National Geography Education (n.d.) defines Globalization as "the connection of different parts of the world. Globalization results in the expansion of international cultural, economic, and political activities. As people, ideas, knowledge, and goods move more easily around the globe, the experiences of people around the world become more similar" (para. 1).
This strategy is primarily the result of advances in technology, communication and cross border businesses. A business that is looking to a global strategy needs to be knowledgeable [full of knowledge] about the changing political, cultural, economic and legal climates around the globe.
St. John (2014) contends [says/argues] that timing is very important in determining whether it is the right time to go global. When management determines [decides/figures out] it is time, they need to understand and appreciate that each culture has a different set of rules.
Success requires a well-executed and planned strategy from marketing and brand testing, to country knowledge and sufficient funding.
According to Conner (2012), some of the reasons that companies go global are for faster growth, access to raw materials and labor, new and larger customer bases and diversification [(getting involved with different types of things)].
However, there are risks associated with going global, such as failure, meeting foreign regulations, cash flow problems, operational problems and failure to understand the language, norms and customs of the country.
Ali (2014) provides the following (5) challenges for a company going global:
1. Understand the country's economy, market trends, consumer behaviors, policies and trade agreements.
2. Understand the culture, language, body language and etiquette [(proper behavior/rules of proper behavior)].
3. Understand that in some countries business does not move forward unless you are willing to offer a bribe [(payment of money to get a favor)].
Prepare yourself to walk away if needed.
The ethics [(related to the rules and beliefs of doing the right thing)] of your company and your brand need to be protected and bribery [(the crime of paying money to get favors)] is against U.S. law. U.S. laws apply to U.S. companies doing business in other countries.
4. Understand that logistics [(planning required to move people and supplies to where they're needed)] is a major challenge such as shipping, customs or transportation.
5. Understand the challenges such as language, workforce differences, unions, etc. that may bring added costs.
A key towards a company achieving global sustainability [(the ability to keep something around, or keep something going)] is for managers to be aware of cross-cultural communication differences, include understanding a country's customs, beliefs and communication, including languages differences, both verbal and non-verbal.
Success or failure on going global depends on management's preparedness [(state of being completely ready for something)].
An effective global manager understands and appreciates the country's customs and norms and has a solid knowledge of the country's political, social and economic environment, workforce and customer base before moving forward.
Ali, L. (2014). Five Challenges you’ll need to overcome to succeed in international business. Trade Ready. Retrieved from http://www. tradeready.ca/2014/trade-takeaways/five-challenges-to-succeed-in-international-business/
Conner, C. (2012). Ready to go global? Six tips to help you decide. Forbes. Retrieved from https://www.forbes.com/sites/cherylsnappconner/2012/08/14/ready-to-go-global-six-tips-to-help-you-decide/#2e6deefc7960
National Geography Education. (n.d.). Globalization. National Geography. Retrieved from http://www.nationalgeographic.org/encyclopedia/globalization/
St. John, B. (2014). Consider this before you decide to go global. Fast Company. Retrieved from https://www.fastcompany.com/3029419/consider-this-before-you-decide-to-go-global