There are many organizations that established and maintain business plan to make sure the strategies are implemented properly set forward by the business to achieve its targets. Business organizations which are small-size and not in international business at present may consider entering into international market to increase it market share. The business plans made by many organizations are to properly assess the factors related to going global, and outline the steps necessary to achieve success. The global business plan is used as a guide to the organization which can depend on it to make decisions regarding important functions when it enters the international market. The global business plan also serves as guide by the key stakeholders and investors to their investment decisions.
The easiest way to identify the potential market, the person should be able to identify customer requirements that share common characteristics. The characteristics of a consumer can be “hard” variables such as age, gender, place of residence, educational qualification, profession and level of income or “soft” variables such as lifestyle, attitude, values and purchasing motivations. Hard variable helps us to analyse the number of potential customers a business can have. In case, imagine a diapers producer should acknowledge the number of children under 3 years live in a country and also the birth rate. The soft variables are used to analyse the motivations which leads to make decision to purchase and includes price, prestige, convenience, durability and design (Gurtoo, A 2009).
Transnational Plan for Global Business Opportunities
For business, there are two important topics in economics and international trade are absolute advantage and comparative advantage. They are responsible for how and why nations and businesses allot resources to the production of specified goods. In separation, absolute advantage explains about the situation in which an individual can make a product at a higher quality and at a faster rate for a greater profit than another business or company can finish it. Whereas comparative advantage is totally different from the absolute advantage because it takes into consideration the opportunity costs involved when choosing to manufacture multiple types of goods with limited resources. There will be a lot of confusion while starting a new business and rather daunting task. For the small business development there is a new source named ESRI business analyst online, which helps in identify and analyse business opportunities. This type of analyst is used to translate a wide information about business and marketing into easy and understanding language preferred which is accessible by all audiences. Even you are at the middle of the business process, business analyst gives an overview of: 1) sales, 2) target customers, 3) market opportunity, and 4) representations of data which includes maps, graphs, statistics, etc (Saraf, N 2013).
It also helps in finding suitable locations for the business through quickly created visuals showing locations and competitor locations. Business analyst will also help you to analyse: 1) demographics 2) drive time 3) sales volume 4) property costs 5) where to build 6) re-modelling and 7) relocating.
Market Analysis
The tools and wizards which were provided will help you recover and share your options to improve informed decision making by creating standard models and analyses (Webb, JW, 2014).
SWOT Analysis
SWOT analysis is a business analysis process that ensures the objectives for the project are clearly defined and factors that are related to the project are clearly defined. The SWOT analysis process is involving in four areas they are 1) strength 2) weaknesses 3) opportunities and 4) threats. When doing the SWOT analysis, they consider both internal and external components. The following steps are brief about the SWOT analysis (Webb, JW, 2014).
Strength – The strengths are necessary for the ultimate success of the project. Examples of strengths 1) strong brand name 2) good reputation and 3) cost advantages of proprietary know-how.
Weaknesses- This could prevent the successful result within the project are weaknesses. There are some weaknesses included 1) weak brand name, 2) poor reputation, and 3) ineffective and high-cost structure.
Opportunities- This will help achieve the goals set for the project. There are some opportunities included 1) arrival of new technology 2) unfulfilled customer needs and 3) taking business courses.
Threats- These external factors which seriously affect the success of the project or a business venture. There are some other threats included 1) trend changes 2) new regulations and 3) new substitute products.
When we were starting a new business, it is some default to understand the competition and how we can overcome them. There are so many competitors in the business, some of them are fully knowledge while others are not fully knowledge but we need to consider all. Direct competitors there are some people who supply the same product as you to the same target to the market. Indirect competitors – in this competition some people offer the similar product which will satisfy your customer’s need. The bargaining power of your suppliers – This is another potential competitor. In which they will sell your product directly to the consumer. Customer expectations have gone high and industry competition is increasing day by day (Saraf, N. 2013).
Conclusion
Keeping all these above considerations, I would like to say that businesses should improve results and increase efficiency under constant pressure. At the same time, the amount of data and its kind have grown exponentially- companies can now assemble this information from across their organization and across broader industry sources. Access to this huge and increasing pool of data creates an important competitive advantage and provides a special opportunity to conduct in-depth market research – offering a high observation into recent sales trends, critical business improvements and gaps in the market to abuse. Due to increasing the globalisation in the past decades even the small companies were able to cross the international and doing their business. There are many terms and condition for the companies who is operating the multiple countries: multinational, global business, transnational companies, international firms etc. For example, the Bartlett & Ghoshal matrix (1989) who is operating the business in the internationally in multiple forms. The both Bartlett & Ghoshal where concentrated their business based on the two criteria: global integration and second local responsiveness. The business which is highly globally integrated have the option to reduce the cost (Webb, JW, 2014).
References
Gurtoo, A and Williams, CC (2009), “Entrepreneurship and the informal sector: Some lessons from India”. International Journal of Entrepreneurship and Innovation, 10(1), 55-62.
Saraf, N and Banerjee, B. (2013). “Global Entrepreneurship Monitor, India Report”, available at fill://C:/Documents/Downloads/gem-india-20B-report-1431704366.pdf (accessed on February 10, 2016).
Webb, JW, Ireland, RD and Ketchen, DJ (2014). “Towards a greater understanding of entrepreneurship and strategy in the informal economy”. Strategic Entrepreneurship Journal, 8(1), 1-15.
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