Globalization and its Impact on International Business



Globalization and its impact on Business

Introduction

The term globalization is widely used in the international business which refers to variety of phenomenon, such as technology, politics, hotel industry, consumer behavior, firm strategy, and trade and capital flow. The phenomenon of globalization has pros and cons on international business special in hotel industry (Keller 1998, p. 4). .

Globalization is a process which allows companies to expand outside their home country. It is also defined as the internationalization of a business at the highest level. Two factors that play a vital role in the expansion of the business are international trade and the media communication. The media communication is the information which enables the industry to be a trade good. Multinationals, mega corporations, and consumers are the most exposed means of globalization (Keller 1998, p. 4).

Globalization and International Business

The economic sense defines globalization means the growing interdependence of production and markets in more than one country through business in goods and services, international strategic alliances, cross-border flows of capital, mergers, cooperation, and exchanges of technology. Globalization is also termed as a labor increase in the international division, accomplished with the help of international fragmentation of production along with the political inclination showing more broadminded economic order (Smeral 1998, p. 372).

Hilton: A Chain of Hotels

To understand globalization and its impact, Hilton is the best group of hotels that has flourished worldwide in the past few decades. It is composed of Hilton Hotels Cooperation and based at the United States. The Hilton hotels are recognized internationally as the company known for hospitality and outclass excellence in the provision of goods and services in the hotel industry.

Hilton hotels manage and franchise hotels with a number of brand names, which include Hilton, Doubletree, Hampton Inn, Hilton Homewood, Suites, Embassy Suites, Red Line Hotels Conrad International, and others. Hilton is a major industry competitor which is providing is presently dealing in various product lines including airport hotels, convention hotels, commercial hotels and suites, mid price hotels, resort hotels, and service apartments.

The brand awareness by Hilton management enables the company to expand hotel industry in the best locations in the best markets. They are using the strategy of globalization to manage and franchise hotels as a leading franchiser across its complete brand family and vacation ownership. Marketing programs adopted by Hilton are the key factors in the renovations and its aggressive expansion, which is a result of its continued commitment to the principles making the name of Hilton synonymous with the top industries in hospitality (Smeral 1998, p. 372)..

Key Concepts

Two important factors for globalization to take place are international trade and the media communication. As far as Hilton hotels are concerned, they are making the effective use of these two tools.

International Trade

Hilton is expanding its international trade through various projects. One of its project is to add ten thousands new hotel rooms every year in the next decade. This strategy has been implemented to foster aggressive ...