Question

Questions from Wheelen, T., Hunger, J. Hoffman, A., & Bamford, C. (2018). Strategic Management and Business Policy: Globalization, Innovation, and Sustainability, 15th ed.  Pearson.

Chapter 7

What are the major factors that an organization needs to analyze before it can consider entering a foreign market?

Answer 1

The cultural difference may be deciding whether or not the company is successful. Unless the product or service does not add value or meet the local markets 'desires, there is no need to go sailing! It is important that you have an intuitive understanding of who lives and what they value in the society. Consider the following: It is extremely important to know how to conduct business between "local" markets. Do not underestimate the influence of different cultures. To pursue an overseas venture you need to be able to spend considerable time and money. Seek to understand society first.

It is possible to do business in international markets if the company is versatile enough to operate under the framework of local laws and regulations. Evaluate issues such as: when evaluating legal and regulatory obligations, it is strongly recommended that you obtain qualified legal counsel for overseas business practices to recognize hazards that can trigger your business barriers. Don't skimp on the expense of having legal advice from overseas experience, it will save you long-term.

It is important that the business case is sensitive to the difficulties, adversity and rewards of overseas expansion. Several approaches to consider are: conduct a market analysis to understand the culture of the market, economic viability, industry dynamics, financial cost patterns and industry forecasts Conduct a financial feasibility study to decide if the move makes financial sense Intellectual property and trademark rights, and to ensure that government authorities accept and protect the move at that location