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The 2012 Summer Olympics will undoubtedly have a major impact on the British Economy. Prime Minister David Cameron has already stated that the Olympic Games will give Britain a 13 billion pound economic boost. With the 2012 Olympics in London shaping up to be the most expensive games in history, much is expected from the Olympics in terms of economic growth for the United Kingdom. However with all this talk about its impact on Britain, the Summer Olympics may have an even greater impact on the global business world.
From an international business perspective, the first area that is often overlooked is global advertising among major corporations. Many global companies have launched global marketing campaigns using Olympic sponsorships to promote their products. For example, Coca-Cola has launched an Olympic themed TV advertising campaign in more than 30 countries around the world. With audiences all across the world tuning into the Olympics to support their athletes, global corporations are using this as an opportunity for brand exposure in markets overseas. For a few months, the Olympics greatly affect international marketing creating opportunities to target new markets.
With millions of tourists traveling to London for the games, local and global supply chains will be tremendously affected by the Olympics. Many industries that rely on the United Kingdom in their supply chains have plans in place to ensure smooth delivery of products and raw materials. Whether it’s forgoing the United Kingdom completely or remapping transportation routes throughout the country, this supply chain alteration has huge costs for businesses. For international businesses, global supply chains must continue to operate efficiently despite congestion caused by the Olympics.
Another global impact caused by the Olympics is opportunity for the creation of international business partnerships. British Prime Minister David Cameron is using the Olympics not only to showcase British businesses but also as an avenue to secure global business partnerships. In a globalized world where economies are interconnected, the United Kingdom has recognized the importance of developing global business sectors not just local ones. To accomplish this, the British Business Embassy will help foster international business partnerships throughout the Olympics by hosting global business summits. So while watching the Olympic Games this July and August, you will notice the many countries and athletes competing against each other as they go for gold. However, behind the scenes, major business players from all over the world are working together to tackle the problems facing our global economy and are working toward their own sort of gold.
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