Gone are the days when only large corporations had international presence. Today, businesses, regardless of their size, must expand internationally or can expect to be taken over by more competitive businesses. The transition to global business is not easy and some businesses become a liability to their own organization, lagging behind in development. Others forge ahead overconfidently running the risk of failure. The reality is that global businesses are today's economic fact of life and to survive, each business requires an adaptable international mindset and an expert plan.
Structure of a Global Business
Understanding a country's culture and location to expand your business globally can be challenging. Before establishing a new independent international location, you may want to establish a new office as an export division under your current umbrella to get accustomed to the culture and location, and allow your business to show signs of growth. Another option is to open an overseas joint venture in which your overseas partner manufactures products or purchases supplies according to your specifications.
Global Business Market's Wants and Needs
McDonald's fast food chain successfully implements business globally by catering to a market's wants and needs. Its popular American Big Mac is replaced in India with a chicken or lamb Maharaja Mac to accommodate India's majority non-beef eating population. In Germany, McDonald’s serves beer. You can enjoy a Rice Burger in a McDonald's restaurant in Hong Kong where patties of glutinous rice replace burger buns. Its global business strives to satisfy both culture and appetites around the world.
For your business to compete on a global scale, you need to be able to showcase and market your product's advantage. The world markets you select should be those which are relatively on the same economic scale. Your products are the same for each market but you understand and cater to the differing needs and wants. Sony's launch of Qriocity, its video-on-demand service, became competition for Apple's iTunes in Europe when Sony capitalized on Europe's trend in simultaneously connecting television sets to both the Internet and broadcast signals.
Global Business Requirements
To effectively run a global business, the mindset with international capabilities of your organization needs to change from the top down. Hire an international expert to assist with the transition, including international recruitment and training. Personnel with international experience and fluency in the foreign language are requirements to a global business. You will need to provide your staff with incentives for overseas assignments. By embracing the changes of an international mindset, your global business has taken the first step to success of a mission of challenges and excitement.
Definition of Global Business Plan
A global business plan defines how a business will deploy and manage its operations around the world. Often it's used by existing...
How Has Technology Impacted the Global Business Environment?
Technology has had a tremendous impact upon the global business environment. Communication, transportation and production efficiency are various areas of business ...
Types of Global Organizational Structure
Types of Global Organizational Structure. Global organizations in the 21st century must compete with a much wider array of companies than their...
How to Hire Employees
A business is only as good as the people it employs. Here are some steps to hiring an effective staff.
Challenges of Operating a Business in a Global Economy
The process of globalization has put more on the shoulders of business owners. They have to face serious competition, comply with requirements...
Factors for Global Business Failure
Entering the global markets is similar to starting a new business. Both require the same level of business research and planning. Global...