Body Shop Expansion To China

Powerful Essays
COSMA ZONE EXPANSION TO CHINA

Submitted To:
PROF. MUBASHIR
Submitted By: RAMSHA KHALID 10
MAHWISH IJAZ 32 SHAZMIRA AHMAD 40
MBA 1.5 (2ND Semester)
2012-2014

INSTITUTE OF BUSINESS ADMINISTRATION
UNIVERSITY OF THE PUNJAB

WHY GO GLOBAL?

Business has to scale up to meet the demands of this global market. The scaling-up process is unavoidable.
- Richard Parsons, former CEO and Chairman of Time Warner

The answer to “Why go global?” is a simple one. If you want your business to remain competitive you have to expand internationally. If you don’t, your competitors will – and in the process they will increase their cash-on-hand, acquire better employees, improve their production efficiency, and iterate faster.
We live in a global village. Teenagers around the world – from Thailand to Canada to Turkey – are texting 24/7 and have an opinion about whether the iPhone or Android is a better phone. KFCs and Diesel jeans are in every major city and you’d be hard-pressed – even in remote, 2nd-world countries – to find someone who has never used the Internet.
Every day more and more products make a trip half-way around the world, either by air or sea, into the hands of consumers who have never visited the country of origin.
Growing your business must include a plan for international expansion. Now, I know you’re not going to be convinced by a bunch of anecdotes, so here are the facts about why you should go global (or at least start thinking about it seriously!).

The Benefits of International Expansion
1. You will have more customers.
2. You will have access to a larger talent pool.
3. You will have more profits.
Not only will you increase the number of potential consumers of your product or service, but you may also be able to extract higher margins. When exporting products your costs will undoubtedly change, but it’s been shown that consumers in developing countries will



Bibliography: European Commission., 2006. Retail Sector: Forward-Looking Perspective of Eu-China Trade & Investment Relations. [pdf] Available at: http://trade.ec.europa.eu/doclib/docs/2006/july/tradoc_129429.pdf [Accessed 18 Aug 2013] Fung Group., 2012 Gocmen, T., 2004. Re-examining the Risk and Return Effect of Joint Ventures: New Empirical Evidence. [pdf] Available at: http://economics.ca/2004/papers/0211.pdf [Accessed 19 Aug 2013] Johnson, J Jurevicius, O., 2013. PEST & PESTEL Analysis.[online] Available at: http://www.strategicmanagementinsight.com/tools/pest-pestel-analysis.html [Accessed 18 Aug 2013] Kemp, R., 1999 Lambin, J., 2007. Market-Driven Management 3rd ed. [pdf] Available at: http://www.palgrave.com/business/lambin/students/pdfs/Note%2013.pdf [Accessed 18 Aug 2013] Little, A PWC., 2013. Doing Business and Investing in China. [pdf] Available at: http://www.pwc.es/es/publicaciones/economia/assets/doing-business-in-china.pdf [Accessed 18 Aug 2013] Recklies, D., 2011 World Bank., 2013. Data | China. [online] Available at: http://data.worldbank.org/country/china [Accessed 17 Aug 2013] UNCTAD., 2013 US Commercial Service., 2013. China Business Handbook. [pdf] Available at: http://export.gov/china/build/groups/public/@eg_cn/documents/webcontent/eg_cn_055956.pdf [Accessed 18 Aug 2013] Zhuang, G., Herndon, N

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