Pages Description: Mike, One Of The Marketing Strategists On

4 Pagesdescriptionmike One Of The Marketing Strategists On Your Team

4 PAGES Description Mike, one of the marketing strategists on your team, stops at your office door wanting to talk. “We use fabrics that are made domestically; however, there are issues with using these same fabrics globally. There are laws and regulations that prevent us from shipping these fabrics to other countries. This is a huge concern. One of our primary selling points is the consistency of quality of our product.” You confirm Mike’s concern, “That’s an excellent point,” you say. “Now you’ve just given yourself and our team more work for the presentation. I’m sure that will come up. One of the board members used to run a textile plant in China.” Mike nods his head in agreement. “I imagine textiles will not be the only resource concern,” he says. Consider the following in your response: Why should resources be a concern in a global strategy? What resources may be a concern in the country you selected? How will this impact the decision to move to the country that you selected? How will this impact your competitive strategy in your global market? Review the reference materials on global strategy as there is information that may assist with the assignment. REFERENCE PAGE

Paper For Above instruction

Resource considerations are central to the formulation and execution of a successful global strategy for any organization. When expanding operations internationally, companies must evaluate the availability, accessibility, quality, and legal regulation of crucial resources within the target country. These resources include raw materials, labor, technology, and infrastructure, all of which directly influence the company's operational capacity and competitive advantage. Failing to properly assess these elements can lead to supply chain disruptions, increased costs, and compromised product quality, thereby undermining the company's strategic position in the global marketplace.

In selecting a country for expansion, such as China, resource concerns are particularly prominent. China is known for its vast manufacturing sector, but there are significant challenges related to resource constraints, environmental regulations, and political considerations that impact resource availability. For example, although China has abundant labor, strict environmental policies and labor laws can increase operational costs and complexity. Moreover, the availability of raw materials might be hindered by international trade restrictions or regional resource depletion, affecting the supply chain's stability. These constraints necessitate thorough due diligence to understand the long-term sustainability of resource inputs in the chosen country.

The impact of resource limitations on a company's decision to expand is substantial. If critical materials such as fabrics, chemicals, or machinery are difficult to obtain or are subject to export restrictions, the company must reassess its supply chain strategies or consider local sourcing alternatives. These adjustments can result in increased costs, longer lead times, and potential quality variability—factors that threaten the consistency of the product, which is a primary selling point.

Furthermore, resource constraints influence a company's competitive strategy in the global market. A company that cannot secure high-quality resources at competitive prices may need to differentiate itself through innovation, branding, or service excellence to maintain market share. Additionally, it might consider vertical integration strategies or partnerships with local suppliers to mitigate resource-related risks. This strategic flexibility becomes essential for maintaining competitiveness in a resource-scarce or highly regulated environment.

Reviewing the literature on global strategy underscores the importance of resource-based view (RBV) frameworks. These emphasize that competitive advantage is rooted in valuable, rare, inimitable, and non-substitutable resources. Therefore, companies must continually evaluate their resource portfolio in international markets and adapt to local conditions to sustain competitive advantage (Barney, 1991). Additionally, global resource management must consider legal and regulatory frameworks—including laws related to intellectual property, environmental standards, and trade—to ensure compliance and reduce operational risks.

In conclusion, resource concerns are fundamental to developing and executing a resilient global strategy. They affect decisions on market entry, sourcing, and positioning within the competitive landscape. Companies must conduct comprehensive resource assessments, including legal and regulatory considerations, to ensure that their international expansion efforts are sustainable and aligned with their overall strategic objectives. By proactively managing resource-related risks, companies can strengthen their position in the global market while maintaining the unique qualities that differentiate their products and brands.

References

• Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
• Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring corporate strategy: Text and cases. Pearson Education.
• Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
• Ghemawat, P. (2001). Distance Still Matters: The Hard Reality of Global Expansion. Harvard Business Review.
• Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.
• Friedman, T. L. (2005). The World is Flat: A Brief History of the Twenty-first Century. Farrar, Straus & Giroux.
• Yip, G. S. (1989). Global strategy... in a world of nations? Sloan Management Review, 31(1), 27–39.
• Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79–91.
• Hill, C. W. L., & Hult, G. T. M. (2019). Global business today. McGraw-Hill Education.
• Wild, J. J., & Han, J. (2014). International business: The challenges of global competition. Pearson.