Globalizing operations entails making a company’s strategies suit conditions in other countries. The political, legal, and cultural settings in different countries vary. For a company(Name of the company) that wishes to venture in globalizing its operations, proper deliberations should be done on the risks involved and the benefits enjoyed as well.
(Name of the company) will benefits by globalizing operations are as follows: increments in sales revenue due to a wide customer base is realized from operating in many countries and accumulation of foreign reserves; Increased service efficiency in terms of quality is brought about by globalizing due to the high level of customer awareness; economies of scale due to large scale production are enjoyed and more so advertising costs involved because the adverts used are the same; strong relationships are established aside from political ones and great power is acquired by the company from investing in the different markets; and diversification of business risks which is crucial in managing risks is involved to safeguard against unanticipated risk.
However, (name of the company) may same some difficulties and risks. The risks involved in operating globally are many. Countries are equipped differently in terms of infrastructure and have varying legal conditions, which can cripple the smooth operations of the company. Implementing operations globally needs huge amounts of financial resources, labor, and technology which could be a challenge. Adjustments in the adverts would be necessary for efficient communication as using the same advert may not work. Difference in the values of currencies is a challenge as others are highly placed than others. Proper delegation of duties is paramount for effective operation which could be a hard task. Tactful planning and monitoring are the key elements to successfully and effectively globalize a company’s operations.