Global expansion has developed a tactical imperative for nearly all large organizations and multinational corporation (MNC) managers have a great deal on their hands in developing, monitoring and changing these strategies. Becoming international is an important factor in assisting organizations in becoming globally competitive. Globalization has become a prevalent spectacle over the past two decades. This is the case and it is not a surprise at this day and age to discover world brands in distant locations throughout of the globe. As indicated by Booton (2011), “Peoria, Ill.-based Caterpillar plans to export partially assembled mini excavator base units to a facility in Europe for final assembly, which it says will improve delivery times to its customers across the pond” (para. 5). Caterpillar has made this decision to support mining across the globe and to support mining in remote locations in China. Why would they have this type of strategy? To gather a full explanation, this paper will describe the regional and international strategic planning initiatives of an MNC.
Unlike globalization, regionalization is more centralized to a specific region or a specific market. With regionalization, economic and social dissertation is restricted to geographical regions like East Asia or South America (Sim, n.d.). However, by being just regional versus global does not limit the organization from becoming more profitable and surviving rather than remaining in a domestic atmosphere. Being regional does have its advantages in improving economic conditions, innovation and development of a nation. As described by Rzyttka (2009), “regional centers of craftsmanship can function as the nucleus fo...
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Rzyttka, O. (2009). Regionalization versus globalization. The Jakarta Post. Retrieved from http://learners.ncu.edu/CourseRoom/Default.aspx?course_code=IB5013-8&learner_course_id=312663
Serban, E. (2012). The strategic alternatives for emerging markets entry strategies of multinational companies and their main investments in Romania. Revista de Management Comparat International, 13(2), 337-347.
Sim, P. (n.d.). The advantages of globalization vs. regionalization. Retrieved from http://learners.ncu.edu/CourseRoom/Default.aspx?course_code=IB5013-8&learner_course_id=312663
Why invest in emerging markets? (2014). Forbes. Retrieved from http://www.forbes.com/pictures/eglg45fmml/why-invest-in-emerging-markets/
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