Scenario: Mike one of the marketing strategists on your team, stops at your office door wanting to talk. "We use fabrics that are made domestically; however, there are issues with using these same fabrics globally. There are laws and regulations that prevent us from shipping these fabrics to other countries. This is a huge concern. One of our primary selling points is the consistency of quality of our product."
You confirm Mike's concern, "That's an excellent point," you say. "Now you've just given yourself and our team more work for the presentation. I'm sure that will come up with it. One of the board members used to run a textile plant in China."
Mike nods his head in agreement. "I imagine textiles will not be the only resource concern," he says.
Consider the following in your response:
- Why should resources be a concern in a global strategy?
- What resources may be a concern in the country you selected?
- How will this impact the decision to move to the country that you selected?
- How will this impact your competitive strategy in your global market?
- Demonstrate the ability to analyze emerging global marketplace for potential growth and opportunity
Resources are a major concern in a global strategy. When a firm becomes global it manufactures its products abroad. When this happens, it needs to assess and evaluate the resources available in foreign countries. Resources include money, materials, staff, and other assets that are available to the firm. In a global strategy the availability of resources is important for the firm. Consider the firm that is making fabrics locally. It cannot send these fabrics into many countries. The laws and regulations will make it impractical. The firm will have to produce the fabric in different countries using resources available locally. If the materials are not of the highest quality, the quality of the fabrics will suffer. Similarly, if the competence or productivity of local labor is low the cost of production may become high. If the capital available for setting up a plant to make textiles locally is very costly, the cost of making the fabric will be high. In other words ...
This solution explains global business strategy. The sources used are also included in the solution.