Globalization of Global firms
As communication technology improves, the speed with which information and knowledge can be accessed and transferred, so the world becomes smaller. This does not mean that we are close to the complete standardization of marketing strategies, programmes and processes. However, it is for this reason that the word ‘globalization‘ is used to cover many different issues and global firms adopt quite different global strategies.
Challenges faced by firms in Globalization
Global firms face a number of challenges which often require solutions which are both innovative and detailed in their response. They must, however, achieve balance in the following areas:
1. The desire to globalize but also satisfy local and individual needs.
2. The need to compete but also cooperate with other firms.
3. The management of the risks of exploiting new market opportunities.
4. The need to meet the often conflicting needs of different stakeholders.
5. Achievement of balance between cultural empathy, maximizing business performance and taking an ethical stance.
6. The problems of different perspectives between head office and subsidiary business units.
7. The dilemma of organizing to optimize product or country market performance.
8. The need to lead the business unit with a shared and innovative global vision and yet manage day to day operations cost effectively.