Globalization Has Brought Changes Into The Business World

Strategy is a set of complicated tactics formulated by the executives of a company directed towards the achievement of company’s goal (Salmela, 2002). It is about all the path ways that a company would follow to reach its ultimate goal. It is a company’s strategy which helps to identify what it does better than the other companies in the industries, which may be different from what it does best. For successful strategy formulation and implementation, a company should know the needs of customers and should have knowledge of its competitors. Through a good strategy a company would identify that opportunity which makes it different from the others (Thompson, 2005).

Strategy is not only a tool for outfoxes the competition but also an incredible means for creating and shaping a company

There are five components within a well- developed strategy. Market segments its competition when it plans to enter. Decisions about an organization’s strategic plan should focus on management’s view of the company’s mission or vision. Its various activities define the essential nature of what the company is should be like. A marketing strategy is composed of several related elements. Businesses are created from creativity and ideas. Many new business plans fail, because there is lack of execution. You need to execute in all areas of your business. Implementing and executing the chosen strategy and evaluating performance all involve marketing and

The overdependence on the American market exposes the company to various risks due to the various fluctuations and uncertainty in the economic landscape.

CEO and board of management are willing to take risk to expand the business abroad.

The forces of globalization are generally credited with the major role played in increasing the access of organizations to countless resources. Due to market liberalization for instance, large corporations are able to import cheap resources from various global regions and as such patronize the market through price leadership strategies. Nevertheless, another crucial characteristic of globalization is that it allows economic agents an incremental access to larger customer markets. This virtually means that manufacturers get to sell their products to numerous global regions and exponentially increase their revenues.

“A strategy is something like, an innovative new product; globalization, taking your products around the world; be the low-cost producer. A strategy is something you can touch; you can motivate people with; be number one and number two in every business. You can energize people around the message .” Jack Welch

The world was changed to globalization. Some of business turned themselves to global company for the great opportunity to reach new markets and supply or more resources that can improve the competency of company working process. Especially, in procurement department, it can be divided into 2 parts. That is purchasing and sourcing. The definition of sourcing means the process to finding proper resource from supplier. Supply chain is a system of a firms, people, information, activities, and resources that involve sending a products or services from supplier to consumer (Nahmias, 2013). Global sourcing was created according to atop paragraph. Global sourcing is the firstly process in supply chain (or someone called global supply chain) to finding a new supplier, selecting the supplier from AVL (Approved vendor list), Contract negotiation (Mostly in pricing), find the proper way to bring the shipment flow from any obstacle .The reason why they using global sourcing is a pricing gap between supplier country and ordering country. Ordering company can take advantage from global resources. The second reason is goods or products are special one because nowhere can find expect this supplier. Global sourcing and retailer are involved at the same like another company. Retailer can classify the type such as online store, grocery store, superstore (market), department store, etc. Retailer need to orders many products come to store and stock it. They have to face risk for stocking such as

Leadership in a globalizing world. The global economy has changed the way the corporations do business today. The melting of trade barriers among nations and their increasing inter connectedness, accelerated by technology has brought a profound impact on global business. The expanding global environment has extended the reach and goals of the companies with greater access to wider markets. Managers are looking to globalize operations, developing new markets for their products for better strategic business outcomes. Consumers also have better access to a greater variety of goods and services; and the competition to reach to the new markets with the right product is getting stronger among businesses. Globalization gives businesses better access to a global workforce, enables them to tap into international raw materials and financial resources. As the world economy is fast becoming a single interdependent system, businesses have competitors, customers, employees from anywhere in the world.

Strategy can have many different meanings, depending on the context. However, in this situation, strategy is; as Riley mentioned on the tutor2u website (2015), strategy is “Where is the business trying to get to in the long-term”. Strategy is a planned pathway that a business needs to follow in order to achieve its aims and objectives for success. Every businesses strategy is different to one another, depending on the type of business and the market they operate in. however, there can be a few similarities between every business’ strategies. Such as, Apple’s strategy is very different each other, because they operate in two different markets, however there are a few similarities between the two, for example, high prices etc. Strategy is very important, and it has to be well planned, because the business can either achieve all its objectives successfully or fail entirely. Every business’s strategy has its own strengths and weaknesses. In addition, the business has opportunities and threats as well, that can affect the business.

There are three critical ingredients are important to a successful strategy. First of all, the conditions have to be including in the strategy in the competitive environment. Explicitly, the strategy need to get benefits from exiting or projected advantages and reduce the influences of main threats. Secondly, the strategy has to consider about the realistic situations of the business’s resources. In order words, the strategy have to considered about the existing external opportunities, and the benefits from the result from the firm’s main resources in order to chase the market opportunities. Finally, the strategy should be suspiciously achieved.

Strategy is the key to running a strong, successful, and well-rounded company. Having a sound strategy can make a world of difference when running an organization and the impact that it has cannot be overlooked. Many organizations fail because they do not have a durable strategy in place for their organization. The importance of having a good strategy cannot be stressed enough. Everyone should have a voice in the making of an organizational strategy; it’s good to get all points of views and opinions from top to bottom in an organization. It’s up to the top management to make sure the strategy is implemented and executed. It’s very simple to tell which organizations have good strategies and which ones do not.

A strategy is said to be a plan that is made for the long term success of a product or brand. It is extremely important to have a strategy in order to figure out a direction towards which any company is able to focus all its resources efficiently and achieve desired outcomes. Formulating effective strategies is a considerably long process in itself that combines analysing several factors, situations and issues that are already present in a company and looking to improve on them alongside trying to implement various innovations and ideas to collectively create a direction towards which they can move and direct the resources available to them.

With a fast economic development and an increasingly competitive marketing, it has demonstrated that a successful company has to performance effective strategies through the whole operation for its survival and development. As known to all, a strategy is a overall view, referring to the plans and actions a enterprise selects to achieve its goals, including “some planned and systematic consideration of how to remain or become successful in that business”, some “internal factors” and “external factors” (textbook, ). Additionally, Strategic management regards as how to formulate, implement and evaluate strategies through a series of managerial activities, strengthening an organisation’s core competences, (MGM foundation). In a company, it is usually considered as the key engine of how and where it should invest its resources.

Globalization refers to the changes in the world where we are moving away from self-contained countries and toward a more integrated world. Globalization of business is the change in a business from a company associated with a single country to one that operates in multiple countries.