Discussions of Global Global for the Entrepreneur
As we have discussed, strategic motives must drive the decisions to conduct business globally. But what is your action plan? Where do you begin? How do you begin? Which markets should be entered first? What would be the optimal mode of entry? How rapidly should you expand globally?
Definition of global entrepreneur:
- A global entrepreneur seeks out and conducts new and innovative business activities across national borders. These activities may consist of exporting, licensing, opening a new sales office, or acquiring another venture.
We are living in a world where all the major business functions in the value chain are highly globalized and deeply integrated. According to McKinsey and Company, 80 percent of the world’s GDP will be sold across international borders by 2027, compared to about 20 percent in 2001. Multinational business activity will grow from approximately $5 trillion to $70 trillion by 2027.
Discussions About Creating and Managing the Networked Enterprise
In a Journal of Marketing article entitled “Marketing in the Network Economy,” Ravi Achrol and Philip Kotler introduced the concepts of a networked organization. They define a networked enterprise as an interdependent coalition of task- or skill-specialized business entities (independent ventures or autonomous organizational units) that operates without hierarchical control but is embedded by dense lateral connections.
A networked enterprise has shared objectives or purposes that interact and build relationships with each other in an online environment across time and space:
- They are created to reduce hierarchy and open ventures to their ecosystems.
- They are organized around customer needs and new market opportunities.
- They maximize the productivity by creating partnerships among independent skill-specialized firms and often seek horizontal synergies across industries to meet new partners and access resources.
As a result, an online “community” of people becomes unified around a common purpose, place, or interest. This community can make decisions, nurture inspiration, solve problems, and learn and innovate faster. The more participation that occurs in the network to identify and respond to customer needs, the greater the value that is created for the members as a whole. The fact is that you worked so hard to bootstrap up the Hillary Step, get market traction, and get on the road to growth, so it is important to focus on keeping your customers.