Introduction
Expanding the firm’s business operations globally into emerging markets like India have challenges of their own, depending on how one would approach the problem. Firstly, if the company wants to expand its business individually by setting up a field office or a branch in another country, it has challenges of its own, like acquiring local talent to getting to know the local laws. Also, incorporating the culture of the parent company into the new country along with training the employees come with extra costs. Secondly, if the company wants to outsource some its IT operations offshore, it comes with challenges of its own, like incorporating the work culture and including the domestic workforce with the country’s local workforce. To enforce both the goals it is better to create a global culture with shared goals, values, and human resources that can support the business operations globally. There are several benefits with a global workforce; diverse backgrounds in both culture and education, different skills that can be benefited from by the company. While expanding business operations globally, the culture of the new market must be taken into account, both the work culture and the culture of the country. Finally, expanding the business is always faced by several challenges globalisation is no exception. Strategically planning and facing such challenges can result in an excellent workforce that is managed globally and also an expansion of the business
India has become a global conduit for business as they have liberalized their economic policies over the past 20 years. Companies are flocking to India because of many factors, including, less expensive labor costs, increasing growth rate, and an abundance of a highly skilled workforce. These factors in addition to other advantages have substantially increased the number of United States businesses looking to grow beyond the U. S borders into the county of India. Dunlop Software Consultant’s goal is to also expand its operations internationally and believes that India has the business environment to meet our goal of expansion globally.
Due to different attitudes it can be difficult for an international organisation to bring their message across to the public and build long term relationships with the customers and the partners. Attitudes can also affect the organisational structure and the management style of a company, i.e. according to Hofstede’s scale; British people like to be treated equally and they don’t want their managers to give them orders, whereas Indian people are used to being told what to do by their managers, and find it difficult if a company operates otherwise. This shows, that a company would have to change its management style completely if were to expand from UK to India as Indian people would find it difficult to work independently and without constant
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
In general, companies invest in foreign markets to increase profit and sales, or they desire to protect their profit and sales from competitors. General Motors is no different, and has heavily invested in foreign markets. No manufacturer can ignore the Chinese market.
Companies over the years have been able to grow and expand their business with proper execution of a successful strategy. When a company plans a new strategy, there is a high risk of failure. Proper planning and execution are some ways for companies to mitigate the risks of expanding into new markets or even internationally. What went wrong?
Expansion is a risky step for any business to take. International expansion has potential to be devastating to a company; or, it can lead to success on an even grander scale. By placing Target in Mexico, specifically Mexico City to begin with, opportunities are created for both the company and the country to grow. This expansion makes sense for several key reasons. One reason is that Target has yet to expand out of the United States. After a failed attempt at moving into Canada, the company has not tried international expansion since. Wal-Mex is the only retail store in Mexico that offers similar products for similar prices, which leaves space for a store like Target. Wal-Mart and Target have also been known to do well in the same areas. Target
T2 (Tea Too) is a tea heaven, a tea-lovers’ heaven. It is a premium brand established in 1996 in Australia over 18 years ago and cherished internationally by all tea devotees. It has 60 stores throughout in Australia, New Zealand, the United Kingdom, and America. However, the first retail outlet is located in Brunswick Street, Fitzroy. Maryanne Shearer is the creative director of T2 - Australia’s leading tea retailer, with largest range of tea and tea wares in Australia. It offers the country’s largest range of premium, fragrant tea and tea wares from all around the globe. Tea devotees can spend hours at their taster table, trying all the different types of hot and cold teas they have come up with. It’s
Finally, we have to wonder how the Liability of Foreigners would affect the company. Even though we do not have any direct reference on the culture and political situation, we can assume that they are a lot different to what the company is used in its own country. Therefore, and even though the recommendation is to enter India finding a partner that can help them understanding the culture, distribution channels and help them dealing with the Indian bureaucracy, the LOF variables should be taking into account to help the company minimize the failure risk of succeeding in India.
Bean There, Drunk That is a popular coffeehouse founded by Adrianna Ho. After obtaining her Bachelor of Commerce Queen’s University, she decided to pursue her entrepreneurial idea created in her Innovation and Entrepreneurship class at Smith’s School of Business. It all started in the summer of 1982 when she finally opened her first coffee house café in Toronto, Ontario. The locals loved it and by 2000, Bean There, Drunk That expanded to other provinces in Canada like Quebec and British Columbia.
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 business contains all business transactions private and governmental, sales, investments, logistics, and transportation that happen between two or more regions, nations and countries beyond their political limits. Generally, private companies undertake such transactions for profit governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources includes capital, skills, and people. for international production of physical goods and services such as finance, banking, insurance, and construction.
There are always business risk when it comes to expanding a company, especially from an international standpoint. There are many strategic risk that needs to be evaluated in order to expand the company successfully. Examining the possible risk of foreign currency exposure, basic functions of international banking/financial market, support of long term financing of operations, and assessment of opportunities that can be implemented within the company. There are risk on three dimensions of international finance, economic trends of the country, impact of globalization and monetary system. All of these situations will be discussed in this paper.
Diversification is a method of investing that been shown to increase portfolio return while reducing portfolio risk as measured by standard deviation. This method specifically increases the efficient frontier for investors. The challenge to an investing firm is an appetite by its customers for an ever increasing efficient frontier. One area to explore to obtain this increase is through further diversifying through international diversification.
The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.
There are challenges that come with IT outsourcing in India and the biggest one being there are competitive revivals that exists due to low switching costs. The biggest competitor currently to India is China. China has been investing a lot of money into its country to grow this industry since it has seen the positive impacts on India. One of the ways China is attracting companies to move to China is that its government is offering significant tax incentives (KPMG, 2016). Some of the other countries that are competing with India are Ireland, The Philippines, Poland and Malaysia. There are improvements that India needs to focus on and two of these improvements are making sure they have good infrastructure; and keeping costs low for companies who are looking to move to China where it might be cheaper to have established their business processing. Though there are challenges and competitors for India, the future for India looks strong as well as room for growth. One of the areas that India is focusing on is domestic growth and making it a priority to increase the