Foreign Markets

Topics: Non-profit organization, Non-profit organizations, Marketing Pages: 5 (1382 words) Published: December 19, 2013
Running Header: Foreign Market Entry and Diversification

Week 7 Assignment 3
Foreign Market Entry and Diversification
Strayer University
BUS: 599
Dr. Melinda Swigart
November 24, 2013

Abstract
There aren’t too many non-profit organizations that enter foreign markets due to the unfamiliar territory. Before a company enter into international markets to conduct business it is important to understand the country’s culture, customs, needs, and unspoken rules that will ultimately help better and tailor your concept for that market (Bias, 2011). Our company will need to complete research and examine our domestic marketing strategy in place to ensure it is tailored to positively receive in the proposed international territory we plan to enter. Five steps recommended for non-profit organization to use when entering the foreign market are: 1. Educate yourself on the customs and business etiquette of the international market. When entering a foreign market make sure you know the country’s history, the proper way to greet someone, the ordinary times for lunch (or prayer in many African, Asian and Middle-Eastern countries). Make sure you are communicating with them in the expected way within their society — e.g: with the appropriate salutation. (Bias, 2011)

2. Gather historical data on the country’s currency value fluctuation and import/export timelines. This is crucial. The deal you discuss today may not be executed in time to reap the full potential of the opportunity. You could be negotiating a deal that may cost 15 percent more in a few months when the transaction is finalized. Worse yet, you may offer a promotion that costs you significantly more a week into the offering. Lock in currency rates and delivery dates in advance whenever possible. The less speculation, the better. (Bias, 2011)

3. Become an expert on the country’s laws governing business. Have local representation if possible, someone who can help you navigate any unforeseen obstacles and explain all contract provisions and terminology. Know and understand the laws and legalese of the jurisdiction that governs your contract before it becomes legally binding. (Bias, 2011)

4. Conduct focus groups to test the waters in the prospective international market. Understanding each country’s culture means you have to find ways to reach what would otherwise be the same demographic but in a different location. A new approach may be needed to make your product or service suitable to the needs and expectations of the potential foreign market and its culture. Studying these countries, including their professional and personal customs, will ensure that you conduct yourself in a respectful way. This will also signal to the business leaders and potential customers in the new market that you know their protocol and you’ve take the time to adapt to it. (Bias, 2011)

5. Find out what your competition has done in the same territory.

Has one of your competitors tried t enter this market before? What obstacles did they face? How did the approach the new market? And most importantly, what would you do differently? (Bias, 2011)

Create an argument for diversification of your business that will be presented to the board of directors or business investors.

Diversification is important and a vital move for any business. A business must not only know the need to diversify but it must also be aware of when to diversify (Thompson, Strickland & Gamble, 2010). Diversification will allow the company to expand into other markets and operate more successfully and the help the longevity of the business. Our purpose to diversify the company is to build shareholders values (Thompson, Strickland & Gamble, 2010). With entering foreign markets and being successful in the foreign markets we enter will not only have long term effects on the marketplace globally, but will make us a more powerful competitor (Thompson, Strickland & Gamble, 2010)....


References: Bias, M. L. (2011) “A 5 Step Prime for Entering International Markets. Retrieved on
November 25, 2013 from: http://www.forbes.com/sites/yec/2011/09/22/a-5-step-
primer-for-entering-an-international-market/
Mexico Non Profit Organizations (2013) Retrieved on November 27, 2013 from:
http://www.mexonline.com/noprofit.htm
The Mexico Report (2013) Retrieved on November 27, 2013 from:
Mexico Non Profit Organizations (2013) Retrieved on November 27, 2013 from:
http://www.mexonline.com/noprofit.htm
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