Question

Multinational businesses are changing old perceptions at a hurried pace and are doing away with a number of long-held negative assumptions of financial management in third-world nations. Instead, many firms are in a quest to find new methods that will propel them to the front of the line and become the trend setter, the leader, and the dominant entry that captures market share into new global markets.

Explain the role that the leadership of firms seeking to do business in new global markets should take.

Answer 1

To gain edge and survive in today's markets, not only you need to excel in existing markets, but explore new markets as well.

This helps you improve your growth horizon, add diversification to your client list and explore new development areas

Role that leadership of firms should play:

• Defining the Market:
  Knowing the pros and cons of market, market history, potential clients availability and threats that could arise
• SWOT Analysis:
  Performing the SWOT analysis on the market
  a) Strengths: benefits of entering the market, what advantage would the company get on entering in the market
  b) Weakness: Any weakness that could prevail in the new area
  c) Opportunities: potential opportunities that could be available in the market
  d) Threats: basically threats from existing competition
  The leadership should analyze all the above points in detail
• Assessing Company's Capabilities: on how long can the company enter new markets, fund availability, manpower issues etc.
• Selecting and Priortizing markets