Implementation of Global Strategies

John and Deborah’s company has been considering an expansion into China. Analytical
tools have been applied to help the company collect information it can use to rationalize its
expansion decision into China. Completing the initial plan means that the company’s board has
most of the information it needs to implement its strategic decision. However, for the final
submission to the board, the company would like to justify whether globalization is the best
move. Also considered in this report is the strategic, cultural, competitive, and market analysis,
justification for the geographic location, and the justification for the company’s overall growth
and expansion.
The rationale for supporting globalization
Considering internal and external factors, the decision to support the company’s
expansion has been carried out. The internal factors considered in this decision are resources,
skills, and internal strengths. In contrast, the external considerations that have been considered
include competitive, environmental, technological, and market decisions. The company’s
resources support the expansion decisions. Resources can be classified into several categories
depending on their application in the expansion decision (Bolivar et al, 2014). For instance,
financial resources will be used to finance the activities in the new location. The company’s
financial base is strong due to its strong financial performance over the years.
Another resource decision that supports the expansion decision is human resources
(Kryscynski et al., 2018). The company’s staff are highly talented and capable of producing
furniture that can compete well in the new location. The company’s designers have been
instrumental in driving up the company’s revenues. The company’s leadership is also capable of
helping the company navigate the challenges that may be available in the global market. The

furniture industry relies on the availability of natural resources such as lumber and cotton. The
availability of these resources in the new location further supports the organization’s
globalization decision.
The external reasons that support the expansion include technology. Technology is an
essential consideration for businesses because it helps companies improve and increase the
efficiency with which it carries out is businesses. The company is technologically adept.
However, the strategic expansion will enable the company to increase its access to new
technologies (Bolivar et al, 2014). The company has been operating predominantly in the
American market. Globalization is viewed as a method for the company to reduce operational
risks. Different countries go through economic cycles at different times. With globalization, if an
economic recession happens in America, the company can remain afloat by leveraging sales in
global locations that are not undergoing an economic recession.
Other considerations that support the expansion decision include the need to boost sales.
The global location can help the country access a new customer base which, by using effective
marketing strategies, can lead to a considerable increase in revenues. This can help companies
achieve their financial objectives with ease. Finally, the company has an opportunity for further
growth. Global opportunities for growth provide the company with a long-term strategy that it
can leverage going concerned. It increases the company’s reputation and brand value.
Globalization also increases investor confidence, enhancing the company’s performance in
capital markets. It increases customer loyalty which is essential for sustained growth.
Strategic reasons

The company would like to explore regional markets. The Asian market is considered
one of the markets that can provide the company with unique benefits, and choosing China as a
geographic location allows the company to explore the more extensive Asian market further.
China is one of the stand-out economies in Asia, with a large population and a strong economy.
The country is also considered a global and regional manufacturing hub. The qualities mentioned
above support the globalization decision and make China an ideal location for globalization.
Cultural considerations
Companies make excellent strategies, but such strategies can fail if the company does not
include cultural considerations in its strategy. The company has extensively considered the
culture in the new location. Some of the issues considered include the company’s language,
socio-cultural structures, business practices, and cultural adaptation requirements. It was
determined that the company would extensively train its staff to make them adapt well to global
operations and make them global citizens in the process. Another strategy considered was hiring
local citizens to help with cultural adaptations. Cultural considerations affect internal
communication. Efficient communication is essential for ensuring that customer needs are
fulfilled and that there is reduced employee conflict to keep employees satisfied and motivated.
Competitive analysis
The application of analytic tools was essential in conducting a competitive analysis.
Extensive market research has been carried out using Porter’s five forces, and the company has
identified the major players in the furniture industry (Porter, 2020). It was also identified that the
industry grows at an annual 7% rate which is an acceptable rate for the company. It was also
identified that customers and suppliers have significant bargaining power, which presents an area

of focus for the company. As such, to be competitive, John and Deborah’s company will need to
form strong bonds with customers and leverage the power of suppliers (Sellito & Luchese,
2018). It was also determined that competition in the industry is reasonably stiff, but the
company can cope by leveraging its internal strengths and market opportunities.
John and Deborah’s company is also committed to focusing on customer satisfaction as a
source of competitive advantage. Customers are the core determinants of revenues and can help
the company overcome competitive threats such as the threat of new entrants. It was also agreed
that the company would carve out its niche from unique designs and competitive pricing. The
market penetration pricing strategy was identified as the best-to-edge competition for the initial
years of operations. This strategy involves selling the company’s products at discounted prices to
attract customers. The company will additionally scan the market to identify changes in tastes
and preferences and structure its production in line with market changes to maintain
competitiveness.
The balanced scorecard
The balanced scorecard was an excellent tool for appraising the globalization strategy.
The four perspectives will provide the company with a basis to evaluate internal and external
operational factors. The four perspectives are financial, customer, internal processes, and
learning and growth. It was further identified that the perspectives are independent and
interdependent. The balanced scorecard will help the company determine the operational areas it
needs to improve to make its strategic expansion more successful. Technology was identified as
a resource that supports all four perspectives in a balanced scorecard, and the company’s
management decided to increase its investment in technology.

Geographic location
Several countries were considered in the globalization decision, each with unique
economic, market, social and cultural features. China was selected due to its unique features.
Some have already been covered in this report, such as the favorable growth rate of the furniture
industry, large target market, stable economic features, and availability of resources. Other
reasons include strategic reasons such as access to the Asian market. Another strong reason
includes the country’s technology. China is one of the most technologically adaptive states. The
country’s large population will provide the company with a steady labor supply and the
opportunity to expand its talent and skill level. This country supports the company’s need to be
innovative.
Growth and expansion
The company’s growth and expansion plan can be evaluated from several perspectives.
They include financial growth, market growth, production growth, and human resource growth.
The expansion will help the company’s financial growth through increased revenues. Market
growth will be supported through access to a new customer base, and production growth will be
possible through the market demands in the new location. Access to new customers provides
new customer needs that require the company to adapt production to meet new customer needs.
Production growth will also be fulfilled through access to new production methods and
technologies. Training, employee development, and socio-cultural adaptation will fulfill human
resource growth (Di-Tomaso & Bian, 2018).
The company’s corporate management will also benefit from growth. The experience of
expanding in a new location will provide the management with a learning experience that will

grow their skills. Navigating through the rigors and challenges in the new market will also help
the company collect information it can apply in other expansion activities in other locations.
In conclusion, John and Deborah’s company will benefit from the expansion into China.
The new location will help the company increase its value, brand, and overall global
performance. The company’s management and staff are adequately resourced and skilled to
implement the expansion and reap the benefits of the expansion decision.

References

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