Question

Imagine what considerations you would have to take if you were to expand a local business to an international market. Select a business or make one up to complete this exercise.

For example, if you wished to expand Big Sky Brewing Company to a foreign country what would you do? It would probably be best to have the beer contract manufactured in a local factory rather than shipping "water" thousands of miles. This is alcohol, so what age restrictions do you face? How would you get your beer into pubs? Into retail stores?

Another example, if you were Ford Motor Company and wished to sell cars in England, New Zealand, Japan what would you have to do? First, you would have to place the driving wheel from the left side of the car to the right as they drive on the left side of the road. Should you export from the U.S. or manufacture locally? Will you use your own Ford dealerships or sell through a local auto maker's dealership?

Answer 1

There are various factors to be considered in our global expansion strategy. Once the local business gets international there happens certain changes in the business environment .Taking the business overseas increases our opportunities in reaching markets and making profits.

1. Operational logistics: The main challenge is regarding the procurement of operational resources to run the business. Location of business, procuring materials, equipment and machines, shipping and logistics etc need to considered. The ways to meet operational necessities also should be addressed. It would be better to have a co working space rather than owning or renting because of reduction in initial expenses. Once the business turns to be successful, then we can go for further expansion plans.

2.Research and analysis: A thorough research of the target market and needs should be undertaken. we should check whether the area we choose has our chosen customers or the products and services we offer are of their need.

3.knowledge of local culture and practices: The business should possess knowledge regarding the local culture, religion, beliefs and practices there.this will impact the way the people perceive our products and services.

4. Contacts: Make contacts with key persons in the area of business. Make contacts with relevant industry leaders in your countries of interest. They can help answer your questions, provide helpful resources, and introduce you to others who can influence your success.

5. Currency: Have knowledge regarding the currencies of trade in the country. convertibility, banking options, hedging options available all needs to be analysed.

6. Human resources: Take into account the education levels and capabilities of the local market, as well as the potential of relocating talent from your home country to work overseas. There is often a multitude of compliance requirements and considerations when hiring employees, including worker’s compensation, benefits, wages, cultural norms, and other details worth knowing.

7. overcoming language barrier: language is a barrier in international business.  If you don’t speak the native language, it’s in your best interest to hire translators. Seek out a company that provides comprehensive translation services, including website localization and in-person interactions, for best results.

8. Marketing and distribution: the marketing strategy differs among nations. our marketing efforts should be tailored according to the requirements of different countries and customers as well.

9. Tax compliance:Other countries have their own tax system you’ll need to abide by, and it may look vastly different than the native one you’re used to. one should also look into before getting into international business.

10. licenses and other regulatory requirements needs to looked into.

11.Shipping: Packing requirements many vary from country to country.