Advanced industrial business management

Globalization is actually the edge of economic, technological, political and socio- cultural forces i.e. world(prenominal)ization refers to the adaptation or tuition of values, knowl edge, applied science and behavioral norms across various societies and countries around the man.The characteristics of globalization be mostly cogitate with global networking (i.e. internet, electronic communication or technology and many more) with interflow of information in the economic, social, political and cultural learning areas, interflow between planetaryist alliances and competitors, world(prenominal) collaboration and multi-cultural integration and global village and technology.Globalization amplifies the cultural smorgasbord of an organization and the party needs to be aware(p) of the culture diversity within the organization so that they can guide the managers when they take decisions. Managers need to however their contributions to the organization by being informed close to cultural differences among the participations international operations.The partys role is not to object to or block technology transfers or different innovations to drive on them. The evolution globalization of business also instrument grater movement of employees among countries. (Edwards, 2006)Global ExpansionCompanies monumental and small believe in global involution and the companies find that thinking globally can provide them with a competitive edge over their competitors. International markets provide many opportunities for companies to hold out themselves. Large companies are the ones who carry out international business .Companies who are global or in the global or stateless stage of international development transcend any single seat artless. The companies operate in a global fashion, reservation gross r pointue and acquiring resources in countries where the cost is the token(prenominal) and where a lot of business opportunities are there.At this stage, com panies pee their offices located at different locations around the world with total control and ownership. The companies that operation internationally encourages lax flow of ideas, reapings, manufacturing and marketing among countries so that they can make great efficiencies. (Daft, 1997)Ways to ExpansionThere are different rules of global expansion for any large society. All companies construct a couple of ways in which they can stretch forth their business globally. One if the ways a large company can expand itself it through desire out cheaper sources for supplies and looking for cheaper providers who would supply the company offshore, this process is called the outsourcing method.Another method for a company to expand globally would be by developing markets for the companys finished products outside the companys menage country, this may embarrass licensing, direct coronation or even through exportationing etc.This manakin of method is called the market approach s trategy where the company introduces itself and its products for merchandising in a alien market. What happens is that the most companies dismay with exporting and they work up to direct invest in the foreign market. The different ways for a company to expand itself globally are as follows-OutsourcingOutsourcing here is being referred to as global sourcing or outsourcing, essentially means engaging in the international division of labor so that the output of the companys products can be done in the cheapest sources and supplies available to the company.For example, the company may take away(p) a contract from a domestic supplier because the supplier was providing the company with expensive materials and can stand in it with a supplier in Far eastbound because that supplier is providing with the cheapest material for the production of the products. Outsourcing is mostly conducted by the company so that it can increase its profits. (Fullmer, 1983)ExportingWith the economic ai d of exporting the company can maintain its production facilities within the home nation and then transfers the product for sale in the foreign market. Exporting basically attend tos the country to market its product in other countries at modest resource cost and with real minimum risk for the company and the country.There are nearly large companies that usually do not want to be involved in any kind of investment in the foreign market, therefore for much(prenominal) companies who want to expand globally usually export their product to the foreign markets like Gerber Scientific Inc. (high-tech equipment supplier).LicensingWith the help of licensing a company in one country makes certain sources available to companies in another country. These resources include technology, managerial skills, patents or even pilemark rights. Franchising is a form of licensing in which the franchisor provides foreign franchises with a make do package of material and services, which include equipm ent, products, product ingredients, trade mark and trade name rights, managerial advice and a standardized operating.Some of the best known international franchisors are the fast foods chains and coffee shops like Starbucks, rib Coffee, Burger King, Dunkin Donuts, KFC, Pizza Hut or McDonalds. Licensing and franchising offer a business company relatively an easy approach path to international markets at low costs, but the shape its participation in and control over the development of those markets. (Fullmer, 1983)Direct InvestmentDirect investment can be described as a higher involvement of the company in an international trade. Direct investment means when the company is involved in managing the productive assets, which distinguishes it from the other entry strategies which stops less management control.Joint venture is a also a part of direct investment which can be defined as a variation of direct investment in which the company would share costs and risks with another firm to fix a manufacturing facility, or to develop new products or even to set up a sales and distribution network. (Fullmer, 1983)ConclusionThis paper basically stresses on the growing importance of an international or global stance of the company that how it can expand itself.Large companies that sport been a huge success in their home countries have begun to expand their business overseas and are preparing themselves even now to withstand domestic competition from the foreign markets competitors. Business in the global arena involves risks and difficulties that have to be faced by the companys management.ReferencesDaft, R.L. (1997) Management. Orlando The Dryden PressDavid Roman (2008), Going Global, Available from , on 5th December08Edwards, W. (2006), Why go global? Compelling reasons to expand internationally, Available from http//www.allbusiness.com/retail-trade/4017371-1.html, on 5th December08Fullmer, R.M. (1983) The new(a) Management New York Macmillan Publishing Company