Access a website of an automotive company that has a global presence. (This could be a US company or foreign)
List and discuss the 2 opportunity and 2 challenges involved in the firm’s internationalization?
List and explain 4 the business environment internationalization drivers and the firm drivers that are likely to lead to the internationalization of the firm?
The company that we can analyze here is Tesla. The company has an international presence in almost 25 countries and was founded in 2003 so its challenges and opportunities are relevant today.
Two of the opportunities it had when going global were:
i) It is one of the few companies in the world that have mastered the production of electric vehicles. This means that when they decided to go international, the countries they were entering did not have many producers of electric vehicles. This lack of competition, along with Elon Musk's vision, meant that they were able to be successful in the countries that they entered.
ii) Recently, Tesla has set up a factory in China which means that it will have much greater access to the Asian market. This factory was set up in record time and gives the company access to the biggest automobile market in the world.
Two of the challenges it faced when going global were:
i) The major challenge that was faced by the company was the non-availability of charging stations in most countries. Without charging stations, it can be risky to drive an electric vehicle as when the battery runs out, the passengers could get stranded.
ii) The demand for electric vehicles is not very high in all countries of the world. Some people are unaware of even their existence. Tesla faces the major challenge of earning the people's trust and showing them that electric vehicles are as reliable as vehicles running on fossil fuels.
The international drivers are:
i) Technological Advancement- Tesla is the frontrunner in the industry when it comes to the batteries used in electric vehicles. They have perfected the technology over the years and continue to make improvements.
ii) Political Drivers- Governments around the world are looking towards the transportation in their countries to go green. They are happy to invite Tesla and some even help them in the setting-up of charging stations. India is opening up to electric vehicles as well.
iii) Market Drivers- For Tesla to truly reward its shareholders, it has to go international and increase its sales. They have invested a lot of money and deserve a return on their investment.
iv) Cost Drivers- As Tesla will go international, it will experience economies of scale. It's average costs will come down. With the setting up of the factory in China, the transportation costs to Asian countries will fall considerably.
Access a website of an automotive company that has a global presence. (This could be a...
Dirt Bikes started as a “mom and pop” shop. But the company now has global following and the potential for more. Plus their customers are generally technology-savvy and looking to do business on the web. In this discussion we will look at the needs and opportunities for Dirt Bikes implementing e-Commerce through a web portal. The portal will not only be a point to do business with the company, but could also be an access point for users of the...
TB Logistics Inc. A small Business trying to aquire goverment contract to manage warhouse material movement, handling and storage. An Internet presence has become critical to a firm’s marketing success. The firm or brand’s website, website customer involvement, and how the firm addresses social media have increasingly become critical to a firm’s overall marketing efforts and bottom-line success. Discuss and explain your responses: How do you plan to use the Internet to get your company noticed in the sea of...
MegaTech, Inc., designs and manufactures automotive components. For years, the company enjoyed a stable marketplace, a small but loyal group of customers, and a relatively predictable environment. Though slowly, annual sales continued to grow until recently hitting $300 million. MegaTech products were popular because they required little major updating or yearly redesign. The stability of its market, coupled with the consistency of its product, allowed MegaTech to forecast annual demand accurately, to rely on production runs with long lead times,...
From the real national market, select any company of your choice, wishing to go global. Critically analyze the chosen company based on the following questions. Questions: 1. What variables need to be considered while developing a list of potential countries? 2. Describe the four steps a firm should take when it is considering going global. 3. Discuss at least three challenges that a company may face in the early period of development. 4. Describe the three main categories of market...
Managing Global Systems topic highlights the many challenges faced by enterprises as they attempt to manage their globally dispersed information systems. The growth of international trade has ushered in many new business models for corporations seeking to compete in these markets. For instance, a Volkswagen car that is built in Germany may have an engine assembled in Hungary and a transmission assembled in Japan. We are entering into an age of complex business interdependencies that span across a global scale....
Identify a global corporation that has made progress toward improving its ethics. Identify the company and why you think their global interactions have helped shape a better ethics policy. The corporation does not have to be from the US, you may choose any global company. Then discuss 2 additional ways this company can improve its ethical decision making.
Corporation X is a multi-business US conglomerate contemplating international expansion. Company X has several different businesses, and it is trying to decide which of them should be internationalized first, and which ones could wait or may not have internationalization potential. Which of the following of Corporation X's businesses would you say has the GREATEST globalization potential, aimed at conquering new customers in foreign markets: A) BBQ sauces, currently sold in grocery stores such as WalMart and Brookshire's B) Large valves,...
Google is an example of a company that has quickly emerged as a market leader in “information” access, distribution and online advertising. Have you ever wondered how Google can afford to build, staff and operate Best of Breed data centers that enable near immediate access to a world of information, with an “intuitive” capability that adapts to the search interests of a user? Here is your opportunity to answer these question, and more. Read the Google business case in the...
Case 1: International Automotive Assembly Company – U.S. Automotive Inc. International Automotive (IA) Company is a manufacturer and distributor of large assembly machinery for the automotive industry. The firm’s customers include seven of the top ten auto makers (by total annual units) in the world. The auto makers are continually searching for more advanced technological solutions to cut long-term costs and increase efficiency. One such company, U.S. Automotive (USA) Inc., has been in discussions with IA about replacing one of...
Extra Clean Soap Company has been manufacturing soap products, such as dishwashing liquid, bath soap, and shampoo, for over twenty years from its facility and headquarters in Dublin, Ireland. A recent opportunity allowed Extra Clean to purchase a soap company in Taiwan and another one in India. Extra Clean is now servicing both foreign and domestic markets with its products and manufacturing in all three locations as well. Recent reports from managers in the foreign facilities indicate that Extra Clean...