Please enable JavaScript.
Coggle requires JavaScript to display documents.
Q3: Using the concepts of convergence, divergence and crossvergence,…
Q3: Using the concepts of convergence, divergence and crossvergence, explore how Zara can innovate through combining 'global knowledge' with 'local needs'
(300 words)
Convergence
defined as the adoption of similar values and processes by organisations globally (Bloom, 2017, 9.1).
Specifically, it means adopting the standards and ideas of an international culture (Drezner, 2001) cited in Bloom, 2017, 9.4
Adopting the same ways of doing things as other companies because it is effective or gives an advantage.
It is important not to just converge for its own sake. Knowledge has to by judged in context. It might not work for a particular company
Power and influence that can cause others to follow are usually controlled by few, wealthy and western companies.
-
An organisation might also face internal and external pressures to standardise its norms and practices to cope with this internationalisation.
Benefits include:
Stronger relations between countries and businesses
Greater understanding between businesses
Greater transparency so improved trust
Access to other businesses (suppliers, competitors etc), knowledge, support
Innovation and comparison:
By learning from others, including competitors, companies can identify their own strengths and weaknesses and how to improve what they do and become more competitive (Bloom, 2017, 9.3)
HRM can seek and identify best international practices, bring in people from a range of backgrounds and who offer many different skills, helping the company to innovate.
Companies can end up conforming to the norms of bigger and more powerful companies, which can limit their ability to innovate.
-
Globalisation
the homogeneous (make uniform or similar) process of it can cause different kinds of effects for different people and cultures.
Can also cause 'fashion convergence' or 'fashion divergence' amongst people (Childs, 2013, reading 16)
3 major processes of market integration:
production and exchange of goods
Flow of investment across borders
the global communication of information - marketing
Divergence
an organisation most closely mirrors the assumptions and practices of an internal or localised context. (Bloom, 2017, 9.1)
they instead stick closer to their own organisational or local culture (Ricks et al., 1990) cited in Bloom , 2017, 9.4
An organisation adopts internal or local practices, away from international norms.
There's a view that this hinders the ability of organisations to convert to international best practices and standards
(Lundvall and Tomlison, 2000) cited in bloom, 2017, 9.4
divergence can permit organisations to capitalise on local conditions and standardise their own operations while also making them susceptible to being change averse and not open to innovations happening internationally.
Convergence and divergence are shaped by economic, historical, political and social forces (Bloom, 2017, 9.1).
-