Discussion question 1
The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms.”
This topic can be one that can be argued both ways. Technology has had a tremendous impact on how companies do business. An organization with a web site is able to connect with people all across the world. Understanding this, a company should take the time to both invest and learn advances in technology. This is not solely for large corporations, since if a small business doesn’t take advantage of these strategies, they will be left out of the competition. The days of the paperback phone book are gone. Without information technology, most businesses wouldn’t even exist.
Information technology is infiltrating all aspects of business, both large and small. Without it, a company will not be able to keep up with their competition. On the flip side of this theory however is the fact that information technology is cheap, therefore everyone had access to it. This in turn allows all the competition to have the same edge. This may work for a smaller company that has a good marketing campaign. Larger companies have always been able to succeed in the competitive market due to their ability to gain a foothold in the stock market and obtain funding that a smaller company may not be able to do. The ability to advertise allows these smaller organizations to become more lucrative simply by being recognized. A retail company that is willing to ship their products globally is in a position to increase their sales exponentially.
These smaller companies may also expand once they are recognized as a company that is able to maintain a good service or product across the country or across the world. Rather than shipping their product, they may choose to employ people from a country that buys heir goods or services, thereby increasing availability and allowing those from the host country to be a part of the company. Certain countries, such as India, may provide services at a much lower cost than in the United States, thereby creating a greater profit for the company conducting the business. Starbucks is a prime example of this type of business. Twenty-five years ago, Starbucks was hardly known. They had a small number of stores in the United States. They are now one of the most popular brands in the world, with almost 17,000 stores in 50 countries (Hill, 2012).
Vizio also is a success story for small business. They are a company that produces flat screen televisions, are known worldwide and have less than 100 employees. They outsource most of their engineering, all manufacturing and a great deal of logistics. Because it is able to outsource so much at reduced rates, the company is able to sell at discount retailers. They are also able to sell in volume. This gives the company a competitive edge against other retailers with more overhead (Hill, 2012).
With all of these things taken into consideration, it would appear that small business could benefit from globalization if properly managed.
Geraldine
