Question

Some suggest that foreign markets are graveyards for entrepreneurial firms that overextend themselves. Others argue that foreign markets represent the future for SMEs (small and medium enterprises).

Questions (copy the questions before providing quality discussions, not just a simple answer):

1. If you were the owner of a small, reasonably profitable firm, would you consider expanding overseas? Why or why not?

2. What are the key issues here?

3. What are the experiences and lessons that you have got from your previous simulation practice round?

Answer 1

1) If you were the owner of a small, reasonably profitable firm, would you consider expanding overseas? Why or why not?

answer- if i am the owner of a small reasonably profitable firm then i would definitly consider expanding overseas if my firm has passed the growth stage and is going to enter the maturity period. the advantages of this will be- more customers, access to larger talent pools, more profits as the market is expanded now, more efficiency and productivity and so on. so it would be a great idea to expand overseas.

2) the key issues here can be licensing and permission problem at first. after that

-  Market oriented issues

-Failure of business model

- under performance of management team

- liquidity crunch

- product oriented problems etc can be the issues in operating overseas.

3) from my experiences i can say that to be a successful business overseas one should follow some rules such as stage model where a firm moves in slow stage by stage manner then rapid internationalisation when it establishes itself in the foreign market.