research was carried out to primarily find out the effect of Globalization on
service industry. It focuses on the globalization through trade agreement and
process of globalization and information technology and global interdependence
and dynamic of globalization.
literature was reviecived only in major areas such as important and growth of
service industry the achieving global synergies, Trends no globalization of the
world economy and implications for Nigeria.
Process of the research valuable informal on will be obtained by the use of
questionnaire administer to the customers of MTB also personal interview will
be utilized in the process of gathering data.
gathered with the use of the questionnaire and analyzed with some statistics
tool like Chi – square (x2) the simple percentage and mean method. The
investigation revealed that globalization brought the increase in productivity
and profit level, it also enable service marketing to render their job
effective and efficiently which brought customers satisfaction through been
competition. The research also revealed that no nation or body can develop in
went on to discovered that Nigeria services industries have not yet exploited
much in the globalization releases due to certain factors like economic
instability, mis-management, Naria devaluating etc. Although the service
industries are improving.
light of this, therefore the research recommend that service industry should
try to exploit opportunities and compete more with the rest of the globe.
Table of Content
1.1 Background of study
1.2 Statement of the problem
1.3 Research Questions
1.5 Scope of the study
1.6 Significant of the study
1.7 Limitation of the study
CHAPTER TWO: LITERATURE REVIEW
2.1 Over view of project topic
2.2 History and business
2.3 The operating environment
2.4 Trends in globalization of the world economy and
implication for Nigeria.
3.1 Data collection procedure
3.2 Sources of data
3.4 Direct/personal interview
3.5 Sample population
3.6 Method of data analysis
3.7 Reliability and validity of the instruments
AND ANALYSIS OF DATA
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of findings,
1.1 BACKGROUND OF THE STUDY
Globalization means the whole world is becoming a global village, the world are
coming together to be one in unity, things are happening generally people don’t
produce to satisfy the market people around them, but they produce for the
whole market. What is happening at Saudi- Arabia, America, Europe etc. is
happening in Nigeria, Ghana and parts of the whole world it is globalization.
Globalization is a new world order that emphasis global perspective of the
whole universe in further words that world market is tended toward a universal
economy has undergone radical change during the past two decades, geographical
and cultural distances have shrunk with advent of jet planes, fax machines,
global computer and telephone, look ups, world Television satellite, broad
casts and other technical advances. This has allowed companies to greatly
expand their geographical market coverage purchasing and manufacturing. The
result is a vastly more complex marketing environment for both companies and
customers. Today almost every company, large or small is touched in some way by
global competition. From the neighbourhood florist that buys its flowers from
Mexican Nurseries, to the small New –York clothing retailer that sources its
merchandized competing in its home markets with giant Japanese rivals to the
large American consumer goods producer introduce new products into emerging
in various industries are also developing using a global assembly line. In
addition is sourcing their components suppliers and goods from abroad, many U.S
companies are trying to sell their services abroad. But they are recognizing
that to do this well they cannot do it along so they are forming strategic
alliances with competitors who serve as suppliers or distributors,
technological partners or joint ventures partners all of this means that we are
seeing and will continue to see some surprising alliances between international
competitors e.g Ford and Nissan successfully designed a mini – van together and
Ford has also had a successful strategic alliance with Mazda for the past
electric and SNECMA a French company have been making jet engines together,
since 1971 coca-cola and Schweppes run a large soft drink during bottling plant
together that has brought both companies, tremendous cost saving. Toshiba
supplier line transmitter to JVC Television.
internet: the internet is a collection o thousands of computer, networks of
varying sizes millions of computer more than 30 million users who share a
compatible means for interacting with one mother to exchange digital data. A
system that commecks computer system located throughout the world that willing
to share resources. Internet has eructed a co-operative society that forms a
virtual community starching from end of global to other.
factors that necessitate globalization as follows.
International spread of technology sizes of investment require,
reduction of trade barriers and all environmental demographically,
psychographic and behavioural factors.
Globalization through trade agreement and market integration the success of
trading blocks in the world economy depend on members having similar economic
structures, being geographically close to each other experiencing a political
commitment and solving evidence of trade compatibility (Eieleke) 1992, Schott
1999). The first exertion refers to the need to accommodate the redistribution
of trade flows employment and income which would necessarily arise from the
integration of the economics.
Globalization through (GATT) the general agreement of tariffs and trade round
of discussion completed and signed on 15 December 1993 in Geneva and was
launched in Uruguay seaside resource of puntodec to see in September 1986, the
Uruguay round of trade talks was the most ambitious attempt to date involving
more than 100 centuries liberalizing trade and standardizing trade rules in a
textiles. The aim was to remove as many invisible trade barriers as possible to
encourage closeness of the global the most striking trend in business today is
the growing globalization of markets world wide for goods and services.
This is true for everything from airlines to automobiles, banking to burgers;
clothing to computer’s detergent to disappears, electronics to elevators,
software, toothpaste to tacos. Corporations whether of U.S Japanese, European,
or other National origin are drawing an increasing proportion of their sales
from international markets are the 100 Largest
U.S. Multination derive 39 percent of their sales from operations overseas.
Company such as Exxon IBM, colgate palm olive CPC internationals and coca-coca
etc draw more than 60 percent of their sales from operations overseas,
international markets are critical for companies such as unilever the anylor-
dutch conglomerate, Philips, the electronics giant and nestle the Swiss food
Mammoth who have relatively small domestic markets. Vans motivation empires are
emerging whose sales volume is often greater than G.N.P of many countries.
globalization is not confined to a globalization is not confined to a large
multination. A new breed of “miniaction” is emerging opening fallones research
labs and sales units around the world, these are bypically mid – size
manufacturing companies with sales of N 200 million to N 1 billion, which
target special rich markets world wide in areas such as precision instruction
medical equipment or computer peripherals. Talking advantage of the operating
up of markets and new technologies they are able to serve customers firm a
limited number of manufacturing bases and keep a clean cooperate profile to
complete more effectively in world market, Medtronic, a.u.s.s.s” manufacturer
of pace makers has opened plants in Japan and Europe for research and
manufacturing to serves these markets and tap into new technology in micro –
matching and miniaturization. Japanses and European companies have entered
world markets and constitute a major challenge in many industries traditionally
dominated by U.S.A firms. Many companies from the newly industrializing and
developing economics are also beginning to spreads their wings and to assume
increasing important in field such as electronics textiles ship building and
steel. Furthermore the trend toward globalization is occurring not only down
stream in end markets for consumers or industrial goods but also upstream in
market for raw- materials technology and other resources in many industries,
global searching is on the increase resulting in the development of complex
logistical system designed to take advantage of differential Labour, production
and raw- material cost in different countries as well as the increased
efficiently in international transportation and communication networks.
consumer electronics of France for example, makes components in Malagsia and
Indonesia that go into TV sets, assembled in its highly automated plant in
Singapore. Indonesia has now become a favourite place for making expensive
owning sticks numerous, U.S, Japanes automobile companies are setting up
operations in Mexico. Ford is investing $ 750 million in a plant in Chihuahua
to manufacture two empires for North America. Mission is spending $ 1 billion
on a new assembly plant at Aquas caleentes to make sentras, some of which are
to be re-exported to Japan. Such developments imply that all companies need to
adopt a global perspective to their strategic marketing planning,
irrespectively of their interest in international markets need to identify the
most attractive opportunities world wide to determine their global strategic or
key competitive advantage and investment strategy relative to these markets.
Even companies not considering international operations need to develop
strategy with and eye to international operations need to develop strategy with
an eye to international development and potential entry of foreign competition
into the domestic markets.
1.2 THE CONCEPT OF GLOBALIZATION
Globalization is a process of integrating economic decision-making
such as the strong and dominant globally. A new world order is being created
with clear international and result to the global market with the consumption,
investing and saving process all across the world, it is a process of creating
a global market place in which increasingly all nations are forced to
participate key elements of this process are the interconnection of sovereign
nations through trade and capital flows, harmonization of the economic rules
that govern relationships between these sovereign fraction creating structures
to support and facilitate dependence and inter connection and creation of a
global market place. Yet another perspective of globalization goes beyond the
economic sphere. The opening which the information technology has created
impact on almost all aspect of human life (culture religion and values are all
affected as people all over the world are exposed more than ever before to
systems and the enthronement of western style common culture. The fear of
cultural imperialism under scores of point that globalization could also be
seen as a process of harmonization of different cultures and believers. The
more immediate and concrete impact of the technological advancement in
communications has been the creation of global market place in which countries
are increasingly being forced to participate, countries operating in separate
sovereign autonomous environments take decisions which have bearing on others
with the creation of a common global market place where autonomous units are
increasingly succeed in globalization can also be defined as the process of
shifting autonomous economics into the global market the systematic integration
of autonomous economics into global system of production. This process is
creating new strains in the global trading environment and placing new emphasis
on international cooperation, which calls for adjustment by all participating
On the more positive side the process is providing the means for
large expansion of world trade and increase national economic growth for
countries in the position to benefits.
Some elements of hype can be said to be associated with concept
globalization. There are the misconceptions that this process would eventually
result in a boarders world. The world of separate nation scabe is said to
ending if the process of globalization is allowed to run its global course.
These are basically misconceptions. The fact that the process aims at
increasing inter border relationships does not automatically means are
elimination of the existence of nation states. Globalization is a process of expanding
economic co-operation amongst states and this does not necessarily imply future
breakdown of borders. Seen from uneconomic preparative it does not even require
harmonization on integration of social political systems. It is simply a
process of intensified and broadened inter dependence among nations. The
process simply created a global market places which, with the developing in
communications technology can be accused by virtually any one from any
location. Internal law of nations would still have to operate regulating how
individuals and groups would be affected. The process opens up a world of
opportunities for business. It links them to markets which were hitherto
unknown to them and provides prospects for growth. Hype extravagant or
intensive promotion of product etc promote with hype (origin unknown).
1.3 INFORMATION TECHNOLOGY AND GLOBALIZATION
Information technology is playing a vital role in the current
process of globalization. Indeed, the current globalization process is highly
information based. It is therefore important to single out the role of
information technology in the globalization process. Information technology
combines progress in electronics, computing and telecommunications to come up
with a highly dynamic process of storing, processing, transmitting and
presentation of information. Information technology is witnessing a phenomenal
growth which has facilitated new response mechanism. Countries are now in a
better position to respond speedily to change in demand patterns and changes in
international comparative advantages. For those countries with the domestic
capacity more efficient production processes have introduced in a bid to
maintain a competitive edge within the changing global environment. Due to
scientific and technological break through in transistors semi conductors and
integrated circuits or chip” Micro-electronic is having a profound influence on
virtually every aspect of economy. The result has been a drastic fall in costs
and well as drastic fall in costs and well as dramatically improved technical
performance both within the electronics industry and outside it, it is
promoting the internationalization of production and markets which is central
to the globalization process, today information system developing are
constantly being applied to wide areas of the economy. They are responsible for
increase productivity, quality and efficiency of a number of sectors.
The emergence and rapid expansion of the information super high
way has brought to the door of people all over the world information which has
become a vital factor in daily decision making demote areas around the world
are today covered by the communication range through technological advances in
cyber space, in the computer and telecommunications field. This has serious
implications for how business is done world-wide. Individuals and
organisations are now realizing that they do not have to be physical present in
any particulars location in order to transact business.
The promotion of the fact that technically, managers can reach any
part of the world from any given location.
The manager can reach any part of world in just a little time the
integration of functions confers on information technology its ability to
interpret preciously separate production functions. Information technology
offers the opportunity for completely new ways of working through systems
integration. Business however, involves more than information. The actual money
of gods and services require more than information technology can provide
information technology therefore, combines with other process to define the
scope of globalization. The pace of change in information technology is
accurate rating the already observable growth in the interdependence of
international relations. These development covers not just economics, but also
political and cultural fields
1.4 GLOBAL INTERDEPENDENCE, DYNAMICS AND CHALLENGES.
Globalization on the basic of global interdependence.
The current situation is that countries are now more interdepence
than over in the history of man. The structure of the world economy as such
that resources recovery around the world has become initial for its growth and
sustained global welfare. Structure of production and consumption are now
structure of production and consumption are more dictated by global forces. No
one country can claim that it can grow in isolation of the rest of the world.
The world is witnessing a significant level of convergence in development
strategies as capitalism gains acceptance in countries which up to recently had
adopted central planning. The globalization of capital by its successful
penetration into parts of the world hitherto considered hostile territories has
created a new structure for the world economy. The most glaring evidence of
this current effort at securing massive flow of capital into Russia by World
Bank, IMF and European Countries. The central planning has been abandoned in
the former society union and in Eastern Europe, making them fertile ground for
capitalist expansion, in the face of policy failures throughout Latin America,
South Asia and the middle East, countries are reversing policies of import
substitution designed to prevent the need for trade, most country now accept
the need to increase competitiveness in the world market as a means of
sustaining growth. The pressure around the world as for increase trade and
opening up of previously closed economics. The emerging global structure of
production requires free markets, private capital based system. This development
is most apparent in the area of trade policies since the mid – 1980s efforts at
encouraging trade liberalization around the world have been yielding results. A
large number of developing countries have reported unilateral liberalization,
measures to the General Agreement on Tariffs and Trade (GATT). Many have joined
GATT, and more are in the process of joining its successor the world trade
organization. Thus while in the past only the developed countries at different
stages of development are presently actively involved in the efforts at trade
liberalization, although the process is still being easily dominated by
industrial countries it has gained the interest of most countries. The process
has been given a further push by the completion of the uruguary round and with
the enlargement of the North American Free Trade Agreement (NAFTA) and the
DYNAMICS OF GLOBALIZATION
We have observed the changing structure of the world economy which
has facilitated the growing trend of globalization. Next we should examine the
dynamics of the system as manifested in the globalization is an organization
now is whether globalization process. The question now is whether globalization
is an organic part of a natural process of world development or whether it is manifestation
of the dominance of an ideological position in a apparent domination of the
world economics system by the western capitalist economics, the logic of
capital expansion leads to the creation of a global market in which western
capital plays a pivotal role. Western capital seeking more profitable outlets
needs the ression of the world. Ironically the first step towards the present
trend of globalization led by the developed countries of the world started with
regionalization. The intention of regionalization was to provide a common
market to the exclusion of others. It was to protect the interest of
domestic capital with in the region and confer on it advantages that would make
it strong to compute around the world. Capital needs a secure environment to
thrive the requires stability and harmonization of laws. Common markets
however, seem to have raced their limits for Western capitals so increasingly
the focus has shifted to regional blocks collectively doing business with the
outside world. Initially this process was seen as contradicting to the tree
trade doctrine preached by the western world the in selves. But it has
now become clear that it is strategy for breaking into a group regional blocks
often tend to encourage common Law which enable business once it establishes in
one country to gain access to all others in the black. The face today is that
it help pushing for greater trade liberalization which in most eases means
opening up of new market in developing countries for western capital and goods,
new regional blocks are emerging. This is a deliberate strategy by the
industrialization world to maintain their hegemony over the new world order.
This process of globalization has fundamental implications for the developing
countries who on off the one hand are being asked to open while on the other
final the world market place impossible to penetrate.
Globalization is a process of intensified interdependence, which makes it
impossible for any one country to isolate itself and expect to develop. The
argue is that globalization makes it possible for all nation to benefit from
interdependence entails amplified risk and uncertainty. One major challenge to
all countries, but particularly developing countries within the context is how
to manage this risk and handle the uncertainty.
THE CHALLENGES OF GLOBALIZATION
We are all faced with age-old concern. Are rich countries getting
richer while the poor getting poorer. And what is the role international
integration in allowing the poorer countries to catch-up.
Globalization is a process of intensified interdependence, which makes it
impossible for any one country isolate itself and expect to develop the
argument is that globalization make it possible that all nations to benefit
form interdependence interdendence is maintained in the increasing economic
linkage among countries, through trade and financial flows it was however been
argue of that interdendence entails amplified risk and uncertainty.
challenge to all countries but particularly developing countries within
this context is how to mange this risk and handle the uncertainty. We might
conclude that companies are doomed whether they stay at home or go abroad. But
companies selling in global industries have no choice but to internationalize
their operations. A global industries have is one in which the strategy
position of competitors in given geographic or national markets are affected by
their overall global operating in more than one country. Against research and development,
production marketing and financial advantages in its costs and reputation that
are not available to be purely domestic competitors. The global company sees
the world as one market. It minimize the important of National Boundaries and
raises capital, source material and components and manufacturer and components,
and its good wherever if it can do the best job for example, Fords “World
truck” sport a lab made on Europe and Brazil and imported to the united state
for sale. Thus global firms gain advantage by planning, operating and
coordinating their activities on a world wide basis.
firms around the world are globalization at a rapid rate domestic firms in
global industries must act quickly before the window close on them. This does
not means that small and medium size firms must operate can practice global
nichemarship. But the world is becoming smaller, and every company operating in
a global industry whether large or small must access and establish its place in
1.5 STATEMENT OF THE PROBLEM
operates within a dynamic global environment. Severe decades calls upon
marketers to think freshly about their marketing objectives and practices
firms, banks inclusive are in era of complex marketing, the period of bankers
to bank rest on their armchairs waiting for customers had gone. A company must
be up to date technology and dynamic to environment factors. Rapid changes can
quickly made yesterday’s winning strategies out of date e.g general motors,
sears, RCA, each failed to understand it’s changing market place.
companies are wrestling with increased global competition environmental
decline, economic, political and social problems etc.
this study is embarked upon an order to find a lasting solution to certain
global problems such as:
a. How can bank render an effective and efficient
b. To know the effect of globalization has on the
c. Whether it cause increase in customers patronage.
d. How banks are trying to build customer loyalty.
1.6 RESEARCH QUESTIONS
This project will address the under listed issues.
a. What are the effects of globalization on service
b. Is the service sector efficient and accurate
with the adoption of modern equipment?
c. What impact does the adoption of globalization
have on profitability and customers satisfaction?
d. How effective is cash flow around the global?
states in a testable from the relationship between independent and dependent
variables, it is a pointed to know how the variable could be measured. It is
stated in statement for e.g motivation increase productivity.
to be tested are:-
H0 : that globalization has no effect on service industry.
Hi : that globalization lead to efficiency in
In hypothesis we allow the system to give it own result without
1.8 SCOPE OF THE STUDY
research is bases on the effect on globalization on service industry. How it
affects their efficiency accuracy and transfer of skills.
1.9 SIGNIFICANT OF THE STUDY
relevance that this study will have is that firms must become customers
oriented and markets driven in all that they do. It is not enough to be product
or technology driven too many firms still design their producers without
customer input only to find them rejected in the market place.
whole world are witnessing the era of unity and harmony (main economically)
around the global. Further more, the study will put more light on
globalization. It will enlighten those firms that are not up-to-date in modern
technology also to contribute to the body of knowledge on marketing in the
general global economic activities. Thus it can be used to serve as a frame
work and reference point for other researchers.
1.10 DEFINITION OF TERMS
terms have been used to refer to marketing activities that take place in more
than one country. In this work, there are some work that are technically used.
Therefore, the researcher wants to give the meaning so that all will benefit
from the study.
Marketing: As a
social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging products and value with others.
service is any activity or benefit that one party can offer to another that is
essentially intangible and does not result in the ownership of anything.
The act of passing messages to one another.
The systematic application of knowledge to practical tasks in industry.
Involving the whole world global “warfare” comprehensive total.
Refers to marketing activities in one or more countries outside of the domestic
bases of operations.
Transnational and global management of
marketing: Management attempts to ordinate and
integrate operations across National boundaries so as to achieve potential
synergies on a global scale.
GLOBAL NICHE STRATEGIES
global segmentation strategies to leverage competitive advantages across
country markets. Global niche players look for opportunities in multiple
National markets that are not covered by other major competitors. Although
global niche strategies do not appear to be very common as local nationally
focused companies often fill niches such a strategy can provide an effective
means for a smaller player to complete in a market dominated by two or three
competitor work wide. Cadbury Schweppes, for example has pursued a global niche
strategy in the soft drink, market in order to avoid entering in to direct
competition with coca-cola and pepsi –cola, which dominate the cola market
1. Global marketing strategy by Susan P. Douglas C.
2. The new Webster’s = Dictionary of English
Language international Edition.
3. Philip Kotler Six edition
4. Global marketing strategy by Susan P. Dougla
Samuel Craig C. Mc Graw-Hill International Edition marketing and advertising
series pg 3.
5. Class – note.
6. C.B.N Guide line 2000- Edition.
1. GLOBAL SQUEEZE: One World
is the World today?
Global squeeze beings with the promise that a new force called
globalization is sweeping across the land scope of the industrial countries,
threatening the economic base of their Civilizations. Although the
international of the world economy has progresses for over a century.
force is responsible for stagnation of real wages the widerings of wage and
income equality, the spelitting of the middle class and growing job insecurity.
SOURCE: The Nigeria Banker vision 2010.
1. GLOBA PHOBIA: On the other
hand, represent a smaller group that tries to inject a note of realism, in the
form of common sense economic analysis into the debate.
2. THE DILEMMA OF THE
GLOBAL: Global can be seen as “The modern metamorphosis of free trade
global important criteria is corporate planning which employs a world wide
prospective and in partially allocates resources such as management. Other
personnel company specific technology, business expertise and funds on a global
basis, and foreign direct investment either in manufacturing or service
industries in more than two countries- source- international marketing by
TERMS AND CONDITIONS APPLY
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