Business Studies Essay Paper on the Sociology of Globalization

Mid-Term Questions

            International business managers that do not understand culture in their host countries would likely make several business blunders or mistakes. Firstly, they are likely to order production of goods and services that violate the ethical standards, laws and/or beliefs held by the natives of the host country. For example, marketing an alcoholic drink in Saudi Arabia is considered a serious crime as the Islamic culture strictly prohibits alcohol consumption. Such managers can also make poor management decisions related to workplace gender relations and time management. For example, most Islamic countries in the Middle East are against workplace arrangements where males and female share working space. An international manager should also understand how cultures perceive time and schedule their working days. For example, an international manager in Saudi Arabia should not schedule work activities of Fridays because working days begin on Sunday to Thursday, with Fridays and Saturdays being considered weekends (Misa, “Saudi Arabia Changes”).  

            A multi-domestic multi-national company (MNC) is that whose international corporate-level strategies are geared towards producing products that are adapted to each market (Hoskisson et al. 274). A good example is MTV, which customizes the programming broadcasted through its channels within various countries. They focus less on achieving global integration, but emphasize the realization of local responsiveness. A global MNC is that whose international corporate-level strategy strives to produce same products and services for the whole world, for example Microsoft that produces same programs that are adjusted to match local languages. They sacrifice the need for local responsiveness as they attempt to enhance efficiency through achieving high global integration. A transnational MNC is that which adopts a corporate-level strategy that is a combination of both the multi-domestic and global MNCs. They attempt to enhance global efficiency while simultaneously adjusting to local preferences, a good example being the McDonalds.

            Globalization refers to the ever-increasing interactions and interconnectedness among people, businesses and governments across countries, and is capable of creating a global identity (Mendis 2). Conversely, localization refers to the attempts to produce different kinds of products for different markets, for example, the way McDonalds produces different burgers in different countries, such as kosher burgers for Jewish areas and halal meat for Muslims (Martell 95). Glocalization is a hybrid of globalization and localization, a process where global products are embedded and then promoted within particular local cultures, for instance the varying Coca Cola promotion/marketing and penetration into different countries.      

Works Cited

Hoskisson, Robert E et al. Competing for Advantage. Mason, OH: Thomson/South-Western, 2008. Print.

Martell, Luke. The Sociology of Globalization. Cambridge: Polity, 2010. Print.

Mendis, Patrick. Glocalization: The Human Side of Globalization As If the Washington Consensus Mattered. Morrisville, N.C: Lulu Press, 2007. Print.

Misa, Esther Tanquintic. “Saudi Arabia Changes Official Work Week to Sunday-Thursday, Weekdays Now at Friday-Saturdays.” International Business Times 24 Jun. 2013. Web. 9 Oct. 2014. < http://au.ibtimes.com/articles/482263/20130624/saudi-arabia-work-week.htm#.VC1yMmddXP0>.