Global Business World – Three Strategies You Should Consider

This article introduced three strategies of globalization business and analyzed the relations among them; then offers some essential decisive-related questions for strategy scheme and decision making; and at last summarizes some issues for executives to think about.

The globalization directly affects the competitive situation of the world, it is necessary to make good use of strategies and reduce risks in order to establish and lift the power of business competition.

Because competition is emerging in very much different markets, today’s businesses are forced to be globalized in non-traditional ways. Before enterprises make a presence in markets just so that they know what competitors in that market are doing and use it as a window to look into new trends and new competitive strategies. These are just some of the reasons that require businesses today to have a global mindset-it is an essential factor for survival.

Followed are three strategies for globalization business.

The first is to adjust measures according to local conditions of target area, and it’s the essence of all global business strategies. There are differences in terms of costs for different raw materials, labor power, working skills, and institutional infrastructures. The decision makers with a global perspective, have to recognize the differences across countries and account for them in the strategic decisions. Those decisions may have to do with customers, raw materials, manufacturing, capital funds, market capacity or any of the dimensions on which strategic plans are made. Thus, a company in a labor-intensive business that fails to account for labor cost differentials across countries.

On the contrast, the second strategy is to fully use the similarities across countries. Because there are significant similarities, it means that products, skills and investments that are made or developed for one market have the potential to be leveraged in multiple geographic markets. The similarities imply that a product  created or developed in some market can be sold in another market without having to be reinvented. What that enables a business to do, for example, is to use its research and development dollars by selling a proven product from one market, usually the company’s home market, to different countries. This advantage is particularly significant in businesses like pharmaceuticals that are research and development intensive.

The above two strategies of similarities and differences across markets are not opposite ends of one scale. Rather, they are complementary dimensions and should both be leveraged. An executive needs to ask what the similarities and differences are across markets. It then becomes a matter of strategic choice whether to exploit similarities first or differences first or both simultaneously, in order to take advantages of the global potential that lies inherent in each business.

The third of globalization business strategy is about the fundamental choices. Typically, these decisions involve four considerations: operations and costs; customers and markets; competition; government policies. Does the product have a committed champion? Can a product sold in multiple markets increase competitive advantage in home market? Are the competitors in that particular market already global and therefore, does the company needs to have a presence in multiple markets to be able to defend against the competitors? Sometimes, answering these questions in the context of a company’s organization is as much an administrative as an economic and strategic process.

 
Ultimately, an executive must make sure that the company has a presence in multiple markets and view it like a global game of chess. He must coordinate competitive moves across countries; consciously decide in which country to launch a product, where the global competitors are strongest, where the cost structure is lowest, and where the business is likely to get the quickest market feedback. Then he must decide how to launch the product in other markets and how to manage pricing in multiple markets. It is the global chess game rather than individual market share games being played in local area. Unless all elements fit together, it is difficult to develop the competitive global business.

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Global Business – Raising the Bar

The writing is on the wall. If corporations plan to maintain a leadership role internationally, employees have to acquire a global perspective. For years, executives have questioned the return on investment for soft skill education and in particular, scoffed at the idea of cross-cultural trainings. However, as our business world becomes increasingly interactive and internationally focused, culturally sensitive approaches are essential for professional and respectful communication.

Beyond raising corporate reputations to a more sophisticated level, cross-cultural education maintains profitable relationships. As many in global entities already know, one inappropriate email, comment or interaction can easily damage or even ruin an international relationship. Basic cultural education, such as the significance of color selection when sending a package to Tokyo, understanding email verbiage from Mumbai, how to properly return a banquet toast in Shanghai or how to better understand business norms in Cairo not only cultivates and strengthens relationships, but eliminates costly misunderstandings.

Strengthen your Market Position and Prepare your Company for the Future.

As global mergers, alliances and agreements become common practice, the need for cross-cultural knowledge will become increasingly important at all levels. But the clock is ticking and the likelihood that executives may have to learn cross-cultural awareness under extenuating circumstances is a growing concern.

For example, stories abound regarding Detroit-based Chrysler executives who struggled in Daimler’s corporate culture. Not only were seasoned American executives surrounded by another language, leaders were stunned by German corporate norms and many floundered in the new environment. It’s hard enough to adjust to a new corporate culture during a domestic merger, but when a partner is from another country, an entire new set of obstacles quickly becomes evident. It takes training and education for individuals, departments and organizations to progress down the cultural learning curve.

Global Education Increases Service Levels, Builds Stronger Teams and Maximizes Revenue Potential.

Companies who set aside ethnocentric tendencies and better connect with international partners and foreign investors will flourish and succeed. Managers who fully understand a range of cultural behaviors- from Japanese negotiation techniques and Chinese superstitions to Middle Eastern norms and South American communication styles – will become the visionary leaders of tomorrow. Additionally, future leaders will get a leg up on their competition by including outsourced workers (who typically provide customer service and reservations functions) into cultural trainings and global networks. Certainly all organizations can benefit from higher service levels, stronger teams, increased revenues and a unified corporate culture.

Standardizing Best Practices across Corporate Divisions will Improve Quality Control, Streamline Operations, Enhance Customer Service and Create a Unified Corporate Culture.

Another key to global success: Organizations with international sites should solicit and value input from all employees in all divisions. Although creating and facilitating international focus groups sounds like a simple task, the endeavor contains inherent challenges, including conflicting cross-cultural communication styles, differing cultural attitudes towards hierarchies, navigating levels of fluency and methods to overcome cultural norms that inhibit communication.

The best way to maximize quality input from a diverse cohort is to hire focus group facilitators based on their individual understanding of cultural dynamics. Or better yet, as recommended in the Harvard Business Review (11/06), contract the endeavor to an outside consultant (when dealing with multicultural teams, outside consultants do not represent a hierarchical threat and thus, focus group participation increases).

The time is now to raise the bar for global business. The formula for success is simple- quality cultural education and cross-cultural focus groups. Follow the lead of progressive companies like HSBC and Novartis– and get on board. Without a doubt, it’s one of the best investments you can make to position your company as a savvy and sophisticated leader.

Global Business Schooling Opportunities

Conducting business in a foreign country differs from how professionals perform work related duties in America. Many factors contribute to this difference and students can learn to perform business functions overseas by completing an educational program in global business. Colleges provide many opportunities for students to understand the global economy inside a business setting.

Educational study encompasses the entire global environment as is relates to business strategies, operations, and problem solving techniques. Students walk away from a program with a global mindset that is utilized to conduct business with foreign professionals and customers. Training covers everything from global trade to how different cultures affect the way countries carry out business. To fully grasp all the needed knowledge to work in the field students are required to have at least a bachelor’s degree. The two most common completed programs by students are at the bachelor’s degree and master’s degree level. Each program focuses on business practices as they relate to working with and managing a global business.

The education gained inside a bachelor’s degree program focuses on teaching students about:

  • Business Law
  • Accounting
  • Marketing
  • Global Trade
  • International Cultures

Coursework focuses on these areas and more to train students to help a business thrive in the global marketplace. Undergraduate study focuses on completely incorporating business practices with understanding the global economy. Many students complete a global management degree because of the skill set earned within a typical program. The combination of global business relations and management skills prepares students to work with a business on all areas including trade, investment procedure, finance, human resource management, and accounting. A prominent course inside a bachelor’s degree is a business strategies course. Work related to international payments and trades is emphasized. The goal is to teach students to create an effective multinational enterprise by identifying appropriate global operations.

A global business master’s degree centers on providing students with general and specialized knowledge in areas that include:

  • Foreign Politics
  • Customs
  • Global Institutions

Education follows not only the business aspect but also the cultural aspect of the global economy. Schooling focuses on the importance of cultural awareness and economical control of working with a global economy. Courses in political science, diplomatic strategy, global ecology, international law, and finance are worked through. These industry areas provide students with the understanding of how different countries conduct business with each other. Continuing education can be pursued in a related doctoral degree or a postgraduate certificate program.

Accredited Schooling opportunities are available to teach students to use the global economy to expand business. Accreditation is provided by agencies like the Association to Advance Collegiate Schools of Business (http://www.aacsb.edu) to schools that can provide a quality education. Other key components that students are able to use inside a career include advising companies on international matters and markets to meet the consumer demands for a particular product. Students that earn a degree will be able to work in management and top-executive positions inside a business. Enter the global economy industry by taking advantage of the many schooling opportunities available.

DISCLAIMER: Above is a GENERIC OUTLINE and may or may not depict precise methods, courses and/or focuses related to ANY ONE specific school(s) that may or may not be advertised at PETAP.org.

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