International Expansion and Globalization's Effects Thesis

Excerpt from Thesis :

These decisions of business model structure are predicated in part on the cultural variations of the foreign country to an organizations' home nation as well. Cultural variations between regions also lead more to distrust than trust and this is especially true when work is accelerated, assuming no cultural differences exist (Yeung, Selen, Zhang, Huo, 2009). While globalization is often seen as flattening the world from a common set of business processes, cultural variations, and within these cultural differences, deeply held religious values in Muslim nations for example, are far from as homogenous as the flat world mentality would have one believe. Instead there are significant gaps culturally that are actually catalysts of greater, albeit more attuned and focused, efforts at strategic growth globally.


The misconception that manufacturing is outsourced purely for cost reduction can be seen in the many uses and roles of factories within global manufacturing networks (Fedrows, 2006). International expansion and globalization in this context is more concerned with the context of how factories and production centers are used as a means to stay better aligned with the unique needs of foreign markets. The fact that market leaders in the high tech industry are using global factories as innovation centers, as Hewlett-Packard is doing today illustrates this point (Fedrows, 1997). This aspect of globalization is also significantly changing the role of competitive strategy in local and global markets, as value chains are being significantly changed as a result (Porter, 1986). In a broader context the value chains of entire industries are changing rapidly due to the augmented roles of factories globally as well (Fedrows, 2006). This fundamental redefinition of what was once seen as a cost center alone in companies is also leading to critical reassessments of strategic planning form a manufacturing value-add standpoint (Fedrows, 2006).

Supply Chains and Logistics

The area where compliance, national security which many consider to be part of global compliance initiatives, manufacturing center strategic roles and definitions, and supply chain integration and logistics meet is considered to be the primary catalyst driving change in strategic planning. Considering how compliance, manufacturing, and supply chain are tightly integrated from a process standpoint the impact of globalization on just one of these factors will force any company to revaluate its strategies immediately. The triad of these three factors of compliance, manufacturing and supply chains also for many industries dictates the level of financial growth and stability they will have as well. An example of a globally-based supply chain process that is successfully integrating these three areas and keeping them balanced is the Toyota Production System (Dyer, Nobeoka. 2000).


International expansion and globalization's impacts on corporate strategy can be seen most clearly from the aspects of compliance, cultural considerations, manufacturing and supply chain and logistics areas. The reciprocal effect each of these areas is having on influencing corporate strategy has been discussed with the point being made that the assumed of a single flat world can at times be erroneous. Considering the cultural distances between nations alone using the Cultural Dimensions Model illustrates this as do the other points in this paper.


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