As a CEO of a medium sized company the pattern that would concern me the most is “globalization of production”. Globalization makes it so a company can cut down on costs by taking advantage of the price differences from different countries.
Globalization is opening different firms in different countries and continents to both maximize production at a lower cost and bring the product to the customers.
By globalizing the company firms can split production around the world to achieve the highest quality standards at the lowest price. The company can then distribute their operations to more countries. The method of distribution of operations can help both the customer and the company in itself by reducing the the distribution cost due to locating a plant near the customers. This would bring in more revenue. Distribution would also help reduce the the labor of production cost in the country where the pant is located.
By globalizing your company in specific area is key for the company’s success on the global market. The company can focus on building plants in countries with free trade zones. In a free trade zone goods can be travel freely between borders and no tariffs are charged when crossing borders.
Globalization can also make a company be more known in the mainstream media a company with multiple firms all over the world can catch the public eye and get more engagement with different types of people and cultures.
The company would have to adjust their marketing strategies for regional economies to get more engagement with people of different ethnicities. This can be done by fixing the language barriers so everyone around the world can know the company more.
Globalization can improve the company in many ways, it can bring in multitudes of talented employees with a unique skill set that can benefit the company. The company may even find that these potential hires have skills that are hard to find in your home country.
This method can also bring about more exposure to foreign investors. As the company grows in the various firms around the world it can attract the attention of foreign investors looking to invest in the company and make more revenue for both parties. These investment opportunities are very important for the company’s growth.
Businesses that can successfully go global and market their offerings to a totally different population will enjoy the prestige of calling themselves an international company. It is not an easy feat to accomplish, meaning prospects and potential business partners will instantly think more highly of your company when they know you have an international presence.
Making a firm in one of the many third world countries can help boost the countries influx of foreign currency that will help the developing country and make the company look better in the public eye. This can also bring in more driven employee’s looking for jobs.