Unit 5 -2SR

Response 1:
In    this generation some people aren’t willing to take any risk.    The economy has changed dramatically over the years. I do support    our furniture company going global. I believe that if you are    prepared you can succeed. We have done a lot of preparation for this    International launch .      According to “(Vaibmu, 2013)”       Strategizing global expansion there are six factors when pursuing      your company internationally. First, a      strong validation and where to grow, secondly, which activities to      participate in terms of value web, third, a verdict for the bet      entry model in an international company, fourth an organizational      structure best for the company, fifth, finalizing the best values,      lastly, not failing to victim to perceptive biases in the      decision-making process. (Vaibmu, 2013)
After    further review and preparation, I feel it is in the companies’     best interest to go global with our growing furniture company. Going    global will increase competition however, it also increases our    consumer base and having more potential customers. Having more    customers means higher profit.  We    shouldn’t stop our potential growth in fear that it can be a    failure. “Globalization has also increased job opportunities    in capital scarce, labor-rich countries as well as developing    countries”. (Smartasset.com)
With    globalization increasing the competition this can be correlated to    cost, target market, technological adaptation and quick production    by companies. When a company produces with less cost and sells    cheaper it can increase its market share. Globalization has also    increased the rate of technology transfer and its    improvement”. (bookboon.com) Economists have a confident    viewpoint when it comes to the net effects of economic growth. Over    the years it was evaluated by numerous studies trying to ration the    influence of globalization on other countries financial prudence    using variables such as trade, capital flows, GDP and foreign direct    investment. (Investopedia.com) Some people may think that providing    jobs in other countries is decreasing the jobs in our country and in    some ways, they are right but on the other side to that we are    providing less expensive products. It is logical to understand that    lower labor cost to manufacture a product in return make the product    cheaper. However, is quality the same? Is it worth it? I think that    with majority of things sold in the United States many of those    items are made in China. It can even be a running joke. We continue    to keep doing business with China even if we consider their quality “cheap”.
Throughout    the past month in this course my view on globalization has changed    dramatically. I see businesses all over competing against each other    and at least half of them where I live are closing its doors. It can    be viewed as risky for any business even just in the U.S but to take    a business across the globe is even riskier.  The businesses I have been seeing are only    competing locally, so I only imagined that going global was a    mistake. It may be a mistake for some however, in our case it is    only expanding and was the best decision we have made this year.    With everything we have learned it has only benefitted our company    in a multitude of ways. We could have been closing our doors and    given up once Ashley Furniture and La-z Boy have consumed the    market. Increasing our consumer base has changed everything for the    better. I wouldn’t go back and change a thing. 

Response 2:
Are        you for or against globalization? 
My    team and I are for globalization. The important stages of    globalization are to carefully weigh the pros and cons in terms of    their acceptance in the globalized economy. Our globalization    strategy takes into account the countries loyalty to domestically    made products and the overall feeling of our company’s origin.    Even with all the research we have established the globalization    strategy will work culturally, socially, and politically but it may    not always work financially. There are always concerns that will    arise when expanding, but if concerns arise with the costs,    resources, or our profitability then we will have to rethink our    strategy or, worst case scenario, back out of the plan. Overall I    believe we will be successful when expanding to Brazil with all the    research our team has done.
Is      your recommendation for your company to go global? Why or why not? 
My    recommendation is for our company to continue with our strategic    plan to globalize. Brazil has a rich and prosperous amount of    resources that our company could use. We would only have to import a    small amount of items that Brazil does not currently make. Brazils    market is up and coming and can support the growth of our furniture    company. Although there is an abundance of furniture competition, we    are coming in with new designs, new patterns, and a strong marketing    plan. One of the greatest things about Brazil is it’s not    already saturated in our industry, there is room for growth and    innovative ideas within their culture. Not only is this an    opportunity for us to grow as a company and with our products but it    could help Brazilian consumers grow with their taste in furniture.
How      does globalization impact the marketplace as a whole? 
Globalization    impacts the marketplace as a whole by creating more competition in    every aspect. It is supply and demand. The more in the industry    there is a large supply and consumers are demanding more. This    aspect can change the access to materials and the potential to lower    prices when competing with many others. A lot of this comes into    play if designs are similar, luckily we have custom furniture that    is unique to many, especially in a new culture. Another way it can    impact the marketplace is contributing to the economy, more jobs to    offer, income changes, and innovative ideas (22      Globalization Pros & Cons, 2017). 
A great example of these impacts in the marketplace is like    having diversity in the workplace. When there are diverse    individuals bring their knowledge, experiences, and technology    skills to the table. Even though some of their skills may not help    in the workplace, many of their other skills will as we all have    opportunity to learn from others. This concept is the same for    globalization and change is a good thing.
Has      your opinion changed from the beginning of the course to now? 
My opinion has not changed from the beginning of the course    until now, I support globalization. The different specifics of    globalization have changed almost daily since the beginning of    class. All the research and different thoughts and points of view    have opened my eyes wider to business decisions and long term    sustainability.  I have learned there are    many pros and cons to expanding but with the proper research    expanding can be successful with future growth. We can help the    economy and we are helping our company increase profits. Globalizing    also can encourage policy changes in order to accommodate easier    routes in to the market (Collins, 2015). With    that being said, it is not always best to stay domestic if the    opportunity arises.