1. Get ready for questions after each main section!
Global Business
Get ready for questions after each main section!

2. Transnational companies
Trans sell goods to a few countries wheras global companies sell around the world.
E.g Dell and CRH (HQ Dub but branches in 28 other countries)
Why have transnationals developed;
More power
Spread Risk
Increase sales
Advances in ICT and transport
To overcome trade barriers E.g Jap cars made in Eng

3. Adv of Trans.. Jobs and higher standard of living
New ideas, training, technology etc
Competition can lead to better prices and better quality
Taxes – income tax, corp tax, vat etc build infrastructure
They buy from Irish suppliers

4. Disadv Can move to cheaper cost countires
So powerful they put pressure on government
Send a lot of their profits back home
Irish interests might not be their priority

5. Global Companies Coca Cola, Nike
Buy materials and labour from the cheapest countries
E.G American car
made in korea
parts bought from Japan
designed in Germany
advertiment company from the UK

6. Why have G Companies developed?
Economies of scale (cheaper per item the more u make, buy and sell in bulk)
Mass production technology has improved e.g CAM
Sales, ICT and Transport improved
Deregulation by the WTO: Free open trading. China only relatively recently did not trade with the world.

7. Global marketing ICT, SAT TV –Sky, Internet marketing.
Standardized marketing mix e.g Coca Cola
More often the marketing mix is localised(customised) to suit local culture which is more expensive.
Mc Donalds can’t sell beef burgurs in india as the cow is sacred

8. Global Price Price depends on local standard of living
Higher transport costs
Might have higher taxes and tariffs
Local competition might be intense

9. Global Promotion
Standardised approach is cheapest. E.g Coca Cola at the world cup
Usuallly you must localise so it makes sense to youe local target audience. E.g language interpretations, culture, laws. Could offend locals and lose sales

10. Global Place
Local agents, distributors. E,g Coke have a bottling and distribution plant in ireland. And bottling partner is the nigerian bottling company

11. Importance of Global marketing
Economies of scale
Research and development can make the quality the best in the world. E.g Sony
If customisation is ignored massive sales can be lost. Need market research of local markets.
Consider local culture or face negative PR.

12. Questions Adv and Dis adv of trans and Global companies
Why have they developed?
Explain Global marketing, standardised approach vrs customised and importance?