Implementation of Global Strategies

Implementation of Global Strategies

Introduction

Globalization has had its fair share of discussion in business circles for many decades now. Even after many years of global trade, there are many people who abide by a different school of thought. There are several factors that attribute the success of global business and trade to globalization. There are also others who think that because of globalization, factors like brand loyalty and user intimacy is a thing of the past. In this paper, I present observations from both schools of thought and provide a common ground for compromise and understanding.

Question 1

I am for globalization. My company, Sivens Product Designs, is a user experience design company. The main objective of the company is to provide a wide range of products and services to entrepreneurs (Lassaga, 2015). To our company, globalization is a great strategy to invest on. Seeking to explore other markets is a beneficial strategic move for the company. There are several benefits that the company gets access to by going global. Diversification of markets is a core benefit. By going global, the company market base stands to expands exponentially. Other benefits include; access to a wider talent base for company staffing, access to foreign investments opportunities, and the ability to share our company solutions with more people.

Question 2

According to Lassaga (2015), the development of the social economy in many emerging markets is forcing many companies to reevaluate their position on globalization. To my company, I would recommend that we consider the concept of globalization. It has many benefits for our business and the company at large. Here are some of my reasons. Taking the company global opens up a new market for the company. The company, Sivens designs, benefits from interacting with the global market in many ways. To the company, saturated home markets force the prices of services to go down. The company can globalize its operation in order to expand its reach. Hence raising more profits.

Globalization increases the investment opportunities for the company, as a service and product provider, the solutions the company provides reach a global audience. This, besides giving the company a chance to serve more people, it also gains an opportunity to attract more investments (Wailes, 2018). This helps the company to grow and provide better service to even more people. Globalization also will promote the need for innovation as the company will compete in a global market.

Question 3

In international trade today, globalization is to blame for the destruction of pricing formulas for businesses worldwide. Because of globalization, competition between industry participants has gone up considerably. As companies have continued to lose their patents, more companies have entered their industries and caused them to saturate. As a result, later industry entrants have accepted very low prices. This has provided an opportunity for destructive product pricing (Wailes, 2018). As a result of globalization, companies have also moved from high-cost labor regions to regions where labor is cheap and available. This has affected global pricing because it forces high margin businesses to reevaluate their pricing approaches.

Question 4

No. in the beginning, I preferred globalization. Despite the fact that globalization has had its share of shortcomings, it remains a strategy worth exploring to improve business environments. Globalization exposes a business to many risks that would be otherwise easy to handle in domestic markets. Political risk is one of the main shortcomings of globalization. The potential for government instabilities, policy differentiation, and culture can severely affect any company that chooses to venture into global trade. International business policies and interference impend the potential for a business to thrive in markets other than the domestic. As stated in his journal, Rethinking Globalization and Employment Relations, Wailes (2018), emphasizes the need to understand international policies and in-depth analysis of target markets.