What was once a focus on domestic enterprise activity, then international, has given way to global enterprise.

What unique strategic challenges does functioning in the global environment present relative to achieving competitive advantage and overall enterprise performance? There are many challenges to participating in the global environment rather than a community or domestic one. Creating a universal product is almost impossible, and any core item or approach must be tailored to permeate or integrate with the target market culture. Differences in foreign standards, laws, taxation, local competition, cultural acceptance, and (lately) a greater diversity in economic stability in major markets (Europe and the Middle East/Arabian territories) presents challenges and risks. Branding and marketing are also a greater challenge. An organization that has internal strength may find it easier to expand and translate structure and strategy to global endeavors. Global activity also brings with it a degree of responsibility for national reputation. Sections of a country's populace are quite happy to associate brands with anti-national feelings even if they have a global presence. Anti-American feeling can be demonstrated as easily with the hate of cornflakes as it can the burning of a flag. I think BP received a degree of vilification for the gulf scenario because it was not a US firm.
What was once a focus on domestic enterprise activity, then international, has given way to global enterprise. What unique strategic challenges does functioning in the global environment present relative to achieving competitive advantage and overall enterprise performance? "Globalization refers to the strategy of pursuing opportunities anywhere in the world that enable a firm to optimize its business functions in the countries in which it operates" (Pearce & Robinson, 2013, p. 123). This idea has opened the door to many opportunities but it creates many challenges. Our reading defines the development of globalization in a company. "The first level, which often entails export-import activity, has minimal effect on the existing management orientation or on existing product lines. The second level, which can involve foreign licensing and technology transfer, requires little change in management or operation. The third level typically is characterized by direct investment in overseas operations, including manufacturing plants" (Pearce & Robinson, p. 139). I believe that appropriately using strategic planning to enter the market in these stages creates some control. The challenges are addressed in our reading as well. "Globals face multiple political, economic, legal, social, and cultural environments as well as various rates of changes within each of them. Interactions between the national and foreign environments are complex, because of national sovereignty issues and widely differing economic and social conditions. Geographic separation, cultural and national differences, and variations in business practices all tend to make communication and control efforts between headquarters and the overseas affiliates difficult. Globals face extreme competition ,because of differences in industry structures within countries. Globals are restricted in their selection of competitive strategies by various regional blocs and economic integrations, such as the European Economic Community, the Euro- pean Free Trade Area, and the Latin American Free Trade Area" (Pearce & Robinson, 2013, p. 130). With the many challenges above, it is difficult to see how and why companies globalize. However, I believe that by pushing for open trading, it may become easier in time. In addition, I believe it is incredibly difficult to win the confidence and trust of a product in a foreign country. One product, Hyundai, would be an example of a foreign car maker entering a difficult market to enter and becoming successful. I am actually incredibly impressed with the company's ability to win the confidence of the American market.