Global Energy Strategy (Essay Sample)

WHY GLOBAL STRATEGIES ARE RARE IN PRACTICE Name: Institution: Course: Tutor: Date: Abstract Global strategy is an essential yet a missing part in most organizations and businesses performance plan. Even though there are vast advantages of employing this strategy, most businesses are too reluctant to adopt it. Developing the strategy is helpful in distinguishing the three forms of the most useful international expansion for a company’s resources, capabilities and the prevailing international position. With regards to this, if for instance a company decides to employ globalization and also focus on the home market at the same time, then the markets outside the home market are considered as the International Market. Therefore, global strategy remains one of the unutilized strategies for most businesses and organizations that requires reconsideration. Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc464913104 \h 4Definition of Terms PAGEREF _Toc464913105 \h 4Glucol Strategy PAGEREF _Toc464913106 \h 5Merits of Global Strategy PAGEREF _Toc464913107 \h 6Demerits of Global Strategy PAGEREF _Toc464913108 \h 8Other disadvantages of global strategy PAGEREF _Toc464913109 \h 9Conclusion and Recommendations PAGEREF _Toc464913110 \h 11List of references PAGEREF _Toc464913111 \h 13 Introduction This essay focuses on the reasons as to why global strategy or globalization is rarely practiced, how it is done and when a company is ready to go global. However, to do this, there is the need to clearly define what global strategy is and what it entails in details. It is also important to discuss various factors that limit the number of organizations implementing the different strategies. To achieve all these, there is a need to look at how those strategies are important to the companies, and also the setbacks and disadvantages of the strategies on different international cooperation. Moreover, why the organizations need to reject some of the strategies is also of great importance. Furthermore, the essay also looks at the global trends in business and determines how this will affect future trends. Although globalization is the best thing that can happen to any organization in terms of increasing the company’s customer base, increasing the quality and quantity of products and profit maximization, there is need to look at some aspects that may affect that organization or the people around that organization negatively. This would create a negative impression on the company, firm or organization. Definition of Terms A global strategy is defined as organizations’ strategic stepwise guidelines to globalization and can answer various questions like, what must be against what already is. It is also the measure of the level of buyers around the world’s major markets and finally how a global presence can be achieved (Linda and Gao 2016, p. 18). The global strategy also dictates the level at which the organization is supposed to conform to different environments either ethically, legally, culturally, and socially. Linda and Gao (2016) noted down important requirements for a global strategy which includes making operations standardized, exploring synergies’ by using the strategies globally and centralizing the current management. It is also important to note that the company or organization only standardizes the important elements to be able to achieve a global strategy. Glucol Strategy From global strategy comes the term glucol, a term that has been used by different researchers like (Talay et.al 2015, p. 62). The word glucol means thinking globally but acting and operating locally, going by the definition by Talay et.al (2015). This term came into existence to prevent any kind of confusion that would arise between global strategy and glucol strategy. As a matter of fact, the glucol strategy is usually implemented at the managerial level. All the same, global strategies are similar to the objectives that local companies, firms or organizations which have. They are just like the fleeting or short term objectives of the business which can be identified by enhancing the everyday operations of the organization. However, the long haul goals are by and large focused towards augmentation of the benefits, deals, and profit of the organization over the long haul; this guarantees development and dependability of the business and predominance over the national or provincial market (Hotho et.al 2015, p. 94). Furthermore, Worldwide Business techniques are a field which involves interdisciplinary issues of advertising, association hypothesis, business procedure, and universal administration and focus on amplifying the firm execution as outlined by (Argote 2015, p.200). He further discusses how picking a worldwide system that is adept for the arrangement of conditions can confront every business. Picking a universal system, be it institutionalization or adjustment, is dependent upon the capacity of the firm to suit its advertising procedure and the outer environment. Similarly, an applied possibility system is frequently speculated between the basic factors of the business, for example, high deals income, limit use and particular connections between these factors and their successful usage can prompt elevated amounts of execution. Therefore, one of the key components influencing worldwide business methodologies is the impact of the WTO (World Trade Organization) governing on the exchange of merchandise and ventures, Foreign Direct Investment and Intellectual Property Rights. These influence significant business interests and transactions and assents between created nations affect the present blazing issues. Such issues are mainly AIDS, ecological assurance and environmental change, worldwide security, and global relocation (Fine 2016, p. 148). Merits of Global Strategy Similarly, there is a need to clearly discuss the various benefits of a worldwide company. These benefits are vast with the main ones being; Increased profits and standardization of production. Increased profits can be realized since when the company grows to become worldwide, there will be an increase in the number of consumers or customers that buy their products or services. Standardization of production, on the other hand, is majorly done by firms who take part in worldwide business and it involves delivering an indistinguishable item for the national as well as the universal markets with just minor changes in qualities. This is for the most part clarified by the way that fundamental human needs are the same in all nations over the world going by the sentiments of (Murray et.al 2009, p. 101). Also, assets or resources of various nations being utilized for creating merchandise and ventures can be done so effectively this is given that when different nations with different resources come together and pool their resources, an increased production becomes evident. The increase can be in terms of quality and quantity, and this helps to increase the overall value of the goods and utility of the goods. In addition, Shoppers get a much more extensive assortment of items to select from hence the consumers can have a variety of choices and conclude their preferred taste and preference. Consumers would have a wide market with a wide field of variety to choose from. Shoppers also get the item they need at more aggressive costs when there is a wide variety of commodities in the market which also enhances a stiff competition. As a result of the stiff competition, most producers will tend to reduce the prices of their commodities, and this would benefit the consumers most. However, the price is the determinant of affordability, therefore, when the prices are down, the products become more affordable that can translate to more sales. According to Fine (2016), It is possible for different Organizations to secure information about products and ventures required at most focused costs, going global, and encouraging research of different products. Such intensified research leads to the acquisition of information about different products especially on the web, magazines or various blogs. Going Global also encourages Organizations to get access to much more extensive markets, increase their customer base by venturing into other foreign markets. This would impact on a company positively and would lead to an increase in the company’s revenues and profits. In essence, globalization advances comprehension and goodwill among various nations and also creates a good relation between countries doing business together. This would lead to the removal of different trade restrictions and tariffs; hence encourages the movement of people from those countries. As a result, organizations and speculators get much more extensive open doors for a venture. Similarly, companies get a wider field to compete in through globalization since this involves the entire world. Therefore, the company’s product will meet other products in the market and compete favorably through global strategy (Murray et.al 2009, p. 101). Demerits of Global Strategy All the same, not all that glitters is gold. There are also some negative impacts of globalization on an organization or economy at large. For instance, an antagonistic effect of changes in farming preparations in one region can impact negatively on another region. This can result in a decrease in production because resources from other zones will have to be pulled as to cover for the decline in one zone. Different fluctuations in production usually face agriculture and this can be attributed to low rainfall, diseases or other factors that affect crops. When such like problem occurs, the resources from other countrie...