{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

unhp final exam - Successful Global Expansion All...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Successful Global Expansion All businesses are rooted in the local culture. Because businesses understand their home culture so well, they forget the importance of culture to business and run into dead ends while expanding globally because of this ignorance. There are four main interwoven aspects that need to be thoroughly understood and researched before thinking about expanding globally which include business, political, cultural, and environmental aspects. In a new market, you only get one chance to earn people’s respect and trust. With thorough research, tacking the different aspects mentioned above will guarantee success in the first effort. The first major aspect to consider before expanding globally is business aspect. This is, of course, the most marginally important factor to a corporation’s CEO. Factors such as the cost of raw materials and labor should be incorporated into the decision making process. A great example of this is the recent outsourcing boom in the Information Technology industry. It was getting tougher, day by day, to retain quality employees in the United States because of great salaries offered in rival companies. With tight budget orders from upper management, most companies were troubled by the status quo and were stuck between a rock and hard place. Meanwhile, with the high academic standards in India, there were millions of quality workers, but no jobs. Globalization and technology allowed these two markets to merge. Today, more companies open offices in countries such as India and China. Gaining an international market and investing in other nations can be extremely profitable, but only if close attention is paid to the foreign currency exchange rates. After World War 1, the Germans had to go through the inflation nightmare. The German answer to heavy reparation costs and mass unemployment was printing money at a skyrocketing rate. This took the snowball effect and pretty soon the German marks were worth nothing, because of their quantity in the market. A piece of bread cost billions
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Nandrajog 2 of marks, and workers were getting paid three times a day. The smart individuals, who had the foresight to see this coming, quickly exchanged their marks for gold while they were still worth something (“Nightmare German Inflation”). A similar situation occurred in Mexico during the Mexican peso crisis of 1994-95. Although not as bad as the German nightmare, everyone that had invested in the peso took a huge hit (Thayer). Ultimately all great business strategies involve building trust and brand name integrity. A successful business always values relationship building first and financial exchanges second.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}