Unit 1 Individual Project

Globalization has given rise to a global economy as well as global markets. Many
organizations are expanding and focusing on an expanded geographical scope as well as
operations across national borders. However, the adoption of global strategies may be
challenging for managers especially owing to the fact that global operations give rise to
various complexities. John and Deborah need to be equipped to face the challenges associated
with the adoption of a global business strategy. While venturing into the international market
will result in boosted sales, various factors have to be considered. The factors include
resources as well as the laws that govern nations that the corporation is venturing into.
Why Should Resource be Concerned in a Global Strategy
When a firm adopts a global strategy, it has to mobilize resources owing to the
additional need to provide goods and services for a bigger market. A firm also needs to
analyze resources available in a foreign country. The success of an organization is built on its
ability to mobilize the resources necessary to undertake operations. A firm needs to ensure that it
has the necessary technology to compete in the international market. In labour-intensive
industries, a firm must also mobilize the much-needed human resources (Smith, 2014). The
corporation manufactures the fabrics locally. However, there are laws in certain countries that
make it illegal to import the fabrics. The implication is that the organization will have to
manufacture the fabrics in the countries that it ventures. The firm will thus have to mobilize
capital to set up production plants in the new markets. The firm can only succeed in the
global markets if it has sufficient capital (Smith, 2014). The capital will be used for research
and development as well as setting up new production plans. Global business operations also
mean extensive marketing. The management will also be stretched with new roles and
responsibilities. The company will thus have to hire additional staff members to aid in

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ensuring that the global operations are a success. The management will have to be equipped
to handle the challenges that come with a global market scope.
What resources may be a concern in the country you selected?
China has a huge population that exceeds 1 billion. While the market offers various
challenges, it also offers unique opportunities that multinationals can exploit. When entering
the Chinese market, companies have various ways through which they can enter the market.
The options include partnerships and joint ventures (Xing et al., 2017). Through joint
investments, the company can ensure that it gains insights into the Chinese market. The
company can also rely on the expertise of the partner in the manufacturing and sale of goods.
Efficient operations are also guaranteed with partnerships or joint ventures. The company
must set aside resources to venture into partnerships to ensure that the company achieves
success in the Chinese market.
How will this impact the decision to move to the country that you selected?
The management needs to begin seeking potential partnerships and joint ventures.
Resources need to be put in place to ensure that the strategy is successful in the long run. The
company can also make the decision whether to establish contracts with Chinese players or to
acquire existing firms. The decision should be based on the available funds.
Impact on the Company’s Competitive Strategy
The global market is highly competitive. As a result, the company needs to compete
favorably. In selecting a joint venture or a partnership, the company will have the ability to
manufacture the best designs and ensure that it minimizes costs, thereby selling at
competitive prices. The company will also have the ability to take advantage of the
managerial knowledge and skills of its global partners. Tapping into the opportunities
presented by joint ventures and partnerships will push the company to greater heights.

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References

Smith, P. (2014). BIM implementation–global strategies. Procedia Engineering, 85, 482-492.
Xing, Y., Liu, Y., Tarba, S., & Cooper, C. L. (2017). Servitization in mergers and
acquisitions: Manufacturing firms venturing from emerging markets into advanced
economies. International Journal of Production Economics, 192, 9-18.