Global Management

Crystal Randolph

Colorado Technical University

MGMT690-1802B-05

May 23, 2018

Development of Global Strategies

· Resources Concern in a Global Strategy

Resources are essential for every global organization. When an organization grow and expands its market to the international markets, they require adequate resources to cater for their needs in the international markets. Resources required to cater for organizational needs in the international markets includes money, staffs, materials, and other assets essential in production in an organization. Although globalization has been embraced in many countries, companies have to adhere to rules and regulations in respective countries (Verbeke & Kano, 2016). As such, the need for organizations to have adequate resources to enable them operate efficiently in the international market. For instance, a motor vehicle company may not be allowed to sell their finished products in a foreign country rather have an assembly plant in the country. In such an instance, the company will have to harness resources to enable it operate in the country. Resources in such a case will used to operate the plant in the foreign country to comply with the rules and regulations of that country.

· Resources Concern in the Selected Country

If a company deals with fabrics, it has to operate under the rules and regulations in that country. Take for instance the US-Based fabric company want to starts its operations in Singapore. In such an instance, the company will have to gather resources to hire natives as staffs in the country since it a requirement to have a percentage of workers from that country in every company operating in the country. Moreover, the company will have to pay for taxes for materials imported to aid in the manufacture of the fabrics. However, the company may evade taxation on the imported raw materials by sourcing local materials where resources will have a critical role in the production process. Other resources will be used to acquire legislation requirements in the country.

· Impact of the Decision Made to Move to the Selected Country

Resources influences decision to move to a country in different ways. First, a sound decision will incur the organization additional cost to cater for the needs. However, this will make the company to comply with the set rules and regulations in Singapore. Having complied with the set rules, the organization will have easy time in Singapore and production will increase as well. Recruiting natives to work in the organization will enhance marketability. Native workers will ensure that the fabrics have a sense of origin in Singapore that will attract buyers since the goods are more local than foreign.

· Competitive Strategy Impact in your Global Market

The strategy will also reduce competition. The company will have a greater sense of origin in Singapore than United States. Consumers in the local markets do prefer local goods over foreign goods. Therefore, they will opt the locally made goods over imported fabrics. Native workers will also promote marketability of the fabrics through network marketing and this will attract lots of consumers than in case where workers are foreigners. The strategy will also enhance competitive strategy since producing goods locally will reduce the importation cost and hence goods produced locally will be cheaper. This will give the company an upper hand in the market over the competitors. Producing goods locally and marketing them develops social cohesion with the locals and hence consumers will feels they are part of the organization. International companies finds it difficult to integrate with the social norms of a country during internationalization and hence the company will overcome the challenge through this strategy (Verbeke & Asmussen, 2016).

References

Verbeke, A. & Asmussen, C. G. (2016). Global, local, or regional? The locus of MNE strategies, Journal of Management Studies, 49(2), 98-111.

Verbeke, A. & Kano, L. (2016). An internalization theory perspective on the global and regional strategies of multinational enterprises. Journal of World Business, 43(2), 92-126.