Globalization Effect on Local Business Environment

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ACKNOWLEDGEMENT

I would like to thank my supervisors, friends and family, without their support this research study would not have been possible.

DECLARATION

I adjudge that the entire content of this dissertation is entirely my own work; the content used in this dissertation has not been submitted before in any educational institution and represents my own opinion.

Signed __________________ Date _________________

ABSTRACT

In this research study, the impact of globalization on the local business has been analyzed and discussed. The qualitative secondary research study method was employed and it was concluded that globalization affects the local business marketing strategies and business performances in the positive as well as in the negative ways. Local businesses have to compete and struggle hard in order to compete with the international market.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Introduction1

Internationalization1

Problem statement2

Theoretical framework2

Aims and objectives3

Research questions3

CHAPTER 2: LITERATURE REVIEW4

Globalization4

Small and Medium-Sized Enterprises (SMEs)8

Characteristics of SMEs9

Theoretical Basis of Globalization and Its Impacts10

Employee Burnout13

Relations14

Creating causal ambiguity for a competitive advantage15

Flexibility in strategy as a means toward causal ambiguity17

Software Development in India18

Flexibility in strategic direction19

Competition in world market20

CHAPTER 3: METHODOLOGY22

Research Design23

Secondary Research Methods24

Qualitative research method25

Reliability and validity29

Validity30

Ethical Concerns34

Significance35

Literature Search36

CHAPTER 4: ANALYSIS AND DISCUSSION37

Globalization affect local business performance37

Globalization affect marketing strategy of local business41

Local business can maintain their performance and marketing strategy in globalization42

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS44

Recommendations52

REFERENCES53

CHAPTER 1: INTRODUCTION

Introduction

The concept of financial globalization is undoubtedly one of the most commonly used in the late twentieth century. The globalization of the economy has upset the order of things: it acts on the changing the rules of competition, the expansion of trading zones (transition a business “inter-national” trade “inter-regional”), the Uniform cultural but also on the exploitation of poorer countries. Competitive forces have caused the global market to become more volatile. This has increased the market complexity. The complexity of the market complicates the decisions germane to the management of resources and the establishing of relationships that support the firm's strategic direction. This thesis develops and tests a conceptual model that is proposed to address the complexity of the global market (Robert 2008, 24-28).

Internationalization

Internationalization reflects a firm's level or extent of international diversification and is often reflected by the number of different markets in which a firm operates and their importance to the firm, and is most often measured as the percentage of foreign sales to total sales (FSTS). Global market diversification provides firms with opportunities to increase returns by leveraging existing products and competencies across multiple global markets for higher performance with lower risk. Global diversification offers opportunities for economies of scale and scope (Haahti 1998, 160). According to Hitt, Hoskisson, & Kim (1997), diversity of markets also increases the likelihood that innovation will satisfy the consumers' needs. International diversification also provides firms with the ability to maximize resources across markets through global sourcing, which insulates the firm from negative environmental forces (Haugen 2009, 66). A firm's degree of internationalization has been conceptualized in prior research using various terminologies, such as export intensity, international business intensity, internationalization, scale and scope of internationalization, international diversity, ...