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Nike and the Global Market

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BUSA 488 Creating and Managing Transnational Organizations Professor Thad Barnowe Spring 2009 February 18, 2009

Many companies today, in this growing world market, cannot be successful with out considering the benefits that could be gained by expanding their business, or part of their business, to other countries. As Bartlett, Ghoshal, and Beamish mention in the text there are three macro forces that drive, constrain, and shape the industries in which companies will compete globally. (2008). Companies must prepare for these three macro forces in advance before entering into new countries to do business. If they don’t prepare they will not be very successful in conducting business in another country and will not gain the competitive advantage they strived for when deciding to conduct business globally.

Also, if a company does not enter the global market prepared they could run into problems that they did not foresee, which could result in damage to the company name and image, not only affecting international business but domestic business as well. This in turn could create the company to sustain profit losses and gain a tarnished reputation that they would have to fix to regain their competitive advantage and above average returns. In order to be a successful in operating in another country multinational enterprises must have a manager or a set of mangers to deal with three very complex external demands, cross-market integration, national responsiveness, and worldwide learning. (Bartlett et al, 2008). No matter what aspect attracts a company to another country whether it is, economies of scale, economies of scope, factor costs, or liberalization of world trade, the company must come into that global market aware of all the differences pertaining to the eight-facet model for analyzing country environments.
The company needs to be aware of the differences

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