Deck 1: Globalization

Question 1

How is Uniqlo's strategy different from that of its main competitors such as Zara and H&M in the global apparel industry?

Answer 1

Uniqlo uses technology and invests in the company's long-term vision instead of other fashion brands that follow and focus on the latest trends. Zara and H&M follow this traditional approach by providing consumers with the latest trends, quickly ordering new lines multiple times a year. Uniqlo only sells approximately 1,000 lines, which is much less than its competitors and these items tend to have a longer shelf life. This approach allows Uniqlo to secure lower-priced higher-volume deals with suppliers and to simplify the inventory management process while simultaneously reducing costs. Uniqlo's approach is structured on creating new, innovative products that are affordable and purchasable by everyone.

Question 2

How does Uniqlo develop and sustain its competitive advantage?

Answer 2

Uniqlo developed a strategy by conducting initial research and learning that customers are more concerned with quality and value than quick responsiveness to changes in fashion style. Instead of rushing to the market, the company used long development cycles that require the testing of new materials and designs. Additionally, instead of constantly changing vendors, they develop long-lasting relationships with material manufacturers. The firm believes that these basic practices add value to the company and has broadened appeal to a larger consumer base and demographic. The company's strategy is similar to the one used by automakers. The product development cycle for car manufacturers lasts months or years. It identifies long-term durable trends within product categories, differentiates these styles, and then constructs a supply chain to deliver different styles to the end consumer. It has also utilized "planned obsolescence," a technique popular in the technology industry in which the company drives consumers to update or upgrade based on environmental changes. Uniqlo drives customers to update their wardrobes to ever-shifting style preferences discovered by the company.

Question 3

Why is Uniqlo struggling in expanding its business in the U.S. market? Do you have any suggestions to improve its performance?

Answer 3

Uniqlo has been in the U.S. for 10 years and has 40 shops but its presence is much smaller than its global rivals, smaller local casual clothing chains, and "off-price" sellers of designer labels. The company's weakest branches are in suburban areas. Overall, the company has been struggling to expand its business in the U.S market. The main challenge the company faces is the ethnically diverse population within the United States. This makes it difficult for designers to come up with the optimal range to match the fit. The company has continually used the "Made for All" concept, offering a universal standardized product rather than offering customized products targeting individual markets. It aims to sell high-quality clothes at medium prices and implement a localized strategy focused on market needs, potentially selling excess inventory to other markets if demand arises. This has resulted in consumer criticism that the company needs to more accurately target its customer segments. The company has built the following reputation. Comparing Uniqlo to Zara and H&M, its design is too boring while the prices are too high compared to Gap and Columbia. Uniqlo may ultimately achieve success in the U.S. by positioning the company in U.S. cities that are most populated by Asian shoppers. This will help to enhance the company's image as a global fashion success among its consumer base.

Question 4

Why are U.S. companies moving offshore outsourcing destinations from countries in Asia such as China and India to countries in Latin America such as Mexico and Chile?

Question 5

How have MNCs' views about offshore outsourcing changed?

Question 6

What roles do the Mexican and Chilean governments play in attracting MNCs to bring businesses to their countries? How do they help develop location advantages?

Question 7

Explain what globalization means and how it has affected people's lives.

Question 8

What are the key drivers of globalization, both positive and negative? Which one of these drivers do you think has the most powerful impact on globalization and why?

Question 9

What are the mega trends that will have significant impact on globalization in the future? Which one of these trends will exert the most and the least favorable influence on globalization?

Question 10

Evaluate the benefits and costs of globalization. How do you think that globalization has affected your country's economic growth and improvement in its standard of living?

Question 11

Compare and contrast between market globalism and justice globalism. What is your own perspective on these two different ideologies of globalization?

Question 12

Which of the following does not describe globalization?

A) Unification of the world into a single community
B) Impacts various economic dimensions of societies
C) Creates a community with limited social relations and confines social consciousness
D) Impacts political and sociocultural dimensions of societies

Question 13

Which of the following is not a component of the demand perspective?

A) Integration and interdependence of various markets
B) Product standardization
C) Convergence of consumers' tastes and preferences
D) All of the above

Question 14

From a supply perspective, which of the characteristics describe a benefit(s) associated with offshore outsourcing?

A) Higher labor costs
B) Constrained management time
C) Increased speed and delivery of outsourced activities
D) All of the above

Question 15

Which of the following is a disadvantage associated with offshore outsourcing?

A) Lack of long-term vision
B) Vulnerability to political instability or natural disasters
C) Underperforming expectations
D) All of the above

Question 16

Which of the following characteristics is not a driver of reshoring?

A) Access to portions of the value chain
B) Management
C) Oversight
D) Closer relationships

Question 17

Which of the following is not a key driver of globalization?

A) Technological advancements
B) Decline of trade barriers
C) Expansion of free trade agreements (FTAs)
D) None of the above

Question 18

Which of the following is not an obstacle to globalization?

A) Protectionism
B) Standardization of goods and services
C) Cultural differences
D) National security

Question 19

Which of the following is a key trend in globalization?

A) Technological stagnation
B) Shift from emerging markets to developed economies
C) Aging population
D) Decrease in flow of trade, capital, people, and information

Question 20

Which of the following does not describe a key dimension of globalization?

A) Equity capital and the flow of foreign direct investment (FDI)
B) Isolationist and protectionist policies
C) Movement of people across time horizons (short, mid, long-term)
D) Flow of goods and services

Question 21

Which best describes the key developments in trade?

A) Digital innovation and drive to sustainability
B) Reverse innovation and mass customization
C) Growth of micro multinationals
D) All of the above

Question 22

Which of the following best describes a feature of foreign direct investment?

A) A capital investment made by a domestic party within the local economy
B) Both trade and GDP outpace it
C) Net inflows increased due to economic fragility and greater political risk
D) Majority of global FDI has been focused in service industries

Question 23

Which of the following is a consequence of globalization and the free movement of people?

A) Growing intricacy and variety
B) Illegal immigrants
C) Greater diversity (gender and ethnic)
D) All of the above

Question 24

Which of the following is a negative repercussion associated with globalization and the free movement of people?

A) Scarcity of experienced leaders
B) Inconsistent educational standards
C) Greater exposure to risk
D) All of the above

Question 25

Which of the following is a perceived result of greater access to information?

A) Information claustrophobia
B) Era of increased human aid
C) Divergence of information and telecommunication technology
D) None of the above

Question 26

Which of the following describes a benefit of globalization?

A) Increased competition
B) Easy access to products and services
C) Borderless careers
D) All of the above

Question 27

Which of the following does not describe a cost that results from globalization?

A) Increase in social injustice
B) Job retention in the local economy
C) Loss of sovereignty
D) Job shifts from developed to developing economies

Question 28

Which of the following expresses a view associated with market globalism?

A) Globalization is driven by the free market
B) Free flow of trade and investment can be achieved by focusing on social issues
C) Believes everyone will not benefit from it
D) Assumes there should be an equitable redistribution of wealth

Question 29

Which of the following states a perspective a justice globalist would advocate for?

A) Free flow of trade and investment through fundamentalism and deregulation
B) Inevitability of capital flow across borders requiring promotion of fair trade
C) Believes globalism can and will benefit everyone
D) Assumes the free market dictates strategies and policies

Question 30

What are the benefits and disadvantages of globalization from a demand and supply perspective?

Question 31

Describe outsourcing. What are the developing trends in outsourcing?

Question 32

What are the key trends influencing globalization?

Question 33

Identify and describe the key trends influencing globalization.

Question 34

What are the dimensions of globalization? Describe each dimension and its components in detail.

Question 35

Identify and evaluate the benefits and costs associated with globalization