Globalisation is an Opportunity but also a Challenge for Companies Assignment | Custom Assignment Help

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Intellectual capital can also be used for the advantage of companies determined to set up in new markets. This includes transportation of concepts and human capital into new markets to come up with solutions for the market using locally available materials (Weick et al., 2013). This includes setting up of research and development facilities in different countries. A perfect example of this capability made possible by globalization is the Hyundai motor company. Hyundai has research and development facilities in six countries including Germany, Japan, India, and Korea. It also has a design center based in California specifically for the development of cars suitable for the American market (Ahmad, 2013).

Companies are known to apply and replicate their business models and processes throughout their corporation so as to maintain consistency. The consistency of a product creates a standard appreciated by clients making the product maintain its value (Sarin, 2013). When a company decides to venture into new markets, it might be forced to change its operating model to fit in with the demands of the new market. A good example is the global beverage making company coca-cola. Coca-cola has ventured out into the global market using different business models for different markets. According to Foster (2008), this has always been a challenge for the company because it seeks to maintain its parent product in markets which have different demands. The American market of coca-cola uses high fructose corn syrup which is cheaper than sugars used in other markets like Africa, this means that the cost of operating in America is different from that of Africa but the product has to come out as a standard coca-cola product. In relation to this, marketing strategies of diverse markets vary.&nbsp.

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