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Actiom

Business Globalisation

Globalisation (or globalization) describes a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade.

Globalisation usually refers to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. The term can also refer to the transnational circulation of ideas, languages, or popular culture through acculturation.

Globalisation impacts businesses in a multitude of ways but little research has actually been devoted to “Business Globalisation” which specifically relates to how businesses take into account globalisation into their strategies, structures and operations.

ACTIOM conducted some complementary research and came up with a large set of insights on how companies make decisions about their international footprint and on what challenges they most often face, including the changing incentives and sanctions.
To help address the business globalisation challenges, ACTIOM has created a “Business Globalisation Framework (BGF)”, a collaborative approach for optimising the opportunities and risks presented by globalisation. 

-Interested about the ACTIOM’s way, please contact us.
-Interested in funding your globalisation: click here
-Interested in improving your commercial transactions: click here
-Interested in improving cross-border transactions: click here
-Interested in helping improve payment times: click here
-Keen to get into deal making: explore our B2B Brokerage

Is Globalisation dead?

Globalization has significantly evolved over the past few years, influenced by several key trends and shifts:
1. Shift from Full Globalization to Selective Globalization
•From Unrestricted to Strategic: Companies have moved from pursuing global expansion without constraints to a more selective, strategic approach. This shift is driven by the need to balance global reach with local and regional considerations.
•Focus on Key Markets: Businesses are now targeting specific regions or countries that align with their growth strategies, profitability, and risk tolerance, rather than pursuing a wide-scale presence.

2. Impact of Geopolitical and Economic Factors
•Trade Tensions and Policies: Trade wars, shifting tariffs, and new regulations have made cross-border operations more complex. This has forced companies to carefully select markets and develop tailored entry strategies.
•Regionalization: Many companies are adopting a regional approach, creating localized supply chains and business models to mitigate risks from geopolitical conflicts and regulatory shifts.

While the approach to globalization has become more measured and selective, it remains a key strategic priority for businesses seeking to grow internationally. Companies are focusing on targeted expansion with a clear emphasis on risk mitigation, compliance, and sustainability. Our “Business Globalisation Framework (BGF)” is the ideal tool to guide your Globalisation journey.

Trade Wars and Tariff Wars

While trade tariffs are often used as a policy tool to protect domestic industries or address trade imbalances, they come with challenges:
•Increased transaction costs mean buyers and sellers must constantly adjust their pricing strategies, affecting margins and final sale prices.
•Supply chain and sourcing adjustments are necessary to mitigate tariff impacts, often leading to operational complexity and delays. This goes way beyond searching for alternative countries of origin for importers and destination for exporters since supply chains can be complex: indeed a current supply chain can cross the US-Canada 7 times before the finish product.
•Uncertainty and planning difficulties hinder long-term decision-making, with both buyers and sellers facing challenges in forecasting and negotiating.
•Administrative and compliance burdens add extra layers of paperwork and delay, impacting the efficiency of trade transactions.
•Negotiation and contract complexities force both sides to build more flexible, risk-adjusted agreements to manage the unpredictable nature of tariffs.

To help address these issues, ACTIOM has created a “Tariffs Compensation Tool (TCT)”, a pragmatic fact-based tool which rigorously assesses the total supply chain cost so as to define actional plans (and supports scenario planning) to reduce internal & external costs to stay competitive but also searches for alternative country pairs along the chains, using BGF.
-Interested about the ACTIOM’s way, please contact us.
-Interested in to know more about Trade Cost: click here
-Interested in funding your globalisation: click here
-Interested in improving cross-border transactions: click here
-Interested in helping improve payment times: click here
-Keen to get into deal making: explore our B2B Brokerage

For more insights, complete the Global Trade Cost Survey and get insights:  ""Bridging the Trade Cost Gap: From Tariffs to Profits"

Selected examples:


- Assessed the upstream strategy of a global manufacturer subject to new Tariffs, redesigned the supply chain, relocated some manufacturing to advantageous countries resulting in double digit savings, enhanced market and increased profits

- Assessed the downstream strategy of an exporter subject to new Tariffs into the USA, helping them find alternative markets using BGF

- Assessed, designed and co-implemented the upstream globalisation of a diversified manufacturer, esp. with respect to the Middle East and China
- Assessed and designed the European market entry strategy of an Emerging country manufacturer
- Designed and co-implemented the supply chain transformation of a manufacturing relocation from Western Europe to Russia
- Assessed, designed and co-implemented the supply chain transformation of a manufacturing relocation from Western Europe to the Czech Republic and to Poland
- Assessed, designed and co-implemented the globalisation strategy of a scalable new service business applying ACTIOM’s “Business Globalisation Framework” (BGF).

- Assisted a Global Manufacturer in restructuring its global supply chain in reaction to the introduction of Trade Sanctions

- Designed and implemented the operating model of an outsourced Supply Chain Organisation in the GCC (pharmaceutical)

- Designed and implemented the operating model of an outsourced Supply Chain Organisation in the GCC (aerospace & defense)

- Assisted a larger Buyer in optimising its procure to pay process, offer trade funding to suppliers and put in place a trade facilitation platform: TradinLoop

In face of the growing importance of Business Globalisation while recognising the current limitations encountered by corporate leaders, ACTIOM has written a white paper entitled ”Business Globalisation - in search of structure”. For more information, please fill in the contact form.