Global Management Perspective
A reflection of Business 601: Global Management Perspective
The business world today is more global than ever before. Every business from manufacturing to fast-food and coffee has gone to a global format. The market place that businesses must compete for market share in is no longer just a domestic one, the competition they will face is in the foreign market as well as in the digital market place. With the new ever changing business world, the business plans that organizations utilize, must be updated and continuously improved to ensure the organization is changing with the demand of the market. The global business has to have an effective business plan that effectively establishes the organizations goals as well as what vehicle they will use to get these goals accomplished. One of the main principles from the course was the establishment of Porters Five Forces Model (Porter, 1979), that establishes there are five main forces that play a major role in developing as well as executing an effective business plan in the global market as well as domestic market. Porter's Five Forces Model contains the following points: 1. Rivalry
2. Threat of Substitutes
3. Buyer Power
4. Supplier Power
5. Threat of New Entrants and Entry Barriers
Porter's Five Forces Model can be used across many different businesses and it can be a very useful tool for developing a new or existing global business plan. The key points that are addressed in this model really encompass the many pitfalls any organization could experience in their pursuit of growing their market share in a global market. The Ritz-Carlton was an extremely good study into the study of establishing high standards within a given industry, and establishing what is considered the standard for all hotels and many businesses from outside the hospitality industry even try to copy the success they have. The...