1. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 1 Chapter 15 Thinking Globally: “It’s a Small World After All”

2. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 2 Objectives 1.To explore the relationship of services and culture 2.To examine the phenomena of global trade in services 3.To consider strategies for entering global service markets

3. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 3 Objectives (cont’d) 4. To contrast standardization and adaptation strategies for global services 5.To communicate the imperative of adapting to a multilingual global marketplace 6.To briefly examine technology and global services

4. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 4 Outline I.Introduction II.Services and Culture III.Global Trade in Services IV.Entry Strategies for Global Service Markets V.Standardization versus Adaptation of Global Services VI.Multilingual Service Systems VII.Technology and Global Services VIII.Summary and Conclusion

5. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 5 Services and Culture Cultural Orientation Toward Nature Cultural Orientation Toward Activities Cultural Orientation Toward Time Cultural Orientation Toward Others

6. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 6 Global Trade in Services In the industrialized world, services represent more than half the gross domestic product (GDP) Measuring trade in services is problematic because of country-to-country differences in definitions Sharp increases in trade volume and foreign investment in services in recent years demonstrate a strong global presence across many service industries, especially health care, entertainment, and tourism

7. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 7 Global Trade in Services (cont’d) Measuring the global significance of the service sector is very difficult: –As organizations grow, they frequently incorporate services internally that were previously supplied by independent service firms –When a customer travels to a service provider's country to be served, the transaction is foreign trade –As more women enter the work force, many services that were previously performed in the household are now performed by professionals –Organizations often combine their services data with nonservices data

8. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 8 Global Trade in Services (cont’d) An outbound service export strategy involves sending the service provider to other countries An inbound service export strategy involves bringing foreign customers to the service provider’s country A teleservice export strategy involves exporting services by delivering them electronically

9. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 9 Entry Strategies for Global Service Markets Foreign Direct Investment – Organization chooses to invest its resources directly in another country Franchising – Organization expands service operations around the world Joint Ventures – Organization contracts with local organizations and thereby shares risks and rewards

10. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 10 Standardization Versus Adaptation of Global Services Standardization means providing the same service in the same manner around the world Adaptation means tailoring service offerings to accommodate conditions in each local market

11. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 11 Standardization Versus Adaptation of Global Services (cont’d)

12. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 12 Multilingual Service Systems Multilingual service systems are increasingly needed to meet the varied needs of global customers, especially when a service system simultaneously serves customers who speak various languages. Numerous methods are available to deliver services multilingually: producing signage, developing appropriate automated systems, creating written communications, and hiring and training a multilingual staff that can handle the diverse language differences throughout the global market.

13. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 13 Multilingual Service Systems (cont’d)

14. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 14 Technology and Global Services Technology is an essential means of expanding the global reach of services Communications and transportation technology allow a service organization to operate in multiple countries while maintaining close contact with employees and customers Technology is the single most influential force behind the globalization of markets

15. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 15 Web Sites IBM (http://www.ibm.com), p. 227 Shell Oil (http://www.shell.com), p. 227 Visa (http://www.visa.com), p. 227 Pizza Hut (http://www.pizzahut.com), p. 227 CNN International (http://www.cnn.com), p. 227 YouTube (http://www.youtube.com), p. 228http://www.youtube.com

16. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 16 Web Sites (cont’d) McDonald’s (http://www.mcdonalds.com), p. 231 KFC (http://www.kfc.com), p. 231 Service Corporation International (http://www.sci-corp.com), p. 233 Laura Ashley (http://www.laura-ashley.com), p. 233 The Body Shop (http://www.bodyshop.com), p. 233 Benetton (http://www.benetton.com), p. 233

17. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 17 Web Sites (cont’d) Burger King (http://www.burgerking.com), p. 233 Wyndham (http://www.wyndhamworldwide.com), p. 234http://www.wyndhamworldwide.com Days Inn (http://www.daysinn.com), p. 234 Howard Johnson (http://www.hojo.com), p. 234 Ramada Inn (http://www.ramada.com), p. 234 Super 8 (http://www.super8.com), p. 234

18. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 18 Web Sites (cont’d) Walmart (http://www.walmart.com), p. 234http://www.walmart.com Bharti Enterprises (http://www.bharti.com), p. 234 Coca-Cola Company (http://www.coca-cola.com), p. 236 Ogilvy & Mather Advertising Agency (http://www.ogilvy.com), p. 236 Hotel Miraparque (http://www.miraparque.com), p. 237 AT&T (http://www.att.com), p. 239