By
Raul Bernardino
Abstract:
Nowadays organization and companies will be
different in next 5 to 10 years’ time. The world moves rapidly. The world
leaders often met and put their intervention in order to have a clear direction
of the global market. Moreover, technology innovation helps to spread out today’s
world decision and information to a very remote location in matter of second.
Therefore, innovation becomes a biggest part business strategy components and
planning whereas to be an updated organizations.
Furthermore, organization faces a time compression
which means an organization is no longer similar to last 20-30 years operations.
In other hands, the employees are also facing a past education very soon and
therefore organization needs strategizing the available resource within an
updated knowledge and also uses of the innovation technology for delivering a product
and service within high quality standard and in time.
We are living
in instant information and 24 hours news cycles. A 30 second story on the
evening news, Capitol Hill new legislation, new UN approach, a competitors or
business partner could shifting and playing in the field on any business
landscape. There are too many complexity and complicate things around
internationalization and globalization.
In initial stage of
the technology centered company is challenged with the complexity of the foreign
markets and global competition from their earliest stage of development. It is
not only to be a technology entrepreneurs who keeps certain technology based offer
products, but they must simultaneously stay abreast of the competitors and
industry trends in the multiple countries.
The findings suggest
that resources necessary to pursue international sales have an important impact
on both foreign market intensity and diversity. Additionally, company age was
positively associated with the global diversity but not international
intensity. Therefore, business today should not necessary to have it owns resources;
the important how to deploy the available resources in the timely manner. These findings support the notion of small
technology companies become ‘instant internationals’ but suggest that is
proceeding to the next step of achieving the global diversity will require a greater
time and resources.
Introduction:
With the presence of the technology innovation and the existing of
the internet, the globalization such as global financials flows,
transportations and market competition become bases of adjusting and adapting
the needs within the new products and services delivers. This includes doing a
strategic for new market environment. Additionally, the global market becomes
booming in all parts of the globe whereas it utilizes the means of the
communication by accessing the transportations (private and public) and multi
financial resource.
Some factors need to consider in
the global market competition:
- ‘Global
competition in the home market’: There are a lot
of new products arrives and supplies in the home market and probably we will
lose our own customers very soon; because our competitors may offer good
quality of the products and services than we did. The competitor prices
may also lower than our product price. The global competitions at home
markets are also speeding up a new innovation and added value to the
customers, it includes developing and improving the current products and
services with the high quality of standard.
- ‘Stagnant
or shrinking home market’: The global
communication also helps stagnant the home market. E.g. a new product which
not launch yet however the promotion of product has adverted and this will
allow customer to wait that new product instead going to buy an existing product
with old fashion.
- ‘Foreign
markets with more opportunity’: the
globalization gives an opportunity to expand the market in the foreign
countries, however the businessmen have to understand several issues such
as ‘International Trading System,
foreign country economic environment, foreign country political and legal
system, foreign country culture and it is environments’, Armstrong
and Kotler (2010:580-585). The international trading system may have a
restriction from one country or nation to the other countries. For example,
to protect their domestic products and its company, the government of the
country may put high tariff or taxes to the imported goods which gain
additional revenue to the country.
The economic environment, the businessmen have to analyse ‘foreign country industrial structure
and income distribution’, Armstrong and Kotler (2010:582). The
industrial structures are consisting of economic subsistence, export raw
material economics, and industrialization economics. They are also look at
income distribution for low individual incomes, medium, and high
household. The foreign country political and legal system. The political
stability, bureaucracy, and legal system are the major factors and metrics
point for the new market entry into the country. The businessmen have also
need to know the new target country’s culture and norms before trying to
expand their products and services marketing. Each country has different
norms and beliefs. For example, we cannot sell fast food with pork meat in
the Islamic countries and etc.
- ‘Expansion
of customers to international markets’: Build a
good relationship with new customers and with the existing customers can
be seeing as the point to expand new product and service, it includes
introducing new product from foreign countries.
In general a globalization is an integration of
the societies, economies, cultures of the globe over of process of technology
innovation, politic and trade.
The advantages of globalization:
- Free trade is which a country does not pay a levy taxes
on import or export goods or services.
- Globalization allows company tries to find new market
and earn more customers. Subsequently, companies are competing each other
by provide goods a service with high quality because customers have more
choice in new market.
- Globalization brings up employment rate because new market
need both skilled and un-skill labor. The globalization increases living standard.
The disadvantage of globalization:
- Although, the globalization
increases employment's rate in new market, meanwhile unemployment's rate
increase in developed countries. Industries are moving from developed
nation to less develop countries. It’s because in less develop countries
have low labor cost.
- People immigrate in to other countries and bring their
own cultures to the destination and forget local culture.
International
standards and best practices become and standard for ever organizations such as
health and safety environment policies and procedures, quality management,
ISOs, etc. In the organization where I work, we use OPEC prices as a standard
for determine oil and gas prices; ISO 27001 for information security management
system, etc.
This
international standards drives the organization to lift up their standards whereas
to compete with other organization and to be an excellence and up to dated
organizations. This also bring local company become international deliver
service globally.
In case of
Siemens company that’s operates across 190 nations all decision must in the
best of Siemens interest. Moreover, the design keeps concentering in
manufacturing and economics scale through specialization. Those product can
ship to anywhere within the group. The weakness part is currency changes fluctuation
that can affect to the price in the market.
There are
many globalization challenges to the Seimens. For instance customer can buy raw
material from any supplier but not have a technical expertise, therefore
Seimens comes with product and services at once. This is a deliberate strategy
for Siemens. Seimens in the UK share the customer culture and it group focuses
on think customers.
As we know
that in the global market there are lots of competitors therefore Seimens
established global center of excellence that can serves the special request
for entire group.
Conclusion:
According to Professor Gary Hamel, London Business School on ‘Creating
the Future’ presentation to the senior executive course at Stanford University
(December, 1997) stated that: “Ninety
per cent of what you need to learn, you will learn from outside your own
business sector.” Therefore, we do need a coping from other organizations and
adapt them into our own business environments.
Especially the changes are more quickly than ever (time compressing
era).
Therefore internationalization becomes vehicle for the globalization.
Reference
List
·
Armstrong, G. and Kotler, P. (2010) Principles of marketing,13th edition, Global edtition: Prentice
Hall
·
Miles,
G.,Preeece,S.B., Beatz, M.C. (1998), Explaining the international intensity and
global diversity of early-stage technology-based firms [on-line].
Available from: http://www.sciencedirect.com/science/article/pii/S0883902697001055 (Accessed: 22 October 2014)
·
Stiglitz,
The globalization [on-line].
Available from: https://www.youtube.com/watch?v=sV7bRLtDr3E
(Accessed: 8 November
2014)
·
Meeting Global and Local Needs [on-line]. Available from: http://businesscasestudies.co.uk/siemens/meeting-global-and-local-needs/introduction.html#axzz32685SAnm
(Accessed: 8 November 2014)
