Memorandum International management associated to international sales Concerns and considerations Board of Directors, ABC Complete Kitchen Inc,

Topics: Management, Strategic management, Supply chain management Pages: 8 (1586 words) Published: October 18, 2014


Memorandum
International management associated to international sales
Concerns and considerations
Board of Directors, ABC Complete Kitchen Inc,
SKS5000-8 Comprehension Strategic Knowledge Studies
Mohamed Benhalla
October 12th, 2014
Professor Karl LIyod

Memorandum

To: ABC Completes Kitchen,Inc

From: Mohamed Benhalla
Date: October 12th, 2014
Subject: International Management Considerations to international sales

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. `In this memorandum the Board of Directors for ABC Complete Kitchens, Inc. concerns of the board of directors of the plant relative to international sales of products of for ABC Complete Kitchens, Inc will be examined. This memorandum analyzes the international management considerations associated with the plant. ABC Complete Kitchens, Inc is anticipating nearly twenty percent of the sales from the international and overseas market. Therefore, the board of directors has expressed their concerns about the management of international aspects for the plant. Some issues have been identified in overseas management procedures, and considerations for the same are to be provided. This memorandum expresses the concerns for the same. The ABC, Inc needs to adopt international management strategies to sustain its competitive position in the market via adequate cultural, technical, political, and economic environment. Localization Concerns

After knowing why to expand either to increase sales or to cut costs or for other reasons . The ABC, Inc, should decide which countries to enter first, which type of countries to chose, what criteria to follow to make these choices. The best suggestion for ABC, Inc is enter the countries with the largest potential customers for its products, however managers should also think about how likely they are going to success in particular foreign market, and how to measure not only the geographic distance, but language, cultural, administrative, and economic distances as well. Language Concerns

Language affects the way of employees, customers and business partners communicate with each other. Based on the level of foreign language knowledge--basically the English--in the country's society, the ABC Inc. must carefully decide whether it can use English as a working and advertising language or if its management has to learn the country's own language and build the strategy on that language (Kozenkow). Cultural Concerns

The habits, behaviors and consumer preferences of every society are determined with Culture. While implementing a business strategy overseas, ABC Kitchen Inc, should consider all the cultural characteristics of the targeted society. When entering new country the t firm should ask if the customers want the same thing, or it will have to modify the product to fit their satisfactions. . Therefore, for increasing overseas sale, ABC Inc, must plan its overseas strategy keeping in mind of the culture of the country for which the strategy is being planned. Administrative and International Laws concerns

The ABC kitchen, Inc, need to abide and respect the different regulations, government policies, and legal systems, because countries vary widely on these dimensions, which require the firm to has a deep understanding on how to meet those regulations to avoid failure, even if the firm has the best products in the markets. Technical...


References: Ball,G. (2010). International business: The Challenge of global competition,12th Edition, New
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Lawerence,W. (2008). Business and Society: Stakeholders, Ethics, Public Policy, 12th Edition.
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Sullivan, D. (2011). Business strategies for organizational effectiveness within the global
Perspective
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