Advanced industrial business management

Globalization is actually the impact of economic, technological, political and socio-cultural forces i.e. world(a)ization refers to the adaptation or development of values, knowledge, technology and behavioral norms across contrasting societies and countries nearly the world.The characteristics of globalization are mostly joined with global networking (i.e. internet, electronic communication or technology and m both more) with inter black market of selective information in the economic, social, political and cultural learning areas, interflow between supranational alliances and competitors, international collaboration and multi-cultural integration and global village and technology.Globalization amplifies the cultural diversity of an presidential term and the troupe needs to be aware of the culture diversity inwardly the organization so that they place guide the managers when they take decisions. Managers need to farther their contributions to the organization by being inf ormed ab let out cultural differences among the lodges international operations.The familiaritys role is non to design to or block technology transfers or otherwise innovations to facilitate them. The emergence globalization of business also room grater movement of employees among countries. (Edwards, 2006)Global ExpansionCompanies large and weensy believe in global expansion and the companies find that thinking globally can provide them with a competitive edge over their competitors. worldwide markets provide many opportunities for companies to expand themselves. Large companies are the ones who carry out international business .Companies who are global or in the global or stateless stage of international development transcend any single kinfolk country. The companies operate in a global fashion, qualification sales and acquiring resources in countries where the cost is the minimum and where a solidification of business opportunities are there.At this stage, companies have their offices located at unalike locations around the world with total control and ownership. The companies that operation internationally encourages free flow of ideas, products, manufacturing and marketing among countries so that they can achieve great efficiencies. (Daft, 1997)Ways to ExpansionThere are different manners of global expansion for any large company. All companies have a couple of ways in which they can expand their business globally. wizard if the ways a large company can expand itself it by seeking out cheaper sources for supplies and looking for cheaper suppliers who would supply the company offshore, this process is called the outsourcing method.Another method for a company to expand globally would be by exploitation markets for the companys finished products outside the companys home country, this may include licensing, direct enthronisation or stock-still done trade etc.This kind of method is called the market entry strategy where the company intr oduces itself and its products for selling in a distant market. What happens is that the most companies start with exporting and they work up to direct investing in the foreign market. The different ways for a company to expand itself globally are as follows-OutsourcingOutsourcing here is being referred to as global sourcing or outsourcing, basically means engaging in the international division of labor so that the mathematical product of the companys products can be done in the cheapest sources and supplies uncommitted to the company.For example, the company may take away a contract from a domestic supplier because the supplier was providing the company with expensive temporals and can convert it with a supplier in Far East because that supplier is providing with the cheapest material for the production of the products. Outsourcing is mostly conducted by the company so that it can add its profits. (Fullmer, 1983)ExportingWith the answer of exporting the company can maintain its production facilities inside the home nation and then transfers the product for sale in the foreign market. Exporting basically helps the country to market its product in other countries at modest resource cost and with very minimum essay for the company and the country.There are some large companies that usually do not want to be involved in any kind of enthronization in the foreign market, therefore for such companies who want to expand globally usually export their product to the foreign markets like Gerber Scientific Inc. (high-tech equipment supplier).LicensingWith the help of licensing a company in one country makes certain sources useable to companies in another country. These resources include technology, managerial skills, patents or even brandmark rights. Franchising is a form of licensing in which the franchisor provides foreign franchises with a complete mail boat of material and services, which include equipment, products, product ingredients, trade mark and tra de material body rights, managerial advice and a standardized operating.Some of the best known international franchisors are the fast foods chains and coffee shops like Starbucks, Costa Coffee, Burger King, Dunkin Donuts, KFC, Pizza hutch or McDonalds. Licensing and franchising offer a business company relatively an aristocratic access to international markets at low costs, but the limit its companionship in and control over the development of those markets. (Fullmer, 1983)Direct InvestmentDirect investment can be described as a higher involvement of the company in an international trade. Direct investment means when the company is involved in managing the productive as marks, which distinguishes it from the other entry strategies which stops less management control.Joint surmise is a also a part of direct investment which can be defined as a variation of direct investment in which the company would share costs and risks with another firm to stimulate a manufacturing facility, or to develop new products or even to set up a sales and distribution network. (Fullmer, 1983)ConclusionThis paper basically stresses on the growing importance of an international or global perspective of the company that how it can expand itself.Large companies that have been a huge success in their home countries have begun to expand their business overseas and are preparing themselves even now to withstand domestic competition from the foreign markets competitors. Business in the global arena involves risks and difficulties that have to be faced by the companys management.ReferencesDaft, R.L. (1997) Management. Orlando The Dryden PressDavid Roman (2008), Going Global, Available from , on fifth December08Edwards, W. (2006), Why go global? Compelling reasons to expand internationally, Available from http//www.allbusiness.com/retail-trade/4017371-1.html, on 5th December08Fullmer, R.M. (1983) The late Management New York Macmillan Publishing Company