Question

Plagirism is prohibited please dont copy from internet.

Write individual report on the challenges and opportunities of doing business in different countries and relate culture to the management of an organization.

Answer 1

While doing business in different countries helps the organisation grow but at the same time the organisation faces a lot of challenges of doing business in different countries. Few of the challenges are

1) One of the biggest challenge is the laws and regulations of the other countries, it is important for the foreign companies to correctly understand and implement the laws and regulations. Some laws might be easy to implement while some laws might have challenges

2) The other challenge is the currency rates, the fluctuating currency rates can give impact to foreign currency gains and losses which might have impact on the financials.

3) Different countries have different work and management culture, the foreign company has to make sure that the proper work culture is being followed to avoid any disputes with the companies in other countries

4) The companies will have to study the complete market of the customers and make new customers. They will have to understand the sentiments, culture and the thinking process of target people to buy their producrs

5) The companies will have to plan and have correct priing strategy for its products as they would face competition with domestic companies

6) The companies would face have different accounting policies and taxation to be followed for doing business in other countries. The company will have to make financials accordingly

7)There could be political risks which the companies will have to face in other countries

Opportunities of doing business in different counties

1) One of the opporunity is the company can buy raw materials required by the company at cheaper rates and sell the products which have demand at higher rates, this will lead to increase in profitability of the company

2) These days companies believe in reducing its cost one of the major cost is of labour, hence companies can get cheap labour from other countries

3) The company need not only be dependent on domestic markets for its sale, as it can sell in foreign countries as well

4) Some companies can get benefit of better technology development in other countries, this will help the companies to reduce cost and develop new products

5) Countries with well developed infrastructure can help companies for their growth which might not be available in their own country