Common customer needs and tastes can be used to measure the market metrics of a global strategy. This metric is difficult to use since the needs of customers for certain goods or services are usually different. What is actually required is the proportion of the total cost which is accounted for a specific commodity by the components of the commodity that satisfies the needs of an individual. Global customer and channels is another metric that is used in emphasizing national and multinational customer and channels. National customer and channel consider the percentage of the total sales to customers in the world (Porter, 1985). The multinational model considers what makes a customer buy products for worldwide utility. The third metric that can be used for measuring global strategy implementation is transferable marketing. This metric analyzes the willing buyer’s behavior and reaction to a foreign factor in the market. For example, an African brand name in the American market. This factor is used in all marketing aspects which may include hiring, advertising, sales, and the company’s market. All these metrics help to increase the concept of globalization.
There are several risks associated with the implementation of global strategies than those of the domestic strategies. Such risks are influenced by the legislations that are set to govern trade (Hax & Majluf, 1984). For instance, there are trade policies that favor countries that are member states of the European Union through tariff eliminations. Such policies imply that certain goods should be available for sale in all the member states. It is also hard for a global director or manager to have the correct information needed to plan, formulate and implement a global strategy because complete information about a country only exists at the country level. This makes it risky since it is hard to collect information about a country in which a company does not participate resulting in a circular dilemma.
The current and the likely use of the global strategy levers should be diagnosed to determine the changes that are required. Several analysis should be carried out in the processes of determining the potential uses of global strategy levers. Such analysis includes benefits associated with global strategy, industrial globalization drivers, and the activities of the competitors. For the case of the Riordan venture, few levers can be considered important for its success. Such levers are global market participation and global activity participation. Global participation is an important lever for the case of the Riordan venture because, through market participation, business revenues can be distributed across a geographical area and also across the whole market. According to Hax & Majluf (1984) “global participation can be very helpful to depict graphically the global share balance to compare where the business has its revenue with the overall global market.” Another lever that can be of help to the Riordan venture is the global activity location. Through the use of visual display, it is possible to determine the location of business activity. This visual display would help to visualize the dominance of the business and the share of revenues it has in the global business.
Diagnosing industry globalization potential is the most challenging aspect of global strategy. This is because it is divided into two stages. The first stage involves a worldwide team that deals with analyzing, observing, and examining the industrial globalization potential through discussion (Porter, 1985). During group discussion, conflicts may arise due to differences in; interests and needs, implementation of ideas, and determining the right people for different jobs worldwide. The second and final stage involves what has been examined to be recorded so that a company’s directors and workforce can verify it. This may take a lot of time since the process is bureaucratic. It is also challenging since the global team should show how industry globalization metrics result in new opportunities. In addition, the global team should provide the incentives of using global strategy levers and the standard prices of different countries to be the same.
References
Hax, A. & Majluf, N. (1984). Strategic Management. Upper Saddle River, NJ: Prentice Hall.
Porter, M. (1985). Competitive Advantage. New York: The Free Press.