Globalization...

...is the process of corporate structuring that focuses on 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.

...is implementation using multi-disciplined solutions developed by personnel 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 in order to maximize overall profitability.

...creates synergies and economies of scale by outsourcing non-core activities, combining purchasing volumes and centralizing core-related and supported activities to optimize efficient operation. Production and distribution are consolidated to create timely and cost-effective supply of products and services to the customer.

...can be created without staff reduction, or in a company with zero international sales, through acquisition, joint venture, co-production, licensing and other legal structures.

...is a vision and thought process as well as a structural process, with both internal and external impact. It affects employees, customers and suppliers. The fundamental precepts of the vision are free flow of commerce, labor and capital, and belief in an individual’s ability to significantly and favorably impact larger social and economic systems.

...has a frenzied pace and is a dramatic force of worldwide supply and demand. Companies adjusting to its speed discover the force of change is greatly in their favor. Those who cannot adjust find they cannot escape or avoid competitive forces created by this process.

 

Globalization is not...

...selling internationally, or locating offices, production or warehouses throughout the world. Large international structures may actually impede the globalization process.

...the exclusive domain of large multinational companies with extensive financial, technical and management expertise. Flexibility and fluidity are key. That’s why smaller companies can more easily adjust to meet the fast pace and needs of the customer.

...a rush to serve all customers in all markets with all products. The object is to serve key customers in strategic markets with products produced in a company’s core competency area, or coordinated and supplied with the company’s logistical support.

...easily developed in certain organizational structures. There can be no distinction between national and international, domestic and export, other than in regard to a customer’s requirements, cultural variations, and governmental or industry regulations.

...implemented by individuals unaware of the interrelationships of company operations, other disciplines in the decision process or who do not understand the importance of culture, history and language in other world regions.

...an end unto itself. It is a means to achieving higher levels of profitability, productivity, efficiency and security by tapping market forces and worldwide economic cycles. Companies achieve focus and direction, while employees achieve a new awareness of the company and the world while opening opportunities for fast-paced personal and professional advancement into the next century.