The impact of globalisation over the last thirty years has been immense. Globalisation has provided companies with the option to operate in many different countries. A global corporation not only sells its products in a variety of diverse markets, but it may also manufacture its products and the components that make up those products in a number of different countries. How would these factors effect the management and leadership of a global corporation? Challenges for marketing and sales managementWhile it may be safe to assume that people want the same things wherever they are, the way that the marketing message is carried across must change to suit local conditions.
Simply translating an advertising slogan from one language to another may not produce the desired result. Errors can and do occur. The marketing department should include at least one person that is familiar with the language and culture of the target market. A mistake that unintentionally insults the market may not be easily forgiven.
Local knowledgeDifferent markets also have different levels of sensitivity about nudity. While is is commonly accepted that sex sells, in some countries it could lead to people taking offence. It is not only the culture and language that are important when opening a new market. The company will need an understanding of market conditions as well. Will the product be competitively priced? Is there a competitor that currently dominates the market? What about brand loyalty? Local knowledge is a crucial part of marketing in different countries.
Labour practicesThe production process is also quite different in different regions. Labour practices vary quite dramatically from one country to the next. Understanding the local labour market is an important consideration. What may be overlooked is the response at home when a plant is relocated to a region where labour is cheaper. Dealing with the home market is quite an important part of the process. Unions and displaced workers may produces much resistance and could even lead to consumer boycotts in extreme cases.
Knowledge of the local labour market is crucial. The local labour laws, the extent of unionisation, the local work ethic and the quality of the work force are all of great importance. Global production requires knowledge and understanding of the local conditions. It also means that as a rule it is necessary to recruit management from local communities. Again, it is a question of understanding the language, culture and local labour practices.
Political knowledge and sensitivityAnother aspect of globalisation requires an understanding of the political stability of the target market. Economic and political considerations are important for management to take a view on future investment and development. A global view of business coupled with a broad knowledge of varying cultural, political and economic differences around the world are required when a business decides to engage in the global economy.