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GLOBALIZATION

Globalization or globalisation is the process of interaction and integration between people,


companies, and governments worldwide. Globalization is a process driven by international trade
and investment and aided by information technology. This process has effects on the
environment, on culture, on political systems, on economic development and prosperity, and on
human physical well-being in societies around the world.
Globalization for any country is mainly for its economic development and to fulfill the long
term objectives. Some of them are Increase in investments, savings, transfer of technology and
foster growth.
1. Increase in investments. A country opting Globalization welcomes the other countries
to invest in them considering the domestic and international policies. It facilitates financial
flow, development in trade increase in employment opportunities.
2. Savings. There is a direct relationship between Investment and savings. They play a
major role in development. Investment leads to increase in income which further elevates
savings. Savings leads to further investment.
3. Transfer of technology. Transfer of technology plays a huge role as it is necessary to
upgrade from old methods and invest in research and development which helps to create
advanced technology. The best example is E-commerce, that has revolutionized international
marketing methods and has simplified buying and selling.
4.Foster growth. Considering GDP growth per capita (GDP/population of that country), an
increase in GDP denotes that it has increased the growth and increased standard of living of
the people.

Strategies to be Globally Competitive


1. Exporting products to foreign countries.
2. Establishing sales organizations abroad.
3. Licensing patents and know-how to permit foreign firms to make and sell its products
4. Establishing foreign manufacturing facilities
5. Multinationalization of management from top to bottom
6. Multinationalization of ownership of corporate stock
Advantages:
Increase in employment opportunities: As globalization increases, more and more companies
are setting up businesses in other countries. This in turn increases the employment opportunities
that people atone place have. People can get better jobs without having to move to other
countries in search of better jobs.
Faster flow of Information: Information flows from one part of the world to the other
immediately, resulting in the world being tied together. Vital information can be shared between
individuals and corporations at a very fast rate. It has also facilitated in increasing the ease of
transporting people and goods.
Increase in quality of goods and services: As a result of globalization, people have access to the
best quality of goods and services throughout the world. Companies have to strive to provide
better quality goods and services to the consumer and the consumer has the liberty of choosing
whichever product he thinks is best suited for his needs.
Disadvantages:
More sudden and uncontrollable impact: The New Globalization is more sudden due to the fact
that it is driven by the doubling of transmission, storage, and computing capacity every year or
two.
Can ruin local industries: Small scale industries which are indigenous to a particular place face
extinction as they do not have the resources or the power that the multinational companies have.
As a result, these small industries are unable to compete with bigger companies and go out of
business.
Growing disparity among the rich and the poor: 86% of the world’s resources are said to be
consumed by the richest 20% of the world population. This means that the poorer 80% only gets
to consume 14% of the world’s resources. This is a direct result of globalization according to some
activists who believe that globalization only serves the rich whereas the poor have to face its
disadvantages.
Recent Trends in Globalization
1. Changes labor markets
2. Fast-moving development and advancement of new technologies
3. Effect on climate change
The first recent trend refers to the impact that production changes have had on labor markets,
including through outsourcing and mechanization, which have spurred job losses, particularly in
manufacturing sectors. These trends in labor markets are associated with higher rates of income
inequality, which has increased in a majority of countries across the globe.
The second recent trend is closely connected to the first, as it relates to the fast-moving
development and advancement of new technologies, including in information and
communications and artificial intelligence, that have also affected the world of work. While these
innovations can act as catalysts for sustainable development, countries that do not have access
to them are at risk of being left behind.
Globalization and its effect on climate change is the third emerging trend. The report highlights
that many trends closely linked to globalization, including economic activity, lifestyle changes and
urbanization, all have an impact on our environment and may contribute to climate change.

Global Diversity Issue


Global diversity is about understanding the differences that exist within and between different
countries as well as understanding one’s own environment. In recent years, globalization has
made diversity an important issue in many multinational companies. In particular, diversity is
becoming a norm for influencing organizational outcomes, such as increased global knowledge,
high performance, innovation, and employee engagement. Examples of Diversity issues are the
following:
• Cultural Difference
Sadly, some individuals harbor unfair prejudices against people of different colors,
cultures, ethnicity or religion than their own. Such prejudice should not be tolerated in
the workplace -- much less anywhere -- and should be dealt with in a firm and prompt
manner. Firm company policies and appropriate training help build acceptance and
respect among a well-diversified employee body.
• Communication
Even when no prejudice exits among employees, a diversified workplace can bring about
certain communication issues. Hiring immigrants who speak little or no English can reduce
productivity by creating a communication barrier among team members. Employing some
form of communication training and hiring sufficiently bilingual workers helps encourage
and improve staff interaction.
• Harassment
Harassment can sometimes be an issue in a diversified work environment, but should
absolutely never be tolerated. Recognizing harassment is key in preventing and
eliminating discrimination from the workplace. Even the slightest comment made in jest
can be considered harassment if any -- even remotely vague -- any racial, sexual or
discriminatory connotation is made. For example, "I love Asian women" or "We should
have hired a man."
Significance for the Engineering Career
• Many engineers could earn up to more than twice of their salaries if they work abroad in
places like Saudi Arabia
• Engineers find an international tour to satisfy their desire for adventure
• Adds to invaluable experience in their education and growth

Engineering Challenge
 Carefully considering an international assignment will do for the overall career or
progress within a specific firm, and knowing the impact it may have on personal goals
and family life.

Globalization is neither good or bad it just depends how the people deal with all
the new possibilities.
SALES AND MARKETING FUNCTIONS
Sales Management
Sales management in an organization is a business discipline, which focuses on the practical
application of sales techniques and the management of a firm’s sales operation.
It is done in an efficient and effective manner through planning, staffing, training, leading and
controlling organizational resources. Now we will explain each of these processes.
• Planning
Planning can be defined as the process of decision-making in a systematic manner regarding the
goals and the objectives of an organization. In short, it is a process an individual or group will
undertake in the future and the resources required for attaining them.
Sales planning includes strategy, setting profit-based sales targets, quotas, sales forecasting,
demand management and the screening, writing and execution of a sales plan.
A sales plan is a strategic document that outlines the business targets, resources and sales
activities. It basically follows the lead of the marketing plan, the strategic plan and the business
plan with more precise detailing on how the goals and objectives can be achieved through the
actual sale of products and services.
• Staffing
Staffing is the process of capturing, deploying, and retaining a workforce of optimal quantity and
quality to create a positive impact on the firm’s effectiveness.
Staffing is basically used in the sphere of employment. It is applicable to more than one aspect
of the working surrounding. Staffing is also used in a specific sense to refer to the management
of employee schedules.
• Training
The training program in sales management provides frontline sales managers with proven skills,
knowledge and tools they need to drive margin line performance.
After the sales personnel are recruited, the company ensures the training, i.e., off the job and on
job training related to the skills, knowledge and job culture, which helps to meet the selling
performance and goals.
• Leading
Leading is done by the person who possesses the leadership quality, the ability to motivate other
people and get the work done. Leading is an effective sales management force that invites the
sales management executive to use practical tools and cutting-edge concepts to create an
effective sales management model.
This model is derived after a thorough research and consulting experience through cases, group
discussions, problem-solving exercises, computer-aided workshops, and communicative case
presentations.
The managers need to explore various perspectives on what does and does not work, and why.
A leader also monitors the work and explains the pro and cons as well as the ways to complete a
task effectively and efficiently.
• Controlling
The task assigned to the sales personnel is monitored to find out whether the organization is
achieving its target or the goals as per the planning. Controlling is a process, which defines the
scope of and leads the actual performance against the planned goals of the organization.
Controlling dwells in verifying whether everything happens in conformity with the plans adopted,
instructions issued and principles authorized. Controlling assures that there is effective and
efficient utilization of organizational resources so as to achieve the planned goals and objectives.
Controlling judges the deviation of actual performance from the standard performance, notices
the causes of such deviations and helps in taking corrective actions.
• Resources
Resources are one of the important parts of sales management, as, without resources, the
planned process cannot be implemented. Resources include the following −
• Human Resource
Human resources can be defined as that section of a business or organization that deals
with the hiring, administration, and training of staff. In sales management, we can say it
is the salesperson responsible for selling/marketing of products or services.
• Financial Resource
Financial resource is the capital available to a business for investing in the form of cash,
liquid securities and credit lines. Before going into business, a businessman needs to
secure sufficient financial resources.
This is required in order to be able to function efficiently and sufficiently well to promote
success. It includes the finance that the company needs to perform the activities like
campaign, advertisement etc.
• Materials
They are assets in the form of material possessions. Here, by assets, we mean anything of
material value or usefulness that is owned by an individual or a company. It includes the
source from where the raw material could be procured in low cost.
• Technology
It is the application of science, especially to industrial or commercial goals and objectives.
it also includes the scientific technique and material used to achieve a commercial or
industrial objective as well as the machinery and the techniques that the organization
uses for the end product.
It will now be clear why resources are important in managing sales.
• Performance
Performance is the completion of a given task measured against known preset standards of
accuracy, completeness, cost, and speed. In a contract, performance is assumed to be the
fulfillment of accountability in a manner that releases the performer from all liabilities under the
contract.
The last function is to review the performance. In this function, the leader reviews the past
performance and advises the Sales Personnel regarding the improvements required. It also
involves checking that all the functions are working in a proper way and there is no deviation in
achieving the goals.

Relationship between Sales Management and Business Operations


”Operations should be a function of Sales and Sales should be a function of Operations.”
• Difference of Marketing and Sales

Role of Sales Engineer/Manager


• Sales Manager Responsibility:
• Achieve growth and hit sales targets by successfully managing the sales team
• Design and implement a strategic business plan that expands company’s
customer base and ensure it’s strong presence
• Own recruiting, objectives setting, coaching and performance monitoring of
sales representatives
• Build and promote strong, long-lasting customer relationships by partnering with
them and understanding their needs
• Present sales, revenue and expenses reports and realistic forecasts to the
management team
• Identify emerging markets and market shifts while being fully aware of new
products and competition status
• Sales engineers typically do the following:
• Prepare and deliver technical presentations explaining products or services to
customers and prospective customers
• Confer with customers and engineers to assess equipment needs and to
determine system requirements
• Collaborate with sales teams to understand customer requirements and provide
sales support
• Secure and renew orders and arrange delivery
• Plan and modify products to meet customer needs
• Help clients solve problems with installed equipment
• Recommend improved materials or machinery to customers, showing how
changes will lower costs or increase production
• Help in researching and developing new products