When You Shouldn’t Go Global by Marcus Alexander and Harry Korine

Although globalization of a strategy can save companies, launching a global move can be detrimental if it does not align with strategic options in the future. Senior managers can conduct a simple self assessment to gauge the likeliness of success globally. Look at the ideas of assessment and practice below:

Part 1: Ill-Fated Strategies

  1. Are there potential benefits for our company? – Aligning opportunities to benefits.
  2. Do we have the necessary management skills? – Aligning opportunities with resources.
  3. Will the costs out weigh the benefits? – Aligning the benefits with financial stability.

Beyond the test questions, understanding the industry and the needs for globalization and dangers of entering is important too.

Part 2: Globalization’s song

-Deregulated industries: many businesses today face growth opportunities that frequently cost far too much to enter.

– Service Industries

– Manufacturing Industries: Globalization is about the only way for them to grow beyond their means (many times but not every time).

Part 3: Continuing Danger

As companies recklessly pursue global expansion, the challenges and dangers of monetary loss and brand dismissal must be recognized.

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