Question

I need a positive feedback about the common below made by my classmate.

• All organizations weight pros and cons when making large decisions. When making the decision to pursue a global strategy the organization must take into account factors of probable investment that is required, the amount of traffic by estimation and much more. In the end if the business feels that in the long run revenue will succeed then the company would pursue the investment to strategize to go global.
• The most valuable resource a company can have is their reputation. Expanding globally can harm the reputation of the company that has other worries such as suppliers, competitors and third party vendor to set up the business and may not work the way it should. A reputation is already set because of the services and quality provided and if it change happens it could potentially harm the business.

For example, Apple does business globally. Their main supplier was Foxconn in China, this changed in 2010 when they were accused of low wages, long hours, poor working and living conditions basically sweatshop conditions and it backlashed. Now Apple has diversified their suppliers

• Cultural distance is the cultural disparity between the internationally expanding firm’s home country and its targeted host country. A firm’s decision to enter certain international markets is influenced by cultural differences. A greater cultural difference can increase the cost and uncertainty of conducting business overseas. Basically cultural distance increases the liability of foreignness. For example McDonalds started selling Beef burgers in India which is a country populated my majority vegetarians for religious purposes therefore affecting the business.
• IKEA’s external challenges include finding new sources of supply to support more store openings, opening new stores to encourage growth, increased competition, economic conditions, change in the market. Internal challenges include maintaining growth and design, replacing CEO’s, keeping costs low. Finding new sources of supply to support each store may be the greatest threat in my opinion. But if they focus on low cost it is possible.
• Expanding takes a lot of time, effort and attention to detail. It is important to take into consideration the deforestation and global warming issue

Answer 1

Answer:

The positive feedback for the below content is as below

· When organizations go global they need to make the suitable decisions based on their understanding and the competency that can help them to sustain and grow in their target international market. Thus they need to make decision based on their strength, competency and research of the target market so that they can explore and grow in international market. This is the normal way for entering in global market.

· Reputation improves with entering in the global market. The competitiveness also increases in the market with global presence. Hence we need to worry for the suppliers, logistics and other process which we have set at domestic factory. WE need to use these sources for the time we get set in global market and then slowly shift to new localized options in global market. Example how Apple has managed to shift to their new suppliers based on time and demand for change.

· Cultural differences are to be analyzed and reviewed in the initial research so that we can assess the feasibility and can manage the culture of target global market. Culture can be managed as other manages. We need to align to target market culture and make necessary changes to suit so that we can expand and grow our business. Many global companies have made cultural changes and adapted in global market easily.

· Managing internal and external factors for the business growth in global market is not a new thing that we are going to do. This has been happening from long time and many players had succeeded in global market. So we need to study and act slowly so that we can understand and make necessary changes so that we can adjust and feel comfortable. Economy, cultural, social, consume taste, cost management, productivity, union etc all such factors are common factor and company can manage them easily in global market as well. We can work with passion, commitment and zeal, and then we can achieve the success in global market.