The Davis Group : Strategic Imperatives Of International Growth

The advent of Internet has allowed companies to offer their goods and services throughout the world. Not only has the Internet opened up the floodgates of International marketing, it has also brought with it many other challenges such as cultural, political, and geo-economics challenges. In order to be successful in these global markets, companies must be very diligent in handling these challenges.

Introduction International business comprises a large and increasing portion of the world’s total trade (Johnson et al., 1994; Czinkota et al., 1995). The growth of international business has gained momentum faster than previously recorded, outstripping domestic business (Daniels and Radebaugh, 1995). The impact of such growth on many companies is that they are now “rushing to become

The global market is an important aspect of business. Globalization affords Riordan the opportunity of outsourcing work and finding potential clients throughout the world. The global market affects Riordan’s opportunities and threats. Globalization influences trade and investments as well as boost investment and market potential (Gillespie, Jeannet, & Hennessey, 2010). The global market also has the potential of possessing negative effects on Riordan’s business strategy. Because of the impact of globalization Riordan must compete with companies around the world for business. When entering the global market the company also faces a degree of uncertainty. The global market affects the amounts and types of competition that Riordan faces. Because of the opportunities and threats brought about by globalization Riordan must adjust the company’s business strategy and structures in an effort of establishing and maintaining a competitive advantage in the global market. By making the adjustments Riordan

Online business using the internet has experienced significant growth over the last two decades. According to the Internet World Stats (2014) the number of worldwide internet users has grown from an estimated 16 million in 1995 to 2.9 billion in 2014. This world of interconnectivity has provided a way for people all around the globe to communicate with one another in a real time format. The internet has removed the distance between governments, industries, businesses and individuals. This interconnectivity has helped to establish the foundation for a globalized community. This interconnectivity has sped up the game by which a business plays. This has also forced a new breed of leadership to react faster and to better account for the formal and informal institutions of global business proceedings.

Enterprises are having to quickly change their value chains and supporting subsystems, processes, platforms and procedures to more effectively support globalized operations. Despite the common assumption that globalization and transnational IT operations are undertaken for cost reduction, a more common motivation on the part of enterprises is to capitalize on the unique expertise and knowledge in a given country or region (Gill, 2011). From this vantage point, it can be seen how transnational IT operations are a lagging indicator of the shift in intellectual property and market expertise over the long-term. The ability of any enterprise to orchestrate the many facets of its value chain across multiple geographies while at the same time managing product quality, service levels and take into account cultural nuances will over time dominate an industry (Sammon, Adam, 2005). The intent of this analysis is to evaluate how the transfer of work, quality management, global networking and service levels dictate the level of performance for transnational IT strategies. Included in this assessment are the culture diversity and language-based differences that every enterprise must contend with when challenged with global growth. The most effective approach is to compare the advantages and disadvantages of transnational IT, taking into account the most strategically important issues in the process. The most critical of all these factors is

Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.

Doing business internationally is not the same as doing business locally (Lambert, 2000). There are new, interesting and exciting opportunities that face the management. However, in some cases, there are inevitable challenges. The challenges are more prevalent when it comes to management of risks and keeping the business running (Dally, 2007). To do this effectively, there are significant skills to learn; also it’s necessary to adopt certain strategies and understand the different environments within which the business operates.

Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.

Companies all over the world are beginning to expand on the global levels to stay competitive and increase their profits. The global expansion is made possible through new levels of technology allowing global businesses more efficiencies than in the past. Today businesses are able to electronically view production processes in real time from virtually anywhere in the world, funds are able to be transferred with the click of a button, and a school girl in Tokyo can see the latest U.S. fashions through online channels. Although operating on a global scale creates many new challenges that businesses need to analyze before entering a market in order to reduce profit loss and even failure. Many global companies have had success and failure in the global market place, such as The Walt Disney Company.

Bill Gates once famously stated: ‘If your business is not on the internet, then your business will be out of business.’ This quote exemplifies the theme of the present paper about Global Businesses and International Relations.

Ball, D., Geringer, M., Minor, M., McNett, J. (2012). ‘International Business: the challenge of global competition’.13th edn. Mc-Graw Hill.

The combined effects of the Internet and globalization have made the challenges of implementing strategic plans and initiatives even more challenging and difficult. The long-standing assumptions of foreign markets being comparable to domestic ones of a given corporation have long proven false, leading to significant shifts in the strategic planning process for enterprises globally today (Hassan, 2010). In reality the Internet has made every business a global one; each has the opportunity to attract, sell and serve customers globally over e-commerce platforms that can be enabled and operational within weeks. The speed of competition is increasing due to the combine effects of globalization and the Internet. The focus has now shifted away from mass production to mass customization due to the Internet and its ability to reach foreign markets with relative ease. This shift from mass production to mass customization has also been accelerated by a global prioritization of services, as they are capable of generating greater gross margins and have business models that require greater tailoring to specific foreign market needs (Luo, Chang, Su, 2012).

Businesses have a global orientation: The rivalry at the global market stage is not just at the product or service stage. It is also about constructing and sustain multinational infrastructure.

A company may expand and/or diversify its markets internally or externally. If the company cannot grow internally due to lack of physical and managerial resources, it can grow externally by combining its operations with other companies through mergers and acquisitions. Mergers and acquisitions may help to

For the purpose of struggling against some additional difficulties when going internationally, companies have to consider of the importance of international business and being awareness of implementing an effective strategy on an international level .