Global Management
alasski
BeginningDevelopmentofGlobalStrategies1.docxRunning Head: BEGINNING DEVELOPMENT OF GLOBAL STRATEGIES 1
BEGINNING DEVELOPMENT OF GLOBAL STRATEGIES 5
Beginning Development of Global Strategies
Crystal Randolph
Colorado Technical University
MGMT690-1802B-05
May 18, 2018
Beginning Development of Global Strategies
What is global strategy and other international expansion strategies
Global strategy is standardization that is done in contrast to a multinational approach in which companies set up national subsidiaries that adapt their products or services in design, production and marketing to local conditions. This multinational model is being questioned today. Unlike a true global strategy, it can be called a "multi-local strategy." One of the toughest challenges for today's management is to turn a group of national companies into a single, global company with a single, global strategy. Precisely because it seems so difficult, the ability to develop and apply an effective global strategy is the acid test for a well-run business. Several factors are causing companies around the world to globalize and expand their market share into international markets. But companies also have to globalize in another sense, by standardizing their global strategy (Laudon & Laudon, 2016).
Global strategy has a global vocation, judging from their customer base or supply chain. However, there comes a time when entrepreneurs decide to take the leap and undertake more formally the entry of their company in new regions of the world and internationalize. New markets can be a niche for both growth opportunities and improving customer service. They can also pose risks when dealing with saturated markets, slow growth or high competition. That is why internationalization must be carefully planned and not just follow the path taken by other companies (Laudon & Laudon, 2016).
Therefore, there is need to apply other strategies as well. One of the strategies that is comparable with global strategy is discrete approximation. The strategy involves delaying investment infrastructure or bulk of cost until they consolidate their operations abroad. Discrete approximation is efficient in justifying expenses of an organization and guarantees return on investment for a long time. Applying discrete approximation helps in mitigating risks and enhances adjustment when opportunities emerges. Global strategy is also comparable to adopt a clear product strategy. This international expansion strategy entails developing a cutting edge product that enhances efficient expansion to foreign countries. Products are tested in the suggested country of invested and customers’ response monitored. If the sample products thrive well, the company later expands its market to the region (Laudon & Laudon, 2016).
3 possible countries for globalization
The best three countries to invest furniture industry are; Australia, Germany and Canada. Despite the high salary costs, the Australian market is considered among the best places in the world to start its own business. The credit goes to the high level of connectivity, good infrastructure and transparency in business practices. All key factors that make the country an ideal destination for self-made men. In case of Germany, it is in all sub-indexes (infrastructure, technology, training, transparency), Germany stands out as the best place in the world to open a furniture company. Another country worth investing in is Canada. The country gained the seventh position thanks to particularly developed infrastructures, transparency in business practices and a workforce with a high level of education. Remember in this regard that, in 2015, Canada introduced an ad-hoc visa, "Start-up Visa" to recruit migrants with innovative business ideas (Armstrong, et al, 2015).
Support to an alternative choice
It is evident that the greater growth of the world demand for low-end furniture has supported the exports of those countries that have a competitive advantage on the cost side. In this structural revolution, however, the German industry has been able to keep itself on a path of growth, up to steadily exceed, since 2015, the 4 billion euro of exports. In particular, the German industry succeeded in intercepting the growth of high-end world demand, which, although at lower rates than the low-end ones, nevertheless increased significantly during this century (Armstrong, et al, 2015).
Benchmark in preparation for the decision regarding global expansion
There are areas worth benchmarking in preparation for decision regarding global expansion. First, it is large producers for internal and external demand, thus when things are going well for an organization or market it is important to know why. Second, is the consumption: benchmarking allows the organization to move into unchartered territories understand the new market and how and why the appetite of the consumers should be insatiable. The company has to evaluate which consumers spend more on the purchase of furniture. This will assist them to evaluate the market and give a strategy on how to venture into the market and possibilities for failure (M.U.S.E, 2018).
References
Armstrong, G., Kotler, P., Harker, M. & Brennan, R. (2015). Marketing: an introduction
Laudon, K. C, & Laudon, J. P. (2016). Management information system. Pearson Education India.
M.U.S.E., (2018). Why Use Benchmarking. Colorado Technical University. https://class.ctuonline.edu/_layouts/MUSEViewer/MUSE.aspx?mid=11190468
