Global business strategies

A global business strategy can be described as the strategies that a business has when they are serving customers around the world or operating in a global business environment (EconomyWatch, 2010). Global business strategies are closely related to the long and short term goals of an organization. Generally, short term goals deal with improving the day to day operations of the business. The long term goals on the other hand, deal with increasing profits and sales to strengthen the organization and create a dominance in the market. Global business strategies have developed due to globalization and because of the knowledge that the value of domestic companies increase when they conduct business internationally (EconomyWatch, 2010). Standardization and adaptation are the two main components of a global business strategy.
Standardization occurs when a manufacturer produces the same product for both international and domestic consumption while only making a few minor changes. There are several arguments that support standardization including:
• It benefits the company because similar products are being produced and similar techniques are being used.
• The cost of alteration, design, and handling the product are minimized because of standardization.
• Learning is also easier because the product is already in existence and experienced personnel would be easier to find.
Some argue that adaptation is the best strategy however because different cultures enjoy different things and have different preferences. Often times, there are many different factors that people consider when purchasing their products. Environmental factors are one significant factor that influences buyer behavior in different countries (EconomyWatch, 2010). Businesses must consider different languages, legal and regulatory requirements, and distribution channels (Linton, 2013). Standardization can sometimes lead to failure if products cannot conform to local guidelines, regulations, or