Questions and Answers
1. What is Globalization and what are the advantages and disadvantages of Globalization?
Globalization
Globalization is the system of international integration that often arises from the interchange of world products, views, ideas, and some aspects of culture.
Advantages of Globalization
There are many advantages of globalization of an organization. It helps an organization to expand its operations resulting in increase of revenue and profit. Following are the key advantages of globalization.
Globalization enables the employment ratio, providing more employment to the international market. Consumers have easy access to select from variety of brands and products. In this era, people are ready to compromise on the price but are very conscious to the quality. International markets promise the quality and provide the wide range of product categories offering variety of brands and products ranges from luxury to need. Presence of the International industry results in increase in gross domestic product (GDP) of the country where international organization is operating. Globalization is playing a major role in reducing international poverty and wide spread of technology
Disadvantages of Globalization
Like advantages, there are also some disadvantages which are the real area of concern. Globalization brings the element of cross culture. With large number of employees traveling from home country to abroad, the cultural values are badly hurt. Employees need to adopt and adjust in different culture, leading to cultural conflict. Globalization is hurting the local economies. In the presence of international market, smaller local companies are struggling very hard for the survival
2. What are the key global challenges and issues faced by parent organization launching globally?
Globalization is not an easy mission. Organizations face certain global challenges to enter internationally and certain issues to be faced to come up with successful operations.
DKSH’s challenges and issues
Due to the Asian crisis in 1997, SiberHegner reported the record loss and was on the edge of bankruptcy. On that time Wolle took over the position of CEO and faced certain challenges for not only to bring company profitable but also globalize the technology business of SiberHegner. Wolle accepted the challenge and analyzed the strengths of SiberHegner of integrated service concept and strong leadership. The merger with the Diethelm Keller, expertise in logistics and huge distribution strength resulted in record success of the organization and was very successful in meeting up the challenges.
There were several key issues faced by Wolle which were barriers for success.. He eliminated entire management level and reduced the members if group executives to get the direct insights of the operations.
3. Define the company structure; discuss the business units of DKSH. What are the competitive landscapes differs by business unit?
There are four highly specialized business units of DKSH, with flexible and efficient operations, producing in-depth expertise, skill and industry specific know-how
- Consumer goods unit
The consumer goods unit is responsible for supply of fast moving consumer goods (FMCG), apparel, luxury and lifestyle, food services and hotel supplies to modern and traditional trade channels.
- Competitive Landscape
The market has not consolidated and is fragile yet but heading toward consolidation
- Healthcare unit
Health care unit ensures the supply of pharmaceuticals, OTC and consumer health products, medical devices and own brands to professional healthcare channels.
- Competitive Landscape
This segment is consolidated with two major competitors and similar local companies. There is a strong competition specifically for standardization services in high volume areas.
- Performance materials unit
Performance material unit guarantees the supply of highly specialized raw materials, specially chemicals and formulation to the global chemical, pharmaceutical, personal care and food industries .....................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
The case describes the history and transformation of DKSH, privately owned global trading company with headquarters in Zurich, Switzerland, which has been doing business in the Far East for about 150 years. The case focuses on the efforts of the Director Joerg Wolle in 1999 to combine several independent family Swiss trading houses under one roof and transform the enterprise is successful, but a steady old-fashioned trading houses in a new type of company that specializes in "Market Expansion Services". This novel market expansion services company working with global "clients" (eg, large pharmaceutical companies) to help them gain access to faster growth in various Asian markets and with "clients" (eg, Asian distributors and retailers) to provide them access to goods and services from global customers. To effectively achieve this corporate reorganization, Wolle has worked with several other leaders to create an integrated IT, logistics and market research capabilities. The case focuses on a strategy of growth and associated problems, mainly related to people and the leadership to bring DKSH to the next level of profitable growth. "Hide
by Robert A. Burgelman, Martina Ludescher Source: Stanford Graduate School of Business 32 pages. Publication Date: February 13, 2012. Prod. #: SM204-PDF-ENG
Related Case Solutions & Analyses:
Jumping the Line Scalping in Hong Kongs Property Market
Procurement at Betapharm Corp. (B)
Sun Microsystems Inc: Web Services Strategy
Versity.com
Sun Hydraulics: Leading in Tough Times (B)
Ember Corp.: Developing the Next Ubiquitous Network Standard
Newport Creamery (B)
Hedging Currency Risk at TT Textiles
Care group
Costco Wholesale Corporation.
