History Of Localization And Glocalization Marketing Essay

History Of Localization And Glocalization Marketing Essay Social capital in multinational companies is part and parcel of human resource management, whether locally or internationally. The terms globalization, localization and glocalization are expressions introduced to economy only recently. It is needless to say that globalization and localization refer (in finance) to economic concepts including multinational corporations, sale and purchase and other services. Since the end of the Cold War, we have been facing economic struggle instead of the military one that prevailed for many decades.   But glocalization is an exceptional term, since it is coined of two words (globalization and localization). In this paper I intend to examine the evolution of glocalization and present some practical examples from my environment (Norway) to find out how this term works. Some sociologists, anthropologists and economist classify capital into three main types. Pierre Bourdieu distinguishes between three capitals: economic capital, cultural capital and social capital. In this paper I will try to describe the structure of the banking industry with a focus on Western Europe and the Nordic countries. Furthermore, I will describe how my own organization (Nordea Bank ASA) should relate to the global evolution toward a more global banking industry. Let me start with the notion of globalization in economy first and then proceed to glocalization. Theodore Levitt article, Globalization of markets in the Harvard Business Review in 1983 introduced a heated discussion of consequences of globalization, which revolved around global governance, independence and local market conditions. Globalization in this context is defined as a process where banks are larger and fewer and where they operate largely across countries and regions, i.e. that we call global oligopoly. The globalization of the banking industry is still in its infancy, but some features appear already to be central to the development of this industry in the coming years. In Norway, globalization will involve new challenges and opportunities for Norwegian banks both in Norway and abroad.   The Europe Commission has set a goal to reduce the many trade barriers that stand in the way of an efficient financial market in Europe. It is not easy to set borders between globalization and glocalization in economy or in social applications. Glocalization is defined by (Wellman B. 2001) as the following Glocalization is a neologism meaning the combination of intense local and extensive global interaction   Du +1-et dette offentlig. Angre Glocalization is a proposed solution to some problems of globalization. Critics believe globalization causes conflict between an emerging worldwide system of values and regional autonomy, resulting in the destruction of local cultures. Glocalization proposes to mediate between this global system and local community and that local practices be respected. It often involves tailoring products intended for international distribution to the tastes of local consumers. To illustrate the strategic implications and choices, I will use the model The nine strategic windows (Solberg 1997). C:UsersIhabDesktopniggaUten navn.bmp This approach is a dynamic model that enables us to indicate which strategies the players should choose in the future market. The analysis will therefore focus on the conditions that should be present for such a role that each bank should use effectively. The two dimensions of this matrix are the industrys globality and the banks ability for internationalization. In the study, I will use the model with nine windows indicating nine specific strategic options. Over the last 30 years, we have seen that some Norwegian banks seeking to internationalize their operations by establishing branches abroad. Banks range from Stay home market, to Strengthen position in the global markets orfind new owners with the international network . Thus different banks are located not only at different points along the y-axis, but also along the x-axis (the industry globality). If one is located to the left of the matrix, it indicates little globality. There will be fewer opportunities and threats of global ization, which should then set the orientation of the strategies that banks should choose depending on how they are positioned along the y-axis. I have already placed some Norwegian banks in this picture. Globalization of the banking industry had impacts on Norwegian banks and Norwegian banking industry. This is due to the fact that in the past banks had different products and services in diverse markets and were affected differently by the structural and international barriers. The strategies will be on the one hand more affected by consolidation in established markets; on the other hand, globalization could represent major threats but many opportunities. Other strategic alternatives will be more effective, depending on the location along the y-axis. Studies of multi-national companies (MNS) use of European banks (Berger Smith 2003; Berger, Dai, Ongen Smith 2003) show that the banking industry still has some way to go before it can be called global. A problem with this model is in its construction. It is simple to understand, there are many ways to define the two dimensions and fault localization could lead to completely w rong conclusions in strategic choices in an individual company. As a practical example, Nordea Bank, which is the largest bank in the Nordic and Baltic region with headquarters in Stockholm bank, is the result of successive Nordic acquisitions and mergers in the period 1997 to 2000. Through its around 10 million customers of which 4.9 are the online customers and 1,300 branches is the market leader in the Nordic region with 35, 20, 20 and 15% market share to Finland, Denmark, Sweden and Norway.   Our vision is to be the leading Nordic bank. Growth strategy has been mergers and acquisitions, but the strategy is further organic growth in the Nordic and near abroad emerging markets (Annual Report 2006). In Norway, the goal is to increase market share in the retail market. Nordea is well equipped to meet the challenges that globalization entails. Furthermore, our assessment is that the Baltic / Poland for strategic reasons should be developed in order to restrain the activities of other banks, especially German and Austrian, but also other fore ign banks. The possible scenario is that Poland is an exciting emerging market is an arena where major Western European banks competing for market share. We realize that this may be difficult in Russia. Nordea has a major share in Ogresbank but does not control the bank 100%.   In this respect, Russia should be an important priority for Nordea.   http://www.investopedia.com/terms/g/glocalization.asp#ixzz2NYBBvRnm Finally, I have proved to review the social culture, social capital and glocalization in Nordea and other firms. Some other examples, I intend to cite are McDonalds Corporation and MTV Networks activities. McDonalds Corporation has restaurants in more than 100 countries. Instead of offering an American-style menu in a place like Dubai and other Islamic countries, where people do not eat pig meat, McDonald sells mostly chicken, lamb and beef. Big-ticket items in the automotive industry are examples of glocalization. Mercedes-Benz or BMW car manufacturers present many different engine offerings and trim levels for their home market.   But the cars offered abroad are usually limited to more powerful engines and higher-end interiors. Likewise, MTV Networks, which broadcasts in many countries, does not offer the same programming in all those countries. The network tailors each channel to suit those countries individual tastes and features regional and international musicians. With satellite TV, audiences can even glocalize their living rooms. Numerous foreign-language channels can be ordered, so an immigrant from Italy can catch her favorite variety shows on RAI International, or an Egyptian expat can catch regional news from back home on Al Jazeera channel.