Globalization - Opening Retail Outlets

The key to any business is to provide a product or service that the population can not live without. Many businesses meet this goal in a variety of different ways. The specific way varies from business to business. For example Taco Bell is a dominating fast food chain in the United States. However, this product they provide would not necessarily be as dominating in a different country. Mexico for example may not find Taco Bell to be a very good form of fast food in its current business formulation. So to combat this and create a business that can succeed across boarders changes need to be made to align the business with the cultural and economic differences in the countries it plans on opening its doors.

The relationship between culture and economic development is extremely complex. Culture is a term that has a variety of meanings ranging from values and beliefs practiced within an organization or group to beliefs and behavior patterns that shape ones social learning. "Economic growth is a term used to indicate the increase of per capita gross domestic product (GPD) or other measure of aggregate income." (Helpman, 2004) To become successful, research of social and cultural development, marketing and advertising, and generating economic growth will have to be key factors for development.

Social development involves the understanding of families and communities and being able to relate to them for a common good. Cultural development entails understanding cultural traditions and being able to relate to a variety of experiences. In order to track and forecast consumer trends, social and cultural elements such as lifestyle, demographics, customs, and religion will have to be considered to in order to meet the requirements of locale and generate sales.

For ABC General to thrive, research, advertisement, and marketing is necessary. Researching nearby competition, the environment in which the company will operate, and daily functions that will be performed and put ABC a step ahead of its competitors. These functions will then focus in on consumer demand for apparel as it relates to our products.

Once the goals of social and cultural and development, marketing and advertising have all been achieved, economic growth will take place. Economic growth will focus on the overall financial expectations of the company to achieve all projections set forth. Analyzing the structure of the business will also determine all profits and loss which will reflect if ABC General survives in the market.

In order for the management team to prepare for the global retail arena, it is important to organize them into three distinct groups. Group one would be responsible for assessing the cultural differences involved between the corporate home and the intended global retail locations. This management group should in effect establish the ground rules for cultural differences between the locations and how to overcome these differences. This group should also be responsible for the training and assimilation of any and all personnel involved in the direct cultural transition. The training can be gained through the use of an outside vendor such as Global Negotiator©. Our company has developed a series of tools and practical information reports to support the international development of a company which any user can acquire directly and automatically from our website (Global Negotiator, 2010).

Group two will be responsible for any and all legalities involved with the target locations. Included should be the balance between ethical operations considered normal here at home, as well as what is considered normal in the location of choice. A liaison between the two locations should be assigned according to where the retail location is intended. An example would be that if there are to be three locations slated to open in the country of Mexico, then a Mexican national should be assigned as liaison in order to ensure that cultural, ethical, as well as legal issues are kept to a minimum so that the transition is smooth and cost effective.

Group three should be responsible for the financial aspects and marketing of the global market. This team should be responsible for maintaining the overall financial growth of the company, keeping in mind the diversification that the global market entails and planning accordingly. Marketing should be targeted using the advisement of the management assigned to cultural aspects of the targeted location and bank rolled accordingly. An example of this would be that in the case of the Indian market, it would be prudent to target the financially viable upper class of the country, which makes up a very small percentage of that country's population.

We would need to get familiar with the laws before opening stores nationwide. Different