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White Paper on Pros and Cons of Positioning and Expanding the Company's Strategy and Operational Direction in the Global Markets - Essay Example

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Global expansion is becoming more and more popular nowadays due to the nature and requirements of every company. This paper explores the strategies that can be used in attaining the company’s goal of expansion to a global market. Creating brand equity is the initial step for a company to develop acceptability from foreign markets…
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White Paper on Pros and Cons of Positioning and Expanding the Companys Strategy and Operational Direction in the Global Markets
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White Paper on Pros and Cons of Positioning and Expanding the Company's Strategy and Operational Direction in the Global Markets

Download file to see previous pages... Creating brand equity is the initial step for a company to develop acceptability from foreign markets. Brand positioning should also be done strategically to determine the target market for the products and services offered by the company. Finally, this paper provides different approaches and strategies that can serve as a reference for the planning of a company’s mode of entry. White Paper on Pros and Cons of Positioning and Expanding the Company's Strategy and Operational Direction in the Global Markets Introduction Most multinational companies have been operating in the global market for decades, with combined sales that accounts for a quarter of the entire global economy. According to Kotler, Keller and Burton (2009), Altria and its subsidiary Philip Morris operates to over 160 countries with a total size comparable to the economy of New Zealand, the company’s exports in 2006 took part in the GDP Growth of the US comprising a quarter of the entire market....
A company gets its initial exposure to the international business when they start to establish foreign trade to partner countries for purchasing or selling raw materials, goods, or services. The transactions are relatively simple in cases where the flow of cash is only in one direction, for instance, an importer paying a foreign supplier. For this case, the primary need is foreign exchange services and finance services without the need of having a bank account in the country where the trade partner is located. However, as the company expands its international business, the need to establish an operation in a foreign country becomes inevitable. This property acquisition may range from having a simple sales office to a highly complex operation such as putting up a manufacturing facility. In this line, where international operations handle making and receiving payments in a foreign currency, an effective international treasury management is important (Deroo, 2011). The drawback of such operations is that offshore trade activities are not visible to corporate treasury making it difficult to determine the company’s cash position, control over foreign exchange exposures, and manage its working capital globally. There is also a deficiency for safety and security associated with preventing fraudulent activities as well as the occurrence of some unwanted degree of bank risks (Deroo, 2011). In order to increase the chances of thriving in the global market several steps should be undergone by the company. A strategic brand management process is important for a good quality product or service. Its most important goal is to develop an intense customer loyalty. The process has four main steps, namely; identifying and ...Download file to see next pagesRead More
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