WAC 4 ( Friday, April 23, 2021)

Group Number 11 Members:

Muhammad Abdullah Rehman F2019-541
Syed Hamza Sibtain Naqvi F2019-663
Sheikh Saad Sohail F2019-326
Rana Ahmad Imam F2019-634
Muhammad Haris Azam F2019-372
WAC 4 ( Friday, April 23, 2021)

“When You Shouldn’t Go Global”

by ‘Marcus Alexander and Harry Korine’
Many Firms and businesses (particularly in deregulated, service, and manufacturing
industries) have made self-satisfied assumptions about the need to go global and moved full
steam ahead toward failure. Although globalization of a strategy can save firms, launching a
global move can be unfavorable if it does not align with strategic options in the future. Senior
managers can conduct a simple self-assessment to scale the likeliness of success globally. If
they had paused to answer Ill-Fated Strategies, they might well have avoided their missteps.

 Are there potential benefits for our company?

 Do we have the necessary management skills?
 Will the costs outweigh the benefits?
Aligning opportunities to benefits. Moves that make logic for some companies won’t
necessarily work for others. UK-based roof tile producer Redland learned that lesson when it
tried leveraging its technical know-how beyond its home market, without realizing that
building practices in certain countries delivered very little demand for solid roof tiles. The
company was fully able to transfer the appropriate technology, but there was no value in
doing so in those markets.
Aligning opportunities with resources. Even if potential profits do occur for a company, it may
not be in a situation to comprehend them. Although industrial firm BTR had developed a
presence in many countries, each business unit was run more or less autonomously. As its
customers globalized, they came to expect synchronized supply and support across borders.
BTR was well situated to deliver, but its imbedded culture obstructed attempts at global
integration.
Aligning the benefits with financial stability. Global efforts can be reduced counter-productive
through unexpected collateral damage. TCL, a Chinese maker of electronics and home
appliances, has expanded quickly into the United States and Europe through a series of
acquisitions and joint ventures. Along the way, the company’s frame has become
unmanageable; the cost of handling it has outweighed the benefits of increased scale and
resulted in large losses.

Beyond the test questions, understanding the industry and the needs for globalization and
dangers of entering is important too. Deregulated industries (many businesses today face
growth opportunities that frequently cost far too much to enter), Service Industries (Resolving
massive customer complaints on products and services) and Manufacturing Industries
(Globalization is about the only way for them to grow beyond their means (many times but
not every time)). As companies recklessly pursue global expansion, the challenges and
dangers of monetary loss and brand dismissal must be recognized. Global strategy and
international business is an important subject for study, but this study must be objective and
inclusive. Overvaluation of business globalization opportunities as well as the company’s
capacity and power can lead to serious consequences.