Case Study Analysis of Lajolla Software, Inc.

Naturally, when there are great gains to be had, there are great risks. A lack of understanding in cultural protocol is a commonly occurring pitfall for foreign, new to market business endeavors. Also, even positives such as China’s size, can commonly be a double edge sword. It is imperative for companies considering international expansion to create a solid entry to market strategy, which evaluates if the firm has any potential in achieve gains in a foreign marketplace.

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.

Expansion of a company is never easy, especially if the company were to expand overseas to a foreign country. The products or service the company offers or sells must fit into the culture and environment of the country. Ignorance to these factors can lead to a major downfall

The Japanese also believe that their culture is superior to others, called ethnocentrism. They believe they are much stronger than their surrounding Asian countries. They see things as fair or not fair only in terms of how it is fair to Japan and would not be concerned about whether it is fair to Company A’s home Country, the U.S. This could be something that Company A could have with trade issues. The Japanese will negotiate only on what is good for their Country, not the greater good of mankind. Americans telling the Japanese to act more like them would not go over well. In the past, America has tended to bash the Japanese so Company A will need to be almost apologetic from the start and cater more to Japan from the very

International business meshes across multiple domains most notably market entry strategies and sociocultural variances. Factoring in those two critical aspects and giving them the right amount of attention is the separating line between success and failure. Terralumen, Blue Ridge, and Delta are all successful companies; However, by not observing the basic requirements of

The above strategies are just a few of many different approaches cultures can take when hoping to strengthen their intercultural relationships. The importance of having a healthy intercultural relationship cannot be stressed enough because the relationship between two parties is the backbone of their potential business venture and will ultimately be the thing that makes or breaks a potential deal that could be worth millions or billions of

There are various companies which try to reach and set up in the international market. Certain establishments find success while other prove unsuccessful. Some enterprises own the ability to open anywhere, nonetheless there holds circumstances in which need further discussions into their overall strategic plan. Also, lots of challenges and options generated through starting a new business abroad will present itself.

Business cultures between USA and Japan vary immensely the American’s are quick to make decisions and allow many juniors to make decisions of their own accord, although many errors can be caused because of the leeway given. In comparison to Japan where business decisions are a lot slower and given a lot of thought. Japan will avoid all risks possible and all business decisions are made following a corporate hierarchy. This entails many meetings and numerous records to minimise any errors so they can deliver consistency at all levels.

Hill, C. (2011). International business, competing in the global marketplace. (8 ed.). New York, NY: McGraw-Hill Irwin.

1. Philip Austin’s plan for European expansion is very simplified and will rely mostly on the foreign intermediary to complete export and complete sales transactions. I believe that this is the main problem of this expansion plan; there is too much liability in someone outside of the company that possibly doesn’t share the same goals and objectives of the company and sometimes is not completed committed with the process.

2. When a company grows in size and makes the decision to expand internationally, it is vital for its image among current and future customers to complete projects effectively and on time. Furthermore, it is also likely that such an expansion would entail the representation of more than one culture among the workforce. Indeed, while many employees will be relocated from the home country, a further proportion will be hired from the host country. To facilitate the relations and

INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited

According to the works of Chaney & Martin (2011) and Harris & Moran (2000), they agree that international management skills are in need for the increasing scope of international trades and investments. A large number of multinational companies have expanded their businesses through both developed and developing countries. Some of the business invest directly and others are partnership arrangements and strategic alliances with domestic operations. Their studies show that independent entrepreneurs and small businesses have started investing and competing in the world marketplace. Thus, to acquire corporations’ objectives, there is exceedingly a necessity for the development of strategic framework for cross-cultural management and communication in the current competitive global market. Chaney & Martin (2011) also noted that, cultural awareness and cultural differences are strongly important to the multinational corporations’ success. A good understanding of the culture where business is implemented can make international managers productive and effective.

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

The expansion to Canada and UK was mainly based on the shifting of employees to these countries. It was the element of familiarity and trust which motivated both the employees and founders to unleash their entrepreneurial spirit. It was the spirit to cooperate with each other that paved way for cost reduction across the offices in USA and Canada and marked success for both the offices.