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Expanding the business globally

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Expanding the business globally
Expanding globally is a very big step for every business and requires a lot of thought and
planning. Expanding the business globally affects the business and also the country in which the
business operates. There could be a lot of reasons for a business to expand to the other parts of
the world; these could include faster growth, cheaper inputs for the business like raw materials
and labor, new market opportunities and more sales. Global expansion also affects the region and
the country as there would be more diversity in the organization which means more foreigners
working in our country or our people leaving for the target country, import and export could also
have an impact on the country in which we operate our business.
Expanding your business is a risky step and requires a lot of planning, a business could
be exposed to a lot risks when entering globally, there is a risk that the people of target company
might not accept the product, foreign government could have strict policies, foreign currency
translation could cause a lot of problems, day to day operations will become more complex, one
of the major risk is that business won’t be able to understand the norms and cultures of the target
country and hence won’t be able to market the product effectively which would eventually lead
to losses and closure of the business in that country. The advantages of expanding business
globally include access to new customers leading to high sales and increased profit, many
businesses competing in global markets hope to gain cost advantages by attaining economies of
scale and by employing cheaper staff, business risk also diversifies by expanding into global
markets. The disadvantages of expanding globally include heavy regulation of the target
country’s government, increased operational costs, when selling in another country it is
necessary to customize products which costs money and takes extra time to implement. [ Luke
Arthur (2015)]

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As an owner of an automobile company which decided to expand globally the
competition our company would face would be oligopolistic competition. There are a few major
automobile companies which have control over the price of the products and there are high
barriers of entry. Most of the products offered by these companies are identical and all are
competing for market share. [Reem Heakel (2015)]
A lot of homework needs to be done in advance to be successful in an international
market. In order to compete successfully globally the business needs to be aware of the economy
of the target company, the rules and regulations of the government of that country, market share
of all the major competitors and their pricing policy. The business should conduct a survey of
what people want and how they prefer to travel in that country. The business needs to be aware
of all the strategies of its competitors and should adopt a cost leadership strategy to gain a
competitive advantage. Even if we are a major retailer in United States the business should
consider these things as we would be introducing our project for the first time in the target
country. [Cheryl Conner (2012)]
Yes, I think that I know enough to make a major decision like this because I believe I
know all the major models and strategies which need to be considered while making an
important decision like this.

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Expanding the business globally Expanding globally is a very big step for every business and requires a lot of thought and planning. Expanding the business globally affects the business and also the country in which the business operates. There could be a lot of reasons for a business to expand to the other parts of the world; these could include faster growth, cheaper inputs for the business like raw materials and labor, new market opportunities and more sales. Global expansion also affects the region and the country as there would be more diversity in the organization which means more foreigners working in our country or our people leaving for the target country, import and export could also have an impact on the country in which we operate our business. Expanding your business is a risky step and requires a lot of planning, a business could be exposed to a lot risks when entering ...
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