Question

Response at least 150 words: What are some critical components to consider when establishing a global business strategy?

Answer 1

Some critical components to consider when establishing a global business strategy:

The first key component is culture. While establishing a global business strategy, the country's culture in which business is being expanded should be studied. The business works on delivering products or rendering services. The buyer of the products/ services if not feel any value according to their culture, the firm will experience huge losses.

The second component will be Economic Analysis along with the business environment policy, the duty and taxes being implied on the products and services, is it profitable after tax/duty deduction.

The third component will be legal policies. It's very essential to determine whether the country allows the delivery of product or rendering of services.

The fourth component is own organization structure analysis, is the organization and its member are ready for global expansion.

The fifth component will be financial feasibility, what profit will the strategy is going to deliver to the firm, the profitability is major concern.

The sixth component will be after-sales service plans, in case of all the above components are well-checked and the product/service clicks and is hit, it need after-sales service plan so as the strategy has sustainable advantage.

The other components will be local market agents who can represent the strategy, cross-border export service provider etc.