By 1941 Coca-Cola was getting pretty good at logistics, though. Dr. Taishoff has lectured in Turkey, Singapore, Russia, and more. She feels that in order to manage in today’s competitive business world, you must be sensitive to differences in customers and operating procedures on a global scale. She communicates that the need exists to expand the business and thus to go global. Gelb Music, which has been in Redwood City, Calififornia, since 1939, turned to … Wesley Johnston, professor of marketing and director of the Center for Business and Industrial Marketing at Georgia State University in Atlanta, highlights the factors that can either make or break your business when you try to grow by going global. No information may be duplicated without CTU's permission. For important information about the educational debt, earnings, and completion rates of students who attended these programs and other important disclosures, click the links below. ©2020 Colorado Technical University (CTU). Although using the term global in reference to business began in recent years, doing business globally isn't new. Domestic Market Saturated, 2. Many companies have grown by importing services in imaginative ways. CTU does not accept applications from residents of the Commonwealth of Massachusetts, State of New York, or the European Union (EU). Today anyone with a computer and a modem can do Web searches to locate suppliers virtually anywhere in the world. Comments. Indeed, the decision to go global for any company usually starts with the CEO convening her C-suite leaders. It gives them access to capital, technology, talent, and markets that previously only big firms could reach. This company didn’t really make a concerted effort to go global until 2007. In general, companies go international because they want to grow or expand operations. The first-mover advantage is basically getting into a market and gaining all … According to Hilka Klinkenberg, founder of Etiquette Internationalin New York City, less than 25 percent of U.S. business ventures abroad are successful. Formidable logistical challenges had to be overcome. Create jobs. Because the business rewards are supposed to be much greater for a global strategy. In case you missed it, National Donut Day was last June. If you can find foreign distributors for your product, you will be able to simply sell them your products and let them worry about reselling them at a profit in their domestic markets. And there are too many international opportunities for us to catalog them all here-or even in a much longer book than this one. This means lower import duties and lower cost for you. Some Chinese digital companies go global by following their Chinese customers. Attend foreign and domestic trade fairs where companies seeking to export to the United States are exhibitors. Overview. Financial aid is available for those who qualify. CTU does not accept applications from residents of the Commonwealth of Massachusetts, State of New York, or the European Union (EU). By now, "going global" is a buzzword you have no doubt heard. Unless you are fluent in the language of the country you are selling to, you should choose a distributor who can speak your language well. Over the 1920s and 30s it had dedicated itself to figuring out how to… We’ll feature a different book each week and share exclusive deals you won’t find anywhere else. You'll want to obtain samples of products and, of course, discuss prices and terms of payment. These enterprises have already successfully navigated the legal systems and accounting issues associated with doing business in a particular place. The Pitfalls of Exporting Along with promise, going global carries an equally heavy load of peril. It’s extremely common for big companies to have disjointed levels of globalization depending on which department you look at. Just spin the globe and you can find an opportunity to sell something, somewhere. Plan at least a two-year lead-time for world market penetration. Private companies also rely heavily on foreign markets for sales. One size doesn’ t fit all, add local flavor Meet your prospects in person, and, as always, get and check references. Do you have critical gaps in your coverage? Degree programs and concentrations vary by campus and are subject to change. Once you've identified some likely sources of products to import, make contact with the company and begin gathering information. For many products, foreign sources of supply can provide higher quality, lower cost or some other desirable feature in comparison to U.S. sources. While there are many benefits to going global, you must also remember that every country is different - consider not just the size but also the composition of the market when expanding globally. Slow Growth of Domestic Market, 4. The first is organic growth – a company relies on itself to build overseas production or sales bases one by one. You can choose from a variety of means for distributing your product, from opening company-owned foreign subsidiaries to working with agents, representatives and distributors and setting up joint ventures. Start by focusing on countries whose imports to the United States are granted favored status. The globalization of transportation systems helps here, but regulations are still different everywhere you go. The U.S. market is big enough for most small businesses to expand almost indefinitely. Importing doesn't have to be limited to goods, either. Add volume or growth to your company through global expansion: If something is selling very well in … Use Intelligent Curiosity. Suppliers follow their Customers Internationally, 5. There are at least three ways. 40-58, Nancy Hubbard, Palgrave Macmillan, 2013.. Questions to Ask Before You Start Experts agree that growing a business in America is risky enough. 3. In fact, over 63,000 or 77 percent of all the companies involved in exporting from the … Start your campaign to grow by international expansion by preparing an international business plan to evaluate your needs and set your goals. Applications look and feel like they are running on the user’s device. Why do companies go global? Take special care to check the quality of the products-the United States is a sophisticated marketplace, and shoddy products that might succeed elsewhere will be shunned here. Being global brings clear strategic benefits: the ability to access new customer markets, new suppliers, and new partners. Not all programs are available to residents of all states. In her recent lecture, given as part of our Distinguished Lecture series, she covered the six reasons to go global, using the acronym ADDING. "A lot of that is because Americans don't do their homework or because they think the rest of the world should do business the way they do business," she says. This information will get you started on that work. Conquering Global Markets: Secrets from the World's Most Successful Multinationals, pp. You can reduce your dependence on the markets you have developed in the United States. Delivering in Wartime Supplying American G.I.s with Coke during World War II stretched Coca-Cola not just geographically, but operationally. There’s so much rhetoric today about companies “going global”—but let’s face it, companies don’t go global, people do. There are many benefits to going global – and she feels living abroad and doing business internationally is an important measure of success. ADVERTISEMENTS: 8 Reasons Why Companies Go Global are 1. Below are some of the most common exporting mistakes, according to John E. Cleek, program director at the Bloch School of Business Administration at the University of Missouri in Kansas City. The fossil fuel industry knows how to stop global warming, but they're waiting for someone else to pay, says climate science scholar Myles Allen. … The American market for almost everything is huge, but it's not large enough for many entrepreneurs. But China’s digital titans clearly are in the global vanguard when it comes to innovation that’s based on customer insights , what Boston Consulting Group calls customer- to-business innovation. Here are some strategies for companies to follow: 1. Read U.S. and foreign newspapers and magazines, scanning for advertisements and articles about products you might want to import. There are lots of benefit when Companies are on global level such as more revenue, competition, opportunities and … "It's a big, big world out there," Johnston says. Global PEO Services (GPS) helps companies expand globally without having to set up legal entities in foreign jurisdictions and deal with related talent acquisition, HR, benefits, payroll, tax, and compliance … See the Accreditation & Licensure section for information on the agencies that approve and regulate the school's programs, including relevant complaint procedures. But being global also brings strategic challenges. Unearthing just the right opportunity for you involves more work, of course. Suppliers follow their Customers Internationally, 5. You’re familiar with the language, the business customs, the customers’ needs, and the legal system. Global Marketing Strategies  Think globally, act locally is a popular strategy that is becoming more and more relevant in a globalized world where there are no boundaries when it comes to movement of goods and global marketing services. The Ex-Im Bank, as it's commonly known, is an independent U.S. government agency that has helped finance overseas sales of more than $300 billion in U.S. goods and services since 1934. These companies also have a geographic advantage with established contacts and experience with shipping goods through customs. Distributors are nice because they can offer foreign customers top-notch service and are easier for you do deal with because they typically buy enough of your product to build up an inventory. The U.S. market is big enough for most small businesses to expand almost indefinitely. All rights reserved. Are you paying too much for business insurance? This often means transit times measured in months, with the associated risks of missing market opportunities. This approach is low cost because the company is simply extending its value proposition … What additional benefits from economies of scale does a company receive from going global? This impact is especially significant when it comes to finding leads for international trade partners. Competitive Pressures, 6. A new ranking of this year's best multinational employers. It's essential to assess your readiness and commitment to grow internationally before you get started. Here are tips for finding a source of products to import: The Internet is having a large impact on the way international business is conducted. Visit Accreditations Page. For important information about the educational debt, earnings, and completion rates of students who attended these programs and other important disclosures, click the links below. You can exploit corporate technology and know-how. Growth Rate and Potential, 8. Here are the six basic steps to going global: Understanding Another CultureOne big difference between doing business domestically and internationally is culture. Here are key questions to ask yourself: If you don't get the answers you want with the first foreign market you're considering entering, that may not mean your idea is poor-just that you picked the wrong place. Doing business around the world can seem a long way from doing business in your hometown. Slush 710 views. Now what? Domestic Market Small, 3. Financial aid is available for those who qualify. DIFFERENT WAYS TO GO GLOBAL. 5 Reasons Companies Go Global Internationalization used to be a big word when growing up and is often associated with large multinational corporations like IKEA, H&M and Shell. High-value items may be shipped by air, but many products come by ship. Here are the steps to take, the mistakes to avoid, and the basics of exporting and importing. All rights reserved. It is important to clarify precisely what is meant by such wording because the strategic implications are completely different.The business resources needed to sell internationally might typically include a sales team, brochures of products in various languages and an office team to handle sales orders b… The appearance of U.S. Department of Defense (DOD) visual information does not imply or constitute DOD endorsement. GO-Global redirects the user interface of Windows applications running on the Windows server to the display or browser on the user’s device. Global expansion favors smaller, entrepreneurial companies. This chapter's lessons look at international trade, why it's important and what a business needs to thrive in the global marketplace. Some of the specific advantages presented by successfully growing globally include: The overriding reason to go global, of course, it to improve your potential for expansion and growth. Research and narrow down your markets of opportunity. Attractive Cost Structures Globally, 7. The companies for whom this work is being done have effectively imported the data-entry services of international workers. Global growth can be both daunting and rewarding. Companies talk about ‘going global’ when what they really mean is that they are moving internationally, outside their home countries. But vast improvements in the global telecommunications network have greatly eased that task. Finally, by entering the global marketplace, you'll learn how to compete against foreign companies-and even take the battle to them on their own ground. Describe the main strategies available to an organization going global… GO-Global allows multiple users to concurrently run Microsoft Windows applications installed on a Windows server or server farm from network-connected locations and devices. You can look at TradeNet, the U.S. government's online trade-matching service, for numerous links, databases, message boards and other tools for finding products to import and other opportunities to grow your business internationally. Many agencies help. Building a customer base in a new market, for example, provides familiarity and relationships that may enable additional investments—say, in a research center. Strategies for Companies to Go Global - Duration: 16:52. In developing markets, growth is common. As the world becomes more connected and broadly-available technology enables startups to reach international markets faster than ever before, expansion beyond borders is on the radar for … Furthermore, they can communicate with those suppliers, exchanging specifications and requirements far more easily, swiftly and conveniently than ever before. Connect with Dr. Johnson on Twitter @DrConnieJohnson. If your product requires a salesperson knowledgeable about technology and other special aspects of your product, you will obviously require a distributor who can provide that type of sales force. Cultural, social, legal and economic differences make exporting a challenge for business owners who have only operated in the United States. The benefits of entering international markets include generating more revenue, competing for new sales, investment opportunities, diversifying, reducing costs and recruiting new talent. Slow Growth of Domestic Market, 4. Seeking international growth by going global as an importer-exporter offers opportunity aplenty. In this roundtable, join a select group of benefits brokers and global expansion experts for an interactive session on what it takes to go global and how Global … Finding a Foreign DistributorAs tricky as it can be to obtain financing for a global expansion program, finding foreign business partners can be even tougher. Talk to an admissions advisor when it is convenient for you, Bachelor of Science in Business Administration, Bachelor's in Software Systems Engineering. You can extend the sales life of existing products and services by finding new markets to sell them in. 3 Not-So-Obvious Objectives (and Results) You're Missing Out On, Want Influence? Klinkenberg offers the following tips to avoid making costly mistakes in international business meetings: Financing Help From the Import-Export BankAs with any growth plan, expanding internationally requires financing. For these growth-minded business owners, the rest of the world is their oyster. 4435 N Chestnut Street | Colorado Springs, CO 80907. You can eliminate many foreign distributor prospects by deciding whether you need a stocking or nonstocking distributor. The Ex-Im Bank guarantees working capital loans for U.S. exporters and guarantees repayment of loans or makes loans to foreign purchasers of U.S. goods and services. 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