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GLOBAL GOALS Jeanette Gallagher 17155924 MGMT690-1704A-01 Strategic Management in Dynamic Environments Unit 5 Individual Project Dr. Cynthia Rozier November 7, 2017 1
GLOBAL GOALS Implementation of Global Strategies There are many directions that Ferrer Custom Furniture could decide to go besides globalization. Franchising, Internationalization, and Direct exporting are just a few but spreading our wings and branching out into other countries will be very beneficial to our organization (Editorial Board, 2015). The lack of globalization at Ferrer Custom Furniture may be one reason for low manufacturing margins; this is one reason why we have decided to pursue a plan to accomplish a couple of concerns in the global marketplace (Rozier, 2017). These are the reasons why globalization is a good move for the company. The rationale behind this decision is that we want to find a supply chain network that can help our company open up into new markets efficiently and effectively. Secondly, we want to bring down production costs by finding alternative manufacturing options outside of the United States (M.U.S.E., n.d.). We searched for manufacturing companies that were near rail lines or ports, and in countries where labor costs are lower than the United States (McGraw Hill, 2017). Our research showed that Ferrer Custom Furniture would pay a third less for labor globally compared to home by manufacturing our products in foreign plants where they are in demand and the company would save on costs that would be incurred by exporting the products from the United States. As the project manager, our team was hard-pressed to choose one country seeing my decision is to be transnational. No matter which country out of the many countries we wanted to pursue, they would have their benefits and deterrents (M.U.S.E., n.d.). Ferrer Custom Furniture is moving toward the transnational strategy, and we should start in Mexico first. Expanding our organization into Mexico with the highly skilled workforce that has been created from the 2
GLOBAL GOALS countries citizens, and using these hard-working people to make our products is a winning combination. The logistical move for our company is a no-brainer making the shipping of finished products ideal. Mexico is also fantastic for our furniture manufacturing company to keep overhead costs low and to simultaneously mitigating any issues that are related to the supply chain. Another great reason to chose Mexico is for the offshoring options it offers for the businesses (Porter, 1990). The shipping customization as well as the delivery options that will improve the business relationship we will have with our current and future customer base. All of these reasons are why we believe Mexico is the best choice for our organization. By using our closest neighbor as an advantage of all nations, and positively using the resources to the corporations gain and utilizing the well organized strategic marketing measures, and the resources and the capabilities to focus on the strategic plan, analysis development, implementation, monitoring, and evaluation throughout the lifecycle of the processes.

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