Global Strategies Globalization

Question: Why Global Strategies Are Rare In Practice? Answer: Introduction This essay focuses on the reasons as to why global strategy or globalization is rarely practiced, how it is done and when a company is ready to go global. However, to do this, there is the need to clearly define what global strategy is and what it entails in details. It is also important to discuss various factors that limit the number of organizations implementing the different strategies. To achieve all these, there is a need to look at how those strategies are important to the companies, and also the setbacks and disadvantages of the strategies on different international cooperation. Moreover, why the organizations need to reject some of the strategies is also of great importance. Furthermore, the essay also looks at the global trends in business and determines how this will affect future trends. Although globalization is the best thing that can happen to any organization in terms of increasing the companys customer base, increasing the quality and quantity of products and profit maximization, there is need to look at some aspects that may affect that organization or the people around that organization negatively. This would create a negative impression on the company, firm or organization. Discussion and Analysis A global strategy is defined as organizations strategic stepwise guidelines to globalization and can answer various questions like, what must be against what already is. It is also the measure of the level of buyers around the worlds major markets and finally how a global presence can be achieved (Linda and Gao 2016, p. 18). The global strategy also dictates the level at which the organization is supposed to conform to different environments either ethically, legally, culturally, and socially. Linda and Gao (2016) noted down important requirements for a global strategy which includes making operations standardized, exploring synergies by using the strategies globally and centralizing the current management. It is also important to note that the company or organization only standardizes the important elements to be able to achieve a global strategy. From global strategy comes the term glucol, a term that has been used by different researchers like (Talay et.al 2015, p. 62). The word glucol means thinking globally but acting and operating locally, going by the definition by Talay et.al (2015). This term came into existence to prevent any kind of confusion that would arise between global strategy and glucol strategy. As a matter of fact, the glucol strategy is usually implemented at the managerial level. All the same, global strategies are similar to the objectives that local companies, firms or organizations which have. They are just like the fleeting or short term objectives of the business which can be identified by enhancing the everyday operations of the organization. However, the long haul goals are by and large focused towards augmentation of the benefits, deals, and profit of the organization over the long haul; this guarantees development and dependability of the business and predominance over the national or provincial market (Hotho et.al 2015, p. 94). Furthermore, Worldwide Business techniques are a field which involves interdisciplinary issues of advertising, association hypothesis, business procedure, and universal administration and focus on amplifying the firm execution as outlined by (Argote 2015, p.200). He further discusses how picking a worldwide system that is adept for the arrangement of conditions can confront every business. Picking a universal system, be it institutionalization or adjustment, is dependent upon the capacity of the firm to suit its advertising procedure and the outer environment. Similarly, an applied possibility system is frequently speculated between the basic factors of the business, for example, high deals income, limit use and particular connections between these factors and their successful usage can prompt elevated amounts of execution. Therefore, one of the key components influencing worldwide business methodologies is the impact of the WTO (World Trade Organization) governing on the exchange of merchandise and ventures, Foreign Direct Investment and Intellectual Property Rights. These influence significant business interests and transactions and assents between created nations affect the present blazing issues. Such issues are mainly AIDS, ecological assurance and environmental change, worldwide security, and global relocation (Fine 2016, p. 148). Merits of Global Strategy Similarly, there is a need to clearly discuss the various benefits of a worldwide company. These benefits are vast with the main ones being; Increased profits and standardization of production. Increased profits can be realized since when the company grows to become worldwide, there will be an increase in the number of consumers or customers that buy their products or services. Standardization of production, on the other hand, is majorly done by firms who take part in worldwide business and it involves delivering an indistinguishable item for the national as well as the universal markets with just minor changes in qualities. This is for the most part clarified by the way that fundamental human needs are the same in all nations over the world going by the sentiments of (Murray et.al 2009, p. 101). Also, assets or resources of various nations being utilized for creating merchandise and ventures can be done so effectively this is given that when different nations with different resources come together and pool their resources, an increased production becomes evident. The increase can be in terms of quality and quantity, and this helps to increase the overall value of the goods and utility of the goods. In addition, Shoppers get a much more extensive assortment of items to select from hence the consumers can have a variety of choices and conclude their preferred taste and preference. Consumers would have a wide market with a wide field of variety to choose from. Shoppers also get the item they need at more aggressive costs when there is a wide variety of commodities in the market which also enhances a stiff competition. As a result of the stiff competition, most producers will tend to reduce the prices of their commodities, and this would benefit the consumers most. However, the price is the determinant of affordability, therefore, when the prices are down, the products become more affordable that can translate to more sales. According to Fine (2016), It is possible for different Organizations to secure information about products and ventures required at most focused costs, going global, and encouraging research of different products. Such intensified research leads to the acquisition of information about different products especially on the web, magazines or various blogs. Going Global also encourages Organizations to get access to much more extensive markets, increase their customer base by venturing into other foreign markets. This would impact on a company positively and would lead to an increase in the companys revenues and profits. In essence, globalization advances comprehension and goodwill among various nations and also creates a good relation between countries doing business together. This would lead to the removal of different trade restrictions and tariffs; hence encourages the movement of people from those countries. As a result, organizations and speculators get much more extensive open doors for a venture. Similarly, companies get a wider field to compete in through globalization since this involves the entire world. Therefore, the companys product will meet other products in the market and compete favorably through global strategy (Murray et.al 2009, p. 101). Demerits of Global Strategy All the same, not all that glitters is gold. There are also some negative impacts of globalization on an organization or economy at large. For instance, an antagonistic effect of changes in farming preparations in one region can impact negatively on another region. This can result in a decrease in production because resources from other zones will have to be pulled as to cover for the decline in one zone. Different fluctuations in production usually face agriculture and this can be attributed to low rainfall, diseases or other factors that affect crops. When such like problem occurs, the resources from other countries with good production can be used to curb the decline in production which can adversely affect the economy. Furthermore, globalization can have negative effect on nature as highlighted by Siegel and Ghemawat (2011). This can happen especially when moving products from one region to the other. The need to move goods and services quite often so as to reach the final consumer on time in different countries means excessive movements of locomotives which have negative effects on the environment. Apart from that, the excessive production itself has negative impacts on the environment especially the production of goods that deals with extraction such as minerals. Furthermore, the companies nature of operation can also change in order to match the global standards which might require imported labour. This would affect the locals who should benefit from the industry or company in terms of employment opportunities. Besides, globalization can also destroy neighborhood economies. This can be evident when a more developed country goes global then the neighboring competing countries that would try to match them. In return, the country might spend much in keeping up with the competition at the expense of doing other developments. On the same note, if the country fails to match the move, the economy can be affected since their production may attract low demand. To add to that, globalization can also prompt hyper-specialization, which can negative. Additionally, globalization can be driven by individuals with "know how" and power and they can methodically lead to poverty in the world. This is because only a small percentage or a section of the population will be able to control the economy. Therefore, a larger percentage of the population will be left poor and living on less than a dollar per day (Kotler 2010, p. 412). Other Disadvantages of Global Strategy Developed nations can smother improvement of undeveloped and immature nations. This is because of the fear that if those nations develop, then they would compete them and reduce their profits and the dependency of the undeveloped countries as outlined by Johansson .Monetary melancholy in one nation can also trigger unfavorable response over the globe. When one country goes bankrupt then all other countries will be affected being a supply of a flow of goods are services from one country to another will seize due to the financial problems in that country. Also, globalization can lead to the spread of contagious diseases as stated by Ghemawat (2007) . When goods or services move from one country to another, there is also a possibility of the spread of airborne diseases that can be carried by the goods or services from one country to another. This can lead to a major outbreak which can result to loss of lives. However, this problem is a preventable one and only requires a proper screening. On the same note, a countrys demand would be affected by such history of airborne diseases that once originated from the specific country. Such information interferes with customers preference that also impacts on the sales and production in general. Organizations confront much more noteworthy rivalry. And this can put littler organizations, off guard as they don't have assets to contend at a worldwide scale, when organizations go global then we have other companies on a bigger scale that are ready to compete with them. Therefore, the companies need to be ready and prepared to compete favorably with the organizations. Finally, global strategy leads to an increased gap between the poor and the rich in the society or in a country in terms of income inequalities. This is usually referred to as the poverty entrapment, cultural convergence whereby more individuals are moving towards a more westernized way of life and fashion, and this may cause cultural clashes and the introduction of unwanted ways of life in reserved communities. pollution of the environment via water, air, soil or any other means when companies go global , in addition, globalization requires more of skilled workers, therefore, the less skilled workers lose their jobs due to upgrade of the companies (Garten 1999). Globalization also increases the level of unemployment because most of the companys operations will be mechanized and therefore people doing those activities manually will have to be laid off. It can, therefore, prompt social homogenization. Every country/society has its own particular culture, however, under globalization, the way of life of some countries, especially the developing nations can be affected a great deal. Furthermore, it is threatening to Humanism through execution. It goes for quickening monetary development, and financial development, as indicated by its heroes. It can, therefore, be achieved immediately through privatization. The quest for development scarcely regards human qualities. Its also Sex Insensitive since ladies have endured a great deal under globalization. In the privatized economy, the interests and worries of ladies, especially of poor ladies, have been genuinely overlooked. More importantly, Globalization can also lead to civil war between rival coun tries in terms of resources, where they can start a conflict just because of a resource that one country isnt willing to share with the other. Conclusion and Recommendations Global marketing strategy is not only important given the way it impacts positively on the companies revenue and recognition, but also because it can be the best step in saving the company lots of money especially where packaging or advertisement are standardized. The world is already leaning towards a globalization of spirit, ideas, and culture. Therefore, acquisition of globalized products and services has become a natural step that has almost become a usual thing. Even though many companies and organization have portrayed unwillingness in incorporating the idea of global strategy, it can be of great benefit to an organization that does it the right way. Furthermore, the invention of the internet has even made it very simple for businesses to go global with lots of ease. The advancement in technology and e-business has made it possible to go global irrespective of the nature or size of ones business or firm. However, this step requires a lot of time, energy, and a strong financial base to make it a success. Furthermore, even though going global is associated with some benefits, it is true to state that the global approach is not just suitable for any business. Therefore, before deciding whether to go global or not, it is important to establish the upcoming business trends. Getting the information concerning the most innovative business strategy only requires information from a reliable service provider. On the same, there are various technological tools that can help you in getting a real-time innovative business strategy. Conclusion Going by both the advantages and disadvantages of the global strategy that have been highlighted, it is evident that most of its advantages are only money oriented while its disadvantages are things that affect the real life especially of people in the developing countries. Therefore, this can be the main reason as to why most companies or firms are reluctant to adopt the strategy. However, if correct laid down procedures are put in place, the global strategy can be the best step any company or organization would yearn for. Proper execution of the strategy can lead to maximized profits which is the main objective of all businesses. List of References Argote, L 2015, 'An Opportunity for Mutual Learning between Organizational Learning and Global Strategy Researchers: Transactive Memory Systems', Global Strategy Journal, 5, 2, pp. 198-203, Business Source Premier, EBSCOhost, viewed 22 October 2016. Fine, P 2016, 'An important perspective on the recent history of leprosy - and its implications for the current Global Strategy', Leprosy Review, 87, 2, pp. 146-150, Academic Search Premier, EBSCOhost, viewed 22 October 2016. 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