The Evolution of global business strategies

Published:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

The shift in global business has created a new form approach in global business landscape, thereby forcing firms to rethink their marketing strategies. The development in the global business environment stands out as having a dominating role in this shift. It is the business demand on the internet for increase and greater bandwidth. Global business is seen as the means to facilitate e- commerce by offering rapid transfer rate to open up multimedia delivery to small and medium size firms and individuals.(Dennis and Harris 2002, 12) The first shift has to do with the rapid growth and greater involvement of firms' in global business activities. In particular, the tremendous growth in outsourcing activities has necessarily engaged new entrants in global business-to-business (B2B) activities (i.e., importers) to which much greater attention should be paid. The second change is the transition to amore holistic approach to managing supply chain systems through greater coordination of entire distribution channels, alliances, and relational exchanges. To address the needs of their customers, firms require harmony and continuity in their supply chain systems and as supply sources are increasingly global, for example, through increased outsourcing, relational exchanges and alliances have become much more important. The third development fostering a major change in how firms conduct business and compete is the transition to electronic forms of exchange, particularly with respect to information access, storage, and retrieval. (Dennis et al) maintain that the rate of innovation and technological change puts extraordinary and unique pressure on the companies as they struggle with the demand of 24/7 economy (ibid). As we continue to embrace the advent of information technology we should also remember that all cannot be done or will be done by information technology, even thought it plays a great role in today business. According to kanter , in our enthusiasm to keep up with the way in which the world are changing , we often fail to notice what remains the same and also fail to understand new things co-exist with the old one and sometimes join them.(Kanter 2001) The focus of this research is not on the new approach of global business with the development of global information system but to tackle the issue facing the new approach thereby mention the still expectation on the global business which is the major concern of these research.

1.2 Global business alignment with information technology

The internet began as U.S military communication system. It was meant to provide a secure means by which secret information could be circulated. It was later extended into academic system assist student in their search for information. According to Gordon graham, it then that internet received enormous fillip from scientific researcher at CERM, the nuclear research centre in Switzerland who develop the ‘hyper-text link’. Hyperlink allow an indefinite number of computer data base to be interconnected electronically and thus the information collected on each to be exchanged between all.(Graham 1999, 22) Information technology (IT), as defined by the Information Technology AssociationHYPERLINK "http://en.wikipedia.org/wiki/Information_Technology_Association_of_America" HYPERLINK "http://en.wikipedia.org/wiki/Information_Technology_Association_of_America"of America (ITAA), is "the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware." (Anon 2009)

The spread of information technology from military security attracted millions of people to communicate and share digital store information. Its extension to civilian use introduced the freest, most lightly regulated, most international communication system in the history of mankind. The most useful aspect of internet is the electronic mail system knows as e-mail which combines the character tics of post, fax, and telephone at relatively little cost. Graham maintains that, internet is the world wide notice board and also the primary vehicle for large number of intercommunicating and interactive interest group (Graham 1999). Which mean that with the advent of internet, actually made world a global village? One can be at his or her home and have the knowledge of what is available in the other countries.

Earlier form of global business is called Electronic Data Interchange (EDI). This is the exchange of information and order by trading partners using technically template. It origin is trace to 1969 in US, but by 1995 about 30 000 EDI network are in Europe. After EDI came another mechanism Electronic Fund transfer (EFT) international settlements by banking interests have been undertaken via SWIT system. EDI system is close or proprietary system that open only to the invited participant unlike internet which uses protocol that are open and non-proprietary. The internet is capable of transmitting any thing that is put in digital form, thereby making the cost information transfer negligible, irrelevant of distance, and immediate access of content.

1.3 Global business strategy

According to Kefalas, Global Business Strategy can be defined as the business strategies engaged by the businesses, companies or firms operating in a global business environment and serving consumers throughout the world.(Kefalas 1990) Global business strategies are closely related to the business developing strategies adopted by businesses to meet their short and long term objectives. The short term goals of the business would be related to improving the day-to-day operations of the company while the long term objectives are generally targeted towards increment of the profits, sales and earnings of the company in the long run ensuring growth and stability of the business and dominance over the national or regional market.(Condon 2002) This is essentially the point where a global business strategy differs from a national business development strategy as different other factors such as product standardization and adaptation come in. The factors of product differentiation and diversification are relevant in the case of both national and global business strategy in the wake of rising competition in both the national and international market. Global business strategies have emerged as a result of globalization and internationalization of established domestic companies which is purported to increase the value of the company in question. Increasing pressure of globalization and the rising global competition have prompted managers and academicians to rethink the formulation of global business strategy. Standardization of production by firms who engage in global business entails producing the same product for the national as well as the international markets with only minor changes in attributes. This is mainly explained by the fact that basic human needs are the same in all countries across the world.

Global Business strategies are a field of study effectively addressed by the interdisciplinary issues of marketing, organization theory, business strategy and international management and concentrates on maximizing the firm performance

1.4 The issue of global business strategy

As we continue to appreciate the alignment of global business with information technology, there is no doubt that there are issued that need to be addressed. For effective global business the following should always be in consideration by every global firm.

Competing everywhere

Appreciating that success demands a presence in almost every part of the world in order to compete effectively

Making the product the same for each market

Centralised control

Taking advantage of customer needs and wants across international borders

Locating their value adding activities where they can achieve the greatest competitive advantage

Integrating and co-ordinating activities across borders

A global strategy is effective when differences between countries are small and competition is global. It has advantages in terms of

Economies of scale Lower costs, Co-ordination of activities and

faster product development.

However, firms need to deliver relevant content to customers, employees, and partners around the globe in their native language. In order to quickly and efficiently

Publish content on a global business while maintaining a consistent corporate image,

Companies must build solid business processes and technical infrastructures.

It is essential to have a solid global business Strategy, Efficient delivery and management of global business are one of the critical success factors of an effective global organization. A company developing its global business strategy must take key considerations into account, such as defining the short-term and long-term goals, determining the organizational impact, and identifying the major priorities. Most importantly, a company's strategy should consider whether to take a centralized or decentralized approach to managing global business. In a centralized approach, content is created and managed centrally, with minimal input from local representatives. The majority of content is not localized, and any regional or country-specific websites link back to the central website. In a decentralized approach, a company have a separate website for each country

1.5 Conclusion

As a barriers to international trade have eased and communications and travel have become more open, the context of global business has shifted to a paradigm in which many aspects of the traditional approaches either no longer hold or need to be modified and fitted to the current situation in the marketplace (cf., Douglas & Craig,

2006). As such, relevant and rigorous research is pivotal in advancing theory and practice within the context of a highly intertwined global business environment. The contributions to this Special Issue make important and timely contributions to global business within this context. These studies provide an excellent basis for extending global business that is both relevant and rigorous. Despite the rich and growing body of knowledge in relationship marketing, much remains to be done to enhance our understanding of International business relationship development, management, and maintenance. Likewise, the roles of the information technology and electronically-mediated markets on international business marketing have scarcely been examined. Under what conditions and in which industries, for example, can disintermediation result from the proliferation of global business? What are the implications of a heavy reliance on information technology on international relationship marketing, particularly in collectivist and high context cultures where personal relationships are of utmost importance? Importantly, for the global business, how can its relationships and the Internet are used to create and capture value in international distribution channel. Ultimately value creation must result from relationship building efforts and the deployment of the Internet in global business which, in turn, has to be captured by one or more participants in the channel to justify the effort set forth (cf., Saloner & Spence, 2002; Samiee & Walters, 2007). There is no question that, as compared to domestic research, global business research is more challenging, time consuming, and expensive. Contributors to this Special Issue offer a wide range of recommendations for future research within the context of a changing global business environment and collectively call for more research that tackles new as well as difficult issues faced in global business.

Writing Services

Essay Writing
Service

Find out how the very best essay writing service can help you accomplish more and achieve higher marks today.

Assignment Writing Service

From complicated assignments to tricky tasks, our experts can tackle virtually any question thrown at them.

Dissertation Writing Service

A dissertation (also known as a thesis or research project) is probably the most important piece of work for any student! From full dissertations to individual chapters, we’re on hand to support you.

Coursework Writing Service

Our expert qualified writers can help you get your coursework right first time, every time.

Dissertation Proposal Service

The first step to completing a dissertation is to create a proposal that talks about what you wish to do. Our experts can design suitable methodologies - perfect to help you get started with a dissertation.

Report Writing
Service

Reports for any audience. Perfectly structured, professionally written, and tailored to suit your exact requirements.

Essay Skeleton Answer Service

If you’re just looking for some help to get started on an essay, our outline service provides you with a perfect essay plan.

Marking & Proofreading Service

Not sure if your work is hitting the mark? Struggling to get feedback from your lecturer? Our premium marking service was created just for you - get the feedback you deserve now.

Exam Revision
Service

Exams can be one of the most stressful experiences you’ll ever have! Revision is key, and we’re here to help. With custom created revision notes and exam answers, you’ll never feel underprepared again.