Convergence and Divergence: Developing a Semi Global Marketing Strategy - Essay Example

Part Annotated Bibliography Article: Convergence and Divergence: Developing a Semi global Marketing Strategy Douglas, S. and Craig, C., n.d. Convergence and Divergence: Developing a Semi global Marketing Strategy. [online] Innovation in the Box. Available at: http://www.innovationinthebox.com/clientresources/articles/Global%20Context/Convergence%20%26%20divergence-semiglobal%20marketing%20strategy%20%20JIM.pdf [Accessed 20 May. 2014]. Now a day many firms are converging, in terms of logistic and communication to make better supply chain and fulfill the demand of global market. They are expanding their operation on the world scale, which also assist them to increase their sales and revenues. At the same time, others firms are diverging, they are rapidly encountering culture and economic. These all based global marketing strategy. First, the firm has to know, why this converge or divergence is required in business and at what perspective they can meet global market’ need as an evolutionary. Then the firm has to divide the markets in to five major segments and each part will be examined with respect of the economic and culture of markets. Next step, the outcomes of each segment has to be examined and implement different strategies in each segment to find out which will be the better market for the business and how the firm will grow. The firm has to draw a conclusion and find out in which area the firm could lack to fulfill demand of market. In this article, the firm wants to expand its operation management to fulfill the need of market. However, they are facing complex numbers of issue regarding this. The firm is unable to develop an integrated and unified strategy for the world market. The issue with the firm is competition and potential growth in the world market. So they need a diversification in their strategy to implement this whole process through which the firm can resolve the issues. 2. Article: The Lexus or the Olive Tree? – Trading Off Between Global Convergence and Local Divergence. Van Ittersum, K. and Wong, N., 2010. The Lexus or the olive tree? Trading off between global convergence and local divergence. International Journal of Research in Marketing, 27(2), pp.107--118. To work in global market efficiently, the marking managers need to know the behavior of consumers, which is very complex in practical. In most case, the behaviors of consumers are assumed due to its complexity. It is very tough process to understand the behaviors of consumers and to develop a frame work for globalization. However, every marketing manager should understand the behaviors of consumers and to implement in a conceptual framework. This conceptual framework of consumer’ behavior always assists the business to develop in the global market. Through this, the company can satisfy the consumers and fulfill the demand of global market. Even, the conceptual framework also gives leads to the company about the government policies regarding consumers. This whole process is done thru the help of global convergence by protecting local divergence of culture. In this article, it showed that how global convergence assists to understand the market of Europe and their consumers without disturbing the local divergence of culture. It will help the company to leave a big foot print in the market and increase their sales and brand to this market. 3. Article: Convergence: myths and realities Rapley, JJ 2001, Convergence: myths and realities, Progress In Development Studies, 1, 4, pp. 295-308, Academic Search Premier, EBSCOhost, viewed 20 May 2014. Economists have many doubts related to convergence. This leads them to assume about economic liberalization, minimalist states and open market as policies. These assumed policies will encourage the globalization of capital. This theory is very much similar with orthodox Marxist theories of globalization of capital. However, in this situation divergence is more power full than convergence regarding to the global economy. So, in this case; how divergence has important role to global economy has discussed. 4. Article: Convergence and divergence in consumer behavior: implications for international retailing. De Mooij, M. and Hofstede, G., 2002. Convergence and divergence in consumer behavior: implications for international retailing. Journal of retailing, 78(1), pp.61--69. Day by day technologies are getting advanced and it becomes a need of every developing and developed nations to grow or faster. Even, it becomes a need of every consumer too. This thing leads to divergence technology, since all wants development in better and faster way. However, converging technology has its own importance to develop a business. It provides a stable technology to develop a business by providing similar task in business. Although, incomes of consumers are count as convergence but their needs are different in different nations. So to start a retail business in worldwide, the company or managers have to understand the need of consumers and requirement of that nation and it policy. In this case the company needs both convergence and divergence to understand the need and fulfill them. Since, the company has to setup their infrastructure which will count as convergence and the culture of consumer and market will count in divergence. 5. Article: Convergence and divergence in consumer behavior: implications for global advertising. De Mooij, M., 2003. Convergence and divergence in consumer behaviour: implications for global advertising.International Journal of advertising, 22(2), pp.183--202. Globalization for every industry is important to make big foot print in global market. It aids to develop brand in global market, although it increase the sales of the company in global market. However, globalizations of any industry also need promotion activity like advertisement. The other aspect of globalization is convergence of technology, media and income, which helps to understand the similar consumer behavior. It also arise doubt that all nation’s consumer have same convergence. Since, the buying nature of consumers and different cultures of nations are considered as divergence. In this article, it described about how convergence and divergence should managed for global advertisement to attract consumer of different nations. Hence, history of advertising says that consumer behavior considered as convergence for universal values and global market. Although, the cultures of all nations are different, so the use of product via consumers is considered as divergence. 6. Article: Trade and competition policy in global economy: Convergence or Divergence. Tojo, Y., n.d. TRADE AND COMPETITION POLICY IN A GLOBAL ECONOMY: CONVERGENCE OR DIVERGENCE. There are many debates are going on the trade and competition policy in context of globalization of market. Since, all nations have their own policy regarding trade and competition. It is because all nations have different aspect of political environment, legal problems, and economic condition at both local and global level. Therefore, to trade with different nations is always a critical issue of a nation. In this a nation has to diversify their trade policy to match with other nation to work together. It is very difficult for a nation to change their policy according to need of others nation market. Divergence of trade policy can create a critical issue with dealing with two or more nations at same time. In this article, it is clearly described how to deal with such issue. So the all nations come together and develop a policy for trading with each other which is considered as convergence. Since, convergence policy always lead all nation in one direction i.e. growth and all nations wanted this. Although, there might be a chance of clash during trading with other nation related to culture of each nation but it can be regulated by help of the government. 7. Global factory and local field: Convergence and Divergence in International Cane-Sugar Industry, 1850-1940 Bosma, U. and Knight, R., 2014. Global Factory and Local Field: Convergence and Divergence in the International Cane-Sugar Industry, 1850–1940. [online] Google.co.in. Available at: https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=13&cad=rja&uact=8&ved=0CDYQFjACOAo&url=http%3A%2F%2Fwww.researchgate.net%2Fpublication%2F231743746_Global_Factory_and_Local_Field_Convergence_and_Divergence_in_the_International_Cane-Sugar_Industry_18501940%2Ffile%2F5046352a707fc0fd0a.pdf&ei=3Tx7U_28JZW58gXT9YKoCg&usg=AFQjCNEYZlpHGhMxsvfu0hGA897QxOeZBQ&bvm=bv.67229260,d.dGc [Accessed 20 May. 2014]. In 1830s, first time a technological convergence was started in the international sugar cane trade. However, there was many loop holes which did not prove that technological convergence of sugar cane trade internationally. Many questions have been arising by modern and traditional world for this. The question was why convergence of technology is not matching with international trade or there is a global divergence for mode of transport for raw materials in this industry. It might be happened because at that time there was no such policy had been made of international trading for sugar cane. Other factor was the labor issue of different nations. In this article it is clearly stated that during 1850-1940, the international trade was not easy and at that time factors related to the trading was considered as divergence. Since at time there was no common agreement among all nations related to international trading and educations of nations was another factor for divergence at that time of period. 8. Article: Convergence in the Social Welfare Systems in Europe: From Goal to Reality Bouget, D 2003, Convergence in the Social Welfare Systems in Europe: From Goal to Reality, Social Policy & Administration, 37, 6, p. 674, Academic Search Premier, EBSCOhost, viewed 20 May 2014. The social welfare history of Europe was not good, since in Europe all nations had own culture for social welfare system. It is very difficult to manage a vast continent with diversified culture. However, there was common system to protect the social environment of Europe. A platform was providing to link political and economic condition for all nations in Europe. It may lead to convergence or divergence in term social impact in Europe. Therefore, a global convergence is proposed to solve this issue in Europe. In this article, about the critical issue related to social welfare has been discussed and how it overcomes from this issue. Now all nations of Europe are working together for social well fare development. 9. Article: Not quite the Great Britain of the Far East: Japans security, the US-Japan alliance and the war on terror in East Asia. Hughes, CW 2007, Not quite the Great Britain of the Far East: Japans security, the US-Japan alliance and the war on terror in East Asia, Cambridge Review Of International Affairs, 20, 2, pp. 325-338, Academic Search Premier, EBSCOhost, viewed 20 May 2014. The US has expectations from Japan in support of “war on terror”. This expectation is a strategic convergence to provide securities to the world. However, Japan has never showed interest in this role. Since, they do not want to change their policy for military system of Japan. Instead of this, they are only focusing on regional threats, which are comes from North Korea and China. In this article, it mentioned about the relation of the US with other nations in term of anti terrorism activity and how they provide global securities. It also described that Japan has much power then the US, if all Asia-Pacific nations work with Japan as divergence. 10. Article: Does E-Government Promote Accountability? A Comparative Analysis of Website Openness and Government Accountability. Wong, W, & Welch, E 2004, Does E-Government Promote Accountability? A Comparative Analysis of Website Openness and Government Accountability, Governance, 17, 2, pp. 275-297, Academic Search Premier, EBSCOhost, viewed 20 May 2014. Currently, it is an era of information technology. All nations are adapting it to provide their people a better future. All government created a web based interface to communicate with their people. However, this web base interface is not so transparent to the public. In this article its described about what are major differences of convergence and divergence related to technology and how technology is considered as a convergence for e-government. Part 2 – Research Proposal Table of Contents 1Introduction 12 1.1Research Objective 13 1.2Research Question 14 2Literature Review 14 3Methodology 18 3.1Rationale 19 4Conclusion 19 5References 20 1 Introduction Globalization calls for a vital plan of action that backings creation and supporting of preference at a global level (Pfeiffer, Goodstein, & Nolan, 1992). Key plan of action constructs from the mutt rent circumstance to a dream of the fancied future state, with an outline of the real pathway. It brings together and deciphers space determinations, assets and capacities, speculation and joint effort vehicles, and timing and succession of focused moves, into another benefit model, an economical development model (Higgins, 1977), and a significant authoritative character (Albert & Whetten, 1985). The impacts of globalization on vital plans of action are both homogenizing ("convergence" school) and mixture advertising ("divergence" school). The Convergence researchers (Pascale & Maguire, 1980) hold that as the nations change their businesses, create establishments, embrace current engineering, and accomplish industrialization, the vital business conduct would get comparable in light of the fact that individuals will grasp regular qualities with respect to investment movement and work-related conduct (England & Lee, 1974; Kerr et al., 1964). The Divergence researchers, rather attest that national society, not financial belief system or innovative development, is (and will keep on being) the overwhelming constrain in molding the qualities, convictions, and demeanor of directors inside a nation (Hofstede, 1980, Laurent, 1983). Numerous researchers put stock in the useful comparability (Child, 1981) - globalization is not about convergence to best practice, but instead about leveraging contrast in an inexorably borderless world to increase separated positions and focal points (Guillén, 2000). To extension the contrasts between Convergence and Divergence schools, Ralston, Gustafson, Cheung, and Terpstra (1993) propose a center ground utilizing the expression "crossvergence" characterized as a worth set that seemed to be "amidst" the qualities underpinned by the East and the West. Crossvergence recommends that the Asian associations would create a "cross breed" model - mixing the best components of both their down home and transported in thoughts (Abo, 1994). While crossvergence offers an effective point of view to coordinate the twin strengths of innovative proficiency (connected with convergence) and social embeddedness (connected with divergence), it is not by any means the only option. Once in a while the directors must incorporate worldwide models with their societal and hierarchical society. In these circumstances, a different approach, that we term as transvergence, is required. Transvergence may be characterized as a developmental change in the key modalities of an associations business through an inventive reinterpretation and reapplication of indigenous society and emanant business and innovative fortunes The thesis is focused on the dilemma between the two Schools of thought Global Divergence and Global Convergence 1.1 Research Objective The research paper will be focusing on the analysis of convergence and divergence in Globalisation. Both of the topics have been in debate for a long time and we will to differentiate between the two as to which one of them is more important and how? In doing so, we will also try to criticize the two of the issues with the help of supported data collected with the help of primary and secondary research. 1.2 Research Question The research question that will be answers through with research is: Which of the two is more important in globalization – Convergence or Divergence? 2 Literature Review One part of globalization is the convergence of salary, media and engineering, which thusly is relied upon to prompt homogeneous buyer conduct. This convergence theory is progressively addressed. With uniting national riches there still is significant variety of purchaser conduct crosswise over countries, which is not vanishing. Variety is found in all parts of customer conduct: in utilization of bundled merchandise, in use and responsibility for products, and in media conduct. With vanishing contrasts of GNP for every capita, society is an effective clarifying variable. This paper gives proof of divergence of purchaser conduct instead of convergence, it depicts the impact of society, how social variables can demonstrate fluctuation of utilization, and presents the results for global brand administration and for worldwide promoting. As of not long ago, the effect of society was not well caught on. Overlooking societys impact has headed numerous organizations to unify operations and marketing which, as opposed to expanding proficiency, has brought about declining productivity. A few substantial multinational firms have seen their benefits decrease in light of the fact that concentrated control needs nearby affectability and are therefore changing their methods from worldwide to neighborhood. Moreover, Coca-Cola chose in the year 2000 to move closer to neighborhood markets on account of declining benefit. Coca-Colas CEO was cited in the Financial Times (27 March 2000) as expressing that We continued institutionalizing our practices, while nearby affectability had ended up totally key to achievement. Coca-Colas marketing boss expressed that the associations enormous triumphs have hailed from businesses where we read the purchaser mind consistently and change the marketing model consistently (Byrnes, 2000) Worldwide advertisers would like us to accept that in the new Europe with a solitary cash, shoppers will get more comparative, will progressively consume the same sustenance, wear pants and watch the same TV programs. Actuality is distinctive. There are wide contrasts among the quality frameworks of buyers in diverse European nations – esteem frameworks that are established firmly in history and give off an impression of being impervious to change. These contrasts were anticipated to vanish with the single European market in 1992 and the appearance of cross-fringe media, yet to date they have not. Despite the fact that there is confirmation of meeting monetary and demographic frameworks in Europe, there is no proof of focalizing quality frameworks. Unexpectedly, there is confirmation that purchaser conduct is wandering in Europe as reflected in the utilization, proprietorship and utilization of numerous items and administrations. Open doors in created nations have reduced in view of a leveling of development, compelling rivalry, and business sector immersion. Accordingly, U.s. whats more European multinational companies (MNCs) have progressively centered around extension in developing markets, for example, the BRIC nations (Brazil, Russia, India, and China), specifically, China and India. All the more as of late, firms have likewise centered around second-level developing markets, including nations, for example, Turkey, Egypt, Mexico, and Vietnam, all of which have development rates altogether higher than those in the United States, Europe, and Japan. Douglas and Craig inspect the ramifications of these sensational progressions for the marketing systems of expansive U.S. also European MNCs. The new actuality intimates that organizations need to profoundly reconsider their point of view and reformulate their worldwide marketing procedures to concentrate on consolidating these new open doors into their arrangements and operations. Thus, this represents a few vital difficulties. From one perspective, MNCs need to keep on stimulating request and seek piece of the pie in their conventional markets in created nations and in connection to the recently rising worldwide shopper business portions. Then again, they have to create fundamentally distinctive marketing systems, redesign their operations, and obtain new assets regarding abilities and aptitudes to target developing customer advertises in a reach of diverse developing business sector economies. Adding to the unpredictability, these developing markets vary altogether regarding the way of customer interest, rivalry, market foundation, and ecological connection. The researchers look at these difficulties, recognizing five significant circles of operation, including four that include developing markets. They think about the budgetary and social environment in each of these business sectors, underscoring their differing qualities both inside and over the nations. At that point, they talk about vital goals for each of these sorts of businesses, underlining the criticalness of creating and actualizing distinctive procedures in connection of each. They reach determinations concerning the need to create a lucid set of dissimilar systems for world markets and the snags to overcome simultaneously. They stress the imperativeness of depending on nearby administration include and know-how concerning both comprehension the neighborhood economic situations and figuring viable methods to tap these business sectors. The creators advocate the advancement and execution of a semiglobal marketing methodology, which involves creating different systems in connection to each one kind of business while making an union of these methodologies and operations on an overall premise. Sadly, what you depict when you say that the web helps "increment assorted qualities and tolerance with all the distinctive societies, individuals, and countries that utilize the web" is the perfect of Marshall Mcluhan called the "worldwide town". In the article I examined titled, Global Village: Divergence or Convergence? The creator proposes that "worldwide convergence may wind up divergence rather" (p.218). In place for all individuals and societies to be just as spoken to in the innovative universe of the Web, they initially need access to web and innovation, which unfortunately, is not the situation. Innovation obliges cash, and on account of new media, the crevice between rich and poor is developing. Broad communications is ruled by the few, affluent and influential, and in this article a citation by Ben Bagdikian (p. 221) is especially useful in demonstrating the issue of monopoly of the media in globalization. A portion of the myths encompassing worldwide marketing and promoting are convergence of purchaser conduct, the presence of general qualities also worldwide groups with comparative qualities. This article has talked about these myths, centering especially on accepted convergence of purchaser conduct. Despite the fact, that for some sturdy items and new innovations, at macro level (responsibility for every 1000 individuals), nations meet, it is the situation that nations have a tendency to veer with admiration to how individuals utilize these items. About whether utilization contrasts between nations are steady or they expand. These contrasts could be demonstrated by society. Investigation of the impact of pay or society on utilization at nation level about shows, that when nations focalize concerning national riches, social variables progressively clarify the contrasts in nation level conduct. The literature review can continue through further discussions done by previous scholars in the field of global convergence and divergence. We will be proceeding on to the methodology in order to under to understand the way to conduct the research for analysis. 3 Methodology So far we have seen the various discussions done in debating the issue of Convergence and divergences in globalization. In the methodology we will be doing the research to understand the issue and come to conclusion as to which of the two has a better significance in globalization. The research will be conducting with the help of primary as well as secondary data. The primary data will be collected with the help of questionnaires that will be distributed to the population at large. We will restrict the sample size to 100 people for a better analysis. The qualitative analysis will be done with the help of the data available from the filled up questionnaire. Though qualitative analysis is considered to be accurate but there are still chances of the analysis going wrong if the questionnaire is not answered sincerely. Then the analysis will be affected and conflict can arise within the analysis there by hindering the whole process of research methodology. Keeping this issue in mind we will also be conducting a qualitative research with the help of previous research and data available from internet sources, journals and books to make the research more authentic and accurate. Though this kind of research in mainly secondary and the data or the studies found might be outdated to provide the accurate analysis, still it can be done alongside the quantitative analysis to come to a definitive conclusion in the thesis. 3.1 Rationale Through the analysis our research rationale would be to conclude the dilemma or the debate between convergence and divergence in globalization. Which of the two is more effective for a business or in what circumstances should each of them be used. The methodology as discussed will be conducted on the basis of this motive. 4 Conclusion The conclusion will be based on the analysis of the quantitative and qualitative data collected from the primary and secondary researches done with the help of the questionnaire and various journals, books and online sources. 5 References Abo, T., 1994. Hybrid Factory: The Japanese Production System in the United States. New York: Oxford University Press. Albert S. & Whetten, D.A., 1985. Organizational Identity. Research in Organizational Behavior. 7: 263-295. Byrnes, N., 2000. Brands in a bind. Business Week, 28 August, pp 124–127. Child, J.D., 1981. “Culture, contingency and capitalism in the cross-national study of organizations”. Research in organizational behavior. 3: 303-356. England, G.W. & Lee R., 1974. “The relationship between managerial values and managerial success in the United States, Japan, India, and Australia”. Journal of Applied Psychology, 59, 411-419. Goodstein L., Nolan T., Pfeiffer J. W., 1992. Applied Strategic Planning: How to Develop a Plan That Really Works. NY: McGraw-Hill. Guillén M.F., 2000. “Corporate governance and globalization: Is there convergence across countries?” Advances in International Comparative Management. 13:175-204. Higgins, R.C., 1977. “How much growth can a firm afford?”, Financial Management, 3: 3-16. Hofstede, G., 1980. “Motivation, leadership, and organization: Do American theories apply abroad?”. Organizational Dynamics, 9: 42-63. Kerr, C., Dunlop, J. T., Harbison, F., & Myers, C. A., 1964. Industrialism and Industrial Man. New York: Oxford University Press. Laurent, A., 1983. “The cultural diversity of Western conceptions of management”, International Studies of Management and Organization. 13: 75-96 Read More