Free Dealing With The Challenge Of Globalization Essay Sample
It is important that the organization gets a metric benchmarking. There are various issues that we need to focus on in this case. First our benchmark should be implicit. In this case, we need to focus on the gathering information about products. At the same time, it is also important to have a deliberate systemic benchmarking. We can also opt to confine the benchmark on the internal exercise. It is also important for this benchmark to consider the entire process in the organization. This benchmark should aim at identifying areas that have an apparent gap in performance. It is through such a strategy that we shall be able to collect complex data that can show us the performance gaps. With this benchmark, we shall identify the important areas that can help the organization identify the failures and thus work on improving it. Ideally, the main benchmark that the organization needs to carry out is an implicit and vertical benchmark (Crane & Matten, 2010).
Benefit from global market
Benchmarking focuses on the company to company and comparisons of how each performs its basic functions. Our benchmark seeks to see how best materials are purchased, how suppliers are paid and how inventory is managed. As well, it focuses on how payrolls are processed, how employees are trained, how the company can get new products easily and also how maintenance is performed. Through the benchmark that we have unidentified we shall be able to identify the best practice and thus prioritize our opportunities. Such strategies will make it possible for us to increase our performance. This is the strategy that will make it possible for the managers to identify the best performance practice. Such measures can increase efficiency and also make them know the way to achieve low costs and help the company improve companies cost competitiveness. It is this strategy that will help us on the global scale. The choice of using a vertical benchmark will help us look out the factors that might make the organization lark behind on the global front. Ideally, the benchmark has greatly helped the organization to identify the internal factors that might limit the effectiveness of service production and thus propel the organization to the global market. Though the organization has been faring well in the local market, there is an impending challenge when dealing with the global expansion. As such, the benchmark was greatly influenced by global expansion (Henry, 2004).
Influence on the local benchmark domestic market share
The idea of global expansion had both the negative and positive impact on the domestic market share. First, there are benefits that the expansion brought to the local market share. Through the expansion, the organization was able to identify some of the issues that need to be improved with the production, supplies, and customer service delivery. After the benchmark, the organization improved their techniques of business and it was through this that the local market share improved. The expansion introduced a new dimension to customer satisfaction, and this was important in improving the local customer experience. This is what has eventually helped to shape the local market and make it even better. Nevertheless, there was a small challenge at the beginning of the expansion. The organization concentrated much on the global market and forgot to make improvement on the local scene. This affected the local market, but after some adjustment it emerged that the local market even benefited more from the expansion(Fu & Yang, 2012).
Risks associated with globalization
There are a few risk factors that come with globalization. Trade imbalance was one of the challenges and a risk factor that was encountered in our quest to global expansion. Another risk factor is the shifting risk profile. It is always often to experience ranging risk factors in globalization such as fluctuations, increased interest rates and even shifting supply chain. A regulatory obstacle is another risk factor that the organization has to face. Cultural differences are also another challenge that the organization is preparing to face. Ideally it is hard to manage workforces when the organization is separated by thousands of miles. The variation in culture is quite a hard thing to deal with. Other risk factors include resource constraints and problem flexibility.
How to deal with the risk factors
It is important to develop strategic plans when dealing with the risk factors of globalization. In order to deal with cultural differences, the organization needs to develop various diversity programs. Such programs can identify the various cultural divergences and help the organization deal with the challenges effectively. The organization can also identify various regulatory obstacles in the countries that they intend to expand their business.
Crane, A., &Matten, D. (2010). Business ethics. Oxford: Oxford University Press.
Fu, C., & Yang, S. (2012). The combination of dependence-based interval-valued evidential reasoning approach with balanced scorecard for performance assessment.Expert Systems With Applications, 39(3), 3717-3730.
Henry, B. (2004). Competitor benchmarking. Competitive Intelligence Review, 5(1), 71-73.