'Globalisation' is possibly the most over-used word of the last decade. It’s almost impossible to find a book or even an article on business, politics, economics, society or the arts that doesn’t use the term in one way or another. The word 'globalisation' has become a catch-all term, something which means everything and nothing, a word which seems to have a different meaning for each person who uses it. Is 'globalisation' a movement, or a trend? And most importantly of all, is it a good thing, or a bad thing? What is certain is that globalisation is a complex phenomenon, containing good and bad aspects. Those who suggest globalisation is an easy cure for the world’s ills, however, may need to think carefully. Going global is not as simple as it looks. Case studies show that, ideology aside, there are three major practical barriers for any company thinking of going global. Firstly, cultural differences. 'Cultural differences' are something which are talked about almost as much as globalisation, but for a good reason - when trying to work in any new market it is essential to take into account the culture of the people you will be working with. Remember: what may work in one market may be totally inappropriate for another. Food products are a good example: what may be a speciality in one country may seem disgusting to another. A British steak and kidney pie, for example, would look like the kind of food given to dogs to eat in north America. One product can’t satisfy the whole world. Even a company such as McDonald’s, the flagship of a certain kind of globalisation, now diversify in different markets. The age of one world, one product is long gone. Secondly, trade restrictions. While the EU and, to a certain extent, NAFTA, have opened up the possibilities of international trade, many complex restrictions still remain. “I wanted to export cheese,” says Dave Stallybrass, who produces the traditional Blue Stilton variety of cheese in the UK. “I had no problem in Europe, but when I tried to ship a load to the USA, there was trouble. The cheese wasn’t pasteurised. The USA won’t accept unpasteurised cheese. I was left with a warehouse full of cheese going mouldy. It didn’t smell too good, I tell you...!” Thirdly, technology. It seems strange to name 'technology' as something which may hinder attempts to go global, as it is the developments in communications technology, the internet above all, which has given rise to the widespread assumption that going global is an easy thing to do. All you need to do, after all, is set up a website with an online ordering facility, and then everything’s just going to happen, isn’t it? Not exactly. Even though people in Tasmania or Patagonia may be able to order your products with just one click, it doesn’t mean they will necessarily arrive – see the problems mentioned above. Moreover, don’t assume that everyone has the same internet habits as you. Although online shopping is huge in North America, and growing rapidly in Europe, in other parts of the world many people still prefer to make real-time acquisitions – in other words, they prefer to buy things in shops. Put aside the philosophical or political problems of globalisation for one moment, and before you try to go global, think very carefully about the practical issues. |