Guía 1_Globalizing Business

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MULTICULTURAL CONTEXTS

GUIDE 1: GLOBALIZING BUSINESS

ZULMA YAZMÍN GARZÓN NIVIA

TUTOR:

KELL EY CRITES.

FEAV

Modern Languages

Group 1 First cycle

Bogota

February 2013



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ABSTRACT

This document accounts for the development of the activities proposed for the

Multicultural contexts block in its first guide, which aim to understand the

characteristics and differences of International Business (IB) and Global Business(GB) as well as the different perspectives in which Global Business is understood

nowadays and the role of emerging economies in the globalization process.

KEY WORDS

Globalization, Emerging Economy, International business, Global business,

Institution-Based view, Formal institutions, Informal institutions, Resource_Based

view. MNEs, FDI, GDP.



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CONTENIDO

ACTIVITY 1 ............................................................................................................. 4

1.1 MIND MAP ..................................................................................................... 4

1.2 REPORT ........................................................................................................ 5

ACTIVITY 2 ............................................................................................................. 7

ACTIVITY 3 ............................................................................................................. 7

REFERENCES ........................................................................................................ 8



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ACTIVITY 1

1.1 MIND MAP



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1.2 REPORT

COLOMBIA RETAIL FOOD MARKET OUTLOOK

After years of struggling against its unfavorable past, internationalcompanies now nod to the investment in Colombia. In fact, in 2012 Colombian

Foreign Direct Investment (FDI) reached a record level of US$16 billion showing a

growth of 3.9% in its Real Gross Domestic Product, (GDP) the same year. These

changes are explained by the Free Trade Associations (FTAs) signed between the

country and main markets such as the US, EU, and Canada among others.

Colombia being the third most populated community in Latin America, its

domestic demand makes it an attractive market. No surprisingly, Colombia belongsto the CIVETS1 (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa)

emerging economy group which experts have consider very promising due to its

dynamic economy and young growing population.

In numbers, Euromonitor 2 anticipated retail sales in Colombia of US$17.2

billion in 2012 and expected them to increase to US$20.3 billion by 2017 ranking

Colombia as the fifth largest packaged food market in Latin America and the 25th

largest retail food market in the world.

The growing trend towards convenience and local stores in grocery retailing

is reflected in the expansion of larger chains in small formats by opening new

convenience store outlets. Examples include Éxito Express, Carulla Express,

Metro and OXXO which belong to bigger super and hypermarkets. To illustrate,

Grupo Éxito, accounted in 2012, 427 retail outlets in 53 cities.

Colombian rising market for value-added food products seems to ensure

room for more supermarkets promises Eric Basset, President Cencosud Colombia.

1 The CIVETS are six favored emerging markets countries - Colombia, Indonesia, Vietnam, Egypt,Turkey and South Africa.2 Euromonitor International Ltd is a privately owned, London-based market intelligence firm,providing market research, business intelligence reports, and data to industry.



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Resources consulted:

Food Export association of the Midwest US. “Colombia Country Profile”.

http://www.foodexport.org/Resources/CountryProfileDetail.cfm?ItemNumber=1025

FreshPlaza: Global Fresh Produce and Banana News. "There is room for

more supermarkets in Colombia".

http://www.freshplaza.com/article/113407/There-is-room-for-more-supermarkets-in-

Colombia

USDA Foreing agricultural service. “Colombia retail food sector”.

http://gain.fas.usda.gov/Recent%20GAIN%20Publications/RETAIL%20FOOD%20

SECTOR_Bogota_Colombia_10-6-2010.pdf

Group Casino. http://www.groupe-casino.fr/en/Colombia.html

Wikipedia. CIVETS. http://en.wikipedia.org/wiki/CIVETS



http://www.freshplaza.com/article/113407/There-is-room-for-more-supermarkets-in-Colombia



http://gain.fas.usda.gov/Recent%20GAIN%20Publications/RETAIL%20FOOD%20SECTOR_Bogota_Colombia_10-6-2010.pdf



http://www.groupe-casino.fr/en/Colombia.html



http://en.wikipedia.org/wiki/CIVETS












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ACTIVITY 2

The debate will be presented in the third tutorial.

ACTIVITY 3

VENN DIAGRAM

GLOBAL BUSINES PERSPECTIVES

INSTITUTION-BASED VIEW

(IBV)RESOURCES-BASED VIEW (RBV)

S I M I L A R I T I E S In both, commercial transactions benefit from or are affected by Free

Trade Alliances (FTAs).

Both are regulated by external influences.

Both require a differentiation feature to be successful.

D I F E R E N C E S

Firm performance isdetermined by the formal

and informal institutional

frameworks governing firm

behavior around the world . Copes with external

environment.

Success depends on thecompetition conditions.

Strategies are generic.

Firm market is restricted byinstitutions.

Individualistic kind of

societies has moreopportunities to succeed.

Firm performance is determined by

their environment and international

resources and capabilities.

Copes with the firm’s internal

resources and capabilities. Success depends on the own

competitive advantages.

Strategies are specific.

Firm market is global.

Don’t depend of the kind of society

but on their own capabilities.



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REFERENCES

Peng, Mike W. Global 2010 edition. South western USA. Cengage Learning.

Part I Chapter 1,GLOBALIZING BUSINESS.pages 2-17

Globalization: What Does It Really Mean? (2010) at

http://www.youtube.com/watch?v=LtmvksvSvtc

USLegal ,Free Legal Dictionary(2009) Global Business at

http://definitions.uslegal.com/g/global-business/







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Guía 1_Globalizing Business