Globalization of the Economy - Essay Example

Globalization of the economy Economic globalization as well as rapid ICT developments in the current world has meant that many organizations and companies are run in an international scale. This means that there is always an interaction with customers, consumers, partners, suppliers, or other client organizations from other nations (Friedman, 2005, p.72). Even local organizations and companies may have a multinational workforce meaning that international business communication is of high importance so as to coordinate the activities of such organizations. Others even offer products and services abroad, thus communication has become increasingly multinational as well as intercultural. Companies and organizations seek to come up with strategies of communication that tend to support their overall strategies, vision and objectives. In so doing, the need to communicate and interact with stakeholders who might have various language and cultural backgrounds has been evident. Some of these stakeholders are employees, customers, financiers, and suppliers, local and international governments among others (Drummond & Ensor, 2005, p. 201). Considering a multinational company like Coca-Cola Company The Coca Cola Company is an American international beverage corporation, a manufacturer, retailer as well as a marketer of beverage concentrates which are non-alcoholic and syrups with its headquarters based in Atlanta, Georgia in the US (Jobber, 2010). It is the largest beverage company all over the globe and refreshes consumers with a record of more than 500 still and sparking brands. It’s one of the world’s most recognized and valued companies with a great reputation. Its brands are Coke, Fanta, Coca-Cola zero, sprite, krest, vitamin water, Minute Maid, Dasani, Powerade, and Fuze Tea among others. The Coca-Cola Company is the world’s number 1 provider of ready to drink beverages and juice drinks with the largest beverage distribution system and has consumers in moiré than 200 nations who enjoy the products at a rate of 1.9 billion servings in a day. The company has an enduring commitment aimed at building a sustainable community through focusing on initiatives that minimize environmental footprint, support healthy and active living, create safe inclusive work environments for all associates as well as enhancing the economic development of the communities from where the company operates (Ahmad, 2007, p.103). International organizational structure The Coca-Cola Company has an independent international division structure which trends to separate its international business division with the activities of the head office. This is because the company has international staffs that operate separately from the head office. It has several divisions in all the known continents across the globe headed by presidents who control and run each of the continental division (Porter, 2006, p.82). The company has mainly 5 continental divisions which include: Eurasia and Africa group Europe group North America Group Latin America Group Pacific group Each of the continental division has vice-presidents who are tasked with the responsibility of running and controlling the various sub-divisions based on regions or countries. Such an international structure is very effective and efficient for Coca-Cola Company since it is a very large multinational company (Ahmad, 2007, p.156). The Coca-Cola Company is an ethnocentric multinational company since its domestic operations and activities are very similar to its international operations. Irrespective of the region or nation, the company operates in the same way and manner and deals with similar brands and types of soft drinks. The company has a very tight and effective control over its operations from the head office. Thus, for such a company, international business communication is a very essential topic since workers tend to be transferred to any other place irrespective of their cultural and language differences. This company is truly global and thus its main brands and products are recognized and taken worldwide. The company structures and organizes itself in a manner that reflects this fact. At the same time, the company is always determined to meet the specific and particular needs of regional markets sensitively, thus its international structure and organization should reflect that fact (Porter, 2006, p.152). The structure and success of the company revolves around the following: Quality- Coca-Cola company consistently offers consumers with the highest quality products A unique and internationally recognized brand since it is the most recognized global trademarks. Marketing-it delivers creative and innovative promotion strategies and programs world wide Global availability-its product are distributed worldwide Ongoing innovation-it continually provides customers with new products Features of an international communications strategy International communications strategy has two main sections namely: international communications and the role played by social media in international communications. The first part mostly goes deeper into the idea and concept of globalization and how it changes international communications (Bockstette, 2008, p. 92). As part of the international communications strategies, the Coca-Cola Company tends to emphasize on international corporate social responsibility as well as the role of effective leadership in dealing with new communications landscapes. The second section explains how companies such as the Coca-Cola Company goes use social media in this current era. Social media is becoming more ingrained in the current developments. The Coca-Cola Company, for instance, emphasizes on the trust and authenticity of social media and focuses on how social media brings together communities as well as using it as new ways of expression and even for new media advances in the future (Ahmad, 2007, p.201). Companies especially the multinational ones believe that for communicators to be successful in globalization and international business, they need to gain exposure to other languages and cultures as well as developing curiosity for various ways of thinking. Methods of international business communications These days, international business people and companies are not faced with the same communication barriers that their predecessors did. Due to technological advancements, communication technologies have been expanding on daily basis with effective continuous innovations coming out to help organizations reach across the global world and make big waves within and outside the industries (Bockstette, 2008, p. 102).. For example, in the beverages industry, the Coca-Cola Company has been using social media platform to communicate globally on the best ways of improving their business and services. The Coca-Cola Company respects the rights of its authorized associates and agencies as far as the use of blogs and other social media platforms are concerned not only as a media of self expression but also as tools of furthering the business of the Company. The associates and agencies are always made aware of the implications of engaging in online and social media conversations that concern the company, the brands and the business. They should recognize when the company could be held responsible for their behaviors (Gay, Charlesworth & Esen, 2007, p.82). The technologies used are more sensitive as well as user friendly than the fax machines which were used initially. Some of these methods are: Electronic methods of communication Business technologies have opened up new kinds and methods of business communications such as email, social networking, web conferencing, company websites, text messages and online chats. These allow companies like the Coca-Cola Company to send messages both locally and globally to several units quickly and affordably. These methods are often used to reach outside and international business stakeholders or even the general public (Porter, 2006, p.164). An organization may create several electronic communication channels which are able to reach different target markets or even demographic groups with the same message without any alteration. Electronic communication mostly favors communications with international organizations and companies. Use of websites Website developers have been able to use plug-ins so as to come up with a website on one language but it can be translated into other languages of one’s choice so as to fit all international business perspectives (Argenti & Howell, 2005, p.73). This is always an essential tool in international business communications since one is able to translate the website language to any language of their choice. Translation consultation The best way for a company to communicate globally with another and ensure that all vital transactions and documentations are clear in both directions is to seek the services of a professional translation company. This is more so in the case of legal field and in other situations where legal terms and conditions are inflexible. International communications are very sensitive and call for a great deal of empathy, courtesy and research (Argenti & Howell, 2005, p.109). It is important for any multinational company to understand the needs and concerns of the audience or stakeholders and employ the appropriate tools as we as seeking for assistance if need be. Using database and spreadsheets in international business communication Using spreadsheets in the corporate world can be categorized into two cases: operational and modeling. The ones created for modeling purposes are used as complex calculators to address a particular activity such as mergers and acquisitions. Spreadsheets designed for operational use support various transactional processes and hence serve as a critical business program holding static and dynamic data along with all the calculations done on that data (Argenti & Howell, 2005, p.218). Operational spreadsheets are commonly used to maintain business lists like confidential customer information and inventories. Coca-Cola Company identifies and monitors the use of spreadsheets in their daily business transactions. They have fully pledged the program to process data that meets specific needs of the business rather than operational purposes because when they are used for the latter, they need to be maintained and cared for like the other business applications and databases. To achieve this may seem futile but adopting technology is crucial to monitor key data over time and quickly reviewing the business indicators depicted in the spreadsheets (Cole, 2006, p.188). Differences between global e-commerce and global e-business E-commerce entails outward-facing business processes that are in contact with customers, external partners and suppliers, including marketing, sales, delivery, taking orders, purchasing of raw materials, customer service and supplies for production and procurement of indirect operating-expense items like office supplies. It encompasses the adoption of new models in business as well as the latency of getting new revenues or loses of some obtainable revenue to new rivals in the firm (Bartels, 2000, p.68). E-business on the other hand incorporates the essence of e-commerce and at the same time covering the internal processes like production, product development, inventory management, finance, risk management, human resources and knowledge management. However, the strategy of e-business is a bit complex as it focuses more in internal processes while at the same time aiming at saving costs and improving efficiency in production (Bartels, 2000, p.198). Suitability of international social networking and internet media Social media offers an opportunity to interact and exchange information and where debate and definition of issues takes place. This step enables the researchers of public relations to examine the various forms of interaction along with evaluation of tangible relationships outcomes. Interactive media increases the probability of making communication more strategic , interactive, two-way, dialogical or symmetric. Nevertheless, many organizations have failed to embrace the utility of dialogic strategies effectively that are offered by social networking sites (Botree & Seltzer, 2009, p.192). The current dialogic principles may be inadequate to evaluate the characteristics of social networking sites that form dialogic orientation. This can be as a result of minimal understanding of the approaches in dialog customized to sites of social media taking into account the unique form of the user. Use of digital tools for international marketing purposes Digital tools for international marketing involves the use of mobile and web-based technologies aimed at turning communication into some form of social interactive dialogue. It allows users of social media to come together online and discuss as well as exchange, communicate and participate in various forms of social interaction (Gay, Charlesworth & Esen, 2007, p.102). Countless conversations continues to take place online about Coca-Cola Company everyday and there have been campaigns aimed at ensuring that more than 150,000 business associates in more than 200 nations engage in those conversations and represent the company as well as share the positive and optimistic spirits of the brands. As far as social media interactions are concerned, the company still promotes the value of professionalism whereby all participants should remember who COCA-Cola is- the world’s biggest beverage company with an extremely high reputation which should be maintained at all costs (Drummond & Ensor 2005, p.261). The Company’s role in the social media society is to inspire moments of optimism as well as happiness and help build the brands of the company. All these considerations apply to the messaging and communications in the traditional social media as well as in the current technological world on social media platforms such as face book, twitter, YouTube, Instagram amongst others. For instance, in the year 2014, Coca-Cola had over 59 million face book likes and more than 125 million YouTube views. This means that every day, consumers all over the globe debate, discuss and embrace the Coca-Cola Company as well as the brands in thousands of online conversations. The Coca-Cola face book page was created initially by a couple of super fan to fill a hole the existed at that time. At this time, the company had nothing to do with Face book, but after new rules were introduced for the page, the company had to start managing it by itself. The principles are have fun but be smart on any social media platform. Our consumers are always urged to adhere to the core values of the company during online transactions. In relation to this, the Company initiated various training courses aimed at training associates as well as other agency partners on how to engage safely on social media. These trainings take place mostly in online learning portals (Gay, Charlesworth & Esen, 2007, p.193). Global business means more than just trading between companies in distinct countries. International and intercultural business eyes less on the borders that are separating individuals and focuses more on the means of communication that will bring them together. Communication in business values a concise, clear interaction that enhances efficiency and effectiveness (Knoll, 2011, p.291). While one considers his role as a business communicator within a particular city, business setting, or even an organization, he/she needs to be aware that his/her role trespasses borders, languages, cultures, value as well as legal systems. Read More