In The News Week 5
Business Policy
Professor Pinero

This weeks’ case study will focus on International strategy and creating global markets. The motivation for international expansion is very relevant in most organizations and firms these days. International procurement and logistics are a key element of any international business strategy. Companies such as Google, Apple, Disney and BMW have an appeal globally, and in turn have had a major financial success. * There are many drivers for international expansion including similarity of lifestyles, faster communication, and pressure to reduce costs and increase profit. * There are also many factors affecting a nation’s competitiveness. Factor conditions including skilled labor or infrastructure to compete in the given industry. * A stronger supplier base will enable the organization to operate at a higher level and competitive supplier base lets an organization obtain inputs using cost-effective and timely methods. * Extending the life-cycle of a product along with attaining economies of scale are high on the list when a company considers taking its product internationally. The increase in international exchange as well as an emphasis on a multi-domestic level. This allows the differentiating of products and services to adapt to the local markets demands and needs. * During the opportunity evaluation phase the organization will analyze and determine whether it is viable enough to developed in other countries. The organizational culture should be another driving force of the success or potential failure. These shared values should shape the companies people, structure and control systems. * The corporate story is what bonds the company with consumers. Reputations is a key driver, companies need to engage locally on issues that matter along with their focus on the global market.