analysis of the global economy and globalization
My colleague presents an analysis of the global economy and globalization topics that I equally find interesting in chapter 1. I agree with Martin and believe that it is essential for the corporations and businesses to have a clear understanding of the global economy as well as the functions of globalization to improve their local and international capabilities. I also support that companies must identify barriers to entry, the regulations, financial challenges that may restrict the company from venturing from one state to the next before establishing a subsidiary in a foreign country. Martin also points out that international companies such as McDonald and Home Depot need to understand the culture of the host country. I believe these multinational organization should understand and develop strategies to incorporate local culture as it affects perceptions of companies, products, communication, and group dynamics, among others which affect consumption patterns and company operations.
My colleague’s choice is interesting, as strategic management plays an influential role in the promoting the financial growth of an organization. La Garza explores the competition between Wal-Mart and Kmart and I equally agree that these two companies share selected attributes within their names, design of physical locations, consumer bases, and organizational goals. I believe that Walmart became the largest and most successful retailer globally due to the application of strategic management. Strategic management has resulted in the financial growth of Walmart by developing approaches such as improving employee efficiency and performance through the motivation employees. It has also reduced company expenditure by promoting financial management and planning as well as incorporating technology with the organization functional areas. I believe that if Kmart applies strategic management, it will also realize economic growth as the company will identify areas of differentiation to create a competitive advantage against Walmart.