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Global Brands

Business Management and Enterprise (Year 12) - Management (U3)

Kanwal Singh

Global Brands

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:

  1. Consistency – a global brand ensures that a consistent message is delivered to customers around the world. This can lead to improved brand awareness.

  2. 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.

  3. 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.

  4. Managing can become easier – with a fairly standardised approach, management tends to become easier. This can lead to potential cost reduction in salaries.

  5. Better differentiation – a global brand stands out from the competition. The uniformity in their business operations allow them to excel.

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