Examine the Concept of a 'Born Global Firm' and discuss the Reasons such 'Born Global' have developed

Introduction

As per the definition of a born global firm, it is basically define as a business organization that from its inception, seeks to derive significant competitive advantage from the use of the resources that acquired by the firm and the also by the sales outputs located in different countries around the world. In this regard, one thing need to consider that many companies going global but still these firms cannot be named as born global firms. However, the research revealed that what actually distinguishes born global firms from the rest of the international organization is that they originate internationally. Similarly, the born global firms, since their beginning, the focus is to expand globally and show commitment in terms of utilizing the resources to international ventures. Thus, in this regard, most of the companies operate from their parent country and after years of doing business domestically, thus slowly evolve to conduct business internationally. In order to understand the concept of born global firms, these firms have many distinctive features that allow them to initiate and thrive with excel in international arena (Mort, et. al., pp. 542-61).

Discussion

Background

Globalization brings with him a greater degree of internationalization and integration of capital which, according to Arturo Huerta, transnational corporations also seek comparative advantages that allow them to reduce costs and be able to stay competitive in the international market. So globalization has historically determined that subjects are making history: transnational corporations. These are the main agents that perform the changes. In them lies the capital lead to a higher degree of internationalization and integration. So when looking for companies not only comparative advantage, but also competitive, to reduce costs, are rising to a higher level of development of productive forces. The reasons are clear, stay competitive position in the international arena.

Regulations to Create a Born Global Firm

To create the born global firm, managers should consider the following rules:

A global strategy cannot succeed if there are barriers and resistance in the organization.

Different aspects of the organization - whether in structure, administrative procedures, personnel or culture - will be harder to globalize by history and circumstances of the company. It may be preferable to work first on the most easy to change, in order to prepare the way for the most difficult changes.

Just as the elements of the global strategy, the various aspects of the organization may have different levels of globalization.

But globalization does not work fully until all aspects of the organization complement each other to support the desired global strategy.

Change the organization, especially towards globalization, can be a matter of very long time. Top management must instill a sense of urgency to drive the desired changes (Kumar, pp.).

The Administration of a Born Global Firm

With respect to planning born global firms and their subsidiaries are skilled in the development of corporate and national strategic plans. Despite this the majority of them have not yet developed comprehensive ...