The article written by Marcus Alexander examines the obstacles and pitfalls which companies may encounter when going global. In today's economy and with the changes in deregulation policies over the past 15 years, many companies have been enticed to expand their operations globally. While this aggressive strategy exposes companies to global economies of scale, many organizations have been unable to capitalize on a global strategy and have made ill-fated mistakes. He attributes the failures both to the firm's deeply misguided global strategies and the execution was more difficult than anticipated. The author suggests considering three important questions when contemplating going global:
1) Are there potential benefits for our company?
2) Do we have the necessary management skills?
3) Will the costs outweigh the benefits?
"Before launching a global move, senior managers need to conduct a simple but rigorous self assessment to gauge the likelihood of success," according to Alexander. Many companies, such as Royah Ahold, a large Dutch supermarket operator, were able to identify the potential benefits of globalizing but they did not put themselves in a position to realize those benefits.
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