This presentation deals with the impact of globalization on some of the business giants around the globe.

1. GLOBALIZATION
ABHISHEK SHRIVASTAVA (004)
AJIT SINGH (007)
AKASH SRIVASTAVA (012)
AKSHAY SHUKLA (013)

2. GLOBALIZATION
 Globalization is the process of international integration arising from the interchange
of world views, products, ideas and other aspects of culture.
 Advances in transportation and telecommunications infrastructure are major factors in
globalization.

3. WALMART
Operates in countries including China, India, U.K., and Latin America. Most of those stores
operate under names other than Wal-Mart.
 1962 Wal-Mart opened the first store In Rogers, Ark.
 1972 Wal-Mart approved and listed on the New York Stock Exchange.
 1985 Wal-Mart has 882 stores with sales of $8.4 billion and 104,000 Associates.
 1996 Wal-Mart enters China.
 January 2014, Walmart's international operations comprise 6,337 stores and 800,000
workers in 26 countries outside the United States.
There are wholly owned operations in Argentina, Brazil, Canada, and the UK.In the financial
year 2010, Walmart's international division sales were $100 billion (equivalent to $108 billion in
2015), or 24.7 percent of total sales. Total revenue: $420 billion.

4. Wal-Mart and Globalization at china
 Wal-Mart accounted for approximately 9.3% of total U.S. imports from China
between 2001 and 2006 which is equal to $185 billion
 Wal-Mart exports only a negligible amount to China, accounting for at most 0.2%
of total U.S. exports to China.
 Wal-Mart was responsible for a $17.1 billion increase in the U.S. trade deficit
between 2001 and 2006.
REASON
80% of Wal-Mart’s global suppliers are based in China. From toys to apparels to
household goods, most of the Wal-Mart’s products are either manufactured in China,
or have Chinese components in them Because labour cost is very less in china and
there are industry friendly policies framed by the government.

5. WALMART AND INDIA
 In November 2006, the company announced a joint venture with Bharti Enterprises to open
retail stores in India. As foreign corporations were not allowed to directly enter the retail sector
in India,Bharti Walmart operates stores in India under the brand name "Best Price Modern
Wholesale.
 Wal-Mart has its eyes on India after the currency re-evaluation problems with China, which
could make producing goods in China costlier.
 Apparels from India make up 30% of sourcing from India and its likely to rise even more.
 Cheaper raw material and availability of labour allow Indian companies to reduce production
lead time, which is important to the retail industry.
 With China’s higher tax on exports and Yuan revaluation, the Chinese textile suppliers to Wal-
Mart have already relocated to India for manufacturing.
 Wal-Mart itself buys $1billion worth of goods from India. Not only the Chinese, but also
suppliers from Singapore and Middle East are opting to shift production to India.

6. McDonalds
 McDonalds is the words largest fast food corporation, serving more then 57 million people in
119 countries daily with more then 31,000 restaurants world wide in which 6,899 are owned
by company and 20,499 are operated as franchise and 3,960 are operated by affiliates
McDonalds operates in 118 Countries.
 66% of sales were from international operations. McDonald’s has successfully been able to
open fast food restaurants in every region of the world.
 Before opening up a restaurant in a new country or society, McDonald’s researches and
analyses the local taste developments and foods of the area.
 Since these preferences and tastes vary from region to region, depending upon the
geography, seasons, religions and cultures of the regions. This way the managers of
McDonald’s ensure that their products are in accordance with the local tastes and would not
offend the native culture or traditions.
 In India, McDonald’s did not introduce beef or hamburgers and focused on chicken and lamb
meat only, sine the Hindu religion forbids red meat. Likewise, spicy flavoured food was the
local trend, and McDonald’s instantly adopted the local culture.

7. WORLD LOCATION YEAR WISE

8. RANBAXY
 Ranbaxy was founded in the year 1961, acquired by sun pharma in the
year 2014. covers a market share of 9% world wide.
 It has its manufacturing facilities in countries like china,india,brazil,south
Africa and Nigeria.
 Ranbaxy operations are handled by 17500 employees and the company
holds a worth of $200 billion.
 In the year 1993 Ranbaxy made a joint venture in China and also
established its regional headquarters in United Kingdom and U.S.A.

9. IMPACT OF GLOBALIZATION ON RANBAXY
 Ranbaxy acquired South Africa's fifth largest generic player Be-Tab Pharmaceutical for $70 million
(Rs.315 crores) gave it access to Africa's largest Pharma market valued at close to $ 2 billion.
 Ranbaxy acquired Romanian Pharmaceutical Company Terapia for Rs.1445 crores to further its access
into European market giving it access to two manufacturing plants and about 157 drugs.
 Ranbaxy acquired Germany's Merck estimated to be worth more than 4 billion Euros (US $ 5.2
billion). Ranbaxy acquired business in Germany and entered into Brazil and South Africa.
 In the year 2003 it entered into an alliance for drug discovery and development with
GlaxoSmithKline.
 In the year 2004 it acquired a wholly owned subsidiary RPG SA and started functioning in France as a
top 10 generic company.
 In the year 2005 Ranbaxy acquired generic product portfolio from EFARMES of Spain and launched
operation in Canada.

10. REASON FOR INCREASED GLOBALISATION
Indian market is attracting Boots with new capital investments and very good
incentivise.
Some of the reasons for increased globalisation of business are:
 Trade barriers
 Customer demands
 Regulation and restrictions
 Globalisation of competitors
The aggressive reasons for globalisation are:
 Growth opportunities
 Resources asses and cost saving
 Economic of scale
 Incentives

11. TATA STEEL
 Fortune 500 company
 Sixth largest steel producer in the world
 Self sufficient in iron ore through its captive mines
 It is 60% self sufficient for coking coal
 Bought 19.9 % stake in new millennium capital corporation Canada for iron ore
mining
 Global mining portfolio in India ,Canada, Mozambique ,south Africa ,ivory cost and
Australia
 Presence in 50 markets ; manufacturing operations in 26 countries

14. POSITIVE IMPACT OF GLOBALIZATIO
 Greater competition among producers resulting from globalization is a great advantage to
consumers as there is greater choice before them. Consumers now enjoy improved quality
and lower prices for several products.
 Due to globalization many MNCs have increased their investments in India. This means
thousands of people are getting highly paid jobs .
 Local companies supplying raw materials, to these industries have prospered.
 Top companies have benefit from increased competition ,they have invested in newer
technology and production methods and raised their production standards.
 Some Indian companies have gained from successful collaborations and foreign companies,
Large India companies have emerged as multinationals like Tata motors.
 Created new opportunities for Indian companies providing services ,particularly in the IT
fields. Services such as data entry ,accounting, and administration tasks are now being done
cheaply in India and exported to developed countries.

15. NEGATIVE IMPACT OF GLOBALIZATION
RISING COMPETITION
Liberalization of foreign trade policies allowed the import of electronic goods at a
very
cheap cost. Local producers of electronic goods were not able to meet with this
challenge.
MNCs flooded the market with quality products at a cheap price. Local producer
are not
able to compete with this and are put to hardship as their goods do not have a
market.
UNCERTAIN EMPLOYMENT
In order to compete in the world market exporters try and cut labor costs. Workers
are denied their fair share of benefits as manufacturers are always on the look out