Globalization is a good move for the company. This is because by going global, the company will have a global reach of customers. Domestically, the company is limited to meeting the domestic demand only. However, in the global market, there will be more demand translating to a higher productivity for the company. In the company is involved in the making and selling of furniture, it is likely that through globalization, the company will find raw materials such as wood and metal at reduced prices elsewhere. This will reduce the production cost increasing profitability.

Through globalization, the demand for the furniture will increase. This will also increase the economies of scale since the company will now be making more furniture than before. Economies of scale reduce the production cost by minimizing wastages. When the company goes global, it will have to employ people from different parts of the world. By doing this, it will be exposing itself to different expertise. By doing this the company can improve on its furniture and even introduce new designs. The company will have a larger pool of expertise to select employees from.

A major advantage of going global is the exposure to different market conditions. Different economies have different market conditions. In addition, every country has government regulations and other market and industry regulations. When the company is exposed to these conditions, it will learn to survive thus improving the management skills for the higher management.  So my advice to the board is to go global and get exposed to different markets or stay domestic and have limited access to customers where competition is already stiff.

When it comes to globalization, the company cannot just target any country. It should select countries where it is easy to enter the market. Some countries have very strict market regulations which make it hard and expensive to enter the market. In addition, there are countries where buying and selling of wood is strictly regulated to preserve the trees and it will be hard to make furniture in such a country.

A good country for globalization is Australia. Sydney which is in the coast of Australia is known to receive many tourists.  With tourists, the domestic investors are fond of buying high quality furniture to attract the tourists in to their apartments. In addition, some of the tourists also end up buying furniture in Sydney and exporting it to their countries. The Australian government is known to be very supportive of the furniture industry. It offers support such as trainings for management, support for collaboration with research sector, commercialization advice and access to specialist expertise. Again, the industry offers many designs of furniture and consumers are always on the lookout for new designs.  However, the competition in Sydney is very high but there is still room for other companies to enter the market.

Another country of interest is Canada. In recent times, the furniture industry in this country has been in the decline due to imports from low costs countries such as China. I think it would be good to introduce low cost furniture domestically rather than importing from China. Importing takes time and some risks are involved and still it is expensive due to the importation duties. If my company imported the raw materials from China and then made the low cost furniture in Canada, the price would be lower than importing a finished product from China due to economies of scale.

Another country of interest is United States. It is the second largest producer of furniture in the world. This means that demand in this country is very high. In addition, with the high population in the country, demand is very high. Again, it is easy for the population in America to have access to housing finance which increases demand for furniture.  However, though competition is very high in this economy, customers are on the lookout for new designs of furniture and low cost furniture. This means there is room for my company to penetrate the market.

The overall goal of the company is to expand and grow. However, this cannot happen in the domestic market where the room for expansion is limited. The company has to go global. First, by going global and entering the markets in Canada and Australia, the company will have expanded its operation to these countries. It will increase the number of customers served and also build a brand name in the international market.

Growth includes increasing demand. Going global will definitely increase demand.  The goal of the company is to make more money through increased demand and reduction in production costs. This will be achieved by globalization in that raw materials can be accessed in some of these countries at lower costs.

For someone with an opposing perspective to globalization, I would outline how globalization would lead to growth and expansion. I would ask the person to explain how remaining domestic would help the company to expand.

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