Final Paper – International Management (2012-08-MAN-372-OL011)
Management Strategies and Building a more Successful Global Business
Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. It has manifold dimensions: economic, political, security, environmental, health, social, cultural, and others. The focus here is on the concept of "globalization" as applied to the world economy. International expansion is simply about smart preparation and well-thought-out execution; it can be enticing and highly profitable, but only if you do it right. If you don’t plan ...view middle of the document...
As a result, extensive research has been done on the effect of international diversification on firm performance.
Successful businesses know when and how to adapt and change. This involves growing some areas of activity and cutting back on less profitable areas. Companies can often benefit from acquiring businesses operating in overseas markets. For example in Europe, the USA or the Far East, the availability of new customers or cheaper costs of employing people may give competitive advantage.
Global World Economy
Globalization has brought about changes in consumption consumer behavior. The tastes and preferences of consumers around the globe are becoming integrated and tending to consume similar products. Globalization has led to consumers accepting some global brand names such as McDonald’s burgers, Coca-Cola, Levi’s jeans and Pepsi among others. This means that globalization in a particular country can result to a number of positive impacts. Selling the brands around the globe will increase revenue and foreign exchange. However to enjoy these benefits a number of marketing strategies must be employed in order to win a substantial market share in the competitive global market.
Considering that countries are endowed with different physical resources, firms shall enjoy the resources that are cheaper and hence enjoy more returns. Some economies might have a conducive environment for growing of cotton than Belgium. Globalization also enables a firm to enjoy other human capital that is experts in various fields. The experts offer best services to firm hence enabling a firm to be at a competitive advantage. The textile firms in Belgium can subcontract firms to offer certain services in the economies they expand into, through this, they end up creating employment in other economies thereby improving the living standards.
Globalization has involved greater openness in the international economy, an integration of markets on a worldwide basis, and a movement toward a borderless world, all of which have led to increases in global flows. There are several sources of globalization over the last several decades. Technological advances that have significantly lowered the costs of transportation and communication and dramatically lowered the costs of data processing and information storage and retrieval comprise one such source.
Another source of globalization is comprised of changes in institutions, where organizations have a wider reach, due, in part, to technological changes and to the more wide-ranging horizons of their managers, empowered by advances in communications. Thus, corporations that were mainly focused on local markets have extended their range in terms of markets and production facilities to a national, multinational, international or even global reach. These changes in industrial structure have led to increases in the power, profits and productivity of those firms that can choose among many nations for their sources of materials,...