Read Chapter 12 in Global Business Today. Write a paper in which you identify an

Question

Read Chapter 12 in Global Business Today. Write a paper in which you identify and describe how the company you selected in Workshop One could accomplish local responsiveness using the global standardization strategy, transnational strategy, international strategy, and localization strategy. How do differences in the strength of pressures for cost reductions versus those for local responsiveness affect your selected company’s strategy? Your paper should consist of at least three pages, use proper spelling, grammar, and APA formatting – and have a title page, three references, and reference page which are not included in the count.

Explanation / Answer

Global business and local responsiveness

In the current competitive world, surviving a business is very difficult. Need to adapt different strategies, in order to attract customers, as well as creating new market. Local responsiveness is a key component of modern business. They have to make different strategies for local customers and global customers, consumer taste will vary in different countries, so companies have to make a strategy for local customers. By doing market research, they have to find global market trend for the product. According to the global consumer taste, they have to modify the product or services. Cost reduction is another integral part of any business, companies have to find a way to produce the product in hosting country or collaboration with hosting country’s company, they can produce the product on economical price.

Transnational strategy, help the organization to capture the global market. New technologies help them to produce the goods in lesser cost. Company need to adjust their product price on the basis of the country, which they are operating. Need to obey their country laws. Creating a global marketing strategy on the basis of culture, taste and cost is the key points of any company. Creating a product mix with hosting county’s culture is another important step. An effective transaction strategy focuses on converting local and global potentials customers in to actual customers, by using effective marketing strategies. If the company doesn’t have global business strategy, then they won’t be able to survive in international market. Sustaining in local market is very easy, compared to sustain in global market. They might have competition from hosting country’s local companies. So need to modify the product or services, according to the hosting company’s taste. Hosting country’s economical standard, culture, living starnderd also needs to consider, before launching a product or service in hosting county.

Strength of pressures for cost reductions is another key point of modern business. By out sourcing the high cost function or area of business to foreign suppliers is another method of cost reduction in global market. Joint venture with hosting country’s companies is another method for cost effective production. Effectively utilizing hosting country’s human resources can give, a boost to company’s foreign business. Best example most of the US IT companies have started their offices in Asian countries like India, Japan, Philippines, to produce the product or services in lesser cost, as the labour cost of these countries are very less, compared to the cost in US.

Local responsiveness have direct impact on companies strategy, they need to compare local responsiveness to global market trend to identify the difference. So that they will be able to change the product or service, according to the hosting country’s market. Before launching any new product or services, companies need to do a research on local responsiveness and international strategy. Without proper planning, surviving in the current market is very difficult. Local responsiveness has straight connection in determining local market. In fact , before launching any product or services, companies need to consider local responsiveness, transnational strategy, international strategy, and localization strategy.

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