Assignment:
There are certainly pros and cons of going global.
For example, with a physical product, the pros might include selling in more volume and the cons may include having to manage the process and logistics. It might also be costly to set up geographic distribution and global marketing at these destinations. Of course, all of this will depend on the global market chosen to do business in and the pro and cons may be different by product and service.
Write a 2-3 full page paper on the following:
• Identify and describe the market in Paris, France
• Analyze pros and cons of entering this market
Globalization Today
A global business is one of a geocentric nature where the firm's position in one country is influenced by company assets in other countries.
Another aspect of a global enterprise is their national presence in each country whether offices are held in the country or not. Even though the words international and global are often utilized interchangeably, an international company with an entity in more than one country while a global entity describes cohesive units across borders (Ayman, Kreicker, & Masztal, 1994). Domestic companies have many challenges including global competition, economic dislocation, and corporate downsizing. Global businesses face these and many other challenges in the various environments and cultural differentials that they are involved (Jusela, 1994). Of course, there are reasons for globalizing a business and it has its advantages and disadvantages.
Why Grow?
The rationale of growing a business lies behind the need or desire to expand the venture. The reasons behind this are extremely wide and vary in nature:
• Attracted to a market by the opportunity of known concepts (Sherman, 2003).
• Various markets present a need and opportunity for expansion.
One of the first phases to international expansion is that of Opportunism and Experimentation. This involves the organization encountering a diverse array of international ventures and opportunities as it is exploring the international waters (Smith & Zeithaml, 1993). During this phase the company is venturing and exploring the possibilities, which may create new reasons or expand on existing reasons for globalization.
A True Global Company?A business becomes truly global when it operates in many different countries and it is structured and governed as an integrated global entity. Each operation runs almost independently from the other under the same business name. One of the advantages of being truly global is the local presence in each country of operation. Management teams of the companies are present and able to see and study firsthand the various markets in order to eliminate mistakes and misconceptions and cultural ignorance.
Advantages to Being Global?The advantage of these branch offices or local representation is that the people as well as customers become loyal to the business because it is physically in their country, and it is not seen as an outsider taking away their market and economy (Sherman, 2003). Multiculturalism provides a variety of thoughts and ideas. Teams of a multicultural composite achieve more effectiveness when they are challenged with non-routine tasks that require innovativeness. There are more advantages to being global depending on the specifics of the business and its locations; this is the same with disadvantages. However, some common disadvantages exist across the board.
Additional Resources
This video provides the argument countries make for and against globalization.
This PowerPoint Presentation will give more information on An Overview of International Business.
This PowerPoint Presentation will give more information on the Global Marketplace and Business Centers.