American Intercontinental University
Dr. Douglas McCoy
In the 21st century it is a necessity to go global. Companies that consider going global take on huge feats in today's diverse economies. Globalization is somewhat intimidating. A company must conduct a wealth of market research. It starts out with analysis and strategic planning. Companies need to consider market segmentation for their product, forming strategic alliances, mergers, acquisitions and joint ventures. These are some of the ideas a company can utilize to set foot on the international stage. Besides the preparation a company must look at foreign government policies and guidelines, study cultural differences and learn to interact effectively when dealing with foreigners. Some companies must consider the thought of licensing its product or its intellectual property to reach company goals.
There are also product differentiation, supply chain management and/or middlemen that they should consider to act as liaisons in the foreign market. This essay will focus on the process of globalization. Seal wrap, a United States based company that manufactures plastics is deciding to go global. Its CEO Jerry is very apprehensive about expanding into the foreign markets. He needs help from a team of researchers that has conducted studies on other companies that encountered issues during the process of globalization and to create ways to prevent the missteps those companies' experiences. It will also take a pragmatic look at the sociological attributes of cultural differences in a working environment and a company's steps they took to launch its business model abroad
The Process of Globalization
Before considering going global a process a company can take is to consider the business environment to see which countries have the most desirable business setting and the lowest fees. The next step is to screen the suppliers and vendors. A company could take a trip to one of the foreign companies to ensure safe business practices, treating their employees fairly and using non- toxic production methods. Deciding to go global indicates different cultures and languages. Failing to learn the language can cost the company connections, or embarrassment. A company should consider hiring liaisons when considering diplomatic issues. (Editorial Board, 2012).