Drivers of Globalization
Drivers of Globalization
In today’s growth of technology companies can be based in one country and operate business on the other side of the world. Becoming a global organization has helped economies that would otherwise struggle. Instead of only being able to reach thousands of consumers an organization is now able to reach millions. An organization usually seeks to go global to increase revenue. Whether it is a small organization looking to build profits or a large publically traded organization looking to build shareholders wealth the organization is looking to grow financially. With the aspiration of increased revenue there are certain drivers that bring an organization to a certain location in a specific time. Going global for an organization can prove to be risky, especially if the organization is not proficient in the countries financial processes, cultural differences, and ethical processes.
Market Drivers
An organization can be driven to go global based on the market forces. Marketing internationally have converged lifestyles around the world (Mowatt, 2012). The availability of products on an international level has allowed consumers to develop needs that drive companies to expand globally. Traditionally global marketing costs less, but when marketing by country more niche markets can have more effect (Kokemuller, 2012).
An organization that has been global for a few years is Smith Monitoring, based in Dallas Texas. This organization decided to go global into China. The purpose for globalizing into China was because the company had contacts in China from past mission trips. The organization noticed there was a large need for security systems in homes in and businesses in China. The organization found there market was in demand and enhanced on it.
Cost Drivers
Organizations look to make profits and add to the shareholder’s wealth. Often times the drive to move into a global position for an organization is cost. The cost of running business can
In today’s growth of technology companies can be based in one country and operate business on the other side of the world. Becoming a global organization has helped economies that would otherwise struggle. Instead of only being able to reach thousands of consumers an organization is now able to reach millions. An organization usually seeks to go global to increase revenue. Whether it is a small organization looking to build profits or a large publically traded organization looking to build shareholders wealth the organization is looking to grow financially. With the aspiration of increased revenue there are certain drivers that bring an organization to a certain location in a specific time. Going global for an organization can prove to be risky, especially if the organization is not proficient in the countries financial processes, cultural differences, and ethical processes.
Market Drivers
An organization can be driven to go global based on the market forces. Marketing internationally have converged lifestyles around the world (Mowatt, 2012). The availability of products on an international level has allowed consumers to develop needs that drive companies to expand globally. Traditionally global marketing costs less, but when marketing by country more niche markets can have more effect (Kokemuller, 2012).
An organization that has been global for a few years is Smith Monitoring, based in Dallas Texas. This organization decided to go global into China. The purpose for globalizing into China was because the company had contacts in China from past mission trips. The organization noticed there was a large need for security systems in homes in and businesses in China. The organization found there market was in demand and enhanced on it.
Cost Drivers
Organizations look to make profits and add to the shareholder’s wealth. Often times the drive to move into a global position for an organization is cost. The cost of running business can
References: Financial Web. (n.d.). Retrieved from http://web.finweb.com/investing/how-globalization-affects-u-s-companies.html Kokemuller, N. (2012). eHow Money. Retrieved from http://www.ehow.com/info_8678424_globalization-affect-way-company-business.html Little, K. (n.d.). About.com. Retrieved from http://stocks.about.com/od/tradingbasics/a/Typesrisk120704.htm Mowatt, K. (2012). eHow Money. Retrieved from http://www.ehow.com/facts_7574226_market-drivers-globalization-mean.html Quigley, M. (2012). eHow. Retrieved from http://www.ehow.com/info_8173049_ethical-issues-globalization.html