Question

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 entry strategies.

Answer 1

1. Factors needed to be considered while choosing a list of countries for going global:

The only way the company will clean overcrowded local markets is international expansion. An international presence also manages to resolve fluctuations in the market. Yet there are many threats. Until moving the business overseas here are four things to bear in mind.

• Culture: For any company entering a new overseas market the biggest challenge is language. You'd need to build websites in the local language in some countries, and recognize local currency. Buyers are more likely to buy in their local language and currency when the shopping experience is there. Verify that your brand's advertisement campaign is correctly translated into the local language. The other dimension of the change in society is the way business is done locally. Closing a contract overseas can be a vastly different process from what you might be used to. Some people struggle to say,' No, we're not interested' in a product or service, so you can have an incredibly long and expensive sales process that never contributes to a deal. Understanding when to avoid selling talk periods with no guarantee of a deal is important.

• Budget: Zeroing in on a practical global expansion target is no easy matter. The factors are unknown and abundant and in order to arrive at a figure, you have to sew through each of them. Keep in mind the changing exchange rates for different countries and the separate business tax structures.

• Law: Coping with different laws can be overwhelming in different countries, and can prevent you from working on business goals. You'll have a lot of paperwork and rules to contend with. The first move to spreading your company overseas is to figure out the laws for your particular sector before trying to expand abroad. Find good legal advice in your nation as well as your intended overseas markets to allow you to make such formalities a seamless path to success for your company.

• Risk: There is much civil unrest, limited assets, unpredictable instability, diplomatic malfunctions, changes in policy, new entrants, bureaucracy, the hazards to internationally-presented companies.

2. Four steps should be taken by a company when it considers going international:

• Find the right partners and team: If you intend to grow internationally, then you're going to want a great team or collaborator. Even if your "partner" takes the place of a friend, you're going to want someone you know and who is going to be able to vouch for you. Getting a local country manager can go a bit of a way towards ensuring not only that the business is successful in each new market, but also that the costs are managed effectively.
• Have the proper infrastructure: It is essential to ensure that you have the correct support system in place to ensure a smooth start as you grow.
• Remember what effect the new ideas have: Rather than just worrying about how consumers in your own country could obtain your fresh ideas, you'll have to worry about how international customers would receive your concepts.
• Please practice due diligence: You should think through all possible outcomes before making significant business decisions-especially during global expansion. It is advisable, those who extend their company abroad to invest time in the country into which they wish to break. A trip to gather information will act as a focal point for developing a plan to step forward.

3. Three challenges that a company may face after going global.

There are three main areas where overseas companies suffer.

• The first is to improve the operations of the go-to-market, distribution and other value chains.
• The second is a problem of specific, cross-organizational priorities. Organizations have a hard time aligning good practices to promote a global agenda within their company. Deepening issues when thinking about regional integration, the survey revealed that workers at headquarters appear to have a more optimistic outlook of the ability to globalize than those working in the area.
• Then, ultimately, the third area in which businesses frequently struggle is to manage mergers and acquisitions–a task within their own country, that is challenging enough.

Foreign market entry strategies:

• Joint ventures: Exporting is the most common and well-established method of outside market activity. Exporting can be described as marketing products manufactured in one country into another. While no direct production in an overseas country is needed, substantial marketing expenditures are necessary. The inclination may not be to collect as much comprehensive marketing knowledge as in the selling country compared to manufacturing; however, this does not eliminate the need for a thorough marketing strategy
• Exporting: Exporting is the most common and well-established method of outside market activity. Trying to export can be described as marketing products manufactured in one nation into another. While there is no need for direct production in an overseas world, substantial marketing investment is needed. The inclination may not be to collect as much comprehensive marketing knowledge as in the selling country compared to manufacturing; however, this does not eliminate the need for a thorough marketing strategy.
• Countertrade: By far the most effective indirect export form is countertrade. Competitive pressure requires ever more campaign spending. In this case, by functioning in markets where competitiveness is less severe but currency-based trade is not feasible, the company can extend operations. Countries may also wish to trade given the degree of rivalry, but the currency is again a problem. Countertrade may also be used to promote home manufacturing, or where there is a lack of raw materials. This, too, can provide a framework for a fair exchange.