Resumo koren enterprise global strategies chapter 13

Resumo Enterprise Globalization Strategies
Globalization is the integration and interdependency of world markets and resources in producing consumer goods and services
For manufacturing, to a large extent, the pace of globalization is controlled by large enterprises. The successful global manufacturing enterprise typically designs products for different regions on the globe, has manufacturing capabilities in several countries, and sells its products in multiple markets in many countries.
They must be prepared to: 1- Product designs that fits multiple cultures and regulations; 2- Globally distributed plants that are cost effective; 3- Business Strategy that serves a global multi-cultural market.
Why Enterprises become Global * Improvement of communication, acceptance of English as international language for business and science, removal of trade and financial barriers. This has allowed the exchange of goods, R&D and people. Introducing new challenges regarding security, laws, property rights, prosperity and bringing equal benefits.
Benefits:
* Reduction of costs. * Enterprise growth by reaching new markets * Reduce business risks by spreading it across different markets. * Smoothers currency exchange fluctuations.
Globalization spreads out risk. Organizations need to be careful with currency fluctuations in order to avoid losing profit margins because of currency exchanges.
Risks:
Considering Globalizing operations is unavoidable and often worthwhile; however it must be much planned and monitor it constantly to avoid eroding the benefits. * Locating factories offshore put companies under different work legislation, logistics and energy infrastructure. This may become a trouble source because of the different characteristics and may so simple to replace the domestic production. * Interdependency of world markets: Globalization linked business cycles from different countries, making a crisis from one place reflect