Global Expansion

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Global Expansion is the idea and practice of expanding a business to other countries throughout the world. It isn’t just about exporting goods to other countries, but setting up business there too, getting the organization known worldwide. Global Expansion can be full of rewards and profits for a business that decides to make that leap, but it also carries risks that management must be prepared to handle should they arise. For a well prepared business that has a fully equipped itself for the globalization process and planned for the struggles that are practically imminent, Global Expansion could be the best thing the business ever experiences. Some of the advantages for a business from global expansion include the ability to lower the cost of goods due to added competition from the foreign business and the ability for consumers to have more to choose from. Another advantage is that it can also create employment opportunities when expanded in underdeveloped or poorer counties. The business can gain by having new and larger markets to move into and new audiences to promote their product to and create new profits. Disadvantages and challenges from Global Expansion can include the risk of entering a foreign market without being fully aware of the laws of that nation or not being culturally knowledgeable and sensitive which could possibly offend the people of that nation, not just by the product or business itself, but also in marketing strategies. Outsourcing to the foreign countries is likely once the business is well established abroad due to cheaper labor, this hurts the local employees as it is probable they will face unemployment or be forced to work for lower wages. Bath and Body Works is a business/retailer that I have chosen to develop a strategy for Global Expansion. Bath and Body Works is a major fragrance, body, and bath product store that began in the Midwest of the U.S. in 1990 and has since made its way to nearly every mall in the...
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