Global Operations: Developing Business Strategies for Global Expansion

Global Operations
Presentation

Table of Contents
INTRODUCTION...............................................................................................................................3
TASK....................................................................................................................................................3
CONCLUSION....................................................................................................................................5
REFERENCES....................................................................................................................................6

INTRODUCTION
A global strategy refers to the organizations’ strategic guide to globalization. It
involves strategic thinking in an integrated manner regarding the aspects of business,
suppliers, markets and competition, etc. It involves evaluating every product of the company
in view of domestic as well as international market standards (Haller and Louis, 2021). The
following project will discuss the development of business strategies to effectively establish a
business in a global context.
TASK
The business managers feel concerned about global business strategy due to the
tradeoff between global integration and local responsiveness. Global integration refers to the
level upto which the company is able to use the same products and processes in other
international markets. Local responsiveness is the level to which the business must be able to
customize its products processes for meeting the conditions of other countries it formed the
basis of four basic Global business strategies that the business can opt from. The chosen
business is Merchant & Mills i.e. a UK based clothing company in retail industry and
required a business expansion. The company deals in clothing products and haberdashery
products as well. The following are the four global business strategies in this context –
 Export Strategy – This strategy is used by those companies that focus mainly on its
domestic operations. In this, the businesses do not intend to expand globally but
export their products to other countries to get benefit of the international
opportunities. The customization of products is not involved for international markets.
It does not aim at creating an integrated global strategy (Rogeberg, Bergsvik and
Clausen, 2022). In context with Merchant & Mills, it can follow this strategy to access
global market without customizing its products. But company following this strategy
has to face the political risks of trade restrictions on export of their products. The
company would have to face the risks of blocked exports if it does not meet its
contractual obligations. But the export strategy provides the benefits of extending the
business to a global scale and access to a global market of buyers.
 Standardization Strategy – This strategy is used by the company when it assumes that
its product can meet the demand of people present everywhere. When the company
considers the entire world to be a single market, it follows this strategy. The
standardization strategy provides efficiencies by centralizing many similar activities