Global Competetion
Global Competition Learning Team “A” Jacqueline Carr, Amanda Ofiara, Jenny Patchell, Katherine Salvas, Stephanie White ECO/365 April 29th, 2013 Daniel M. Rowe
Global Competition Week five presented our team with the effects global competition can have on an organization’s strategies for maximizing profits. In global markets, firms face many challenges, including language barriers, different cultures, exchange rates, government regulations, various accepted practices, increased competition, and differentiated consumer expectations. Management must consider these challenges when developing strategies to achieve planned objectives. This week, our team learned how global competition affects the relationship between managements and labor. Global operations also challenge a firm’s ability to enforce its corporate culture, mission, regulations, and responsibilities across all divisions. Global competition increases the need for companies to elevate their products and services above the competition to garner additional consumers in the global marketplace. With globalization so prevalent, companies must also be careful to navigate around the various labor and wage mandates that exist and differ between the multiple countries in which the company may operate. Pricing strategies must be adapted to fit the demand of the global community. Companies such as Apple that have niche products and services can charge a premium, whereas other companies that do not have as many points of differentiation are forced to price products and services competitively. Competitive pricing is an important tool firm’s use to avoid losing consumers to companies that provide a lower price point for goods. Globalization also provides the sharing of new technologies, giving consumers access to more advanced products and services.
Global Competition Week five presented our team with the effects global competition can have on an organization’s strategies for maximizing profits. In global markets, firms face many challenges, including language barriers, different cultures, exchange rates, government regulations, various accepted practices, increased competition, and differentiated consumer expectations. Management must consider these challenges when developing strategies to achieve planned objectives. This week, our team learned how global competition affects the relationship between managements and labor. Global operations also challenge a firm’s ability to enforce its corporate culture, mission, regulations, and responsibilities across all divisions. Global competition increases the need for companies to elevate their products and services above the competition to garner additional consumers in the global marketplace. With globalization so prevalent, companies must also be careful to navigate around the various labor and wage mandates that exist and differ between the multiple countries in which the company may operate. Pricing strategies must be adapted to fit the demand of the global community. Companies such as Apple that have niche products and services can charge a premium, whereas other companies that do not have as many points of differentiation are forced to price products and services competitively. Competitive pricing is an important tool firm’s use to avoid losing consumers to companies that provide a lower price point for goods. Globalization also provides the sharing of new technologies, giving consumers access to more advanced products and services.
References: Colander, D. C. (2010). Economics (8th ed.). New York, NY: McGraw-Hill.