Lorrie Fontanilla Case

Going Global

Lorrie Fontanilla

SSCI210-1205A-02

American Intercontinental University

Dr. Douglas McCoy

Introduction

In the 21st century it is a necessity to go global. Companies that consider going global take on huge feats in today's diverse economies. Globalization is somewhat intimidating. A company must conduct a wealth of market research. It starts out with analysis and strategic planning. Companies need to consider market segmentation for their product, forming strategic alliances, mergers, acquisitions and joint ventures. These are some of the ideas a company can utilize to set foot on the international stage. Besides the preparation a company must look at foreign government policies and guidelines, study cultural differences and learn to interact effectively when dealing with foreigners. Some companies must consider the thought of licensing its product or its intellectual property to reach company goals.

There are also product differentiation, supply chain management and/or middlemen that they should consider to act as liaisons in the foreign market. This essay will focus on the process of globalization. Seal wrap, a United States based company that manufactures plastics is deciding to go global. Its CEO Jerry is very apprehensive about expanding into the foreign markets. He needs help from a team of researchers that has conducted studies on other companies that encountered issues during the process of globalization and to create ways to prevent the missteps those companies' experiences. It will also take a pragmatic look at the sociological attributes of cultural differences in a working environment and a company's steps they took to launch its business model abroad

The Process of Globalization

Before considering going global a process a company can take is to consider the business environment to see which countries have the most desirable business setting and the lowest fees. The next step is to screen the suppliers and vendors. A company could take a trip to one of the foreign companies to ensure safe business practices, treating their employees fairly and using non- toxic production methods. Deciding to go global indicates different cultures and languages. Failing to learn the language can cost the company connections, or embarrassment. A company should consider hiring liaisons when considering diplomatic issues. (Editorial Board, 2012).

Logistics is another important part of globalization. A company must consider hiring a customs broker when shipping overseas. A company needs to have a basic knowledge when shipping product from and to different locations around the globe. It must also consider currency rate exchanges, foreign taxes and other financial positions of global marketing. (Consider Culture when Going Global, 2012).

Chevron

Chevron Corporation is one of the leading energy companies in the U.S. today. It falls right in back of Exxon Mobil. It is one of the six major oil companies operating in over 180 countries worldwide. It has a robust network of retail service stations which include Texaco, Chevron and Caltex. (Chevron Corporation, n.d.) Besides Chevron's success, it is subject to stringent environmental restrictions. The cultural issues that Chevron is currently facing are the class action lawsuit of the Amazonian rain forest in Ecuador. The Plaintiffs have claimed damages well over 27 billion dollars. Chevron has also encountered large challenges due to political instability in Nigeria. (Chevron Corporation, n.d.) Despite Chevron's law suits, Chevrons success started when it took its business model overseas to Saudi Arabia. In 1938, Chevron discovered the biggest oil area on earth. This discovery did away with the established name of Standard Oil of California and became known as the Arabian American Oil Company. It was solely owned by Saudi Arabia due to the continuous purchases of shares. The Chevron-Gulf Oil merger took place; this was the largest amalgamation that occurred at the time. Because of its magnitude, Gulf Oil cut global ties with its affiliates and sold an American based factory and several of its fueling locations to satisfy the U.S.' antitrust laws. SoCal took the name of Chevron Corporation again as part of the merger. (Chevron Corporation, n.d.)

In 2001, another company merger took place with Texaco. About four years after, on the ninth of May, the Chevron Corporation became just Chevron to give it a more distinct, united existence on a global platform. (Chevron Corporation, n.d.)

On the ninth of August in 2005, Chevron merged again with another corporation known as Unocal Corporation. Due to Unocal Corp's broad Asian geothermal plants, this merger made Chevron one of the largest suppliers of geothermal energy on earth.

Sociological