Mkt 421 Week 3

Week Three Assignment

5. Explain when and why it is important for a company to globalize. When an organization wants to go global, they look at the opportunities in all countries that will permit that organization to enhance the effectiveness of business functions everywhere the organization has operations and then devise a strategy to achieve that goal. The two main reason an organization looks to globalization is for standardization and customization. Standardization uses a regular product, service and message over all markets to solidify the image of the brand. Standardization works until consumers turn to local companies that identify with the region’s cultural needs and wants. The other reason is customization which is standardized products, services, and messages that have
been personalized and tailored to meet the desires of local demographics. Customization has been the growing trend and phasing out standardization and it unifies the organization’s mission statement which promotes corporate values and commitments and provides a basis for strategic decisions.

6. Describe the four main strategic orientations of global firms. When the main entity guides all the strategic decisions over the entire operation is an ethnocentric orientation and the company believes that is how they will manage global operations. Polycentric orientation companies thinks a country’s culture determine the strategic decision process for the company’s operations. Companies that choose to combine ethnocentric orientation with the regional demands conclude to regiocentric orientation. Geocentric orientation accepts the global systems strategy to highlight global integration.

7. Explain the control problems that are faced by global firms. Most global firms’ financial policies are designed to advance the goals of the home entity and neglect the goals of the global entities and this action develops conflict between the different divisions in both home and global companies, as well as, the separate countries also. The financial problems in measuring the performance in the global divisions produce a behavior in the company that a company should implement reviews to minimize financial concerns. The many methods to move revenue from country to country, in order to evade taxes and eliminate some risks sometimes consist of more extensive corrupt behavior. Planning is another issue because each country has its own measurements for work. For example, eight hour work days are common in the United States and 10 hour work days could be common in another country. Overtime is given to workers that have worked over forty hours in one work week, where as in some countries they may not even pay overtime. When companies do not monitor these differences and issues over the entire enterprise procedural setbacks arise.

9. Describe the market requirements and product characteristics in global competition. Because products and services vary from market to market, the requirements of consumer demands are the acceptance of standardized products and how fast or slow product innovation is requested.
The differences in the products are either basic products or customized products each market, at its own rate, will require the increase or decrease of a mixture of the products or particular products for the market.

1. Describe SWOT analysis as a way to guide internal analysis. How does this approach reflect the basic strategic management process? The SWOT analysis guides an organization to look at the position of the company against competitors and identify their strengths, identify, capitalize and exploit the opportunities the company has, recognize where the company needs to strengthen their position, and distinguish the threats that will directly affect the company if neglected. SWOT analysis support strategic management process because it help to develop the strategy a company make to improve their position in the industry. It is the framework that spawns innovation in an organization.

2. What are potential weakness of SWOT
analysis? The weaknesses are the limitation of the SWOT Analysis and the four limitations are as follows; a SWOT analysis can overemphasize internal strengths and downplay external threats and that can lead to an organization being narrow minded and getting lost amongst competition that could make the company eventually bottom out. The second limitation states that the SWOT can be static and can risk ignoring changing circumstances like the airline industry going in one direction that it opened opportunity for smaller airlines that capitalize on the opportunity that was developed from the industry being stagnant. Thirdly, SWOT can overemphasize a single strength or element of strategy will have a company focused on one competitive advantage and ballooning it that threat is not viewed until it is too late. Lastly, the SWOT is not necessarily a source of competitive advantage, but should assist in identifying possible advantages.
(John Pearce, 2011)

References

John Pearce, R. R. (2011). Strategic management formulation, implementation, and control. New York: McGraw-Hill Irwin.