Emerging Technology
Globalisation has accelerated due to the development of technologies, which have the potential to alter current restricted marketing of goods and services.
Innovations include rapid shipping of hydroponically grown salad vegetables such as cucumbers, tomatoes and capsicums. These are grown in the Southern Hemisphere for marketing to the Northern Hemisphere, during their winter. They can demand premium prices for these products. Excess product is sold to the local market.
Bulk shipments of raw products such as sugar and skim milk powder, reduce handling costs, and permit market driven packaging on arrival. Larger, faster vessels can transport increased quantities of goods, and streamlined offloading systems have reduced the time ships are detained in port. Handling of cargo has been substantially reduced, through use of computerised operations, heavy machinery, and container design.
Suitable vessels were designed to manage live sheep exports, and have been critical to the live sheep trade to the Gulf States. There consumers demand that slaughter is carried out within religious tradition or it is not fit for consumption. These vessels transport several thousand animals, which keeps the costs to a minimum. However an outbreak of disease can disrupt these vessels and one recently was returned after being refused entry at all ports enroute.
Refrigerated road, rail and air transport support various forms of export industries, including specialised dairy products, fruits and fresh flowers.
Infrastructure access has spread and has generally improved in the last decade. Better roads, rail and airport facilities have decreased the time required for goods and services to be delivered. However most of this improvement has been in the developed world, and is concentrated according to population and wealth. There are many enormous third world cities, such as San Paulo, that lack basic infrastructure.
Recently improved data management has allowed organisations to reduce quantities of stock held for resale. This 'just in time' approach reduces storage space; staff needed, and minimises wastage.
Automation has increased production precision, and reduced employer related costs. This has allowed production to be carried out, in ways, which are restricted otherwise. These include sterile procedures, light-excluded production, or those involving toxic compounds. However fewer personnel do result in problems going unnoticed for longer periods.
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Students in Europe use a computer connected to the Internet to learn about global affairs (above). Beyond use as a learning tool, the Internet has also developed as a commerce mechanism permitting for exponentially better interaction worldwide. Nonetheless, many third-world countries cannot afford the necessary communication infrastructure, thereby eliminating them from the Internet's economic opportunities. |
Communications and computerisation have undergone major advances, allowing increasing miniaturisation, improved portability and user-friendly software. This has allowed non-specialist staff to utilise and operate required technology, and reduces the staff required by small business, while allowing them to operate modern stock management and accounting procedures.
Mobile and landline telephones, computers, the Internet, and satellite communications seem everywhere in the developed world and it is easy to assume that these are available globally. However their distribution is also restricted. Telephone services are sparse in outlying areas of the developed world, while in 3rd world countries there are very few services and these may be too expensive for local populations to utilise. Additionally these services can be interrupted by service problems for long periods. It is common for settlements to use short wave radio for emergency communications, as often there is little or no mains electricity supply.
Most African universities still do not have Internet access, although it is available within capital cities. The availability of all these forms of communications is dependent on foreign funding for infrastructure and its maintenance. This is not available in many 3rd world countries, and has restricted distribution in the developed world.
Recently access to telephone services in provincial areas became a major Australian election issue. While the eastern seaboard cities have an abundance of services and choice of providers, inland and remote services have poor or no services, and lengthy maintenance delays, with increased costs.
Mobile phones can only work where there are sufficient towers, and these are less common outside major centres, although networks are continuing to expand.
The reduced cost of technology hardware, has allowed smaller businesses to achieve reductions in costs, and improved efficiency.
Ownership of the complete production process, including shipping and marketing has proved successful for many transnational corporations. This level of integration and seamless production, achieves maximum economies of scale, but requires substantial resources to acquire, and maintain.
Small changes in profit margins may cease to justify this level of capital investment. Cash flow problems occur when expected returns are delayed, causing operational shortfalls. Such problems are common within the global business community, particularly when exposed to currency volatility. This can rapidly shift priorities, with responding changes to resources and commitment to areas and their dependant communities.
The business community is prone to episodes of conflict, where competing organisations vie for control of organisations, which have potential to increase their own share value. Take-over bids may be unwelcome to existing management, and consequently the battle to maintain power within one's own business, while concurrently competing for market share, creates tension and at times results in unethical or simply inappropriate decisions.
New management may determine to expand or contract business operations, regardless of existing agreements.
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Globalisation has allowed brand names to develop a presence all over the world. Referred to as "McDonaldisation" (in recognition of the worldwide fast food chain to pioneer the technique), companies can now establish themselves in all corners of civilisation thanks to innovations both in science and in economics. |
In order to achieve economies of scale, TNC's reduce the product varieties, as these increase cost. This has lead to a loss of product diversity, and a 'homogenisation' of markets. Economist George Ritzer has called this process "McDonaldisation". As a result one can enter most major shopping centres around the globe, and recognise the same products, although their labelling will use different languages. Nestle chocolates all have the same coloured packaging. This global branding improves access for marketing tools around the world.
Australian consumers regularly view advertisements made for US audiences, but which have had computerised adjustments. Some have obvious flaws, such as substituting a cricket bat for a baseball bat in young actor's hands, which was swung inappropriately. Some advertisers feel that the overtly American accents and cultural content adds appeal to the youth demographic of their market.
Transnational Corporations (TNC's) generate goods by sourcing materials and production from areas all around the globe. These originate in developed countries and they have the ability to out-compete the smaller companies that were supported by the local shareholders and their community.
As many members of the public prefer choice, an increasing number of producers are marketing smaller quantities of specialty, or boutique lines. They are able to market these through the Internet to interested consumers. Although they lack the sales volumes of TNC's they are often successful. Products include cheeses, wine, perfumes, aromatherapy oils, and craft items.