Reasons why a Large Company in One Country Might Wish to Go Global - Essay Example

?Discuss reasons why a large company in one country might wish to ‘go global’ and the various ways it could expand its operations overseas Going global has become the norm in this day and age. This is because organizations are looking at expanding their business lines elsewhere. What is deemed as significant here is the fact that going global brings more possibilities to grow and develop rather than drawing upon the risks that are offered to the business regimes. However, what is deemed as right here is the fact that a large company would wish to go the global way and explore the new opportunities that will come its way, and forget about the risks that are present within the very same picture. Going global has become the norm because it offers the companies a range of opportunities to move ahead further and increase their profits in the long run (Orr & Sohal). It makes them realize their due potential and the risks that they could take to achieve supremacy within their line of business. Nearly all companies wants that it expands its operations within the far flung areas of the world in order to increase its sales and bring new customers into the equation. The large companies are no exception to this rule as they look to exploit the weaknesses of their competitors and build upon the strength that possesses within their folds. What is even more significant is the fact that these companies have started to understand the nuances related with growing far and wide which essentially allows them to develop in an out and out manner. The senior management domains within these companies are looking at exploring newer markets because they believe that the unique customers provide a golden opportunity for the company under consideration and the outsourcing debates are also settled in an amicable way (Townsend, Cavusgil & Yeniyurt, 2004). This is indicative of the numerous discussions that are being done within the going global perspectives and which have more or less touched upon the new understandings of growth and development for the sake of the companies in the modern times. These companies are doing their best to find out where the opportunities lie and what is it like to tap them before their competitors are able to do just the same. Hence the intention is to bring along all the necessary resources and find new avenues and routes which will eventually build upon the profits and expand left, right and center around the world. The companies are therefore looking at areas from where they can cut down on costs and bring in more profits. This debate comes directly under the realms of the outsourcing ones because third world countries are seen as the most helpful ones, where they bring cheap labor with them yet look at establishing offices which cut down on costs immensely. In essence, the entire world has come out as a whole new ball game for the companies which earlier used to believe in a single local marketplace. Now the times have changed and that too for all the right reasons as has been evidenced by recent examples of some companies which have made it big around the world by exploring newer markets (Gregory & Shi, 1998). One of the other reasons behind companies going the global way is because they have started to realize that just being limited to a single place would not allow them to grow beyond a certain measures. Thus they need to enact strategies and find pathways which will double or tripe their expected sums in the coming times. This is the reason why these companies are always on the look out for newer markets, diversified product forms tailored for new and potential customers, and local market suited products and services. In essence, the role of the companies within such a fray is a precisely sensitive one since they have to decide who to hire, where to purchase all the resources and how to go about doing operations within a new country which effectively is quite a risky process. The companies have also realized the fact that the local laws and regulations are also something which must be understood properly before stepping feet in the new markets. This is the reason why some companies are still apprehensive about exploring newer markets and look to stick to just the old ones (Hult, Cavusgil & Yeniyurt, 2005). This is something that suggests a thing or two about the kind of approach that these companies have within their fore. It also tells one what their senior management domains think in the long run and how they would like to approach the changing market dynamics through sticking to a single approach, which indeed is a thing of the past. In today’s times, the world is moving ahead and that too at a fast pace. For this to happen, there is a dire need to make sure that the companies explore newer markets and reach out to segments which are quite unique and exclusive in nature. This essentially means a win-win scenario for just about everyone and makes the entire process quite a successful one if seen within the proper settings. Essentially speaking, the present times are such that going global brings the most rewards. This has been manifested by the recent examples of companies that have gone global and thus have hit the jackpot. They have found out completely new markets and made new dedicated and loyal customer base. Therefore going global is not a fashion statement anymore where earlier only renowned companies used to explore possibilities and reach out to people that were beyond their means through the products and services that they offered (Fleenor, 1993). Now the times have changed and that too on a positive token. The companies have realized where they were lacking and what they need to do in order to move ahead further in the coming times. All said and done, the role of companies that want to go the global way should be such that they listen to the industrial norms and start taking risks because this will take care of the market conditions, economic indicators and forecasts that have already been done for the business. Bibliography Fleenor, D., 1993. The Coming and Going of the Global Corporation. The Columbia Journal of World Business Gregory, M. & Shi, Y., 1998. International Manufacturing Networks to Develop Global Competitive Capabilities. Manufacturing Engineering Group, The University of Cambridge, Journal of Operations Management, 16 Hult, T., Cavusgil, S. & Yeniyurt, S., 2005. A Global Market Advantage Framework: The Role of Global Market Knowledge Competencies. International Business Review, 14 Orr, S. & Sohal, A. Global Manufacturing Issues: The Case of Siemens AG. Department of Management, Monash University, Technovation, 18(10) Townsend, J., Cavusgil, S. & Yeniyurt, S., 2004. The Framework of a Global Company: A Conceptualization and Preliminary Validation. Industrial Marketing Management, 33 Read More