Post4-Course-Organizational Theory

Task1-

Question: Module 4 Discussion Forum

Discuss the primary factors that motivate companies to expand internationally.

Follow below instruction/rules to complete the assignment.

Within each module, there is a list of key terms. Each student will select one of the key terms and conduct a search of Campbellsville University’s online Library resources to find 1 recent peer reviewed article (within the past 3 years) that closely relate to the concept. Your submission must include the following information in the following format: 

DEFINITION: a brief definition of the key term followed by the APA reference for the term; this does not count in the word requirement. 

SUMMARY: Summarize the article in your own words- this should be in the 150-200-word range. Be sure to note the article's author, note their credentials and why we should put any weight behind his/her opinions, research or findings regarding the key term.

DISCUSSION: Using 300-350 words, write a brief discussion, in your own words of how the article relates to the selected chapter Key Term. A discussion is not rehashing what was already stated in the article, but the opportunity for you to add value by sharing your experiences, thoughts and opinions. This is the most important part of the assignment. 

REFERENCES: All references must be listed at the bottom of the submission--in APA format. (continued) Be sure to use the headers in your submission to ensure that all aspects of the assignment are completed as required. 

Any form of plagiarism, including cutting and pasting, will result in zero points for the entire assignment.

Material:

Supplemental Resources

https://www.youtube.com/watch?time_continue=3&v=z7M1vQTvkx4&feature=emb_title

· Read sections 1.1, 1.2 and 1.5 from International Business

· Read section 10.3 from International Business

· Read 5 Stages of international market development

Task2:

Please provide comments/replies for below three discussions. Each comment/reply should be atleast 150 words.

Classmate disc1:

 Sai Kiran Nagala - Monday, 30 March 2020, 6:03 AM

 

Organizations including all the sizes are looking forward to take the business into the global level so that they can understand all the business trends and capture the huge opportunities for the business expansion and growth. International expansion not only create the values for the business, but also set up the trends and operations altogether so that they can gain the huge benefits and able to increase the revenues. To get the identification of the global opportunities in the business, it is helpful for the industries to enter into the international markets and analyse all the past trends to predict the future requirements of the business (Zekiri, 2016).

Following are the key motivating factors for the companies to expand the business internationally.

·         Improving profit margins

·         To find out new opportunities

·         Expand the sales operations

·         To find out new investment opportunities for the business

·         Expand the business operations

Many organizations believe that international markets are extremely hostile and create the many opportunities to the business for the growth and create the numerous sources for the revenues. Many enterprises views the international markets are the best platform for the business to create the new opportunities and growth ratio hence they get motivation from the international markets and set up the trends. International markets also allow the business to get the stability through the diversification and maximise the revenues and other opportunities for the business in all the possible ways (Zekiri, 2016).  

Every company want to utilise their resources fully so that they can open the doors for the opportunities and able to generate the huge revenues for the business. Global expansion create the new platform for the business to work on the latest business opportunities and other primary activities which gives growth to the business. Many organizations are continually researching and expanding the operations internationally so that they can get the attention and new opportunities to set the best platform and increase the global revenues. In the international markets, able to exist the new opportunities and growth options for the business hence organizations intentionally expanding their business in the international levels (Puig, Marques & Ghauri,  2009).

Classmate disc2:

by Mehulkumar Patel - Saturday, 28 March 2020, 12:03 AM

 

Introduction

In recent days’ companies are opting to expand their business and operations internationally. This expansion provides a better opportunity for the company to expand its market globally. The current trends require companies to widely diversify their services and businesses across the world to gain more competitive advantage, other competitors. Therefore, various factors contribute to the expansion of companies globally.

Increase the overall profit margins

According to recent studies, most companies expand their operations internationally to increase their profit margins (Eckel & Neary, 2010). To achieve this, they grow their revenue streams in various nations by increasing the number of customers. Also, some companies relocate their operations in different countries to reduce the overall cost. This creates a better opportunity for more profit generation.

Diversification of business

The international expansion allows a company to diversify its business. Thus, a company can spread risk globally, which make it retain benefits when a market in one country loses. However, the slack can be picked from a market in a different country. Also, a company can obtain raw material from suppliers in the international market when such materials are not available in the domestic country (Jormanainen & Kovenshinkov, 2012).

Recruitment of innovative and new talents

International markets provide a company with an opportunity to choose various talents from a variety. Various nations have different languages, thus recruiting people who are conversant with those languages can enable a country to connect to more customers in different countries.

In conclusion, international expansion can provide a significant impact on a company’s productive. Thus, this paper has examined some factors which make a company to opt for global expansion. Market exposure all around the globe is essential to any company.

Classmate disc3:

by Ravi Pulapa - Friday, 27 March 2020, 11:32 PM

 

There are some of the factors that are motivated by companies for expanding the business internationally. Let us discuss some of them in deeply.

Culture

While expanding the company globally it will be crucial to consider the cultural difference. The culture needs to be understandable and while expanding internationally the new market needs cannot be ignored by the business. The value and the community of the company must not ignore. This would be said as neglecting the effect of the cultural difference and underestimating them. For achieving the business goals and aims the considerate amount and time need to be invested by the company for pursuing the venture of overseas (Chon, 2012).

Barriers which are Legal and Regulatory

The business which is expanding internationally they need big barriers which are legal and regulatory ones and they have to check. This may occur due to the product sensitivity and they will serve the plan and the current government will follow the regulations that are implemented and for navigating the factors the business needs to be flexible. Before panning to overseas investing time and budget on a counsel which is legal one will be difficult and crucial factor. For expanding the new market, it would be expensive as they need to expand all the areas and that would take a lot of time and take time to execute the new works (Jormanainen, 2012).

Foreign Government Consideration

For making the business success after expanding the market internationally for the barriers which are legal and regulatory the flexibility in economic and the stability of the government locally play a big role for making the business success after expanding. There are some of the facts that are considered here. The exchange rates of currency, for the resources and material which are needed the access need to be given, options of transportation and communication, for business the programs will be assisted by the government. Laws immigrated and employed (Lu, 2011).