Exploring the Concept of Global Factory: Transforming Business in the Modern Era

In this report we will discuss about management and below are the summaries point:- The concept of Global Factory involves significant changes in traditional business methods and integration of supply chains. Owners of Global Factories must make decisions regarding location and control to establish a global or universal identity. Global Factories face challenges in pricing, suppliers, and demands in foreign markets, but resilience and adaptability are key to survival.

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The concept of Global Factory is referring to the huge amount of changes that are taking
place every day. The old traditional methods of business are undergoing a sea change due to a
large number of innovations taking place. These innovations are taking in each and every field.
For instance the technological changes like the rising of the e-commerce activities are one of the
major changes that are making the business process much more globalized. Apart from this, the
managers in the companies have learned how to integrate the supply chain in a proper manner
(Buckley, 2011). They have learned the way in which they can fine slice the work improves the
supply chain system in a proper manner. It must be noticed in this context that even the business
taking place at the local levels are trying to globalize themselves. For instance China is now
trying to shift their attention to the Global markets rather than looking at the smaller and the
indigenous firms.
This concept basically refers to the steps and the strategy that is being taken by the
different organizations in order to transform themselves into a Global or a Universal Identity
(Altbach, 2015). The two most important decisions that are to be taken by the owners of the
Global Factories are regarding the control and the location. The two questions that are to be
answered straight are-Where will the activity be located and how will they be controlled.
The concept of Global Factory is a bit complicated in nature. However, at the same time,
answering these questions is of utmost importance as the owners of the Global Factories have to
flourish in the long run. The concept of MNEs is associated with this concept as it helps in
transferring the intangible good to be transferred on a Global or the International basis. However,
it also has to be noticed that if the marketers were fully integrated or merged with the MNEs then

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it would have been tough for them. This would make the firms charge the same price for the
same product in all the countries ( Buckley, 2011). The firm has no power of charging different
price from different customers for similar products within the same country. The firm might have
a fully integrated internal market but it must have distinct control over the prices, suppliers and
the demands of products in the foreign market. One of the important aspects of this concept of
Global factory is to accept the failures (Stiglitz & Rosengard, 2015). Failure is the kind of norm
that is present within the system of Global Factory. The companies must be resilient in order to
survive in more than one economic circle. They have to make sure that they are being able to
respond to all the changes that are taking place in the outer or the external market.
Global Factories mainly refer to the Internationalization of organizations. In this modern
day scenario, technology has increased rapidly. As a result of this, the movement of goods and
people has also been made much easier and faster. Global Factories have a brilliant information
system that helps them in staying well informed regarding all the activities that are taking place
in and around them (Gaffney, Karst & Clampit, 2016). However, it has to be noted that there are
also many obstructions that are faced by the organizations while they are trying to
internationalize themselves. For example, the companies often face troubles in entering the
market as there are already powerful competitors existing in the market (Stiglitz & Rosengard,
2015). There are also certain barriers that the company has to face in terms of the location and
also in terms of the economic policies that are prevalent in other countries. One of the most
important factors must be imbibed within the organization is to unify and have a proper control
over the networking systems.

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Transformation of the local markets in Global Factories is best with large number of
challenges. If I ever try to develop a Global factory, I will take care of the fact that the
management of my company is able to take up all the possible risks. Resilience is one of the
major aspects that I will try to build within all the employees. Dynamism and openness towards
changes are also one of the major aspects that must be taken into proper consideration. The
external environment will naturally be risky. Thus, there will be many issues in the field of
taxations, traffic, Government rules, and regulations. The company will have to develop a kind
of open mindset so that they can accept all the possible changes taking place in the organization.

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References
Altbach, P. (2015). Knowledge and education as international commodities. International higher
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Buckley, P. J. (2011). International integration and coordination in the global factory. In The
multinational enterprise and the emergence of the global factory, 51, 269-283
Gaffney, N., Karst, R., & Clampit, J. (2016). Emerging market MNE cross-border acquisition
equity participation: The role of economic and knowledge distance. International
Business Review, 25(1), 267-275.
Stiglitz, J. E., & Rosengard, J. K. (2015). Economics of the public sector: Fourth international
student edition. WW Norton & Company.
Vernon, R. (2017). International investment and international trade in the product cycle. In
International Business (pp. 99-116). Routledge.