The Impact of Globalization on the Retail Industry in South Africa

Only available on StudyMode
  • Download(s) : 929
  • Published : April 26, 2011
Open Document
Text Preview
The impact of Globalization on the
Retail Industry in South Africa

by

Niezaam Jedaar

18 March 2011

Submitted as part of the requirements for

Business Fundamentals

in the

B Tech (I.T.)

program at the

Cape Peninsula University of Technology

PLAGIARISM DECLARATION

Plagiarism is defined as the unacknowledged or unattributed copying of material from any information source whether written, printed or electronic. This includes copying from a fellow student. The use of such material is a form of fraud and is clearly unethical. All essays and related material submitted as part of a module assessment must be accompanied by the following signed declaration.

I declare that the following work, which I am submitting for assessment, contains no section copied in whole or part from any other source, unless it is explicitly identified by means of quotation marks. I declare that I have also acknowledged such quotations by providing detailed reference to the source material, in approved format. I understand that failure to identify copied material and to provide appropriate referencing both constitute plagiarism, which is a serious offence.

Name: Niezaam Jedaar
Signed: [pic]

Date: 18 March 2011

INDEX

1. INTRODUCTION…………………………………………………………………… 3

2. DESCRIBING THE GLOBALIZATION TERM……………………………….…3

3. WHAT’S GOOD ABOUT GLOBALIZATION? ......................................................4

4. WHAT’S BAD ABOUT GLOBALIZATION? …………………………………….5

5. WALMART PROPOSED TAKEOVER OF MASSMART...……………………..6

6. CONCLUSION……………………………………………………………………….9

7. REFERENCES………………………………………………………………………10

1. INTRODUCTION
Globalization is a term that has been defined in a lot of ways with it also being described as “a particularly controversial term” (Baylis & Smith, 2001: 1). Globalization like all things in life consists of good and bad things.

The objective of this essay is to examine the impact Globalization has on the South African business and particularly in the retail industry where there is possible takeover of Massmart from Walmart. The Globalization term will be discussed; the good and bad of Globalization will be listed and discussed. The current proposed takeover from Wal-Mart of Massmart in the retail sector of South Africa will be closely analyzed and discussed.

Walmart has a supposedly bad name when it comes to takeovers and the way they conduct their business. When the news broke that Walmart was contemplating a takeover of Massmart a lot of assumptions were made and the potential takeover faced a lot of opposition from parties within South Africa. For these reasons the decision was made to investigate and write about this.

A conclusion will be discussed at the end.

2. DESCRIBING THE GLOBALIZATION TERM
Globalization can be describes as “the conscious and disciplined management process of stepping out of the intellectual and operational confines of a domestic enterprise to fully recognize and address global opportunities and threats in a strategically and operationally integrated manner” (Kirkbride, 2001: 15).

Baylis & Smith (2001: 7) states that Globalization creates an increasing linkage between civilizations and those events that occurs in one part of the world will have effects on the rest of the world. There is clear evidence of this in today’s world; prices of brent crude oil will rise if there are fears of a shortage of oil supplies for example. Rising fuel prices effects everyone, when fuel prices go up it will cause food prices to rise.

Waters (2001: 6) explains that the Globalization concept has been a target of suspicion with some; some people believe there are elite groups out there that are transforming the world by spreading the culture of the west and of capitalist society. A massive effort to industrialize the world was aggravated “by the need to bring the developing world into the orbit of the Western trading system in order to create an...
tracking img