When You Shouldnt Go Global

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Running head: VETTING GLOBALIZATION STRATEGIES

When You Shouldn’t Go Global;
Vetting Globalization Strategies

Table of Contents
Executive Summary ........................................................................................................................3 Case Overview ................................................................................................................................4 SWOT..............................................................................................................................................5 Situation Analysis... ........................................................................................................................7 STAB Principles .............................................................................................................................8 Christian Values ............................................................................................................................13 Recommendations .........................................................................................................................15 References .....................................................................................................................................17 Executive Summary

It has been argued that companies who have experienced some level of failure when trying their hand at cross-border ventures have simply attempted the leap under misguided information. It is argued that such failures are in direct result of inadequately vetting their globalization strategies. We offer an in depth discussion surrounding the globalization issue and the necessary strategies, followed by recommendations we believe could help reduce the prevalence of globalization failures. We open our discussion with a 2008 case study urging the company considering globalization to ask themselves a series of revealing questions. Providing real life examples, we go on to highlight several underlying pressures and challenges often associated with the process of globalization. An analysis of the strengths, weaknesses, opportunities and threats, often associated with a firm who is not prepared for globalization, is performed. The often intimidating global climate and several mixed assumptions surrounding globalization are discussed across a multitude of service industries. We continue by presenting three of Sun Tzu’s principles, as cited in The Art of Business, as we argue ways in which they are instrumental to any successful globalization venture, providing examples of firms who have historically and successfully applied the three principles. Several Christian values and how they are intertwined within the structural framework of a successfully globalized firm mentioned, noting the importance of a functional mission statement and several key characteristics to be explored before attempting the cross-border venture; ensuring global readiness. Finally, we offer several recommendations that we conclude are vital in addressing globalization preparedness, suggesting that with additional research, insight, and after fully vetting the related risks and rewards, the frequency of globalization failures would be significantly reduced. Case Overview

Marcus Alexander and Harry Korine (2008), argue that many companies do not take the time to ensure that their globalization strategies were not “deeply misguided.” Believing that many of these failures could be avoided, Alexander and Korine (2008) recommend the company pondering globalization ask themselves three questions: 1. Are there potential benefits for our company?

2. Do we have the necessary management skills? and
3. Will the costs outweigh the benefits?
Among the arguments made by Alexander and Korine is that which encompasses the pressures surrounding the globalization process. Alexander and Korine (2008), argue that companies going global in relation to various...
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