1. Zwick Electrical (ZEI) - This Company is at the first stage of global development / operations. This stage can be considered to be the Export/Import stage or as a beginning stage. I believe this for several reasons: 1) ZEI has no international (overseas) manufacturing operations / plants or bases; 2) ZEI hired a manufactures representative (Overseas Venture Management – OVM) which had little success (less than 3 percent of sales); and 3) The consultants indicate that ZEI must change their marketing, logistics, and manufacturing in order to get ahead in foreign markets and to help them save their domestic markets.
Asea Brown Boveri (ABB) – This Company is at an advanced stage of global development / operations. I would consider this stage to be the Globalization (last stage) of global development. The company has expanded operations throughout the world (Europe, Asia, North America, Latin America, Africa, Australia, and New Zeland) and has plans for further expansion. This company also has extensive information systems in place to coordinate and view the great number of products the company sells as well as keep the various countries connected that ABB operates within. Their organizational structure also caters to the individual needs of product managers in each country while keeping them connected.
Siemens AG – This Company would be at the middle stage of global development. This stage would is called International Operations: Local Presence. The company has set up manufacturing operations in other countries, although the majority of their sales (75%) still remain within Europe. Of that percentage, 46% of the sales came specifically from Germany which is where the company originated from. Siemens has been slowly expanding their international presence although they are not located in as many countries as ABB.
2. There are several other reasons why Zwick Electrical (ZEI) might want to consider greater international activity besides sales...