Multinational Company
Why go global?
In today’s world, it feels necessary for growth-minded business to go global. “How to take your company Global", is an article in Entrepreneur magazine that discusses this topic and also perfectly relates to some of the concepts that were talked about in class. This article talked about of some of the advantages and motivations to grow your business internationally .It also discussed concepts including importation and exportation , and how these go along with the topic of going global.
I found this article very interesting because it talks in depth about one of the concepts that we previously saw in the book: Motives for entering foreign markets. In the article as in the book ,they show two main reasons for domestic companies to go global. The first motivation is the desire to increase revenue. In saturated markets at home, extending sales by looking for new markets outside of the home country is a good strategy. Also bigger profits can be made where there is less competition, and the business could obtain better prices for its products or services. The second motivation is to protect the business from competitors by reducing dependence on the market in your home country. If sales are not going up , the business would still have revenue and support from another sources. The article expands the topic more by adding a third motivation, making your business more competitive. By entering in the global market a company will gain knowledge about different sales strategies, such as improving customer service and product quality. By learning how to compete against international companies, management can definitely increase the potential for growth and expansion.
By going global a business will have to face something that a domestic business would never deal with, Imports and exports. As explained in chapter one, Importation is the transportation of a good or services into the home country. The reason for importing many products or
In today’s world, it feels necessary for growth-minded business to go global. “How to take your company Global", is an article in Entrepreneur magazine that discusses this topic and also perfectly relates to some of the concepts that were talked about in class. This article talked about of some of the advantages and motivations to grow your business internationally .It also discussed concepts including importation and exportation , and how these go along with the topic of going global.
I found this article very interesting because it talks in depth about one of the concepts that we previously saw in the book: Motives for entering foreign markets. In the article as in the book ,they show two main reasons for domestic companies to go global. The first motivation is the desire to increase revenue. In saturated markets at home, extending sales by looking for new markets outside of the home country is a good strategy. Also bigger profits can be made where there is less competition, and the business could obtain better prices for its products or services. The second motivation is to protect the business from competitors by reducing dependence on the market in your home country. If sales are not going up , the business would still have revenue and support from another sources. The article expands the topic more by adding a third motivation, making your business more competitive. By entering in the global market a company will gain knowledge about different sales strategies, such as improving customer service and product quality. By learning how to compete against international companies, management can definitely increase the potential for growth and expansion.
By going global a business will have to face something that a domestic business would never deal with, Imports and exports. As explained in chapter one, Importation is the transportation of a good or services into the home country. The reason for importing many products or