Challenge of Globalization W. L. GORE & ASSOCIATE had been expending their business in more than 30 over country; there are Asia Pacific, Europe and the Middle East, Central America, North America and South America, leading manufacturer of thousands of advanced technology products for the electronics, industrial, fabrics and medical markets. With the employees of 9. 500 people around the world, managing the people also bring along the trouble as well. With the diversity of culture, people, background, language and norms, challenges and problems occur within the company and beyond the boundaries of the company.
This is the major problems that will occur when a company goes global and expanding to the world. This challenge of globalization will lead to the virtual team requires high degree of coordination. Issues like communication breakdown and miscommunication happen when it comes to transferring information and data or even as simple as greeting when there are no proper and systematic way of communication. It will be more difficult when it come to language barrier, culture difference and norms from different continents. We also identify is the growing need to build strong relationship across geographical boundaries.
The relationships across the boundaries for the person in charge of the same company need to be very strong in order to have a very significant and standardized brand across the world. Confusion and conflict happened when the details and the expectation does not transmit well. Competition among teammates or college will happen when issues rise in the company. The objective of the company will not be focus and easily mislead the way. Last problem that we found out is the difficulties in maintaining the culture and values of W. L.
GORE & ASSOCIATE. Since there are located in many countries and continent that full with diversity of culture, norms, language, foods, dress and others, the culture and the norms of the company is hard to maintain or to be standardize all the year. It easily being influence and amend by the companies from different continent. Alternative for Challenge of Globalization To survive in a very competitive market especially in the global, W. L. GORE & ASSOCIATE need to have people to coordinate among the departments for the company.
The coordination should be in horizontal link of communication by having coordinators, liaisons, managers to bring those messages across from another department to another department so that everything can come together. The middle person should know what to deliver and to whom does message have to reach to ease and make sure the system and the process of the company can run smoothly. W. L. GORE & ASSOCIATE also can reduce the cost by outsourcing to low cost country such as Brazil, China and India to cut down the production cost by having lower supply cost.
These supply cost include the resources, employees, location and so on. When the supply cost getting lower, the production cost decrease, the cost of product decrease, level of competition of the company increase, can dominate the market temporary. These countries manage to provide work force in low cost which make many company trying to enter their market aggressively currently. Getting advice from the experts on issues related to culture and globalization also a very effective step to take to ease the process of signing the contract or even the agreement of busying the company products.
Researchers or the local people do help a lot for the company to understand what does the new or the latest market want. The company needs these details to test the market by lowering down their risk when expanding into the new market. By providing training to the employees in the field of culture study and language study can improve the skills of the employees to learn and understand the diversity culture. The alternative for the virtual teams which requires high degree of coordination they need to implement the mixed of traditional hierarchical structure and flexible relationship in order to smoothen up the company progress.
Beside, this also will improve the feeling of all the workers are “in the same boat”. Next alternative for growing need to build strong relationship across geographical boundaries, the company needs to emphasize more on horizontal coordination and the information that transfer across the horizontal link. This will decrease the misunderstood between departments or even between continents for the company with the flexible structure that they are having. Beside than that, communication team or departments should exits either is locally or globally to promote the team bonding with each other by having intranet team page.
Employees can chat, make friends, knowing the exits of each other in the page and this will narrow down the communication gaps. For difficulties in maintaining culture and value of W. L. GORE & ASSOCIATE, establishing a unique culture among the team is needed that continues to be an inspiration for associates-egalitarian culture. This is to remind and making a habit for the employees to work in Gore. Stories share by the employees also can be practice to show how do they practices the values of Gore. Informal meet such as a lunch meet or ven a weekly dinner can link the employees together to share their stories and become their culture to continue their legacy in the team. Next, incorporate the values in daily work and making decision or even doing business also can bring to the significant culture or norms of Gore. Such as never late for work or appointment, having trademark for name cards for work which is standardize, have alignment in formal letter writing and others. Image of the company can bring out strongly without harming others.
Moreover, these values also can be extended to the partners of Gore such as suppliers and customers to keep people remember about the company. Sources of Problems Nowadays, the rapid movement of technology and information cut down or lessen up the gaps between people around the worlds. Thus, challenge of globalization happen when more and more company willing and dare to expose themselves globally either in business of network. The urge to earn money and to make high return of profit also is the source for W. L. GORE & ASSOCIATE to enter the global market and accepting the challenge of globalization with other competitors.
The source for the problem of the virtual teams requires high degree of coordination is the smooth of the communication. Being in a team, we need to communicate between each other and this may be even hard when it’s come to globally. The team need to transfer the information well, lower down the communication gaps, decrease the communication breakdown. These communications also act as the source for the problems of growing need to build strong relationship across geographical boundaries. Most of the company needs to meet up with each person in charge of each continent frequently.
In addition, maintain a good relationship and standardization also is the sources for the above problem. With a good relationship, the team can build strong relationship among each other and avoid conflict. Standardization in the company across the geographical boundaries is a very important value when we need to bring out the image of Gore and being recognizes and remember by the customers. This also can avoid competition among the team mates to get customers. Cultural differences also play a role as sources of the problems in difficulties in maintaining culture and values of the company.
Cultural of a team or even the country play a very important role to keep the ball rolling in the company either is in country or globally. A good understanding of each team mates in cultural differences can lead to the success of the team and increase the profit of the company and even cut down on the conflicts between team mates. Advantages and Disadvantages of the Alternative for the Major problem The coordination among departments can helps in decreasing the communication gaps, cut down the communication breakdown or even the information overflow between team mates.
Team members can communicate easily with all those coordination for whom should they report to until the decision making of the departments. However, the disadvantages of this alternative is that many man power will be used up when they need more extra people to take the role, grey area for the employees or manager happened when they have double post or role ambiguity. Advantages in reducing cost by outsourcing to low cost country are cutting down the supply cost and the production cost which lead to competitive advantages for the company.
The company can compete even become the dominant of the market. The disadvantage of this alternative is the employees in home country will be jobless while the pollution in the outsourcing country will increase and the profit will mostly go to the host country for the worker wages. Acquisition and partnership with the company in other country for the company can lead to lower the risk in entering the market, easier to enter the market and cut down the cost for entering the market either is in Research and Development or the specific organization in this field.
The bad side of the alternative is the pattern, trade or even the knowledge will be easily leak out and used by the partners in that country. This will risk the company compendium in surviving in the global market. Next, getting advice from the experts on issues related to culture and globalization is a good way to get to know the market more. This will actually lower down the risk for the products to get rejected in the market. However, the cost is high and the company cannot make sure the employees will implement or practice hat they learn. Providing training to the employees for cultural study and language study Advantages and Disadvantages of the Alternative for the Minor problems The mixture of hierarchical structure and flexible relationship will give the advantages of less structured organization that ease the level of control, the information transfer, the boundaries of communication and coordination to be lesser.
However, this will also lead to grey area for the employees when they do not know who to report to or who to follow hen they have more than one people that make the decision for the same matter. Role confusion and ambiguity may also happen. For an organization which have a more flatten structure of organization, a horizontal coordination will be more prefer to ease the information go across horizontal linkage. Employees will feel more comfortable to work in the company with their own leaders that bring them up since they enter the company. This will increase the sense of affection and the sense of belonging between the team members.
Meanwhile, the disadvantages will be too wide for the leaders to control the organization and confusion in role also will be happened any time. To promote team bonding, intranet plays an important role in the company. This can cut down the miscommunication among team members even bring out the sense of belongingness in the team when each other care about each other in the team to work those things out together. However, the disadvantage such as the transparent of the company upper level will be gone.
The employees also might not fully utilize the page when if there are no coordinators or the person in charge of the page to update and upgrade the systems. To control the difficulties in maintaining the culture and value of the company, there are few of the alternatives. One of it is to establish the unique culture that continues to be an inspiration for associates-egalitarian culture; this will lead to the standardization of the culture in the company that brings up their professional role and their trademark in the global market.
On the other hand, this also will bring the side effects of too rigid to the external when they need to follow a standard and rigid procedure. Sharing stories between the employees shows how the previous or the senior employees practice their Gore values among them. New employees can learn from it and get inspire to work harder and being bond with the team. But, the upper level cannot control what does the senior employees will share is either negative or positive and this will lead to bad influences and damage control.
By incorporating the values in daily work and making decision or doing business is one of the alternatives as well. This alternative provides the employees learn and know the company cultures faster and adapt to the surrounding environment as soon as they enter the company. But, some of the employees especially those new enter or freshly employed employees might feel stress when they cannot really fit in and stress when other team members avoiding them in the team and don not work with them.
Lastly will be the extending of values of Gore to the partners especially the suppliers and the customers. The norms and sense of understanding will occurs if this alternative can be work with the suppliers and the customers, however it will lead to an effect of difficulties to do alignment and need a period of time for them to really understand each other. The company needs to train their own members first before they let their own employees to work with all the customers and supplieyers worldwide with their very own specific cultures, value and norms.
Justification for Challenge of Globalization We realized outsourcing to low cost country will be the best solutions for the challenges of globalization. The company can outsource their resources, workers to country such as China, India and Brazil to cut down their production cost and win in the competitive market. The mixture of traditional hierarchical structure and flexible relationship in the company is the best way to solve the difficulties in virtual teams with the high degree of coordination. Red tape, rigid and lengthen process of procedure can be cut down.
Meanwhile for growing need to build strong relationship across geographical boundaries, we will suggest the company to emphasize on horizontal coordination where they can communicate easily within the team without any information breakdown of lost of communication. Incorporate the values in daily work, making decision or doing business will also helps a lot in the difficulties in maintaining cultural and values of Gore by having standardize letter head for external, never late for appointment, active and so on.