Essay on Globalization of Business: Adaptability of Businesses

Submitted By cslaton921
Words: 1845
Pages: 8

Starting a business is hard. But, when a business decide to expand globally makes it even harder. The globalization of business has occurred at such a phenomenal pace that many organizations’ ability to keep-up has been severely challenged (Harvey, 2009). There are many factors that goes into expanding a business globally. The initial planning is where one should begin after he/she has a specific product or business. After the product and/or business is established, research is required in order uphold the legal stand points. It is essential for businesses to do economic research in the country or countries in which they would like to do business. Without research, establishments may not gain the revenues in which they seek. By conducting economic research, it tells business managers if their product or business will benefit them. A good outline of the developmental structure will help assist business managers by guiding them through the process. Franchising a vending machine business globally can be a challenge. Because an individual doesn’t live in the area of where they wish to do business, extensive market research must be done. Along with advancing globalization, business structures started to change rapidly in the 1990s (Kankaanranta, 2013). One of the key characteristics of an effective global business or organization as distinct from local business or organization is that the entrepreneurs has to have a clear vision of how he/she want the business or organization to progress. Next, a good leadership team must be established. The leadership team must be well trained on all aspects of the business. For example, the Vending business. Leaders must know the legal aspects and rules so that no and/or very little mistakes are made. A leader must know their roles and know how to make decisions for the better of the company. An organizational structure must be made that supports the company’s objectives. Organizational structure is the way that a business arranges people and jobs so that its work can be performed and its goals can be met. The leader of the company should always know the company’s objective. Another key characteristic is the people. The people a business hires must compliment their skills. Work processes and systems is an additional characteristic a business must pay attention to. Culture is furthermore a key characteristic in international business. Businesses must be adaptable to change. All cultures are different with maybe a few similarities. One error in a characteristic can blunder the entire operation. The initial planning of franchising U-Turn, a vending business is to decide the location of the franchise. This vending business will start in…. These little candy machines are seen in many places. Many countries eat candy, so this should be a good business to invest in. U-Turn has been in business for more than 20 years. The good thing about this business is that it’s safe and there is little need to advertise. The main thing is going to establishments requesting permission to put one of the vending machines on their property. The product actually sells its self. The vending owner does not need to have experience in selling. Technology is not needed to accompany the machine. Credit is not needed to place these machines throughout an area. The market for the vending business is steady income. As soon as the business route and the number of vending machines are established a steady earnings can be made. In order to profit from these the vending businesses, a wholesale food provider must be found to purchase products for the vending machines. Owning a vending machine business franchise is less expensive than opening a store where rent has to be paid. Lease documents are necessary for the vending machine business. When searching for a place to put vending machines, talking to the owner is needed to discuss rental fees. It is suggested that every rental…