An Assessment Of The Business

When deciding to expand your international market PEST analysis must be considered. This would give an overview of the different macroeconomic factors the company has to take into consideration. The PEST approach looks at political, economic, social and technological factors. The political factor looks at how a government interferes in the economy in areas such as trade restrictions, tax policy, and tariffs. Economics factors have great influence in how business operates and makes decisions about how it needs to grow or expand its business. Social factors look at the cultural behavior such as attitudes and values and demography of a country. These social factors affect the demand of a company’s product. Technological factors determine barrier to entry, production level and influence outsourcing decisions. Using this approach we selected the following regions for Dyson expansion strategy.

When U.S business are thinking about going abroad, they need to be aware of the other country’s laws and regulations. “All businesses must, of course, follow the laws of the countries in which they are physically present and operating. Businesses may also be required, even in their foreign operations, to continue to follow certain laws of their home country. Also, businesses operating across national borders will also be subject to international law (Tony McAdams, 2014)”.

Doing business overseas takes time and patience. It requires new relationships to be established; therefore, it is important to have an established business model that works according to plan. The most favorable markets are politically stable developed and developing nations with free market systems, low inflation, and low private sector dept. The less desirable markets are politically unstable developing nations with mixed or command economies or developing nations where speculative financial bubbles have led to excess borrowing.

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

Dear Entrepreneur, here 10 crucial pieces of information that you absolutely need to know prior to expanding your business internationally.

II. Assess the legal implications of moving business abroad specific to your chosen country. What are the advantages and disadvantages?

a. According to the textbook, the reasons that provide motivation for companies’ international expansion and describe them.

Factors such as the costs, social situation understanding the culture, competition, labor force, rules and regulations, targeted audience, availability of labor force etc needs to be considered in business expansion plans. Company has already factory setup in Lebanon and all products are exported from Lebanon. Problem mainly lies in the region instability to do business operations at times cause

Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.

     Other issues regarding international expansion into other countries also need to be considered including, access to supportive infrastructure, adapting to local culture and trade laws. Competitors within each of these regions will also pose a threat; a deeper analysis of competition within the food service industry utilizing Porter’s Five Forces model is located on the next page.

Before entering the international market, it is vital for businesses to consciously understand the language, culture, religion, demographics, political system, legal system, and economy of the foreign country. Failing to recognise these factors may result in business failure or inability to operate in said country. While these factors are important, additionally so are the market, supplies, investors, locations, and competitors in the country of expansion, as they will affect business success. There are multiple methods that businesses can employ in order to expand into the international market; export (both direct and indirect), foreign investment, relocation of production, management contracts and franchising.

Location is the most important factors for business success for international business. The world offers different locales, opportunities and risks as the companies try to create value from increasing sales or acquiring competitively useful assets.

Measuring a potential business venture has many aspects which the international manager must be aware of in order to convey the correct information back to the decision makers. Being ignorant to any of the aspects can lead to a false representation of the project, and hence an uninformed decision being passed. In order for a business to survive it must grow. For growth to be optimal, management must first be able to identify the most attractive prospective leads. The country as a whole, specifically geography, government, and financial aspects must be looked at in order to yield the best possible picture of the market a company wishes to enter. Concentration should be placed on gathering reliable facts

First, a country needs to be identified as best suited for our expansion plans. For this we would look at potential geographical regions that have our target market within and the amount of potential clientele within these regions which logically would give the greatest potential of return for ever resource invested. These locations which would be identified as having: