International Business - Case Study on Dominant Challenges Faced by Psa Psa Peugeot Citroën Group on National Cultural Differences
Introduction
Globalisation, defined as the process of increasing integration and interdependence between countries and societies through the movement of people, goods, service, information and communication, such that events occurred in a part of the world will affect the others (Baylis, Smith & Owens 2008; Fischer 2003; Hill, Wee & Udayasankar 2012; Robins 2000) and is linked with the theory of modernisation (Modelski 1972 and Morse 1976). To date, globalisation has itself, become a complex and in-depth subject with many different and contrasting perspectives, numerous facets of problems, challenges and relating discussions.
Fischer (2003) suggested its origins started before 1914, mainly for economic purposes. In microeconomics, Hubbard et al. (2009) explained the need for globalisation with the theory of specialisation and gains from trade between countries, where it is a win-win situation. They went on further, elaborating that globalisation was hindered by the two world wars and great depression, after which, contemporary globalisation started developing from 1980s, when low-income and developing countries realised that their high-tariffs and restricted foreign investment policies have failed miserably. Investments, exchange of capital flows and etc., took stage (Griffin & Pustay 2013). This presented an excellent opportunity for business entities, especially enterprises, where the top management are hired with the main purpose of generating profits for their stakeholders by increasing its profitability and rate of profit growth overtime (Hill, Wee & Udayasankar 2012). In other words, companies are constantly confronted by costs and need to formulate strategies in which profits are continually maximised through squeezing their bottom-line and increasing earnings. Additionally, restrictions of laws and regulations and problems such as stiff competition and saturated markets hinder growth within their home economies (Bianchi & Ostale
Globalisation, defined as the process of increasing integration and interdependence between countries and societies through the movement of people, goods, service, information and communication, such that events occurred in a part of the world will affect the others (Baylis, Smith & Owens 2008; Fischer 2003; Hill, Wee & Udayasankar 2012; Robins 2000) and is linked with the theory of modernisation (Modelski 1972 and Morse 1976). To date, globalisation has itself, become a complex and in-depth subject with many different and contrasting perspectives, numerous facets of problems, challenges and relating discussions.
Fischer (2003) suggested its origins started before 1914, mainly for economic purposes. In microeconomics, Hubbard et al. (2009) explained the need for globalisation with the theory of specialisation and gains from trade between countries, where it is a win-win situation. They went on further, elaborating that globalisation was hindered by the two world wars and great depression, after which, contemporary globalisation started developing from 1980s, when low-income and developing countries realised that their high-tariffs and restricted foreign investment policies have failed miserably. Investments, exchange of capital flows and etc., took stage (Griffin & Pustay 2013). This presented an excellent opportunity for business entities, especially enterprises, where the top management are hired with the main purpose of generating profits for their stakeholders by increasing its profitability and rate of profit growth overtime (Hill, Wee & Udayasankar 2012). In other words, companies are constantly confronted by costs and need to formulate strategies in which profits are continually maximised through squeezing their bottom-line and increasing earnings. Additionally, restrictions of laws and regulations and problems such as stiff competition and saturated markets hinder growth within their home economies (Bianchi & Ostale
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