|
Globalization Process
Upcoming Events
Previous Events Highights
Publications
| | |
What is Globalization?
"Globalization" is the process of corporate structuring that focuses a company's core competency on a single, worldwide market, creating growth and profit opportunities through synergies and efficiencies in engineering, sales, purchasing, production and distribution.
"Globalization" is implemented utilizing multi-disciplined solutions developed by personnel who are empowered to provide local decisions in a horizontal or matrix organizational structure. Global managers must be aware of the implications of their decisions to all areas of the company to maximize overall profitability.
"Globalization" creates synergies and economies of scale by outsourcing non-core activities, combining purchasing volumes and centralizing core-related and support activities to optimize efficient operation. Production and distribution are consolidated to create timely and cost effective supply of products and services to the customer.
"Globalization" can often be created without staff reduction and in a company with no international sales. Forms of this process include acquisition, joint ventures, co-production, licensing and other legal structures.
"Globalization" is a vision and thought process as well as a structural process. Its impact is internal and external. It affects employees, customers, and suppliers. The fundamental precepts of the vision are free flow of commerce, labor and capital, and belief in the ability of an individual to significantly and favorably impact larger social and economic systems.
"Globalization" has a frenetic pace and is a dramatic force of worldwide supply and demand. Companies that adjust to its speed discover the force of change greatly in their favor. Those that cannot adjust find they cannot escape or avoid the competitive forces created by this process.
Frederick M. Shepperd, Esq.
Managing Partner, The Quadral Group, Ltd.
What is Not Globalization?
"Globalization" is not selling internationally, or offices, production and warehouses in numerous locations throughout the world. Large international structures may actually impede the globalization process.
"Globalization" is not the exclusive domain of large multinational companies with extensive financial, technical and management expertise. The key is flexibility and fluidity. Smaller companies can more easily adjust to meet the fast pace and needs of the customer.
"Globalization" is not a rush to serve all customers in all markets with all products. The key is to serve key customers in strategic markets with products produced in a company's area of core competency, or coordinated and supplied with the company's logistic support.
"Globalization" is not easily developed in certain organizational structures. There can be no distinction between national and international, domestic and export other than in regards to the customer's requirements, cultural variations, governmental and industry regulations.
"Globalization" is not complemented by individuals who are unaware of the interrelationships of operations within the company, or other disciplines in the decision process and do not understand the importance of culture, history and language in other regions of the world.
"Globalization" is not an end in itself. It is a means to achieve higher levels of profitability, productivity, efficiency, and security by tapping the market forces and economic cycles worldwide. Companies achieve focus and direction. Employees achieve a new awareness of the company and the world, while opening opportunities for personal and professional advancement at a rapid pace into the next century.
Frederick M. Shepperd, Esq.
Managing Partner, The Quadral Group, Ltd.
|
