Example Of Essay On Expansion Of Global Markets
According to OECD publications (2004), “security” has become a very prominent issue in recent years (p. 8). The necessity to provide better protection for every activity appeared when such activities became international.
Globalization is so overwhelming today that limiting business to particular country's borders is no longer possible. The world has changed; it has become more dynamic and more challenging. An effort to expand operations beyond borders thus conquering new markets is justified by possible huge incomes and new opportunities. But what about security risks that follow this international expansion?
Leary (2012) stated that “as businesses expand, security must expand accordingly”. This puts new tasks for security directors as they are forced to search and invent new ways of ensuring protection for people and facilities of unfamiliar markets. They face necessity to start thinking globally, turning from “guns and guards” policy to new ways of doing business. This all promotes security issues to the high level of priority because of its importance for developing save heaven for all new customers and employees.
As global markets expand, security leaders must evaluate the risks their company may be exposed to. This includes huge amount of researches and data collection. These risk profiles or risk assessment must be living documents, they should be updated every day as any changes can happen any minute. The areas in which the business is expanding must be examined with special attention but they also must possess general information about country or region.
It is also very important to become familiar with local rules and regulations before choosing security strategy. Some products manufactured in one region may turn out to be absolutely unacceptable in another region due to violation of public law. Customs law should also be taken into account.
Education on local business climate and business environment is next in the list of priorities that must be checked by security specialists. Players entering new markets need to find partners and their help in navigation the security measures necessary for particular region. Business associations are also important because they can provide information about other companies' operating on this market. Local personnel also plays important role, they are key to performing best on the unfamiliar markets.
Especial attention must be paid to IT security because of the importance it has. The information sent as information received must be classified and protected and an organization that starts operating in a new unfamiliar market must think of it.
Miguel Martinez (2014) advises two steps to successful security management. The first one is choosing a safe location for international growth and the second one is understanding international risks of business. Key questions he proposes here are: what is the crime rate for this region? What were the last 3-5 foreign companies to create new operations and, what issues, if any, did they encounter? How active are the police in protecting foreign companies? Does the government openly work with companies to encourage growth in the region? Are there unions/organized labor groups and if so, do they work well with foreign companies? (Martinez, 2014).
Leary, R. (2012). Security Around the World. SecurityInfoWatch. Retrieved from http://www.securityinfowatch.com/article/10767822/security-around-the-world
Martinez, M. (2014). Expanding a Business Internationally: Risk Factors. Pinkerton, All Posts, Market & Economic Risk. Retrieved from http://www.pinkerton.com/blog/expanding-business-internationally-risk-factors
Organization for Economic Co-operation and Development. (2004). The Security Economy. Paris: France. OECD Publications.