Essay on Global Expansion

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

It is inevitable if firms increase their global operations because every country has something different to offer, something new, and without the current innovation being promoted to the market, the company will start to lose its edge on

Globalization is one of the crucial factors that have impacted the business. Without the proper utilization of the effects of the globalization, it is very difficult for a company to get the competitive advantage. There are many factors that need to be considered before rolling out the product in the global market. The first is to analyze the value chain of the company and to understand and decide on the position where they management wants the company to be into. Then comes the licensing,

Globalization may be defined as the integration of the world 's people, firms and government. In the modern context, globalization is usually the result of closer ties in international trade, known as bilateral trade agreements. The WTO and NAFTA are two examples of such bilateral trade agreements. With such agreements, cross-country investment increases. This increase in investment is aided by the increase in information technology and communications, which has undergone a significant advancement over the last two decades with the rise of the Internet and mobile telephony (Green, 2013). It is important to the business to expand; global expansion and globalization would a positive business decision to complete in this process due to the strategic goals and objectives the company possesses. Healthy growth can be accomplished by globalization of specific areas selected and determined through research of market and development of these areas outlined within.

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.

Expanding globally would be beneficial for the firm’s publicity plus it would be helpful for company’s growth in terms of revenue and market shares. It would provide customers customised services that would meet each and every customer’s requirement. Expansion must be targeted to developing countries.

Moreover, Yip, Loewe, & Yoshino (1988) caution that before managers embark on globalizing all or part of their business they first need to determine if the business can or should be globalized. Factors within the companies industry such as economic, environmental, competitive, and market forces must be analyzed. For example, market forces determine if customers will be receptive to a company’s product; economic forces determine the profitability of the product; managers must be aware of the implications associated with environmental requirements such as taxes,

In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,

* First-mover advantages are the economic and strategic advantages that accrue to early entrants into an industry.

The first important factor to business is Going Global (pg 110), or to expand overseas markets. The benefit being that profits and marketing opportunities can be increased. Going Global also reduces the percent of the firm in any given location, thus reducing risk. Choosing of the market in which to enter requires very extensive research, focusing on local demand for what the firm produces and availability of the required resources for production such as labor and natural resources. In the article it is said that , “To be effective in an organization, a person values must be compatible with the organizations”. This statement shows the need for unity within a company. If a new part of the company is in a

CareFusion LLC is a global medical technology company whose products have found use in over 130 countries across the globe (CareFusion LLC, 2014). CareFusion was incorporated in 2009. The company provides medical services to patients and as well as medical staff. The company’s main goal is to provide low cost medical products and services that improve on safety and make healthcare accessible to all (CareFusion LLC, 2014). As such, the company is leading producer of medical products intended to handle a number of medical anomalies including respiratory care. Other products made by CareFusion include patient monitoring systems, anaesthesia equipment, surgical instruments, interventional procedure equipments such as biopsy tools and cleansers meant to prevent infections.

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

Considering how business is conducted by organizations of today’s era, expanding consumer base, sales, profits, and international relations have become more of an interest. Competing on an international basis has allowed companies to expand in various dimensions, in which organizational leaders have become more receptive to in order to either become and/or remain competitive. Global expansionism can provide many values from creating employment opportunities, maximizing sales/profits, fluctuating supply and demand, and importantly mitigating economies risk from suffering from any depressive state. Global expansionism is not a facet that businesses should just liberally enter as there are threats and opportunities with any venture.

For a company to reach international status the firm’s foundation must be rock solid. Once you have successfully started your business and continue to maintain the business the next step is to grow the business. Growing the business is essential to going global with the business for a couple reasons. One reason is that the costs alone for going international are substantial. Your business needs to go from being profitable to very lucrative in order to fit the bill for overseas costs. The second reason growing your business is important before going global has to do with the companies success formula. What happens if your business starts booming overseas at an

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.