Businesses have crossed borders, and it has been growing rapidly in recent decades because of the liberalization of government policies, and technological expansion. To satisfy the global demand of customers, it requires strong managements skills, sensitivity to cultural issues, and intercultural competence. As the multinational corporations grows and improve the quality, and operate at international level, this is why managers should ask three critical questions, first why should I expand internationally? Second where should I expand? Finally, how to expand? Which will help to achieve successful strategic objectives.…
Expand Online Presence –SNC is hoping to explore the new horizons to expand their reach to newer customers and retail markets. SNC is presented an opportunity to create business alliance with online nutraceuticals giant Golden Years Nutraceuticals, which has larger, and more diverse customer base. This alliance will help SNC to reduce its DSO because online sales usually collect rapidly from seven, to three, to two days during 2016-18. In addition, SNC also saw a 14%, a 12%, and an 11% increase in their sales in year over year during 2016-18. This could be beneficial for SNC, as it will help them to improve their sales without any significant effect on company’s working…
Institutional theory is one the most renowned theoretical approaches to internationalization process of firms. From the 70s, there have been publications supporting and developing this theory by researchers such as Di Maggio, Powell, Scott, Meyer or Rowan. Nonetheless, some other alternative theories, such as OLI paradigm or TCE model, have also proven themselves quite significant. Shortell and Kalunzy (2000, p. 24) state that organizations must face certain external factors such “external or societal norms, rules, and requirements that an organization must conform to, in order to receive legitimacy and support”; which are two basic factors for a successful internationalization process. Nowadays, it is essential to determine the accuracy of internationalization theories because corporations need to respond to the challenges of a globalized world. This essay aims to examine the applicability of the main assumptions of this theory in order to explain the internationalization decisions made by firms´ managers. For that purpose, key aspects such as its scope, current importance or empirical support will be evaluated.…
This course examines the issues and problems facing the manager in larger organizations conducting business in an international environment. It will focus on developing a conceptual framework of the operation of the multinational corporation and on identifying the factors leading to its successful performance. Use of Foreign Direct Investment as an effective competitive tool will be the primary focus. An explanation of the differences in a Multinational Corporation and a Global firm is explored. The course looks at the basic managerial functions in different counties as well as the assessment of the nature and scope of international business, the framework of international transactions, the interactions of governments and the multinational including an analysis of national environments.…
When a firm decides to go international with their business they must face many competitive decisions. Two of the most important decisions a company will face are the pressures for cost reduction and pressures for local responsiveness. The pressure of cost reduction forces a firm to lower their value of the cost of creation. Firms can outsource to places where costs of their products are much cheaper or they can mass-produce a standardized product in one location. A firm must have the feeling of local representation. Every country has its own way of life. If a company does not adhere to each country’s differences in traditional business practices, distribution channels, and the demands from the host government, there will be no reason going international. Customers in different countries all hold to their own ways of doings things. It is important for a multinational firm to become aware of all traditions and rules in the countries of entry.…
Internationalization of the business nowadays apparently became a trend for the organizations to expand their market position and gain the competitive advantage among their contemporaries. The extent and nature of business activities are almost as diverse and comprehensive as the totality of the social and economic interest of a man. Various business activities acknowledged the opportunities that the internationalization may deliver. Through their ability and capacity to expand their business operations, internationalization is highly possible. For most of the time, the high degree of the competition under the umbrella of an industry and the number of competitors that are engaged in the creating the same product and/or services or often referred as the competitors that are closely related can cause market stiffening and will tend to saturate the resources. This idea is one of the reasons on why the businesses are moving into foreign markets.…
Along with the constant deepening of modern international trade globalization, various economic elements of modern commerce such as: labor, goods, service and capital etc. have begun to span the geological border of each country and been widely circulated in the world under the promotion of the globalization. Especially the capital internationalization whose main form is international direct investment is the most frequent. The capital internationalization includes two dimensional contents: on one hand, it's an international of investor structure; on the other hand, it's also an international of enterprise organization structure, including the internationalization of enterprise headquarters, area headquarters, operation headquarters, capital headquarters or branch institution. The above two internationalizations supplement each other, develop the transnational operation network of the enterprise, promote the internationalized operation of the enterprise and reinforce or improve the international competition advantage of the enterprise.…
Haier’s strategy of letting local managers take care of a particular country is the correct strategy to attain “global localization”. However, this strategy should not undermine the fact that Haier’s success also depends upon local employees and managers that understand international markets and are very familiar with international business practices, thus have the ability to steer Haier into future.…
INTERNATIONAL MANAGEMENT: MANAGING ACROSS BORDERS AND CULTURES, SIXTH EDITION. H. Deresky. Upper Saddle River, NJ: Pearson Prentice Hall (2007), 512 pages. ISBN-13: 978-0136143260, ISBN10: 0136143261. List price: $180. Hardcover. The global business environment not only requires but also obligates businesses to develop proper management skills and abilities to plan, organize, lead, and control international businesses. International Management by Helen Deresky presents a very pragmatic yet theoretically grounded text. Deresky outlines the skills and abilities needed to address the demands, choices, and constraints that managers confront as they manage global competition. As the international environment changes, so must the thinking and strategies of managers. Deresky’s text methodically sets forth a description of the environments and the competencies that are needed to manage the description of the environments and the competencies that are needed to manage the challenges presented in the 21st century and beyond. This text offers a comprehensive outline of management issues as they relate to the culture, communication, organizational structure, and control systems of a business operating in cross-border situations. One of the key features of this text relates to the inclusion of many practical contemporary cases that show the real dimensions of businesses in the international context. Each chapter has a case attached to it. In addition, there are 12 comprehensive cases that delve into international management issues from a variety of perspectives.…
Growth of the firm is seen as a process in which the company gradually increases its international involvement. Experimental business knowledge generates market opportunities and a driving force in internationalization. Is expected that those who operate in international market are trained to see opportunities and problems and solve those to make the market less uncertain. The first pattern of internationalization explains that even if in the start the company has no regular export activities, export can take place through…
Organizational structures must change to adapt a firm’s evolving internationalization in response to world wide competition,and they must fit the strategy,international managers should find the best way to attain that fit in organizing the company’s systems and tasks.…
Factors of success in internationalization process ...................................................................................... 10 Internationalization policies ....................................................................................................................... 11 Redefinition/adaption of the company’s policies…
Internationalization is the increased significance for corporations to foster international relationships and to create alliances in efforts to provide goods and services to different parts of the world. This is all in part to globalization. The text talks about the various forces that are driving this behavior; for instance, the reduction of trade barriers through trade agreements so that more goods and services can be traded more openly, as well as they are able to enter into new markets with lower overhead costs.…
According to an article by Maarten Westermann in The Monroe Street Journal, some of the other challenges facing international organizations include: . There are a number of challenges facing multinational or international organizations. A third challenge is to find local managers willing to accept the need for this level of involvement and oversight by a foreign parent company. Like many other companies, Molex has made a commitment to maintaining and encouraging frequent and active communications between subsidiaries, and between subsidiaries and the parent company. Unlike some multi-national companies, Molex has made a substantial financial commitment to ensuring that it is able to communicate effectively with its subsidiaries so that managers have a common understanding of corporate goals, the company's financial performance, how they are expected to manage employees, and how to improve service to customers. One of the most difficult of these challengesinvolves the need to respect individual cultures in the countries in which Molex operates while maintaining Molex's minimum standards for its Management function. Different taxation rules that require companies to carefully plan where and how they do business internationally. Another challenge is communicating its HR commitments to managers of its foreign subsidiaries, and accepting the fact that in some countries local customs or regulations may prevent them from implementing Molex corporate HR policy in the same way it would be done in the United States. There are several human resources related challenges facing Molex as a global organization. Molex places an emphasis on spreading the company culture to every employee in every country in which it operates. The special challenges to multinational companies resulting from the creation of the European Union. "Business Challenges of EU Expansion." The Monroe Street Journal (2 3). According to the…
With the rapid development of economic globalization, internationalization is becoming the development tendency of lots of organizations as it is becoming increasingly more beneficial to develop organizations’ competitiveness against their competitors (Ebner, 2001). Wilson (2006) states that internationalization provide organizations opportunities to participate in lots of cross-border activities quickly which may make a contribution to not only organizations’ revenue growth, but also their knowledge exchange and capabilities enhancement, thereby internationalization strengthens organizations’ long-term competitiveness. However, organizational internationalisation is a two-edged sword. Organizations may be impacted by some factors in the international environment, products or service which the organizations provided may be culturally sensitive in the host country as different countries have their cultural difference (Czinkota, et al. 2007). Therefore, international environment may influence organizations’ management activity to some extent, especially, the implementation of international marketing strategies and the marketing mix. This essay analyses the detail of different factors encourage organizations to internationalize and explain why and how the factors encourage organizations by using “push versus pull theories”. Meanwhile, it also evaluates the culturally sensitive of products or service in the host country and its influences of different organizations’ international marketing strategies and the implementation of the marketing mix.…