Globalization Crux
The Globalization Crux
Introduction
Globalization is a top concern for many businesses today. According to interviews conducted by BMGI, “seven out of 10 Fortune 500 CEOs cite the challenges of globalization as their top concern” (Para, 3). Globalization is the crux of expansion and growth for a company looking to control their market. Although, the concept of globalization is one of many complex parts it is still a very necessary discussion any company looking to survive long-term should be having. I propose that companies include the idea of global expansion in their long-term goals and plans for the future. My solution to globalization crux to anticipate it long in advance and face it head on. This approach does come with its …show more content…
It is through this connectedness that businesses are able to expand into new markets, introduce new product lines, and solicit new investors. Think about McDonalds expanding into Hong Kong. The menu is much different than in the U.S. because with the expansion into Hong Kong there was also a new untapped market. Of course there were risks but McDonalds calculated these risks and found ways to break-down the barriers that could potentially hinder them in this new environment. One of the main barriers to globalization is culture. In order for a company to successfully break into any market and especially one in an entirely different country they must first be aware of the culture. Surprisingly, many companies fail at the attempt to globalize by simply not taking the time to understand the culture in their new …show more content…
In 2011 alone General Motors sold a total of $9,025,942 vehicles globally (International Trade Association, n.d, Para. 12). Part of GM’s global globalization strategy is selling and manufacturing cars in China, since they make up such a large portion of GM’s sales. In China alone, GM has 11 joint ventures and two wholly owned foreign enterprises with more than 35,000 employees. In 2011, these firms produced 2.5 million vehicles and generated some $1.5 billion in profits for GM in the U.S (Politifact.com, 2012). GM’s success in China signals a brighter economic future for the company. The increased global profits have allowed GM to gain some control of the company after turning it over to the Government five years ago. However, GM is faced with issues concerning their Chinese
Introduction
Globalization is a top concern for many businesses today. According to interviews conducted by BMGI, “seven out of 10 Fortune 500 CEOs cite the challenges of globalization as their top concern” (Para, 3). Globalization is the crux of expansion and growth for a company looking to control their market. Although, the concept of globalization is one of many complex parts it is still a very necessary discussion any company looking to survive long-term should be having. I propose that companies include the idea of global expansion in their long-term goals and plans for the future. My solution to globalization crux to anticipate it long in advance and face it head on. This approach does come with its …show more content…
It is through this connectedness that businesses are able to expand into new markets, introduce new product lines, and solicit new investors. Think about McDonalds expanding into Hong Kong. The menu is much different than in the U.S. because with the expansion into Hong Kong there was also a new untapped market. Of course there were risks but McDonalds calculated these risks and found ways to break-down the barriers that could potentially hinder them in this new environment. One of the main barriers to globalization is culture. In order for a company to successfully break into any market and especially one in an entirely different country they must first be aware of the culture. Surprisingly, many companies fail at the attempt to globalize by simply not taking the time to understand the culture in their new …show more content…
In 2011 alone General Motors sold a total of $9,025,942 vehicles globally (International Trade Association, n.d, Para. 12). Part of GM’s global globalization strategy is selling and manufacturing cars in China, since they make up such a large portion of GM’s sales. In China alone, GM has 11 joint ventures and two wholly owned foreign enterprises with more than 35,000 employees. In 2011, these firms produced 2.5 million vehicles and generated some $1.5 billion in profits for GM in the U.S (Politifact.com, 2012). GM’s success in China signals a brighter economic future for the company. The increased global profits have allowed GM to gain some control of the company after turning it over to the Government five years ago. However, GM is faced with issues concerning their Chinese