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Chapter 15

Chapter 15. Thinking Globally: “ It’s a Small World After All ”. Objectives. To explore the relationship of services and culture To examine the phenomena of global trade in services To consider strategies for entering global service markets. Objectives (cont ’ d).

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Chapter 15

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  1. Chapter 15 Thinking Globally: “It’s a Small World After All”

  2. Objectives • To explore the relationship of services and culture • To examine the phenomena of global trade in services • To consider strategies for entering global service markets

  3. Objectives (cont’d) 4. To contrast standardization and adaptation strategies for global services • To communicate the imperative of adapting to a multilingual global marketplace • To briefly examine technology and global services

  4. Outline • Introduction • Services and Culture • Global Trade in Services • Entry Strategies for Global Service Markets • Standardization versus Adaptation of Global Services • Multilingual Service Systems • Technology and Global Services • Summary and Conclusion

  5. Services and Culture • Cultural Orientation Toward Nature • Cultural Orientation Toward Activities • Cultural Orientation Toward Time • Cultural Orientation Toward Others

  6. Global Trade in Services • In the industrialized world, services represent more than half the gross domestic product (GDP) • Measuring trade in services is problematic because of country-to-country differences in definitions • Sharp increases in trade volume and foreign investment in services in recent years demonstrate a strong global presence across many service industries, especially health care, entertainment, and tourism

  7. Global Trade in Services (cont’d) • Measuring the global significance of the service sector is very difficult: • As organizations grow, they frequently incorporate services internally that were previously supplied by independent service firms • When a customer travels to a service provider's country to be served, the transaction is foreign trade • As more women enter the work force, many services that were previously performed in the household are now performed by professionals • Organizations often combine their services data with nonservices data

  8. Global Trade in Services (cont’d) • An outbound service export strategy involves sending the service provider to other countries • An inbound service export strategy involves bringing foreign customers to the service provider’s country • A teleservice export strategy involves exporting services by delivering them electronically

  9. Entry Strategies forGlobal Service Markets • Foreign Direct Investment – Organization chooses to invest its resources directly in another country • Franchising – Organization expands service operations around the world • Joint Ventures – Organization contracts with local organizations and thereby shares risks and rewards

  10. Standardization VersusAdaptation of Global Services • Standardization means providing the same service in the same manner around the world • Adaptation means tailoring service offerings to accommodate conditions in each local market

  11. Standardization VersusAdaptation of Global Services(cont’d)

  12. Multilingual Service Systems • Multilingual service systems are increasingly needed to meet the varied needs of global customers, especially when a service system simultaneously serves customers who speak various languages. • Numerous methods are available to deliver services multilingually: producing signage, developing appropriate automated systems, creating written communications, and hiring and training a multilingual staff that can handle the diverse language differences throughout the global market.

  13. Multilingual Service Systems (cont’d)

  14. Technology and Global Services • Technology is an essential means of expanding the global reach of services • Communications and transportation technology allow a service organization to operate in multiple countries while maintaining close contact with employees and customers • Technology is the single most influential force behind the globalization of markets

  15. Web Sites • IBM (http://www.ibm.com), p. 227 • Shell Oil (http://www.shell.com), p. 227 • Visa (http://www.visa.com), p. 227 • Pizza Hut (http://www.pizzahut.com), p. 227 • CNN International (http://www.cnn.com), p. 227 • YouTube (http://www.youtube.com), p. 228

  16. Web Sites (cont’d) • McDonald’s (http://www.mcdonalds.com), p. 231 • KFC (http://www.kfc.com), p. 231 • Service Corporation International (http://www.sci-corp.com), p. 233 • Laura Ashley (http://www.laura-ashley.com), p. 233 • The Body Shop (http://www.bodyshop.com), p. 233 • Benetton (http://www.benetton.com), p. 233

  17. Web Sites (cont’d) • Burger King (http://www.burgerking.com), p. 233 • Wyndham (http://www.wyndhamworldwide.com), p. 234 • Days Inn (http://www.daysinn.com), p. 234 • Howard Johnson (http://www.hojo.com), p. 234 • Ramada Inn (http://www.ramada.com), p. 234 • Super 8 (http://www.super8.com), p. 234

  18. Web Sites (cont’d) • Walmart (http://www.walmart.com), p. 234 • Bharti Enterprises (http://www.bharti.com), p. 234 • Coca-Cola Company (http://www.coca-cola.com), p. 236 • Ogilvy & Mather Advertising Agency (http://www.ogilvy.com), p. 236 • Hotel Miraparque (http://www.miraparque.com), p. 237 • AT&T (http://www.att.com), p. 239

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