Task: You spent the last week reflecting on both your appreciation of Deborah's praise and the success of the organization, and then had a long weekend with your family. As you walk into work on Monday, all you can think about is how excited you are about the future of the company. You sit down at your desk and get started on your newest marketing proposal for Deborah when there is a knock at your door. When you call for the person to come in, Anna, the financial analyst, enters.
"Good morning," she says. You are surprised to see that she looks nervous because Anna usually has a smile on her face.
"Hi, Anna. Is everything okay?" you ask.
"Well," Anna begins, "I just finished our quarterly report. Our profit margins have dropped by 2% this quarter."
After Anna leaves to send her report to Deborah, you start to wonder how you and your team can help fix this. Is a global strategy the answer, or should the company continue to focus on the domestic market?
You call a departmental meeting to learn about the progress of their research.
Tiffany, one of your team members, begins the discussion. "I think we need to look at some of the internal factors," she says "We know what our capabilities are on the domestic front, but what about in the global market? We have a fairly strong market presence here in higher-end markets, but how does that translate globally?"
"Well, I think we need to identify a benchmark to give us some more information to make a better decision," you explain. Answer the following:
- Who is your benchmark?
- Did it benefit from global expansion? If so, how? If not, why?
- Did this benefit or hinder the benchmark's domestic market share? Explain.
- Where are there risks associated with globalization?
- How were these risks minimized?
Who is your benchmark?
The benchmark is the market leader in your industry. The firm that has the largest market share in the global market is the leader in your industry. The standards set by the company in form of quality, technology level, and price, are your benchmarks. The company with the largest share in the market has certain financial standards such as the profitability, and return on investment. These are the benchmarks for you from the financial perspective. In addition, there are objectives such as customer satisfaction and service attributes which are the benchmarks for your company. In addition, there are operational standards and process levels that the top competitor maintains. These can be benchmarks for your firm from the internal process perspectives. Also, there are human capital, organizational capital, and information capital standards of the company. These are the benchmarks from the learning and growth perspective.
Did it benefit from global expansion? If so, how?
The company has benefited from global expansion. The company's revenues have increased, its profitability has increased, and its market presence is global. In addition, the company has the opportunity to ...
Benefit from global expansion is explained in a structured manner in this response. The answer includes seven references.