Overview The major problem which the businesses are currently witnessing is the flattening curve of their sales margin here in the united states. Even though this has not resulted in the decline in the company's profit margins, managers and the board are trying to find a way to enhance the sales of high-quality baseball products again. Given that the current competitors have opted to explore the international market; it was recommended that the company try its luck into the international markets. The company's target country for exploration in Canada. The target audience for the company in the Canadian market is the lovers of sports, especially baseball. Section One: Drivers for Global Entry ❖ Purpose of Global Expansion The primary purpose of why the company has opted to expand into the international markets is to increase its revenue levels (Twarowska & Kąkol, 2013). The company wants to improve its sales margin, which has flattened in recent years due to increased competition in the American market. By expanding its operations into the Canadian market- where most youths and middle-aged adults love baseball, the company stands a higher chance of increasing its sales margins. In addition to the potential increase in the sales margins, the global expansion will also help the company acquire a more customer base. The global expansion will also help the company to increase its global competitive advantage over its competitors. Even though some companies in the Canadian market produce baseball products, it is worth noting that our company's reputation cannot be compared. Not several international companies have explored this country; hence it is a good choice for the company to improve its competitive edge. As a result of the expansion, the company will stand a higher chance of gaining access to the local talents hence increasing the quality and diversity of their products in the process of expansion. It is worth noting that the pool of labor will enable the company to increase its innovation rate with various skills and qualities. Through the expansion process, the company will stand at higher chances of quicker market expansion. This will be a major of increased marketing strategies as the company aims at increasing its customer base. Global expansion will also enable the company to improve its product supply chains, both in the domestic and global contexts. Even though the company will be producing goods to satisfy the Canadian market, it will increase its supply chains to meet the demand s of the local markets in the United States. ❖ Impacts of the Global Strategy The expansion process will impact the business operations alone; it will also help improve societal welfare, most likely positively. The company intends to use the Canadian labor force during this process. The result will be increased employment opportunities within the global market (Hitt et al., 2016). This process will likely enhance sports culture within the Canadian youths and lovers of sports- which has been outstanding for several years. The industrial infrastructure will also be enhanced. The significant risk will be on controlling environmental pollution, which will be associated with the production process. Moreover, the company also has to ensure compliance with the health and safety rules within this country. ❖ Cultural Considerations Sports have been part and parcel of the Canadian people; hence, in this expansion process, the company will not necessarily have many issues when it expands its operations in the Canadian market. However, based on the Canadian people's long-term orientation, it is essential to maintain their practices and respect the values and perceptions of the residents to avoid any potential conflicts. In line with this, just as Gollnhofer & Turkina (2015) indicated, careful consideration regarding the mode of entry must be chosen. References Gollnhofer, J. F., & Turkina, E. (2015). Cultural distance and entry modes: implications for global expansion strategy. Cross-Cultural Management. https://www.researchgate.net/publication/273287410_Cultural_distance_and_entry_mode s_Implications_for_global_expansion_strategy Hitt, M. A., Li, D., & Xu, K. (2016). International strategy: From local to global and beyond. Journal of World Business, 51(1), 58-73. https://www.researchgate.net/publication/280625154_International_Strategy_From_Loca l_to_Global_and_Beyond Twarowska, K., & Kąkol, M. (2013). International business strategy-reasons and forms of expansion into foreign markets. In Manage. Know. Learn. Int. Conf (pp. 1005-1011). https://www.toknowpress.net/ISBN/978-961-6914-02-4/papers/ML13-349.pdf INT 220 Business Brief Template Course Project Overview The business problem here is flattening of sales in the domestic market in an organization. Despite the fact that the establishment is losing money, something needs to be done to continue its growth. This organization needs to join the global market where I chose Canada as the selected market. Section One: Drivers for Global Entry Global expansion is very vital an approach of distinguishing your business from competition and raise proceeds, despite how prosperous one is in the domestic market. Among the business impacts include increase in completion and consumer behaviors. Organizations should deliberate on the cultural consequences of presenting a creation or service in a different intercontinental market. Section Two: Market Profile Cultural Profile Category Commonly Spoken Languages Commonly Practiced Religions Power Distance Index (PDI) Individualism Versus Collectivism (IDV) Masculinity Versus Femininity (MAS) Uncertainty Avoidance Index (UAI) Long-Term Orientation Versus Short-Term Normative Orientation (LTO) United States The common language is English. Christianity is the common religion precisely Protestantism. The score of United states is 40. United states is more individualistic America is considered more masculine than feminine. In that men are seen to hold more powerful position. Uncertainty avoidance is moderately low which seen through cultures with a score of 46. America values short term than long term concepts seen when society members value heeding to obligations. America’s score is 29 very low. Canada The common languages are, Italian and Spanish. Christianity is the most common religion followed by those with no religion. The Canadian mark in this section is 48 Canada is collective in nature Canada is defined as a reasonably masculine society with a rough score of 52 Canada scores 48 in this section where its culture is uncertainty accepting. Canada is marked as normative in people’s thinking and pursuing for the truth this area with a score of 36. Category Indulgence Versus Restraint (IVR) United States United states has an absolutely high score of 68 since it is an indulgent society and people are not restrained. Canada The Canadian culture is categorized as indulgent with a score of 68. United States The political system of united states is a democracy where the president shares powers with the judiciary and congress. The US congress is the bicameral legislature of the central government led by the president. It has two houses Senate and Representatives house, and members selected via direct election The economy of united states is mixed and extremely advanced. The economy is the world’s largest by net worth and GDP as well as second large in purchase power parity. The US has a lasting or long running general trade deficit. Its trade blocs enhance international trade. Canada Canada’s political system is a constitutional monarchy where the king or queen is recognized as the head of state Political and Economic Profile Category Political System Current Leaders Economic Classification Economic Blocs Impacting Trade Gross Domestic Product Purchasing Power Parity United states has the highest GDP in the world of US$21,433,226,000,000 The purchasing power parity stayed steady at around 1 LCU per global dollars in United States of America between 2000 and 2019. The prime minister of Canada is the government head, leader of the Cabinet, and main minister of the Crown. Canada has a mixed economy with the largest 9th and 15th GDP worldwide. In relation to other economies its service industry employs three quarters of its citizens. Tariffs are seen as Canada's trade blocks since tariffs increase the price of imported goods relative to the domestic ones. Foreign firms may not thrive competitively in the Canadian market As of the year 2020 the GDP of Canada was $1,743 billion The purchasing power parity for Canada was 1.2 LCU per global dollars 2019. However Canada’s purchasing power parity varied substantively in latest years Category Gross Domestic Product Per Capita Human Development Index Gender Development Index Gender Empowerment Measure Human Poverty Index United States The Gross Domestic Product per capita in America was latter documented in 2019 at 55809 US dollars. The GDP per Capita is correspondent to 442 percent of the domain's average. The HDI value of United States’ for 2019 was 0.926— placing the republic at a very great human progress category, position 17 out of 189 countries The United States ranks 51st in gender parity, with a Gender Gap Index of 0.71. The united states ranks number 51 out of 149 countries in regards to gender empowerment measure The approved poverty proportion by 2019 was 10.5%, a decrease of 1.3 % points from 11.8 percent in 2018. It is the fifth sequential yearly drop in poverty. Canada The statistic shows the gross domestic product (GDP) per capita in Canada from 1985 to 2019, with projections up until 2025. In 2019, the gross domestic product per capita in Canada was around 46,271.72 U.S. dollars. The HDI value of Canada for 2019 was 0.929— placing the nation at a very high human development group position 16 out of 189 countries Canada scores well on numerous metrics regarding gender equality. For the last three years, Canada has invested in firming up gender equality Canada is known for its efforts in promoting gender empowerment. Some years back it was ranked first in gender empowerment. 5% of Canadians were existing in bottomless income paucity in 2019, a decline from 5.4 percent in 2018. Section Three: Market Considerations Exchange Rates Category Exchange Rate The U.S. Dollar The American Dollar is the United States currency. The currency ranks portray it as the utmost prevalent US Dollar conversion rate Canada The Canadian Dollar is Canada’s currency. The ranks portray it as the most common Canadian Dollar exchange rate. Legal and Regulatory Considerations Canada’s lawful and governing corporate surrounding is frequently growing to replicate and retort to progresses both internationally and domestically. The upsurge in global collaboration and coordination amongst legislators, managers and regulation application agencies, stresses that companies remain at the top of the varying necessities and improvements. These strategies lessen disturbance to the industry and reduce the influence of unanticipated expenditures and/or sanction the line down. References Bothwell, R., Drummond, I., & English, J. (2018). Canada 1900-1945. University of Toronto Press. Marty, M. E. (2016). Encyclopedia of Christianity in the United States (Vol. 5). Rowman & Littlefield. Schlesinger, B. (2019). Poverty in Canada and the United States. University of Toronto Press. Running head: MILESTONE 2 1 Milestone 2 Christine Sarkissian SNHU INT-220 Global Dimensions in Business MILESTONE 2 2 Market profile The environs of global commerce is observed as the general aggregate of all outside drives working on the business as it handles its dealings in external and local markets. Cultural, political, and economic elements impact the process. In this case, Baseball has continually been a recognized game in Canada for very many years. The first squad, Toronto Blue Jays participated in 1977 for the first time. Having said that, looking past the superior confederations, much more is inked to Canada’s baseball past that evidences of the nation’s affection for the game that has taken part for centuries. Baseball is broadly played in Canada. It is clear that baseball is the culture of Canadians which makes the bat business more marketable compared to other countries who concentrate mainly on soccer, basketball, tennis among others. The political aspects are a regime’s rules that impact business operations both progressively and adversely. Bosses should have a bird’s view when it regards political issues. The aspects can be present and imminent regulation, political firmness and variations, free will to speak, defense and judgment regulations are aspects disturbing business operations and undertakings. Political aspects and setting of a state influences any trade group and may as well present a risk aspect that may trigger the corporate to incur forfeitures or concede over its revenue stream. The political setting may vary due to the strategies and activities of the prevalent administration at any level, central to resident level. It is essential for a corporate to strategize for the inconsistency in the strategies and guidelines of the administration in order to uphold an unwavering business setting. State politicians control great management outlay plans, so that they can impact trades through the choices they make in regards to duties, protocols, recordkeeping, levies, etc. MILESTONE 2 3 Canada is known for its moderate political philosophy in that both far right and far left Canadian politics have never been a projecting force. Therefore, amity, stability, and good administration, together with a reasoned bill of rights being establishing values of the Canadian administration. This political state of Canada makes it a favorable site for business because the stability positively impacts business operations. Additionally, it can make business operations easy on an international scale. Issues such as riots, looting and overall disorder that disrupt business performances are not seen in such a country. Market considerations; Legal and Regulatory Factors Affecting Business The legitimate setting possesses a noteworthy effect on the achievement of any corporate project. Regime protocols can generate an ambiance for trades to develop or crush. For this reason, it is vital to comprehend the rules in an area while ingoing a new marketplace. Canadian security regulations ought to be deliberated on prior initiating any cash-raising creativities, or prior acquiring or disposing unsettled company stocks in Canada. At present, Canada does not possess any relevant state security rules or security controller. Security laws mainly regard provincial or regional dominion where every distinct province has. Canada’s lawful and governing corporate surrounding is frequently growing to replicate and retort to progresses both internationally and domestically. The upsurge in global collaboration and coordination amongst legislators, managers and regulation application agencies, stresses that companies remain at the top of the varying necessities and improvements. These strategies lessen disturbance to the industry and reduce the influence of unanticipated expenditures and/or sanction the line down. MILESTONE 2 4 References Naylor, R. T. (2016). History of Canadian business (Vol. 207). McGill-Queen's Press-MQUP. Skripak, S. J., Parsons, R., Cortes, A., & Walz, A. (2018). Fundamentals of Business: Canadian Edition. Yates, R. A. (2012). Legal Fundamentals for Canadian Business. Pearson Education Canada. INT 220 Business Brief Template Course Project Complete this template by replacing the bracketed text with the relevant information. Overview [Summarize the business problem, country selected, and intended audience for this business brief. Make sure to use complete sentences.] Section One: Drivers for Global Entry [Explain the purpose of global expansion, the business and societal impacts of global business, and cultural considerations for global business. Use evidence from course and outside resources to support your explanations, and use complete sentences.] Section Two: Market Profile Complete the tables below to use data and statistics to support your comparisons. Words, phrases, and numbers should be used to complete the tables, not complete sentences. Cultural Profile Category Commonly Spoken Languages Commonly Practiced Religions Power Distance Index (PDI) Individualism Versus Collectivism (IDV) Masculinity Versus Femininity (MAS) Uncertainty Avoidance Index (UAI) Long-Term Orientation Versus Short-Term Normative Orientation (LTO) Indulgence Versus Restraint (IVR) United States [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert Country Selection From Course Project] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] Political and Economic Profile Category Political System Current Leaders Economic Classification Economic Blocs Impacting Trade Gross Domestic Product United States [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert Country Selection From Course Project] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] Category Purchasing Power Parity Gross Domestic Product Per Capita Human Development Index Gender Development Index Gender Empowerment Measure Human Poverty Index United States [Insert information.] [Insert information.] [Insert Country Selection From Course Project] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Insert information.] [Compare and contrast important political and economic factors for your selected market against those in the domestic market, including political systems, current leaders, and economic measures or characteristics used in classification.] Section Three: Market Considerations Complete the table below to support your explanations using current exchange rates. Exchange Rates Category Exchange Rate The U.S. Dollar [Insert information.] [Insert Country Selection From Course Project’s Currency] [Insert information.] Legal and Regulatory Considerations [Compare and contrast important market considerations for your selected market against those in the domestic market. Explain the similarities, differences, and considerations for conducting business between the two markets, such as general legal and regulatory requirements, monetary and management logistics, and mode-of-entry considerations.] References [Include any references you cited according to APA format.]
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