Within the Discussion Board area, write 600 to 800 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas..
As the firm looks for ways to offset the domestic downturn in sales, Deborah, the CEO of your company, wants to determine if a global strategy is a good fit for the organization. She has designated you as the manager for this project. You will work with your team to develop a global marketing plan for your organization.
You begin your research in deciding if and what the global strategy should be. You get your team together and begin to discuss a plan on how you will research this possibility.
You start the meeting by saying "Let's brainstorm and start to get a plan together for a possible globalization strategy. Tiffany, I'd like you work with me to begin researching possible locations."
Tiffany says, "I think we need to research some locations, but I think there is more to it than that. There still needs to be a decision on the type of strategy or approach we are taking. Would we use a multidomestic approach, a global approach, or a transnational approach? I'm still not entirely convinced a global strategy is the answer."
"Great point, Tiffany. It is obvious to me as well that we need to explore a strategy that will put us in a better position to handle the economic downturn. We have to provide the board with the facts. They seem to be leaning in the direction of a global strategy, but I'm not sure it's the right move either. That's why we need to do research."
Domestic profit margins have dropped by 2% this quarter. You wonder how you and your team can help fix this. Is a global strategy the answer, or should the company continue to focus on the domestic market?
You call a team meeting to learn about the progress of their research.
Tiffany, one of your team members, begins the discussion. "I think we need to look at some of the internal factors," she says. "We know what our capabilities are on the domestic front, but what about in the global market? We have a fairly strong market presence here in higher-end markets, but how does that translate globally?"
Discuss the following:
- How do you define a global strategy? Compare and contrast global strategy with other international expansion strategies.
- Identify a minimum of 3 possible countries for globalization. Research each of these locations in the furniture industry, and document both the pros and cons of using these in global strategy.
- What country would you choose? What evidence can you provide in support of your choice?
- What evidence might somebody else, who does not agree with you, provide to support an alternative choice?
- Recommend two or three areas to benchmark in preparation for the decision regarding global expansion. MUSE materials provide information regarding this topic.
The materials found in the M.U.S.E. may help you with this assignment, such as the audio file Benefits of Globalization. This file provides real-world experience, which may help you with this assignment.
Mike, one of the marketing strategists on your team, stops at your office door wanting to talk. "We use fabrics that are made domestically; however, there are issues with using these same fabrics globally. There are laws and regulations that prevent us from shipping these fabrics to other countries. This is a huge concern. One of our primary selling points is the consistency of quality of our product."
You confirm Mike's concern, "That's an excellent point," you say. "Now you've just given yourself and our team more work for the presentation. I'm sure that will come up. One of the board members used to run a textile plant in China."
Mike nods his head in agreement. "I imagine textiles will not be the only resource concern," he says.
Consider the following in your response:
- Why should resources be a concern in a global strategy?
- What resources may be a concern in the country you selected?
- How will this impact the decision to move to the country that you selected?
- How will this impact your competitive strategy in your global market?
Review the reference materials on global strategy as there is information that may assist with the assignment. (2 to 3 pgs.)