FEATURES OF GLOBALISED PRODUCTS -Its production is specific: it relies on the DIVISION OF LABOUR and its production is usually outsourced

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1 Globalised products

2 FEATURES OF GLOBALISED PRODUCTS -Its production is specific: it relies on the DIVISION OF LABOUR and its production is usually outsourced -It is spread all over the world: either identical it adapts to local cultures -It has a huge economic impact : it creates/supresses jobs, leads to imports and exports and produces huge turnovers. -It has a huge social and cultural impact

3 I PHONE I/ A phone is a typical globalised product A/ Its production and use 1) It relies on labour division : See table 1: I phone 3 called on 9 different companies for its components After being produced, the components are finally assembled by a famous Taiwanese company called FOXCONN located in China which then ships I Phones to the US.

4 I PHONE 2) it s a product and a medium of globalisation it spread all over the world: Although it s mainly used in Northern countries ( over 75% of the population) It appeared in 1991

5 B/ It has an impact on the national and world economy -The Americans have invented the I phone but now the USA has become an importer as it is made in China: On I Phones one can read : «Designed in California, produced in China» -These imports are motivated by: cheap labour force ( division of labour) cheap technology -It brings huge profits SEE DOC SOURCE 3

6 -the profit are due to high sales but also to huge profit margins: see table3: 64% profit margin - But labour force is exploited : SOURCE 4

7 STARBUCKS COFFEE

8 I/ SOME INFORMATION STARBUCKS COFFEE -It s a coffee and coffeehouse chain founded in Seatlle in Now it owns over stores in 62 countries worldwide -It s famous for for selling coffee, but also other hot and cold beverages, sandwiches and other snacks.

9 Starbucks locations worldwide

10

11 1) Presentation This document is a combination of a map and a bar graph. It s extracted from a website and explains Starbucks coffee company s worldwide influence it also shows how this company took advantage of globalization.

12 2) The map The map shows three information: First it locates Starbucks stores in the world: North America, South-East Asia and Europe. It s outdated because now there are stores in South America and Minor Asia Not many stores in Africa: backwardness of development and some cultural obstacles: coffee is not a popular drink everywhere. GLOBALISATION OF CULTURE

13 2) The map It also shows where ingredients and products like paper are from Although the arrows are not well visible we see they come from all over the world: We read a cup of coffee can depend on 19 different countries

14 3) The histogram It shows how many stores the company has But again it s outdated because now Stabucks has over stores worldwide NOW

15 4) Why is Starbucks a typical globalised company? Starbucks Company takes advantage of multimodal platforms and hubs so costs of transportation are drastically reduced as well as shipping delays. Starbucks coffee company tries to make the most of it using outsourcing and subcontracting to lower costs of production and make high profit.

16 5) however. this document is only descriptive and focuses on Starbuck Company s power. It does not say much about how the company treats subcontractors and employees.

17 DOMINO S PIZZA

18

19 I/ SOME INFORMATION DOMINO S PIZZA -It s an American restaurant chain and pizza delivery company - Founded in Michigan in It s the second largest pizza chain in the USA after pizza hut -It s the largest pizza chain worldwide with over franchises in 70 countries -Since 2004 it trades its stocks in NYSE -In 2012, Domino's Pizza removed the word "Pizza" from their logo, to emphasize their non-pizza products.

20 Domino s pizza locations worldwide

21 II/ Work on the document 1) Presentation DOMINO S PIZZA This document is an extract from a magazine the financial times published in This magazine is a well-known British economic magazine. It deals with the TNC Domino s pizza and its strategy to spread worldwide and adapt its products to local cultures. 2) First let s notice It s outdated : the first sentence states:. We know that today DP owns over franchises in 70 countries

22 3) DP had to adapt its products to gain new markets This is said line 3: it had to adapt both.. Then the whole first paragraph gives example of local consumers tastes. It s also explained in the second paragraph that culture can influence such a TNC s strategy: but there can still be cultural complication The last paragraph also gives the example of home delivery which is not easy in all the countries

23 4) What does this text show? This text shows two things: -First it shows pizzas have been accpeted worldwide and it only needed few slight changes to make it a local meal. It witnesses globalisation of culture : we tend to all eat the same way even if ingredients can change. -Then it show the interconnection between culture and economy : cultural adaptation was needed to sell products globalisation of culture goes along with he globalised economy.

24 WALLMART

25

26 I/ SOME INFORMATION 1- Birth and spread WALLMART -Wal-Mart began in 1962 when Sam Walton opened the first store in Arkansas, USA. -Wal-Mart sells a variety of products : food, clothes and electrics good. It is the biggest retailer in the world. Indeed, it owns over stores and employs over 2 million people and a yearly 473 billion $ turnover!

27 WALLMART 2- Wal-Mart has positive effects... -Walmart creates lots of jobs in different countries Ex: Mexico, Wal-Mart employs over people -Local companies and farmers supply goods to Wal- Mart, increasing their business. -Walmart offers more skilled jobs in poorer countries. Ex: the Wal-Mart stores in China, are managed by local people.

28 WALLMART -Wal-Mart donates hundreds of millions of dollars to improve things like health and the environment in countries where it is based. Ex: 2008 in Argentina, Wal-Mart donated US$ to local projects and gave food and money to help feed nearly poor people.

29 3- and negative effects: WALLMART -Some companies that supply Wal-Mart have long working hours. Ex: Bangladesh supplies clothing. Bangladesh has a maximum 60 hour working week, but some people claim it s more like 80 hours a week! -Besides, no all Wal-Mart workers are paid the same wages. Ex: factory workers in the USA earn around $6 an hour, but in China earn less than $1 an hour

30 WALLMART -Finally, the stores are often very large and out-oftown, which can cause environmental problems : pollution and traffic jams ( it takes large areas of land to build them and people drive to them) Ex:the largest Walmart store is in Hawaii and it covers m 2, that s over three times the size of the football pitch at Wembley Stadium OF LONDON

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