International Business Environment Case Study

How effectively do Canadian businesses and government engage together to promote a shared vision and agenda in the global business environment? Do Canadians strike an effective balance between private sector pursuit of global business and public sector support and enablement?

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

Sales can be increased by entering, creating, or targeting fast growing markets, and profit can be increased by lowering the cost of goods, and/or increasing revenue. And by entering foreign markets a company can follow its customers abroad, attack in a competitors home market, use foreign production to lower cost and protect that market, bypass certain political issues, acquire technology and know-how, and geographically diversify their market to increase profits,

This document is authorized for use only in Financial Management23 by Dr. Raj, at Institute of Management Technology - Dubai from January 2015 to July 2015.

We found innovation, cost reduction and market conditions as key elements supporting a successful internal strategy and strategic alliance and diversification to be among the most widely applied strategies for a foreign market penetration and development, while fusions and licenses were the least preferred.

As discussed in Chapter 21 of our text book, any company that is looking to expand globally must make five key decisions. A firm must decide if: a) they really want to expand to the international market; b) they

A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter (Porter, 2013)

Companies entering foreign markets may face problems or increased costs because of the business environment and the way in which the companies operate. Marketing services might be expensive and certain payment mechanisms may be unavailable. Some of such difficulties include

In a global environment, the strategies that managers pursue have a significant effect on a business performance as compared to the competitors. Hill and Jones define strategy as a set of actions that a company’s managers put in place in order to increase performance of the company (2013). When the strategies lead to a superior performance of a company relative to its competitors, then the company is said to be at a competitive advantage. This is a case study of Federal Express, in the small package express delivery industry. It

The difference between this strategy and international strategy that, according to the different markets in different countries, to meet local market needs to provide better products and services; the same point, this strategy is also his country developed products and skills to foreign markets, but also engaged in production activities in the important market of the host country. Thus, higher cost structure of such a strategy, can not get the experience curve benefits and regional benefits. Consumer needs and desires, industry conditions (e.g., the number and type of competitors), political and legal structures, and social norms vary by country.

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become

International business is much more complex than operating within the domestic market because countries are extremely different in many ways. The

These large MNCs are based almost exclusively in advanced industrialized countries; ninety-nine of the 100 largest firms are from the United States, Western Europe, or Japan and more than 5/6ths of all parent corporations are based in

I also wish to thanks MR RAJA REDDY SIR,(H.O.D), my project guide Mr. N. Srikanth lecturer in finance for his help and