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Internatoinal business mangement 3 - Assignment Example

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In such a situation, it is always very vital to consider both the challenges and the benefits, which come along with the international expansion. When considering…
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Internatoinal business mangement 3
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Download file to see previous pages Hence, a prudent thing to do is to expand the market internationally in the effort to increase profitability and survival at the same time (Hill, 2012).
Expanding internationally has many benefits, which increase chances of survival. An organization is able to boost its reputation and boost the staff morale. In addition, the existing products are introduced to new markets, especially if they have become less popular in the domestic markets. The firm’s overreliance on the domestic markets reduces and the risks, though hard to do away with can be spread. The great sales volume as well translate into higher profits
However, in establishing a business internationally, it requires coordinated effort as well as sustained management effort. This practically implies management talent. This is easily attained by just setting up an economic model. Such a model is meant for solving problems as it offers a structured solution to the dilemma under review.
Global industries are those industries whose firms must compete in all world markets. These industries have the characteristic of gaining economies of scale across markets. These companies pursue a global strategy whereby they compete in all markets and they provide the same product for each market. They identify customer needs and wants in the international borders. Global industries are also characterized by high development and recurrent costs, thus requiring more than one market to recover the costs.
The following firms are categorized in the global firms’ category as they have those features. Movie making, bulk chemicals, pharmaceuticals, branded food products, television manufacturing, personal computers and airline travel (Hill, 2012).
Multidomestic industries on the other hand, are those industries with a strategy of producing products and services, which are commonly tailored to individual countries. Innovation comes locally and managers decentralize decision-making as well as encourage local sourcing. They ...Download file to see next pagesRead More
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