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Globalization Determines Companies To Adapt Term Paper

Entrepreneurs are connected with innovation, which represents the basis of the business effort. The current global environment requires strategies that encourage and support corporate entrepreneurship. In other words, companies must rely on innovation in order to create competitive advantage. In addition to this, it is recommended to address emerging markets that have not reached their potential. This way, companies can benefit from strong market positions. It is also recommended to address niche market with a reduced number of competitors. Specializing in niche sectors allows smaller companies to compete with larger ones in certain segments.

By addressing the international markets, companies expand their customer base. This means that their production capacity must also be expanded. However, this leads to increased costs. This further leads to higher prices that customers might not be able to afford. Therefore, most companies prefer to outsource their production process...

It is also more efficient to build production plants near the markets the company intends to address.
However, outsourcing the production process can create several disadvantages for these companies. The most important disadvantage is represented by the unsatisfactory quality of the products in certain cases. Therefore, companies must find a balance between quality standards and costs. This is because customers do not want to pay high prices for the products and services they require, but they also do not want low quality for these products. Companies must also take into consideration the fact that customers' needs are becoming more complex and must be thoroughly addressed by the company.

Reference list:

1. Organizing Function of Management (2011). Management Study Guide. Retrieved February 20, 2011 from http://www.managementstudyguide.com/organizing_function.htm.

Sources used in this document:
Reference list:

1. Organizing Function of Management (2011). Management Study Guide. Retrieved February 20, 2011 from http://www.managementstudyguide.com/organizing_function.htm.
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