerge of the concept on global convergence and local adaptation. Global business operates to serve the world market in different capacities. Peters (2013) recorded that there is convergence of the human taste and needs. This indicates that the world population desires for the same goods and terms of working. Maynard and Tian in 2004 stated that technological advancement and media has made the world a global village. This has influence to peoples preferences and want. Global business has to get skilled manpower employ in their production and processing in order to achieve high performance. Therefore the world marketing is converging to have the same taste and preference to goods and services offered. This requires businesses to adapt to high standards in production of their products. Global consistency is therefore an influence to conform to global practices and standards in production and management of people. Local adaptation requires g lobal business to custom their products and incorporate local norms in the business. Local adaptation necessitates foreign organizations to produce goods that tailored for the local market. Local adaptation enables business to make products and incorporate practices that align with the local community values, norms and culture (Chung, 2014). Local adaptation is adopted in branding, marketing practices, human resource management and ingredients of the product. These adaptations are influenced by the local society. For instance, Redbull drink bottle colors in China is red and gold while in other part of the world it color is silver and blue. This practice in this business is necessitated by the culture and belief in China. People in China associate red color with superiority and gold with prestige (Ahlvik and Bjrkman, 2015). These color combinations are highly valued in China and will make high sales in the China market. Therefore, the background information shows that the concept of global consistency and local adaptation is as result of globalization of the world economy andcompany decentralizations. Evaluation of Journals Used1. Title and Article Reference Berchtold, S., Pircher, R. and Stadler, C. (2010). Global integration versus local adaptation: a case study of MNCs in Eastern Europe. European J. of International Management, 4(5), p.524. Aim / Purpose of article The Journal aims to extending the knowledge transfer of Australian Multinational Companies to their Subsidiaries in Europe. Sample, location, method of data collection and analysis The study uses 15 MNCs in Eastern Europe. The data bused was collect from public available data, interviews, and archive materials. Findings/Interpretations reported in the article The study found that the MNCs transfer of knowledge was combined with personal relationship and cultural empany for the standardization of the products to the foreign market. Significance/contribution of the article in relation to your other articles and your topic The article outlines how the efforts of the parent company to subsidiary companies are influenced by the locally that the subsidiary operates. The study contributes on how local adaptability is necessitated by the locals and not the home country that pushes for standard products and strategies. Strengths of the article The article has an historic approaching spanning more than 10years. Weaknesses of the article The article uses sources that are more than 10 years old that might contain irrelevant information due to change in time Quotes from the article that you plan to use in your assignment MNCs firms combined standardization of products and procedures with strong personal relationships that indicate cultural empathy. Before we discuss the various ways how they tried to transport knowledge we will briefly describe the historical context to provide an impression of the institutional environment the new subsidiaries operated in 2. Title and Article Reference Ahlvik, C. and Bjrkman, I. (2015). Towards explaining subsidiary implementation, integration, and internalization of MNC headquarters HRM practices. International Business Review, 24(3), pp.497-505. Aim / Purpose of article The study aims to establish that HRM for Multinational is subject to multitude of institutional factors. The research also explores the similarity and differences that exist in traditional diffusion of HRM practices to subsidiaries of a MNC. Sample, location, method of data collection and analysis The study uses one case study that is analyzed using multiple approaches. The study uses US MNC Findings/Interpretations reported in the article The study found that there exist a difference and pressure of implementing e-HRM practices between the home country and host country. Standardization is based o0n the local capacities of the subsidiary. Significance/contribution of the article in relation to your other articles and your topic The study outlines the concept human resource in globalization and their influence in standardization of products in MNCs. This elaborates the concept of local adaptability in subsidiary companies Strengths of the article The article uses multiple analysis approach that give a detailed understanding of local adaptation in the process of integrating global consistency Weaknesses of the article The article only uses only one sample. This shows that the study can be biased Quotes from the article that you plan to use in your assignment The complex nature of the relationship between home and host country effects, pressures for standardization and resource capabilities of subsidiaries complicates factors shaping the constellation of HR practices in the MNC. Therefore, there are e-HRM practices difference in MNCs as a result of local adaptability 3. Title and Article Reference Mareck, M. (2014). Global, Local or Glocal?. Research World, 2014(45), pp.26-29. Aim / Purpose of article The article aims to outline criteria of choosing glocal, global and local strategies of branding products for multinationals. Sample, location, method of data collection and analysis The study reviews literature on the topic under study to analyze choice of strategy. Findings/Interpretations reported in the article The study found that MNC need to rebrand their products for both local markets and global markets according to the type of product. The study concluded that the MNC should keep on rebranding because a standard brand for globalization is not effective Significance/contribution of the article in relation to your other articles and your topic This article outlines the strategy to use in global market for business success. It gives criteria to use to choose between global consistency and local adaptability. Strengths of the article The study has a wide view and approach that facilitate the understanding of MNC performance in global market. Weaknesses of the article The study does not use primary data therefore prone to outdated information Quotes from the article that you plan to use in your assignment In the end people want both global and local brands- brands that make them feel part of a broader international community, but also brands that root them in their home culture, respect and represent their tastes. Hence, a glocal strategy seems to be the answer Quotes from the article that you plan to use in your assignment Glocal marketing attempts to fill the gap between local culture, preference and the globalization of marketing activities, and tries to re-establish the connection between global brands and different cultures Examples Some goods and services succeed in global consistency while others succeed in local adaptation. Manufactured goods succeed with global consistency while food products do well with local adaptation. People want to feel connected to the global community by using the same manufactured products. For instance cars, mobile phones and aircrafts are manufactured products that use global consistency. Food is much connected to peoples culture and therefore succeeds with local adaptation. For instance MC Donald applies local adaptation in it outlets to sell food. Conclusion From the essay plan, I can say that concept of global consistency and local adaptations are important in managing global business. These concepts enable formulation of strategies that enable the business to survive in the foreign market. The essay plan also shows that choice of local adaptation or global consistency is determined by the nature of the product that the business produces for the market. References Ahlvik, C. and Bjrkman, I. (2015). Towards explaining subsidiary implementation, integration, and internalization of MNC headquarters HRM practices. International Business Review, 24(3), pp.497-505. Berchtold, S., Pircher, R. and Stadler, C. (2010). Global integration versus local adaptation: a case study of Austrian MNCs in Eastern Europe. European J. of International Management, 4(5), p.524. Chung, C. (2014). MODES OF GLOBAL INTEGRATION AND LOCAL RESPONSIVENESS IN HRM OF MNEs. Academy of Management Proceedings, 2014(1), pp.17654-17654. Mareck, M. (2014). Global, Local or Glocal?. Research World, 2014(45), pp.26-29. Maynard, M. and Tian, Y. (2004). Between global and glocal: content analysis of the Chinese Web Sites of the 100 top global brands. Public Relations Review, 30(3), pp.285-291. Peters, G. (2013). REVIEW: BREAKING OUT EMERGING BRANDS GO GLOBAL. Business Strategy Review, 24(3), pp.69-71. Qu, R. (2012). The Impact of Integration and Responsiveness on MNC Subsidiaries Market Orientation. Journal of Global Marketing, 25(3), pp.127-140. Smale, A. (2008). Global HRM integration: a knowledge transfer perspective. Personnel Review, 37(2), pp.145-164. Smale, A., Bjrkman, I. and Sumelius, J. (2012). HRM integration mechanism usage in MNC subsidiaries in China. Personnel Review, 41(2), pp.180-199.