Globalization strategy is defined as a method used by companies to gain access to the international market. It implies that various products and right belonging to a particular group can now be accessible despite the client’s location and demands. Different client requests can be met by shipping of the required products as well as opening of stores across the world. The In one way or another a strategy needs to be formulated. The approach helps gain access to the market arena. Global business is rarely confined by boundaries since it operates word wide by adopting of different currencies and regulations.
As per our context, wood and Furniture Company in Canada aims to go global. The company hence has to change its product design in a bid to survive and compete with rivals in the market arena such as Asia. About expanding their boundaries to a global scale, the furniture company is bound to adopt an outsourcing strategy which will see them achieve globalization. The following reasons would lead to the company adopting globalization as explained below:
- the Nearness to raw materials used in making furniture reduces the cost of production. Consequently, more profits are realized.
- The presence of potential markets in both local and international arena since the largest selection is made of furniture
- Better technology systems help in web based marketing hence attracting customer from different parts of the world.
- The few competitors in the market arena since Asia is the only large competitor on the global market zone.
- Readily available labor in terms of workers to run stores and distribution centers worldwide.
An outsourcing strategy has to be adopted as far as the reasons to attain a global market are concerned. An outsourcing strategy involves creating and gaining a competitive advantage in the global market as well as saving on costs such as shipping and transport to various destinations. Given that there is an ever increasing level of technology, the company should adopt e-commerce business as a strategy to attain a global market. E-commerce involves the use of web- based activities to realize sales and an increase in the number of customers.
Below is a diagram illustrating the globalization strategy of the company
Method of entry
Choosing geographical area
Above is an illustration of the globalization strategy the company will use to attain and reach the global market.
- Product design and quality
Achieving product design and quality involves some vital processes and strategies. First, if the furniture company seeks to have the best quality and design of products in the market, some processes have to be adopted. It involves product development process which starts by way of generating an idea regarding achieving a better product to increase the sales over time. The process of product development follows steps as listed below:
- Idea generation- formulating of new ideas
- Design evaluation- weighing the cons and pros of the idea
The team dealing with the design of the product by way of generating ideas should adopt a contemporary design as a far as its structure is concerned. Under modern design lies a matrix structure which is essential in achieving globalization. Matrix structure involves getting and sourcing of experts from different departments from various function or departments of an organization. A matric structure ensures that the process in achieving the perfect product design and product is assigned to one person who is responsible for allocating various resources to the team.
In the course of producing the perfect product design and quality, some initiatives have to be considered as far as quality control is concerned. Quality control involves the process by which the manufactured product meets the expectations of the customer hence regulations have to be set to maintain the normal quality. Such quality control initiatives include
- Confirming the safety of the product
- Evaluating the safety of the product
- Process and layout design
The furniture company can go ahead and create a new product which will take a period of 3-4 months to penetrate the market. Product design wholly depends on transforming ideas into reality. All sorts of business organizations are bound to create as well as develop and introduce new products into the market as a tactic to maintain its relevance in the market arena. Introducing of new products into the market involves processes such as redesigning of old products to fit the current market system. The furniture can create a new product such as wardrobes. Reason being, wardrobes are part and puzzle of the new modernized houses as well as shoe racks.
Below is the product development strategy the company will adopt.
- Layout and Process Design
|Receiving department (4)||Shipping
Explanation for Layout
The process involved in creating and a perfect design and layout means minimizing the cost of manufacturing to realize a tangible profit for the organization. The process involved in strategic process selection and design helps improve the productivity of a company’s product. The layout design is an integral part of the manufacturing process. The process allows and ensures a repetitive nature in assembling of products that are of a high quality. The process needs to be on the same functional line with labor and various equipment needed for the process of manufacturing.
The process layout as seen in the diagram above would be fit to attaining a global market since it comes with a number of advantages. They include:
- The process layout offers the business an opportunity to increase the profit margins. Improved margins involve the advantage of selling two products compared to one which results in more substantial benefits.
- The layout offers most businesses a chance to meet and surpass various customer’s needs or wants. Meeting of a client’s needs plays a great role in improving the experience hence gaining of loyal customers and a better image for the company.
The above model acts as a point of interaction between the business and the consumer. A point of interaction involves knowing of the needs based on the customer’s preferences regarding the design and quality of the preferred product.
The process layout in the above diagram aims at creating a connection between the company and the market arena. It helps come up with strategies to deal with potential rivals and adopt the new systems as far as the business is concerned. Below is a diagram showing the stages and department a product goes through before being introduced in the market arena.
The furniture company as described in our context should adopt the process layout. I chose to take the process design out of its efficiency. The process plan is a model adopted while in the floor plant of a product. The method improves the efficiency as per the quality of the product since it positions equipment depending on their functions.
Various assumptions were made regarding the more the processes a product passed through.
The assumptions included:
- The more the steps in the process, the better the quality of the product
- The business had already gained popularity hence it was easier penetrating into the market arena.