Implementation of a Global Strategy within the Framework of Deborah’s Establishment
Deborah’s marketing team has completed the global market study analysis and devised the strategic global marketing plan and the implementation plan. Now the task for the market research leader is to present the findings and analyses of the survey to the advisory board so that it can decide whether to globalize the company (Livermore & Revesz, 2013). The decision by the advisory council will be based largely on the market study results obtained by Deborah’s team. The board wants to finalize its strategic project on the effects of globalization if it finds that the latter is the best move for the firm. Therefore, the advisory committee needs just to scrutinize the strategic global marketing plan as well as the implementation plan and make a judgment. The global strategy implementation plan must be vetted to ascertain that it is enforceable and fruitful. An effective global strategy implementation project must define corporate objectives and demonstrate how they will be achieved within the stipulated period (Pettinger, 2012). It must also show how unseen challenges will be dealt with when they arise. Thus, this paper explains the importance of globalization within the framework of Deborah’s establishment.
Is Globalization a Good Move for the Company?
With proper management, the advantages of globalization outweigh the disadvantages. Although at the beginning it might sound challenging, the long run benefits are much more substantial. After forming a formidable market, the company will attract growth because of many factors associated with globalization (Pettinger, 2012). Firstly, due to the increased and expanding customer base in addition to the reduced cost of production per unit, the firm becomes very competitive in the market. Therefore, globalization is the best way for Deborah’s Company. At present, the enterprise is renowned for offering high-quality goods in its local market. Moreover, it has captured the latter. As mentioned above, the position of the venture in the world markets means expanding the corporate customer base in the international markets (Livermore & Revesz, 2013).
After becoming a global company, the cost of production will automatically fall. Besides, the working expenses decrease with the increase in the number of units manufactured. Lower costs of production enhance the competitive advantage of the firm both in the local and outside markets. The essence of globalization ranges from the positioning in the global market to creating competitiveness of the establishment (Yueh, 2009). The only concern of globalization is the fear of uncertainty but with the best tools for the proper market analysis, the unsureness is reduced to certainty. The Deborah’s marketing team has done the situational analysis and confirmed that going global is the most opportunistic move for the business.
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Another advantage of globalization is that the venture will be in a position to access opportunities on the worldwide scale. As opposed to the local market where the conditions for progress are restricted, the international one provides such benefits. As long as the company is offering prime products, which the trade demands, it will have limitless potential for development. Additionally, the access to international credit can encourage investments (Pettinger, 2012). On a global basis, the reputation of the firm grows. Hence, this helps the country to win business tenders and opportunities that would have otherwise been hard for it to grab at the national level.
The Rationale Behind The Idea
As aforementioned, there are numerous merits related to globalization (Livermore & Revesz, 2013). First, the company will make use of the competitive advantage because of the reduced production costs, a large consumer base, and easy means of accessing credits among others (Yueh, 2009). Furthermore, the improvement in technology will enable the firm to market its product all the time. The primary economic reason for globalization is expanding the corporate market as well as removing the barriers to trade in order to involve all the worldwide societies. The establishment will stand to benefit from the comparative advantages that are impeded by the trade restrictions between nations. There are so many opportunities that Deborah and her enterprise cannot get while operating at the local level. Additionally, the degree of competition in the domestic market is slight. Enhancement of rivalry will only shrink the market share of Deborah’s company (Pettinger, 2012). If the corporation does not take immediate actions, it will be kicked out of the market by its opponents. Moreover, because of the competition, the profit margin is low, and therefore, the chances of the business growth are minimal.
The Best Geographic Locations for Globalization
Expanding the business performance to the global market is not that simple. The company must first analyze various possible markets that it is targeting (Markovic, 2012). Not all untapped places are appropriate for investment. It must be realized in those states that will buy the product offered by the firm. Thus, the business is like a young baby in the womb that requires the best environment and conditions to reach maturity. Likewise, a venture requires political stability, favorable economic circumstances and much more to thrive. Therefore, when deciding on the best geographic locations for expanding the trade, one should choose a country that is not marred with political chaos, where there is stable economy and people have the ability to buy the goods, which the enterprise will provide. Moreover, the nation that allows international trade in its territories is an important consideration.
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Additionally, the governments of the target nations must be ready to support the business by guaranteeing peaceful and conducive environment (Pettinger, 2012). The industry develops when it is protected by the authorities. Thus, the state has to improve working conditions, friendly tariffs, duties, and taxes. Other best geographic locations for the undertaking include areas where the business is not established or where its performance is low, and the demand for the product is high. Introducing the trade in a place where it is not known can be challenging before the commercial enterprise is fully accepted by the members of the society. Once the venture gets ground, it owns the market onwards. Therefore, Deborah needs to think of countries where her business has not thrived properly, and the manufactured items are required. Consequently, having determined to promote a company to the international position one should avoid geographical locations where there are political instability, chaos, poor infrastructures and operating costs are high.
Background to Support this Decision
Globalization has worked for prominent companies and corporations in the world (Markovic, 2012). So many firms have grown from local enterprises to multinational ones. For instance, Apple Inc. was launched as a national establishment, but it became multinational after joining the global market. Google, Coca-Cola, and Amazon are other examples that started at the national level but gradually they entered the outside market. With strong leadership and state of the art market analysis, these ventures achieved remarkable progress by increasing their customer base, and they became more competitive. In case of Deborah’s company, the marketing team has conducted the background studies to see how effective the corporation will perform in the global market (Livermore & Revesz, 2013). The marketing team has indicated that they have made the market analysis and have drawn up the implementation plan.
Therefore, it means that they have undertaken a comprehensive marketing research that includes the Strength, Weakness, Opportunities and Threat analysis and found that the firm will do well after expanding to the world market. Briefly, the foundation of the global market for Deborah’s company will be informed better by evaluating similar enterprises that shifted to the outside market and performed efficiently. Deborah will learn from the success and failures of these ventures. The information gathered through benchmark studies, and comparative analysis of different but similar corporations makes me support this idea (Pettinger, 2012). It is crystal clear that globalization is the best move for Deborah’s company.
Another important consideration is the fact that Deborah is not starting the new establishment. She already understands the market. Together with her marketing team, she is fully aware of the business’s weaknesses and strengths. They have data about the market demand for their product. Hence, globalization will not be a problem for this company. With such kind of material, they have a beginning point. The knowledge of the market and industry the firm specializes in gives it a better edge of succeeding.
Globalization Supports the Overall Goal of Growth and Expansion
According to aforementioned, globalization implies the increase of the customer share of the company. The decrease in the cost of production plus broader customer base promote the competitive advantage of the corporation. As the number of clients grows, the enterprise will make more and more sales (Markovic, 2012). Because of the improvement of profit margins, the firm will expand and progress further. With high returns and significant financial gain, the establishment will enhance the stocks, open up new branches in other countries and even diversify the investment to sale of different products (Yueh, 2009). Through globalization, the venture will have access to cheaper resources that comes as a result of bilateral agreements between the organization and the state where the former targets its assets. As a multinational corporation, Deborah’s company will have better chances of attracting capital from international lenders. With a good inflow of capital, the corporation will hit its target and achieve its objectives.
Refuting Someone with Opposing Perspective
The issue of making the company international is likely not to receive a warm welcome from those who feel and believe that it will be the beginning of the downfall. A person who lacks clear understanding of what globalization is will not accept this idea that easily. However, as an experienced business analyst, in both market and investment analyses, I will have to let such people see the benefits of globalizing in a practical sense (Livermore & Revesz, 2013). I will start by explaining the privileges associated with globalization. For instance, the competitive advantages that emanate from the increased customer base and reduced costs of production.
In addition, I will not relent in explicating the market analyses that have already been professionally conducted using the best tools such as the SWOT analysis. Taking an individual through the results, globalization strategy, and the implementation plan will help to erase any feelings of doubt that the business will fail. Moreover, the most important thing is to be to describe similar and known enterprises that became global and have been doing well (Yueh, 2009). Besides, enabling one to have a face-to-face discussion with the company executive would be another effective strategy. For instance, giving that person an opportunity to interact with Coke Company officials and explain to him/her the globalization means by providing examples from the Coke Company case.
Globalization is one of the ways to develop the company and make it hit its targets. However, for this marketing strategy to work, the firm has to devote considerable efforts including the marketing analysis and devising an effective implementation plan. Businesses that have become global and succeeded can be used as the benchmark enterprises in globalization. Any organization that aims at entering the international arena must make the necessary market analysis to ensure that it has no doubts about its move. Deborah’s marketing team has done the required studies, and it is confident that the undertaking will perform well when it gets in the market. Under good management and leadership, numerous corporations such as Amazon, Coca-Cola, Google, Apple Inc. among others have turned into successful worldwide establishments. Nevertheless, everything has its bad side. For globalization, the fear of the unknown is what disturbs and hinders people from expanding their businesses to the global scale. However, in commerce, it is all about taking risks with a lot of backing information that will help overcome the peril. The management of an international company is different from the local one. The diversity and extensiveness of the market seems to be a challenge to most enterprises, which dread globalization. The marketing techniques are different, and the cost of running the multinational venture is high. With good administration and business mindset, these are not problems but the resources for corporate development.
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