The paper "Challenges of HolyCow Pty Limited " is a perfect example of a business case study. The medium-sized Australian winery HolyCow Pty Limited has announced its plan to expand and become a global company. Globalization is the increasing connectivity and interdependence of a company in different aspects. These are mainly the social, economic and technological aspects. The Indian, Vietnam and Southern China markets will provide a convenient suitable base to allow the company to expand and also to improve its sales on its product. This will also improve and develop the economic and social potential of the regions.
The pre-feasibility test will be required before the expansion project commences in order to identify all possible problems that may arise and ensure that solutions are realized in order to overcome these problems. This will also ensure that the correct procedures are realized and followed. Report objectives This pre-feasibility report will provide the managing director of HolyCow Pty Limited with any information that will justify the acceptance or the rejection of the proposed globalization. The managing director will also be able to decide on what would be the best move to make when the report is complete.
This will advise the managing director on what to consider when globalizing the company. Report Results There are many advantages and benefits to globalizing HolyCow Pty Limited. Globalizing improves the economic, social and technological aspects of a company and a nation at large. When the company is globalized, the greatest advantage will be improved efficiency. Due to the economies of scale, the company will be able to buy raw materials in large quantities and in bulk in order to sustain the high levels of production.
This will save the company a lot of money which would have been used in the transportation of small amounts of raw materials. Renee O’ Farell, (2009 p. 12) suggested that it would be useful for a company to go global because it would be able to make sales of its products which are outdated and not in demand in the current market. In this case, the winery may have wine brands that are outdated and not in high demand.
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Ruud, 2002, Disadvantages of Globalization, viewed 11 June 2002
Smith Marketing, 2011, The Benefits of Expanding Your Business into a Global Market, viewed 26 November 2011
Manufacturing Business Technology: The Pros and Cons of Globalization, 2010, viewed 30 November 2010
Todd Anderson, 2012, Global Business Advantages and Disadvantages, viewed 11 January 2012
Tutor2u, 2011, Globalization and Business-Multinationals: The Influence of Multi-nationals