Business Management and Enterprise (Year 12) - Management (U3)
A global brand is a company that tends to be recognised around the world. Examples include Nike, Apple and McDonalds.
There are many benefits offered to a global brand:
Consistency – a global brand ensures that a consistent message is delivered to customers around the world. This can lead to improved brand awareness.
Lower risk – a global brand can use and learn from actions conducted in one country. They can then alter operations to best suit overseas markets.
Cost savings – economies of scale (EOS) offer cost reductions due to the large scale of a business. Global businesses can achieve EOS, especially with their advertising and packaging. For example, McDonalds can save money by bulk-producing their packaging.
Managing can become easier – with a fairly standardised approach, management tends to become easier. This can lead to potential cost reduction in salaries.
Better differentiation – a global brand stands out from the competition. The uniformity in their business operations allow them to excel.