Shenkar and Luo (2008) purport that globalization has become one of the most popular catch phrases in the modern age. They define globalization as the acceleration and extension of interdependence of economic and business activities across national boundaries. Simply put, innovation on one side of the world has consequences on the other. To some entrepreneurs, globalization means more choices, decreased prices, and an increase in blurred national identity for products and services (Shenkar & Luo, 2008). For instance, sending a package from Chicago to Miami via DHL courier contributes to the revenue of the German Postal Service. Many business owners believe it is important to enter the global marketplace to expand their customer base and increase their revenue, which has been easier to do with the advent of the internet. Because the economy is interconnected worldwide, it is essential that entrepreneurs learn to strategize on a global level and consider incorporating higher levels of managerial skills that includes knowledge of international cultures for conducting commerce ethically and diplomatically in spite of economic and cultural differences.
Equally important is to understand the advantages and disadvantages of expanding their entrepreneurial ventures to include the global marketplace. Worldwide brand recognition is one of the advantages of going global. For example, because beverages like Coca-Cola are sold internationally, an individual that boards a plane in Los Angeles can purchase a can of Coke at the airport in the US and a later have dinner sipping from the classic bottle version of Coca-Cola in a restaurant that evening in Acapulco. Also, because of the global marketplace, international travelers can find McDonalds’ golden arches worldwide. Globalization also occurs in the form of advertisement for outsourcing software maintenance to countries like India; or the shift of a call center to countries like Canada. The disadvantage of these innovations is that they eliminate jobs that affect the US economy. These are only a few samples of the advantages and disadvantages that impact entrepreneurial ventures when expanding into the global market.
Equally important is that entrepreneurs have a good plan when considering entering the global economy to expand their business operations. This includes better preparation for expatriate assignments abroad and training to build confidence interacting with foreign suppliers, partners and competitors or in working for foreign employers in the US, like Mercedes-Benz, Toyota or Honda (Peng, 2011). These tactics can make the experience rewarding and more enjoyable. Globalization is here to stay. One merely has to take a look at the manufacturer labels on most consumer toy products or at the tags of many clothing items to find evidence of the many effects a global marketplace has on the fabric of modern commerce.
Peng, M. (2011). Global business (2nd ed.). Mason, OH: South-Western Cengage Learning.
Shenkar, O., & Luo, Y. (2008). International business. Thousand Oaks, CA: Sage Publications, Inc.
Entrepreneurial leaders are visionaries that possess a variety of characteristics and skills needed to be successful. Some of these talents include a deep passion to develop and articulate a vision, the ability to create a sound plan that include strategies to maintain and goals to achieve. In addition, an entrepreneur must have a comprehension of the organization’s culture, structure, and procedures to understand how to navigate productively in a rapidly growing entrepreneurial organization. For example, an effective entrepreneurial leader requires the ability to adapt and manage change efficiently to stay ahead of competitors with aspirations to dominate the market. Risk taking is another important element for an entrepreneur. Businessman Richard Branson (2011) has a simple philosophy, “Screw it, just do it” (Branson, 2011). This displays an unwavering tenacity to continue moving forward with goals regardless of the risks involved.
In addition, entrepreneurs must face and answer certain questions before embarking on an entrepreneurial venture to insure the best chances of success. For example, do they possess or have access to enough capital for their investment; is their family supportive; is there a need for this product or service? Furthermore, they must ask themselves is there a sense of urgency to embark on this venture. In other words, what is the intent or driving force behind the enterprise? It is also essential that an entrepreneur identify their strengths and weaknesses to ascertain where they require support in areas like marketing, accounting, sales and administration (Inc The Staff of Entrepreneur Media, 2010).
Branson shares four simple principles he follows that have been instrumental in overcoming failures and achieving extraordinary levels of success as an entrepreneur. They are: 1) live in the moment; 2) become a good steward by helping others; 3) have fun; and 4) never give up (What I learned about entrepreneurship from Richard Branson, 2011). Another important component is to not lose sight of the vision and keep focused on opportunities, or challenges that present new opportunities. Finally, a successful entrepreneur should have a keen eye on trends and fluctuations in the market to help give them a better edge on the competition and what changes are required to help keep them on track to achieve their goals.
What I learned about entrepreneurship from Richard Branson. (2011, November 22). Retrieved February 14, 2013, from ProQuest Central: http://search.proquest.com.proxy-library.ashford.edu/docview/1030937503?accountid=32521
Branson, R. (2011). Losing my virginity: How I survived, had fun, and made a fortune doing business my way (Updated ed.). London, UK: Crown Publishing Group.
Inc The Staff of Entrepreneur Media. (2010). Start your own business (5th ed.). Canada: Entrepreneur press.