...Karen Burgio BUSN 110 E1 Writing Assignment 1 1. Briefly describe some of the general risks associated with global expansion (for any company selling a product) that are highlighted in the articles. How has the Internet changed the way companies expand into new markets and helped mitigate these risks? There is always a risk when a company wants to expand and the risk can be greater when a company wants to expand globally. The risk over extending resources or investments can leave already established businesses in the United States stretched thin for resources or funds. The risk of the market not interested in the products that company offers can lead to loss in profits. The internet has helped greatly with the expansion of companies globally. They only companies to start offering their products in a global market with little investment and resources. Companies do need to negotiate rents, and labor wages, and local customs, Instead they can set the availability for a consumer to buy items directly for the internet and have it shipped to that consumer. 2. Describe the cultural issues in the Chinese market that represent challenges to online luxury retailer Neiman Marcus. Luxury shoppers in China tend to want to purchase their items in the store where they can learn about the product by not only visualize it but show off their purchases in the store. Luxury consumers in China also want to shop for sales and are loyal those companies to offer sales. If the Chinese consumer...
Words: 641 - Pages: 3
...lRunning head: GLOBAL EXPANSION Global Expansion Rachelle Hollins American Intercontinental University January 6, 2011 In order for companies to expand cultural diversity considers a complicated part of management phase inside the corporate culture. Managing cultural diversity need a right method mainly from top management personnel in conditions of cultural sensitivity and local focused. International expansion was a “desirable” element for senior executives of mainly large corporations, firms of every size can now no longer afford to ignore the consequences of remaining a domestic player (O’Hara). Foreign companies face many challenges in expanding their business activities globally. Cultural barriers can make unpredictable problems as companies set up offices and production around the world. Critic of the multinational corporation usually views it as an economic and often political means of foreign domination. Many organizations, global diversity and cultural differences are seen to be difficult to overcome rather than as tools to be influenced for business success. Although more than 75% major American companies focus on diversity as a strategic advantage and business leverage in the U. S. there is minimal carry over internationally (Digh, 2001). These companies find themselves in the perplexing position of attempting to “roll out” overseas those diversity initiatives that were designed for a domestic workforce...
Words: 1235 - Pages: 5
...Global Expansion Expanding PPQ globally can be a great opportunity in terms of profits. There are also many things to consider before making the decision to expand. Diversity, cultural issues, political issues and economic issues can all occur. It is important to research all these issues and decide which country is best for PPQ to expand to. When contemplating expanding a business globally, it is important to consider how it affects the business and how it affects the foreign country that you are trying to expand to. There are many things for a foreign country to consider before making the decision to expand to that country. With the business being based out of the United States, the people from the foreign country may face some conflict with the people from the foreign country because of the new people coming into their country. This expansion would affect communities and schools where PPQ decides to start up their global business. The foreign country would also have to evaluate the use of the land and water that PPQ would need in order to start the business in their country. This would also have an effect on the foreign country especially is clean water is already hard to come by. The new site for the global PPQ may also run off the local wildlife in which the population may use for hunting or recreational use or even to live off of. This would also cause conflict for the foreign country. PPQ may encounter many cultural and diversity issues when expanding globally. There...
Words: 1517 - Pages: 7
...Global Expansion Corporations have the capabilities to become virtual type organizations due to today’s technological advances. This is rapidly changing the organization’s environment and enabling them to expand into global markets to enhance their competitive interdependencies. Companies such as Halcyon understand that the world’s economy is becoming more globalized providing companies an advantage to expand into foreign markets. Halcyon Fields is a leading producer of organic yogurt and dairy products in the United States and is looking to expand operations internationally. They are not only looking to expand and grow internationally as a producer of organic dairy products, Halcyon Fields wants to also use their companie’s values as an example to other companies to show that being socially and eco-friendly be profitable as well. Strategic alliance and joint ventures are two popular global strategies that are being proposed to form multinational firms and partnerships. These global strategies would provide Halcyon Fields a strong platform for international expansion. Halcyon Fields would greatly gain from partnering with companies abroad that share their common interest and have a good contact and reputation in their local markets. This collaboration whether it is a strategic alliance or an international joint venture with a local company in the countries Halcyon Fields wants to access will enable them to leverage their reputation, skills, knowledge, and experience...
Words: 2884 - Pages: 12
... Frank Mayse, and Gina Glorioso Rendall Date of Submission: April 11, 2015 Title of Assignment: Global Expansion Project - Ancestry CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas of words, whether quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student Signature: __Gina Glorioso Rendall__________ ******************************************* Instructor’s Grade on Assignment: Instructor’s Comments: AN EXECUTIVE BRIEFING ON [pic] Researched by Downtown Dominators Zachery Engels, Franklin Mayse, and Gina Glorioso Rendall Spring 2015 TABLE OF CONTENTS INTRODUCTION TO THE STUDY 5 DOMINANT MARKET ENVIRONMENT ASSESSMENT 5 INTRODUCTION 5 POLITICAL / REGULATORY 5 ECONOMIC: MACRO 5 TECHNOLOGY 6 SOCIETAL 6 INDUSTRY ANALYSIS AND COMPANY PERFORMANCE 6 SUMMARY 8 INTRODUCTION 9 FINANCIAL RESOURCE ASSESSMENT 9 CASH 9 MARKETABLE SECURITIES 9 LEVERAGE (ABILITY TO BORROW) 9 CREDIT RATING 10 STANDARD AND POOR RATING 10 PERSONNEL 10 BOARD 10 QUALITY OF MANAGEMENT (GLOBAL KNOWLEDGE/EXPERIENCE) 11 INFORMATION/TECHNOLOGY 11 TECHNICAL PRODUCTS 11 REPUTATION 12 QUALITY...
Words: 11356 - Pages: 46
...-Analyze differing viewpoints of foreign market strategies -Take 5 key points to being successful in FMS and get each as a reference 1- International Market assessment a. Market Segment Screening for a global marketing strategy. b. (Griffith, 2010) -necessary to understanding market segment convergence and its influence on global marketing strategy. - While market segments have often been viewed as having clearly defined boarders within a nation-state, the movement toward integrated markets due to globalization has created the need for conceptualizing market segments in new ways. - research suggests that the more dissimilar the country profiles, i.e., institutional environments, the more difficult it is to understand the requirements of the collection of operations and responses appropriate to local demands 2- Strategic Alliances (trading companies, piggybacking, export management co.) c. Whether cultural differences affect trust, commitment and cooperation in international B2B export channels and their foreign distributors. - Trust, commitment, cooperation are the main items of focus -Entering foreign markets is no longer just something to think about, but rather an action that must be taken without delay by more and more U.S. companies. (Mehta, 2006) -The use of such overseas distributors as an entry strategy for international marketing is usually quicker, less risky, and less capital- intensive than setting up joint ventures or...
Words: 722 - Pages: 3
...Global Markets Comparison MKT/562 March 9, 2015 GEORGE KNIPFING Global Markets Comparison New Growth Market is an increased demand for an organization’s products or services overtime. New Market Growth will be slower if consumers do not adapt to a high demand and if consumers find the products or services useful for the price point. When a company states strong growth in a market it means that the demand for products is increasing. There are larger markets for products that make it and try to sell. This does not mean that increasing demands is for a specific product is an increase in demand for companies that manufacture products. Starbucks says that there is market growth for their coffee products. This suggests more people are purchasing coffee products, but not from Starbucks. If there was only growth in Starbucks; they would have a strong sales growth. Newly Industrial Economies is a term used by economists to describe a country’s level of economic development classification. These countries moved away from an agriculture base economy to more industrialized. Countries under this category are characterized by an export driven economy. “Examples of these countries included South Africa, Mexico, China, India, Thailand, and Turkey (internationalinvest.about.com).” Economists and political scientists tend to disagree about classifications of these countries. Newly industrialized economies are broad, and meaning that international investors need to use caution...
Words: 486 - Pages: 2
...Carey Strickland American Intercontinental University Good and Bad Marketing Plans MKTG305-1203A-01 Marketing Management June 8, 2012 Abstract This paper will provide the definition of a marketing plan, and discuss the difference between a strategic and tactical marketing plan. The temporary store will be discussed as a successful marketing plan, along with the failure in marketing of Burger King. The marketing plans will then be analyzed to show why one plan was a success while the other was a failure. The movie John Carter was also discussed as to why it was a flop at the box office. Good and Bad Marketing Plans Introduction The definition and types of marketing plans will be discussed in this paper. It will also provide an example of a successful marketing plan in the temporary store set-up and the failure of the Burger King marketing plan. We will then analyze the differences in these two plans and discuss why one was successful while the other plan was not. Finally we will explore the movie John Carter and talk about why the movie was not a box office hit. Marketing Plan A marketing plan is the efforts a company goes through in order to make a new product a success. There are two levels in a marketing plan, they are strategic and tactical (Kotler & Keller, 2012). The strategic marketing plan lays out the guidelines on the target customers based on the best market opportunities (Kotler & Keller, 2012). The tactical marketing plan includes...
Words: 1120 - Pages: 5
...Going public through an IPO Riordan Manufacturing’s approach through initial public offering will improve finances quickly. An IPO will raise capital and reduce debt. Funds acquired from common stock will be used to improve the area of the organization that needs help. The organization will have greater access to capital markets and in turn the valuation will increase. Riordan Manufacturing currently does not have a consistent format to maintain corporate date files (University Of Phoenix, 2013). They should consider installing an enterprise system that will improve financial accounting. Selling shares publically puts the company at high observation with the securities exchange commission, and state regulations. The Riordan organization will also have to submit regular financial reports to its shareholders. Acquiring another organization in the same industry If Riordan Manufacturing were to acquire another organization in the same industry they could block competitors and have dominance over the market share. Acquisition can also bring in a positive cash flow, along with a new customer base. There greater weaknesses that pertain to Riordan Manufacturing when considering an acquisition. Management and labor unions could be at risk when merging two companies. There will be a vast change in personnel especially with middle to high management, where elimination is inevitable. Shareholders will also have a positive increase however this can create a view that renegotiating will...
Words: 376 - Pages: 2
...Walmart’s Global Expansion 1.How does expanding internationally benefit walmart? Wal-Mart needed international expansion critically to remain a successful company. The main reason Wal-Mart needed to go global was because they could no longer achieve the growth needed in the US. This market was saturated. The United States represents only four percent of the world’s population, which meant Wal-Mart was missing out on ninety-six percent of the world’s potential customers. (Govindarajan, par. 7) Also, Wal-Mart needed to continue to make their US employees satisfied. With Wal-Mart’s aggressive stock purchasing programs, this meant that employee satisfaction was directly correlated to their stock prices. Walmart also realized that there were many emerging markets with lower levels of disposable income, which offered a large potential for discount retailers. (Govindarajan, par. 7) Therefore, Wal-Mart’s only option to achieve the growth needed was to enter the global environment. After its beginning in 1962 Walmart ever since had constant growth rates and successfully gained market share in the merchandise and food retailing markets. “By 1990, however, Walmart realized that its opportunities for growth in the United States were becoming more limited”. To keep steady growth rates and profits the company decided to expand globally. The core competency of Walmart is the price. Selling merchandise and food for low prices made them earn market shares and continue the growth...
Words: 4140 - Pages: 17
...Walmart’s Global Expansion 1 How does expanding internationally benefit Walmart? After its beginning in 1962 Walmart ever since had constant growth rates and successfully gained market share in the merchandise and food retailing markets. “By 1990, however, Walmart realized that its opportunities for growth in the United States were becoming more limited”. To keep steady growth rates and profits the company decided to expand globally. The core competency of Walmart is the price. Selling merchandise and food for low prices made them earn market shares and continue the growth rates. Going global gives companies the opportunity of using location economies to secure the quality, use economy of scale to lower the productions costs per unit and benefit from learning effects. A global supply chain and global markets will lower the production costs since more volume is ordered following a higher demand trough international markets. Especially for Walmart expanding internationally supports and secures their core competency: Selling everyday life goods at a low price. 2 What are the risks that Walmart faces when entering other retail markets? How can these risks be mitigated? The strategy for success worked very well in the United States. That does not mean that it works very well in other countries. There are different preferences and consumer patterns in different countries. Adding to that Walmart may face strong competition from already established retailers that have a...
Words: 853 - Pages: 4
...WAL-MART’S GLOBAL EXPANSION This report explores Wal-Mart’s global expansion plan in an environment where businesses have to adapt to the fast pace of change and cope with the challenges that are implicit in the emergence of an increasingly complex global economy. Principally, Wal-Mart grew to where it is today through the vision of its founder, Sam Walton. Over the years, it serves the needs of the community where it exists well. However, when it brings it business abroad, this report has identified three (3) key issues. It was obvious that the Supply Chain Management system which was successfully implemented back home is not so business friendly when it goes abroad. Furthermore, doing business in a foreign land means more than just providing goods which it thought was best for them. Cultural understanding plays an important role in the case of Wal-Mart as it faces many uphill tasks in dealing with sub-cultures that belongs to the communities. As we have found out from the analysis, pricing and discounting strategy is a key area that hobble Wal-Mart’s global expansion plan. What works in the home country generally may not necessary work in the host country. Wal-Mart boosts its reputation with a well established supply chain management and a pool of highly trained employees which they called ‘associates’. Perhaps one of its more obvious strengths is the strong branding that it has in association with high quality, low price products. Having said, its global expansion is still...
Words: 321 - Pages: 2
...expanded into China. Today, their expansion continues in China and around the world. Starbucks now has stores in 47 countries. Their global expansion strategy and performance is stellar. Let's examine some possible components of Starbuck's global expansion strategy that enables them to determine how, why, and where they expand. According to their Annual Report, Starbucks opened up 2,571 new stores in 2007 (www.starbucks.com). They now operate over 15,000 stores around the globe. In China, their aggressive expansion continues. In 2006, Financial Times quoted Howard Schultz as saying "China has emerged as the strategic priority within the company today and in the long term. The opportunity we have in China is like no other" (17). To succeed globally, companies must analyze and choose from many strategic plans. One way they do this is by using a SWOT analysis a strategic planning tool used to evaluate Strengths, Weaknesses, Opportunities, and Threats. The goal of a SWOT analysis is to identify key internal and external factors that affect the desired outcome. Strengths and weaknesses are internal to the company and include things like wage/benefits, corporate culture, leadership, marketing, and operations. Opportunities and threats are external to the company and include things like government regulations, competition, and economic and social forces. Applying a SWOT analysis to Starbucks global expansion strategy shows why they have been...
Words: 939 - Pages: 4
...Questions that will be answered in this paper: 1. What are some of the issues the host foreign country could face as a result of the expansion? 2. Explain what cultural barriers and diversity issues are commonly encountered by international/multinational (MNC) and global organizations. 3. Why has diversity become such an important topic in the international arena? 4. What can occur when issues related to multiculturalism and diversity are ignored in an international company? 5. Describe at least 2 political and 2 economic issues that may arise during global expansion and proposed methods of addressing them. 6. Explain the importance of and the implications of each of these items in PPQ Parts expansion plans to Germany and Japan. When trying to prepare for a global expansion, you have to look at many different factors such as cost, training, benefits, and many other factors. But you also have to look at the risk that a company can face when expanding. For example, the risk that a foreign country, that is hosting the business that is expanding, they could possibly lose lots of money, could go into a financial crisis and could also lose the business and relationships with many other companies if it does not go as planned. Another issue that could ensue is that the country could gain absolutely nothing if it is not planned out correctly. This could lead to a poor report with the company and many companies to follow. If these risks do not happen, many other barriers...
Words: 1119 - Pages: 5
...Global Expansion of Wal-Mart: Established in Arkansas in 1962 by Sam Walton, over the last four decades Wal-Mart has grown rapidly to become the largest retailer in the world with 2004 sales of $280 billion, 1.5 million employees, and more than 4500 stores. Until 1991, Wal-Mart’s operations were confined to the United States. There it established a competitive advantage based upon a combination of efficient merchandising, buying power, and human relations policies. Among other things, Wal-Mart was a leader in the implementation of information systems to track product sales and inventory, developed one of the most efficient distribution systems in the world, and was one of the first companies to promote widespread stock ownership among employees. These practices led to high productivity that enabled Wal-Mart to drive down its operation costs, which it passed on to consumers in the form of everyday low prices, a strategy that enabled the company to gain market share first in general merchandising, where it now dominates, and later in food retailing, where it is taking market share from established supermarkets. By 1990, however, Wal-Mart realized that its opportunities for growth in the United States were becoming more limited. Management calculated that by the early 2000s, domestic growth opportunities would be constrained due to market saturation. So the company decided to expand globally. In 1991 Wal-Mart started to expand internationally with the opening of its first...
Words: 768 - Pages: 4
