
Challenges that companies with a Global Presence Face and How Technology can Help overcome them
Global presence companies refer to those business organizations that operate in more than one country and have a noticeable market share in various market segments around the world. Generally, these companies deal in more than a single product and have a diversified range of products/services. Besides this, they have a strong as well as a wide network of distribution channels, a good brand image, and excellent services that provide the customer with amazing before and after-sales services. Also, these companies have huge capital as well as technological power, which helps them to expand their business in multiple countries. The flow of manpower, as well as capital, is very high which helps the business in providing continuous and smooth services to the customers.
Some examples of companies that have global presence can be Facebook (now known as Meta), Amazon, Google, Apple, etc which have a user base of hundreds of millions. These companies have become a global name and provide products/ services that are of high quality and customer services which have helped them become this big. Apart from these tech giants, other globally known companies can be Nestle, Domino, and McDonald’s which have been selling consumer goods in almost every country of the globe. They have a wide variety of goods that are loved by people globally. Many other notable companies have been doing business on a huge scale, and the list won’t stop. However, these companies play a key role in shaping the world’s business environment and have a huge impact on the global economy.
But having a global presence doesn’t come easy. There are many challenges that these companies need to face to survive in different markets of the world. Some challenges that are faced by companies having global presence are as follows:
- Legal and regulatory challenges: The first and foremost thing that a company entering the global market needs to keep in mind are the rules and regulations of all the target markets. Because different countries have different rules and regulations regarding international trade. So, the companies need to evaluate all legal rules and regulations which can be quite time-consuming.
- Cultural and language barriers: Entering a new market can provide the companies with several challenges starting from language and cultural differences. The organization faces barriers such as a difference in business practices, consumer preferences, consumer behavior, barriers of language, etc which can have a huge impact on how the businesses succeed in those new markets. They need to pay special attention to what kind of products/ services should be designed, and whether the right information is provided to the customer or not.
- Lack of political stability: Having a global presence, the business needs to have a close look at the government plans and policies of all the markets they operate. They need to make sure that change in government in the country doesn’t harm their business. Also, the business needs to make sure that investment in those markets can give a positive result for their products/ services.
- Managing supply chain: Having a business in multiple countries means having to manage all operations in all the markets of all the countries. But one of the most complex operations to manage is the supply of products/ services. The challenge is to manage the supply chain and meet the same standard and regulations for every market in the country.
Enterprise Resource Planning (ERP) software is a tool used by organizations that combines various business applications and processes into one single system. This system can help businesses have a global presence in the following ways:
- Improved Data Management: A global business is present in different markets in different countries. Also, the amount of data and information in such organizations is also huge. An ERP software can store as well as manage huge data and information in a centralized database. This helps the employees of such global organizations to get easy access to the information required by them. Also, data can be accessed and managed across different locations.
- Enhanced Collaboration: Communication is the key to a successful business. A global business has its employees in various locations. A large amount of sharing of data is also expected for the same. Sometimes, due to differences in software or applications, this communication can get hindered. In this case, ERP can come in, as it provides a centralized platform that allows employees from different locations to get access to the data and information. This ultimately results in better productivity and smooth communication.

- Managing supply chain: A global business works in different countries and requires special attention towards providing customers with the same services in all the markets it operates. So for all its goods, the business requires godown at various locations. ERP can help in estimating the stock that has been finished, which stocks need to be re-ordered or the stock that has expired. It can also optimize the timing involved in the process of supply planning. Now the godown manager can calculate at what time he/she needs to re-purchase the desired stock.
- Streamlined Business Processes: As the business grows in various countries, the workload increases. Similarly, it becomes difficult to effectively manage all the departments manually. ERP system helps the business automate various business processes that include order processing, inventory management, financial reporting and so on. When these processes are streamlined, this can help the business in reducing errors, saving time as well as capital and improving the overall efficiency of the business.
Nevertheless, ERP systems can help the business having a global presence by solving many obstacles that they face by helping them improve data management, customer services, decision making, supply chain management, cost and capital reduction, business scalability, etc. They can enhance customer loyalty as now the problems and queries of the customer can be solved more quickly and effectively with the help of a centralized database. Also the business becomes more ready for facing any change in the market conditions and responds quickly as now its roots are strong.

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