600-800 words
1. How do you define a global strategy? Compare and contrast global strategy with other
international expansion strategies.
-Definition of Global, International, Multinational, and Transnational Strategies:
A global strategy is a strategy that a company takes when it wants to compete and
expand in the global market. In other words, a strategy business pursues when they
wish to expand internationally. A global strategy refers to the plans an organization
has developed to target growth beyond its borders. Specifically, it aims to increase the
sales of goods or services abroad. It is a shortened term that covers three other
strategies, which includes international, multinational, and the transnational
strategies. An international company is one that imports and exports. In other words,
it sells to customers abroad and has foreign suppliers. This type of company does not
have any investments, which includes branches, offices, and factories outside its
home country. A multinational company, unlike an international one, has investments
in other countries. It has business, staff, and premises in more than one country.
However, it does not have coordinated product offerings. A multinational company
focuses more on adapting its products and services to individual local markets. A
transnational company operates in different countries. It has investments in operations
both at home and abroad. However, the directors/managers at each individual market
are also the decision-makers for their regions. Additionally, local management
decides on research, development, and marketing policies and strategies for their
territories.
-Compare and Contrast Global and International Strategies: There was not much
of a comparison that I noticed between the global and international strategies other
than the fact that both of them work with customers outside of the United States and
the fact that the global strategy business pursues to expand internationally. there are
many differences in these two strategies however. In discussing these two strategies
with others, I have noticed that they are perceived to be the same by them as well as
by several markets throughout the world. However, I do not believe that they are the
same. International strategy involves the marketing tactics adopted by knowledgeable
marketers in different countries specific to the markets of those countries. Global
marketing, on the other hand is a marketing concept which involves the marketing
efforts put in for the unique worldwide market. The global strategy is when an
organization utilizes an exact promotional tactic all over the world, however, the
international strategy refers to a situation wherein a company opens a subsidiary in a
new country and permits that subsidiary to look after the market in that region and
pay consideration to local customs like religion, dietary, and lifestyle habits.
-Compare and Contrast Global and Multinational Strategies: Both the global and
multinational strategy companies have a presence in multiple countries although the
multinational company focuses more on adapting its products and services to
individual local markets. The global strategy focuses more on the whole world,
whereas, the multinational only has a wish to expand but focus more on local
companies.
-Compare and Contrast Global and Transnational Strategies: The transnational
company evolved in response to environmental forces and simultaneous demands for
global efficiency, national responsiveness, and worldwide learning. The transnational
strategy combines features of the multinational, global, and international models. A
product is designed to be globally competitive, and is differentiated and adapted by
local subsidiaries to meet local market demands.
2. Identify a minimum of 3 possible countries for globalization. Research each of these
locations in the furniture industry, and document both the pros and cons of using these in
global strategy.
-Three countries: Statista (2019) gives the countries of Singapore, Hong Kong
(China), and the Netherlands as the highest in globalization in 2018. They said that
“The statistic shows the top 100 countries in the globalization index 2018 in the field
of economic globalization. The 2018 edition of the index uses data from the year
2015. The index value for Singapore was determined at 92.47 points in the
globalization index 2018 in the field of economic globalization. Hong Kong, China is
at 90.07 points and the Netherlands is at 89.31 points.” (Statista, 2019).
-Singapore and the Furniture Industry: The worldwide home furnishing industry
reached 855 billion dollars in 2015. Singapore’s furniture industry has expanded
rapidly over the years, with home decoration and environmentally-friendly products
gaining popularity among consumers. These consumers are also increasingly willing
to fork out money for luxury furniture. Singapore’s furniture industry started as small
family-run businesses and expanded gradually over the years to major companies
with offices and manufacturing plants all over the world. With consistent efforts being
made to help promising young designers and also the implementation of industry
programmers to help local furniture companies seek exposure and reach their full
potential both locally and overseas, Singapore's furniture industry is set to soar to
even greater heights.
-Hong Kong (China) and the Furniture Industry: The Hong Kong Trade
Development Council said that “The furniture and furnishing industry is a
manufacturing sector in Hong Kong with a long history. It includes the production of
household, office and kitchen furniture, as well as mattresses, bedding and parts of
furniture. A vast variety of raw materials are used in production, including wood,
rattan, plastic and metal. Among others, wooden furniture is the major production and
exports of the industry. The furniture and furnishing industry is a manufacturing
sector in Hong Kong with a long history. It includes the production of household,
office and kitchen furniture, as well as mattresses, bedding and parts of furniture. A
vast variety of raw materials are used in production, including wood, rattan, plastic
and metal. Among others, wooden furniture is the major production and exports of the
industry. The furniture and furnishing industry is a manufacturing sector in Hong
Kong with a long history. It includes the production of household, office and kitchen
furniture, as well as mattresses, bedding and parts of furniture. A vast variety of raw
materials are used in production, including wood, rattan, plastic and metal. Among
others, wooden furniture is the major production and exports of the industry. The
furniture and furnishing industry is a manufacturing sector in Hong Kong with a long
history. It includes the production of household, office and kitchen furniture, as well
as mattresses, bedding and parts of furniture. A vast variety of raw materials are used
in production, including wood, rattan, plastic and metal. Among others, wooden
furniture is the major production and exports of the industry.” (
3. What country would you choose? What evidence can you provide in support of your
choice?
4. What evidence might somebody else, who does not agree with you, provide to support an
alternative choice?
5. Recommend two or three areas to benchmark in preparation for the decision regarding
global expansion. MUSE materials provide information regarding this topic.
The materials found in the M.U.S.E. may help you with this assignment, such as the audio file
Benefits of Globalization. This file provides real-world experience, which may help you with this
assignment.
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