Unit 4 Discussion (6)

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Purdue University *

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GB570

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Management

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Nov 24, 2024

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*Professor: I could not get the formatting to transfer over, so I attached a word document for proper APA formatting. Thank you! A current company operating solely in the United States is a healthcare consulting firm, XYZ, Inc. XYZ is looking towards the future, envisioning global expansion. We want to take our services overseas to Germany, specifically in support of the military hospitals and clinics. While we have a solid value chain here in America, the concern in Germany is the cultural differences. We believe our core mission is in alignment with the military’s current healthcare operations and our firm could help streamline their processes. International business has escalated into one of the top factors affecting competitive advantage (Hsu, 2022). Firms not only have domestic market competition, but they also have competition from international markets as well. Understanding and incorporating cultural differences in business into our value chain must occur before expansion. The cost and time needed to interweave our business into the German communities will surely be impacted. We will need to properly budget bringing a subject matter expert (SME) on German business practices to help us with the integration. These challenges we need to face head on for successful globalization. Some differences in the domestic and global value chains take place within the supply chain. The suppliers and vendors we have used in the past will likely not be available for us in Germany. We will need to submerge ourselves in the business community where we plan to have headquarters to seek advice. Similarly, the employment pool will be different in a global value chain, so strategic human resources management will be key in talent acquisition. There are various reasons why firms go global, but it is typically to take advantage of the cost or quality differences for labor and/or land (Hsu, 2022). It is also to attempt to maximize profits by reducing costs and increasing effectiveness. The con to going global is having a current workforce agreeing to relocate to the new region. It would be impossible to establish a successful firm mirrored to the one in the United States without key employees willing to make the move as well.

Organizational culture is not typically something defined on paper- it is socially constructed by management and employees alike. If a firm has an outdated, sexist corporate culture, they are unlikely to progress and grow into global regions. They must remain open-minded and respect (and promote) diversity and inclusion within the value chain. An effectively managed extended value chain will ensure the culture of the firm is collaborative with the community to achieve the shared goals. As CEO of XYZ Inc., I believe our transition to a global value chain is incredibly attainable. We have a workforce who are willing to establish new headquarters and are motivated by the idea of expansion. Aligning ourselves with the military mission also expands our product and services options, maximizing profits and competitive advantage. Lastly, we can delight more customers by simply having easier access to them to provide consulting services. The shareholders will be involved in the planning of the expansion to ensure we have their support (Presutti & Mawhinney, 2013). References Hsu, T. (2022). The Effects of Cultural Differences on Post - Acquisition Success for Multinational Firms. Journal of Organizational Psychology, 22(2), 1–11. https://doi.org/10.33423/jop.v22i2.5168 Presutti, Jr., W.D., & Mawhinney, J. R. (2013). Understanding the dynamics of the value chain. New York: Business Expert Press, LLC.

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Unit 4 Discussion (6)

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