Access Millions of academic & study documents

Summary With Conclusion

Content type
User Generated
Subject
Management
Type
Homework
Showing Page:
1/5
Running Head: SUMMARY AND CONCLUSION 1
Forms of global business (summary with conclusion)
Student Name:
Professors Name:
School Affiliation:
Date:

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/5
SUMMARY AND CONCLUSION 2
Forms of global business (summary with conclusion)
With organizations facing lucrative competition, managers and entrepreneurs use
globalization as a form of strategy to remain competitive in the industry. In order to successfully
gain entrance into the global market arena, organizations must use connotative strategies. One
major approach to entering the global market is the use of phase model of globalization which
incorporate four main sequential phases. These include exporting, use of cooperative contracts,
use of strategic alliances and finally wholly owned-affiliates. However, each company applies
unique business strategies because not all use the phase model of globalization.
Exporting is concept of producing and selling products in foreign countries. Exporting to
other countries apart from the domestic product is a strategy to gain global marketing strategy.
As a strategy to gain globalization in the market, it offers various advantages to the exporting
company. First, the company benefits from increased sales and become less dependent on the
domestic sales. Secondly, the company explores business opportunities through research and
design. This open room for improvement. The main disadvantage of exporting as the strategy to
globalize operations of an organization is presence of tariffs and non-tariffs. This makes the
company experience high production costs which are passed to the final consumers. The second
disadvantage is that transport costs increase the price of exported products which is subsequently
passed to final consumers. As indicated by Jeff Rubin, Chief economists, the transport distance
from one point to another brings explicit costs. The final disadvantage of exporting is that
foreign importers may bring unnecessary costs due to poor shipment planning.
Cooperative contracts are the second phase of the model of globalization. This applies
where an organization wants to enter global market without the intention of bearing financial
costs. In this case, organization sign cooperative contracts with foreign business. This is based

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/5

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 5 pages?
Access Now
Unformatted Attachment Preview
Running Head: SUMMARY AND CONCLUSION Forms of global business (summary with conclusion) Student Name: Professor’s Name: School Affiliation: Date: 1 SUMMARY AND CONCLUSION 2 Forms of global business (summary with conclusion) With organizations facing lucrative competition, managers and entrepreneurs use globalization as a form of strategy to remain competitive in the industry. In order to successfully gain entrance into the global market arena, organizations must use connotative strategies. One major approach to entering the global market is the use of phase model of globalization which incorporate four main sequential phases. These include exporting, use of cooperative contracts, use of strategic alliances and finally wholly owned-affiliates. However, each company applies unique business strategies because not all use the phase model of globalization. Exporting is concept of producing and selling products in foreign countries. Exporting to other countries apart from the domestic product is a strategy to gain global marketing strategy. As a strategy to gain globalization in the market, it offers various advantages to the exporting company. First, the company benefits from increased sales and become less dependent on the domestic sales. Secondly, the company explores business opportunities through research and design. This open room for improvement. The main disadvantage of exporting as the strategy to globalize operations of an organization is presence of tariffs and n ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Studypool
4.7
Indeed
4.5
Sitejabber
4.4

Similar Documents