CSR- Colonial Sugar Refining Co. Ltd
Drivers of globalisation
Many factors have contributed to the growth of globalisation. Most seek to maximise profits for their shareholders and will therefore seek market opportunities wherever they can be exploited. As well as seeking worldwide market opportunities, global businesses seek to minimise costs and will therefore investigate production facilities worldwide, they seek to beat trade tariffs by establishing subsidiary companies in overseas markets.
ÃÂ· CSR operates in a range of countries and/or markets to maximise sales and profit for its shareholders.
ÃÂ· CSR market research identifies growing markets and where the best resources are available helping to gain efficiency and competitiveness
ÃÂ· CSR's global location facilitates the flow of goods and finances between countries
ÃÂ· As global markets became more homogeneous it became easier for CSR to produce and supply goods into a variety of countries such as New Zealand and America
ÃÂ· With advances in technology it has become cheaper and transport and communication is more efficient enabling CSR to manufacture in a variety of locations and transport goods to it's widespread market
CSR has been encouraged in its global expansion through
ÃÂ· A reduction in protection such as tariffs
ÃÂ· Grants for entering new countries and markets
ÃÂ· Provision of infrastructure such as roads, railway and telecommunication
ÃÂ· Deregulation of the financial market allowing the easy movement of finance to new countries
ÃÂ· The allowance of foreign banks to operate in Australia making it easier for CSR to access finance
Global business strategy
CSR's expansion has included:
ÃÂ· Exporting domestic surplus products into global markets this has low financial risk, low levels of capital needed, a high degree of flexibility and there is government assistance provided
ÃÂ· Establishing foreign manufacturing plants such as building materials in the USA, New Zealand...