STRATEGY IN INTERNATIONAL BUSINESS
ARIZONA STATE UNIVERSITY
OMT 440 - INTERNATIONAL BUSINESS
WEEK 4
Introduction:
Entering the international market requires a special strategy that is slightly different
from the domestic market. A company that is interested in expanding into the international
market means that it has the ability to compete in the international market or it can expand its
business across national borders. Countries that have many MNCs (Nulti National
Company), then the country succeeded in developing its economy. The US has two-thirds of
its revenue coming from multi-national companies and from MNCs of other countries that
open their businesses in the US (Kinz, 2016). . In other words, companies that open branches
in other countries are companies that are successful and able to compete with other
international companies. .
Strategy is a series of actions taken by managers to achieve company goals (Kinz,
2016). Furthermore, it is explained that generally strategy focuses on profitability and profit
growth. Profitability is the rate of return of the company that makes a profit on invested
capital. Profit growth is the percentage increase in net profit over time.
Figure 1 above shows that profitability is related to reducing costs and adding value,
and companies can increase product prices. Meanwhile, increasing profit growth can be done
by selling more in terms of quantity (so that profits increase) and entering new markets (by
entering other countries' markets).
Before implementing strategies in international business, companies need to
understand the following key points (Kinz, 2016):
(1)
Controls:
The definition of control here is a measurement (metrics) used in the performance of sub-units
and making judgments about how far the sub-unit can run.
(2)
Incentives
Incentives are a device used to reward employee behavior to perform appropriate
managerial functions.
(3)
Processes
The definition of process here is the way decisions are made and the work done.
(4)
Organizational Culture
Corporate culture is the norms and value systems that are shared among employees.
(5) People involved (People)
The people referred to here are employees and the strategies used to recruit,
compensate, and retain these individuals to keep working within the company.
After the ability to implement the 5 things mentioned above, it means that a company
is ready to spread its wings to other countries. By expanding internationally, the company can
increase their profitability and profit growth, through (Kinz, 2016):
(1)
Efforts to enteroverseas marketswith little competition of the same products
(2)
Realizing a location economy, i.e. growing the economy in new areas
(3)
Gain experience in another country
(4)
Transferring valuable skills within the organization
8.1
Key Reasons for Venturing into Other Countries
As for companies that want to expand their products abroad, it is based on 3 main
reasons, namely (Kinz, 2016):
(1)
Why : to expand, i.e. why expand the product abroad
(2)
Where to expand, i.e. where they want to enter the foreign market
(3)
How to expand, i.e. how to enter into another country's market These three things will be
detailed below
8.2
Why to Expand
Companies that want to expand their products abroad, generally because they want to
get benefits from expanding their business abroad. This is the basis why the company wants
to expand its business abroad (Kinz, 2016). Furthermore, in the context of why expand its
business, the next reason is: :
(1)
Increase sales which is the first objective of the reason why expanding
overseas. But what about the research that shows that companies that have opened branches in
several countries earn little profit compared to their domestic market? This is due to the
"liability of foreignness" or "foreignness" "obligations" that must open branches in other countries,
for example, for the completeness of their business to be present in certain countries that already have
to open branches. For example, : Microsoft, will continue to expand its market in other countries
because it is obliged to spread its new products around the world in order to run the same system
around the world, whether it will make a profit or not (but Microsoft has already made a profit by
selling its programs in each country, namely by charging a certification / program authenticity fee)....
Therefore, those companies that have branched out are effective because they want to achieve the
more important strategic goal of being able to provide unique value to their customers.
(2)
Cut costs
The company will expand its business in the context of why it expands its business, is
for the reason of cutting costs. By expanding its business, it means that it increases the
number of products it produces and with a high volume of production, it will obtain lower
costs per unit of product. Thus, it will only spend on transportation costs and communication
costs, even though transportation and communication costs may still be large, but they can
approach cheap human resources For example, an American company that opens a branch in
China realizes that labor costs in China are cheaper and opens up opportunities to build
factories in China, even move to China. Or a US company opening sales in China means that
it can sell more products than it can in the US alone. It also means that it will be able to
increase its economy of scale and reduce the research and development costs charged to each
unit of product, because by selling more products, it means that the research costs per product
will be lower.
(3)
Manage Better Financial and Operational Risk
This means that the company can take on more financial and operational risk than if they
did not expand.
With the ability to expand its business in many countries, it means that it can reduce risk,
because it reduces risk This also means lowering costs. By obtaining more stable revenues
and earnings, they can reduce the risk of high capital costs and banking costs. For example,
each country usually has different instances of economic disruption ("schock" or "storm"). If
one country experiences a financial crisis, or currency devaluation in that country, the
company will still be able to survive with its activities still active in another country that is not
affected by the financial crisis. This means that it can obtain lower risk, which also means
lower costs. In addition, the company will be able to raise capital at no cost to banks and
investors. Thus, it can also lower its costs for this. For example, in 1994, there was a
devaluation of money in Mexico and the Mexican MNCs (cement manufacturers) that opened
branches in the US were able to survive because their domestic market was in crisis, but they
were able to continue their business in the US, and even became a worldwide cement
manufacturer leader. . Likewise, MNCs that have branches in Japan in 2011 there was a
nuclear reactor disaster that exploded in Fukusima Daiichi, only losing money on the
company in Japan (Kinz, 2016). This means that having many branches in other countries has
its own benefits, namely that the company can still survive in countries that are not affected
by problems (earthquakes, labor demonstrations, etc. that interfere with production).
(4)
Learn New Things
Learn new things means learning new things from customers. The point is that
companies can differentiate their products. This is because customers want products that are
different from the products that already exist in their country. For example, the company GE
(General Electric) heathcare division originated from the US, then he penetrated the Chinese
market and the company changed the condition of its products that have been marketed in the
US, by making changes to its products. GE made changes to its health products for the
Chinese market by producing low-priced medical devices, namely protable ultrasound
machines aimed at the Chinese market in rural areas. This is because the ultrasound
equipment owned by GE was originally a large and expensive ultrasound product. By entering
the Chinese market, GE then producing small, low-cost ultrasound machines aimed at not
only the Chinese market, but also the EU and US markets as well as other markets. So by
entering overseas markets, it inspired and innovated new products that could be marketed to
many countries including the US. So with a different type of customer, it can provide input to
the company.
8.3.
Where to Expand:
The first thing is to answer where the destination country will be used as the location
for product expansion, what products will be marketed. The first answer in this context is a
country that has a large market potential, such as China and India. After that, the next step to
consider is the distance that can be measured:
(1)
Geography (measure of distance) and how much it costs to travel there (transportation and
communication costs).
The geographical location of a country is a consideration that should be taken if a
company is going to expand to other countries. Therefore, it is understandable that many US
companies open their businesses first to Canada and Mexico before other countries, because
these two countries are the closest countries to the US and can be reached by land
transportation.
(2)
Cultural
Differences in the way people in a country live and think about the world are the basis for
cultural considerations. The second cultural consideration is the cultural structure of the
destination country, including the language used. Generally, companies consider expanding
their business in countries that have the same or similar culture and language or are easy to
understand.
By considering cultural factors, marketing the product becomes easier. If the culture is
different, then it may be necessary to customize the product. Product customization is done if
it is needed to be customized (to modify) for example food, clothing (fashion), washing
equipment, drying equipment etc, while products such as cement and semiconductors usually
remain the same, unchanged.
(3)
Administrative:
There are 3 things that should be considered in terms of administration, namely:
(a)
Regulation.
(b)
government policy
(c)
legal systems
For Americans, the Chinese market has differences in regulations, government
policies and legality systems, so US businesses are less interested in opening markets in
China, even though the market is large (Kinz, 2016). This will affect the success of bringing
the introduced products due to the impenetrable regulations, policies and legality systems.
(4)
Economy
The main reason for considering economic factors in relation to business expansion
abroad is the average purchasing power of the people in the destination country (the average
of purchasing power).
The figure above shows that economics also considers how much purchasing power
the country has and the elasticity power of product demand. The destination country should be
considered whether its population is able to buy its products. This can be caused by global
market conditions consisting of 2/3 of the world's population earning below 2 US dollars per
day (below Rp. 37,000 per day). Meanwhile, India, with a population of 1.2 billion, has a
situation where 75% of the population does not have a refrigerator, meaning that they do not
have enough money to buy a refrigerator, have limited electricity availability and want to buy
food in small quantities because there is no food storage device. It is this weakened
geographical, cultural, administrative and economic situation that can influence the chances of
an entrepreneur aiming to export his products to achieve success (change of success). This
influence will be so great because of the constraints of an unfavorable export destination
situation. Therefore, an entrepreneur who If you want to export, you should look at the
situation of the destination first. If you want to export to India, the products that will be
offered for export are the right products needed at affordable prices for the Indian people.
8.4 How to Expand:
In expanding its business, in the context of how to expand, it can consider the
following 3 fundamental strategies:;
8.3.1
Multidomestic,
The more differences there are in foreign markets, the more difficult it is to market
products internationally. The diverse problems arising from a country are referred to as
multidomestic. For example, GE (from the US) and Samsung (from South Korea), both have
refrigerator products, but their products have different designs to be marketed in certain
countries. This means that each does defferentiation. GE will make a smaller refrigerator than
the refrigerator marketed in the US because Asians like refrigerators that are not too big.
Large refrigerators marketed in the US have 3-4 doors, while refrigerators marketed in Asia
only have 2-3 doors. Samsung has a refrigerator product that has a special shelf for storing
Kimchi, which is sauerkraut from cabbage, so that the smell does not interfere with other
foods. So each company has a different way of approaching the market, just as GE and
Samsung changed the design of their refrigerators. Most importantly, consumers are generally
willing to buy the products offered after differentiation.
8.3.2
Global:
In the global principle, customers want the same product (quality) as products
marketed in other countries, in other words, there is only one market or single market For
example, Boeing airplanes, must have the same quality if ordered by anyone from any country
in the world. In this case, the airplane market has a single market. This means that the aircraft
company has products that are produced with the same standardization, marketing and
operations for every product it sells. It also means that it has a standardized employee base are
true professionals in their field. Generally, such products are not mass-produced because each
product requires high facilities and control. Thus, the aircraft company must be able to make
products that are exactly the same in standard in each product, because consumers want that,
namely through the maximization of economic skills.
However, there are also consumers who do not want the same products from their
home country if the company opens a branch in another country. The farther the geographical
location, the more different cultures, different languages, different economic capabilities, will
foster different consumer desires.
An example of this is McDonald's, which has expanded to many countries around the
world, changing its menu in almost every country. In Japan, McD uses teriyaki in its burgers
because Japanese people like teriyaki and green tea sundaes, because green tea is common in
Japan; while in Italy, it serves Parmesan cheese McNugget (McD's signature Parmesan cheese
nuggets) in its hamburger filling. McD in Indonesia also always serves rice in every McD
branch .
8.3.3
Arbitrage:
The definition of arbitrage here is to exploit differences in costs incurred or product
quality from other countries. As is known, every company already has to pay attention to
costs and product quality in every step of its business. Therefore, if there is an opportunity to
obtain lower prices in another country, it would be considered reasonable for a company to
take advantage of the opportunity to obtain lower costs. For example, IBM hired Indians as
software programmers due to the reason that the cost/salary was cheaper with Indians' good
computer skills than using US people and therefore IBM opened a branch in India to be able
to access/approach Indians with computer skills. (exploiting labor cost and good quality).
A company is also considered reasonable if it utilizes a skill that is not easily
available, and it utilizes it to make or produce the best goods for consumers. For example,
Hyundai utilizes a design expert from California (which is known for designing cars) in order
to he was able to get creative designs for the Hyundai cars he would produce. This was done
because there were no car design experts in South Korea, so he used Californians who had
better skills than domestic people. In other words, Hyundai exploits the quality of labor from
abroad (California, USA). Similarly, the electronics company Philips (from the Netherlands)
built its R&D department in Japan because it could take advantage of the number of qualified
electronics engineers available in Japan (exploiting the quality of labor).
There is another arbitrage strategy that exploits well-known brands/stamps from other
countries, in this case meaning that arbitrage exploits the cultural abritrage of well-known
"labels" from other countries. For example, if you want to say the best chocolate, then people
know it from Belgium, even though the actual ingredients of chocolate come from Indonesia
and Africa. But what is commonly known is that the best chocolate comes from Belgium.
This is what is called a stamp ("cachet") in cultural arbitrage. Another example is that the
best wine comes from France so the best wine is French wine, cheap and good cars for the
people with the VW brand come from Germany, fast food from the US is KFC. In China,
because the name KFC is very well known as a place to eat quality and high reputation, then
in China KFC can be utilized as a quality place to eat so that it is used as a meeting place for
meals, receptions etc.
The figure above shows that strategy in international business is based on :
(1)
Reason that is clear, reasonable and possible
(2)
Places or countries suitable for marketing there
(3)
The most appropriate operational strategy
(4)
The conditions of the country to be entered, whether it is suitable or balanced, which is not
only because of the large population (for example India and China), but whether it is able to
buy at the set price, can it compete with local and international companies in the country.
What can be concluded in applying strategies in successful international business is to
combine the ability to use the right reason, the selection of the right country (right place),
namely the people of the country need the products sold, then the selection of the right
strategy and at the same time be able to select the balance of the country chosen. If these
conditions are all in the hands of the entrepreneur, then he has found a big way (the right
direction).
VII. PRESSURE OF COST REDUCTION AND LOCAL RESPONSIVENESS
In international business strategy, it is first necessary to answer a key question: "when
is an international strategy appropriate?", the answer is "when products for the domestic
market can be sold internationally with only minor tweaks or adjustments" (Kinz, 2016). The
answer is "when products for the domestic market can be sold internationally with only minor
tweaks or adjustments" (Kinz, 2016). It is then elaborated that an international strategy begins
to be thought of when there is pressure to keep costs down and there is a gap or response from
local markets in other countries and both reasons can be accepted by common sense (make
sense).
10.1
International Strategy:
Companies can use an international strategy if they face pressure for low cost
reduction and pressure for low local responsiveness. The company can get a low cost
reduction by sending only technical personnel to other countries and in other countries its
products have no real competitors so that the company does not need to reduce prices, and can
even give high prices to its products. While companies with low local responsiveness are A
company that can produce its products in its own country and can market them with minimal
changes. This is also reinforced by the need for the product as a universal need, so every
country is advised to have the product available in that country. An example that occurs with
low cost reduction and local responsiveness is Microsoft. This company produces its goods in
its own country (Richmond, USA) and is marketed to all countries in the world without any
product changes. Product changes may only be a matter of language and Microsoft provides
its products in various languages. Microsoft uses licensing agreements and strategic alliances,
to penetrate the global market with first-mover advantage and low development costs. This
means that the cost of producing the first product is low because it can be marketed
worldwide and only requires the availability of language facilities. Thus, Microsoft also
means spreading its product risk across its partners from the way it mass-produces its
products and is minimally customized (only adding foreign language versions of other
countries). So, the product is the same, it just has a different standardized language.
10.2
Global Standardization Strategy:
This strategy is used when there is high cost reduction pressure and low local
responsiveness pressure. In anticipation of these conditions, companies should strive to price
their products low, but not make many changes to their products to save money. Such
products are generally electronics products, such as: Hitachi, Samsung, Sharp, LG etc.
Globalization has created a trend of standardization in many types of consumer products,
leading to the needs of families. For example: Samsung produces many household appliances,
such as televisions, washing machines etc. Today's televisions are almost identical because
they use the same universal input, which allows for low switching costs among brands (ability
to use low power capacity). The rapid growth of technology also helps to reduce costs. Thus,
Samsung's cost reduction is high (high of cost reduction), as it has to compete with other
television brands. However Thus, today's televisions are of the same standard as other
televisions (e.g. the ease of moving channels and the number of channels that can be used). It
can thus be said that Samsung televisions have low local responsiveness, as they do not
require many changes to enter other countries.
10.3
Localization Strategy:
This strategy is used when there is pressure for low cost reduction but high local
responsiveness. Thus the company's focus can be on increasing profitability by tailoring its
goods or services to local desires. Tailoring to local desires is in line with the pressure of high
local responsiveness. An example of a product that uses this strategy is Haagen - Danz ice
cream. The company realized that there is a big difference in the tastes of people in the world
about what ice cream tastes best to them. Haagen - Danz is actually a world-renowned luxury
ice cream brand. The company conducts extensive market research before entering foreign
markets. It then tailors its products to local trends.
Haagen-Dazs is favored by US consumers because they like products that are easy and
convenient to consume on the go (can be eaten on the road).
Haagen- Danz has entered Europe and its brand is already known as a fancy and classic
dessert. Therefore, it has a product called "Traditional European Style Dessert", which
consists of various types of classic ice cream and drinks as well as chocolate ice cream for the
German people who are very fond of chocolate. For the Asian market, Haagen Danz packages
its products as smooth and petite ice creams. For the Korean market, the ice cream is added
with fruits because Koreans love fruits. For the Chinese market, Haagen-Dazs pays attention
to seasonal activities, making Moon Cake in celebration of the Lunar New Year. In Japan,
Haagen-Dazs made a commercial featuring local celebrity, Kiko Mizuhara. Haagen-Dazs
featured ice sends with small portions for Asian people. Thus, an example of a company that
anticipates low cost reduction and high local responsiveness is Haagen-Dazs ice cream.
10.4
Transnational Strategy:
A transnational strategy is used when there is pressure for high cost reduction and
high local responsiveness. The company combines its global reach, operational coordination
and profitability to drive market share and continuous profit growth, enabling it to achieve
low costs through economies of scale and learning effects. An example of a product that
experiences cost reduction and high local responsiveness is Coca Cola.
THE ROLE OF TECHNOLOGICAL ENVIRONMENT ON INTERNATIONAL
BUSINESS ENVIRONMENT ADAPTATION
ABSTRACT:
This study aims to explore and analyze the implementation of the role of technological
environment on the dynamics of the international business environment. We use the literature
study method to collect and analyze current information on how technological advances affect
business strategies and company interactions in the global market. The results of this study are
expected to provide in-depth insights into the role of technology in the context of the
international business environment.
INTRODUCTION:
International business involves the complex evolution of the global economy.
Globalization, driven by technological advancements and changing consumption patterns,
enables companies to penetrate markets across borders. Changes in trade regulations and
foreign direct investment are important catalysts in the growth of international business.
Regional cooperation, such as the European Union and ASEAN, is creating new dynamics in
global trade. Increasingly complex global supply chains are forcing companies to adapt to a
changing business environment. This backdrop reflects a profound transformation in the way
companies operate on an international level. The reality of international business reflects the
complex and constantly changing dynamics on the global economic stage. Companies today
not only compete in local markets, but must also adapt to challenges and opportunities at the
international level. Globalization has erased most geographical boundaries, allowing
companies to conduct operations across borders. Technology, as a key driver, has overhauled
the way business is conducted.
Rapid changes in communication and information technology facilitate international
collaboration, change consumption patterns, and open the door to global innovation.
Companies must now consider the impact of digital technologies on their business models and
how they can leverage them for competitive advantage. International trade regulations and
investment policies provide the foundation for international business operations. Changes in
the regulatory framework can have a significant impact on a company's expansion policy and
trade strategy. In this context, political stability and geopolitical uncertainty are also factors
that affect international business. Changes in diplomatic relations between countries can
affect trade and investment policies, creating risks and opportunities that companies must
elaborate. Global supply chains are becoming increasingly complex, involving interactions
with suppliers, manufacturers and distributors from different countries. Companies must
manage operational, logistical, and By understanding these realities, companies can make the
right strategic decisions to face challenges and capitalize on opportunities in the ever-
changing international business stage. In the era of globalization and digitalization, the role of
technology cannot be ignored in shaping and influencing the international business
environment.
LITERATURE REVIEW:
This section presents a comprehensive literature review on the role of the technological
environment in the international business environment. We analyze key concepts such as
digital transformation, technological innovation, and international business strategy
adaptation. In addition, we explore the theoretical frameworks that underpin the relationship
between technology and global business dynamics.
First, we look at how digital transformation has fundamentally changed the way
companies operate and interact in the global marketplace. Using case studies and trend
analysis, we identify the positive and negative impacts of digital transformation on the
efficiency and sustainability of international business. Digital Transformation in the
International Business Environment is a comprehensive revolution in the way companies
operate and interact on the global stage, driven by the integration of advanced information
technologies. As part of this evolution, companies are adopting a wide range of digital
innovations to optimize efficiency, respond quickly to markets, and improve
competitiveness.( Wiley & Sons. Hill, C. W. L. (2018) Here is an in-depth decryption of the
key forms of this digital transformation: Companies are adopting the latest information
technologies, including cloud computing, big data analytics, and artificial intelligence, to
improve data management, accelerate decision-making, and build more responsive business
models. Digital transformation is creating a macro e-commerce landscape, enabling
companies to reach global markets more easily. Online business is becoming a major avenue
for companies to increase visibility and expand the reach of their products or services.
Technology integration in supply chain management brings end-to-end visibility, enabling
companies to optimize stock, improve logistics efficiency, and provide faster responses to
changes in demand or supply. Virtual collaboration tools and digital communication facilitate
global teamwork.
(Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2018) Companies can run
projects, communicate in real-time, and manage distributed teams through digital platforms
that enable the exchange of ideas and information without geographic boundaries. Enterprises
integrate the Internet of Things (IoT) to connect and manage devices efficiently. From
inventory tracking to predictive maintenance, IoT improves operational efficiency and
provides more accurate data for decision-making. Digital transformation is shaping the way
companies interact with customers. Mobile apps, content personalization, and digital customer
service platforms enhance customer experience, build engagement, and create loyalty. Digital
security is a key focus in this era of digital transformation. Companies are engaging with
high-level security solutions to protect customer data and comply with stringent regulations in
various jurisdictions. Companies are leveraging the flexibility afforded by digital
transformation to respond quickly to market changes. Innovation becomes easier, and
companies can adapt their business models more effectively according to market dynamics.
RESEARCH METHODS:
This research method uses a qualitative research method with a literature study approach. This
research involves an in-depth analysis of literature sources relevant to the research topic.
Researchers identify, collect, and evaluate various references such as books, journals, and
articles to understand key concepts, recent developments, and existing viewpoints. This
process helped the researcher build a strong theoretical foundation before engaging in
empirical research.
.RESULTS AND DISCUSSION:
We outline the research findings and provide an in-depth interpretation related to the
implementation of the role of technological environment in the context of international
business. The discussion involves comparative analysis, practical implications, and future
research directions.Implications of Findings for International Business Practice: We discuss
the practical implications of the research findings for firms operating in global markets. This
includes strategic suggestions for capitalizing on technological opportunities, overcoming
challenges, and building resilience in the face of a changing international business
environment. Findings from a literature study in the context of international business can have
a variety of implications. Some of these involve:
1. Business Strategy:
Business strategy involves the planning and implementation of plans designed to achieve the
long-term goals of an enterprise. In the midst of ever-changing market dynamics, this strategy
becomes the main guide for companies in managing resources, competing, and adapting to the
business environment. companies develop business strategies to identify the best way to
achieve competitive advantage. This involves an in-depth analysis of the company's internal
strengths and weaknesses, opportunities and threats in the external environment, and a clear
understanding of customer needs and preferences. Flexibility in strategy is essential given the
rapid changes in the global market. Companies must be able to respond quickly to market
dynamics, technological changes and the development of consumer trends. Therefore,
business strategy is not a static entity, but rather a guide that can be adjusted according to
changing market conditions. In addition, the integration of corporate values and
organizational culture is also an integral part of business strategy. The strategy should align
with the company's core values and create a work environment that supports the achievement
of long-term goals. Sustainability is also an important consideration in business strategy
development. Companies must consider the economic, social and environmental impacts of
their strategic decisions, creating a business model that is not only profitable, but also
sustainable in the long term. Overall, business strategy is a compass that guides companies
through the complexities of the business environment, helping them innovate, compete and
grow sustainably. Findings can guide companies in determining international business
strategies, including target market selection, product or service adaptation, and managing
risks associated with the global business environment.
2. Human Resource Management:
Human resource (HR) management is a discipline that encompasses the planning,
development, and management of human resources in an organization. It involves making
strategic decisions to ensure that the workforce contributes optimally to the company's goals.
HR management includes the recruitment and selection of employees that match the needs of
the organization, as well as the development of employees through training and skills
development. The focus is not only on technical aspects, but also on managing organizational
culture and employee satisfaction. An important aspect of HR management is performance
management, including employee appraisals and the development of incentive systems that
encourage employees to achieve the best results. It also includes conflict management and
interpersonal problem resolution to ensure healthy working relationships among team
members. HR management also takes into account aspects of fairness and diversity in the
workplace, ensuring that company policies and practices support an inclusive and equitable
environment. Employee welfare and compensation management are also integral in ensuring
employee satisfaction and retention. In addition, HR management adapts to changes in the
work environment, including technological developments and global trends that affect the
way people work. Innovations in HR management include technology integration, work
policies flexible, and strategic adjustments to demographic changes in the labor market.
Overall, human resource management creates a foundation for optimizing employee
contributions, building a positive work culture, and achieving organizational goals effectively
and efficiently. Implications for human resource management practices may include adapting
to cultural diversity, selecting international teams, and managing cross-cultural
communication.
3. Government Policy:
Government policy covers a range of decisions and measures taken by the government to
regulate and shape various aspects of people's lives. These include the economy, education,
health, environment, security, and more. Government policy can be national, regional, or
local, and its goal is to create conditions that favor the well-being of society. Economic
policy, for example, includes measures to regulate inflation, economic growth, and wealth
distribution. Education policy is concerned with setting education standards, resource
allocation, and strategies to improve the quality of national education. Meanwhile,
environmental policy includes efforts to maintain environmental sustainability, manage
pollution, and protect ecosystems. The policy-making process involves analyzing problems,
identifying potential solutions, and making decisions based on political, economic, social, and
environmental considerations. Policy implementation typically involves various government
agencies, as well as community and private sector involvement. Government policies may
also change over time in response to new developments, changing social conditions or
external pressures. In a global context, intergovernmental cooperation is key in responding to
cross-border issues such as international trade, climate change, and global health. Overall,
government policy is an important instrument in shaping the direction and characteristics of a
society. Effective policy implementation can have a positive impact on people's well-being
and sustainable development. Findings can provide insights to governments related to policies
that support or hinder international business, such as trade regulations, investment policies,
and international cooperation.
4. Risk and Crisis:
Risk in a business context refers to the likelihood of an event occurring that could hinder the
achievement of a company's objectives or cause losses. Managing risk is an integral part of
business activities, and companies need to identify, assess and manage potential risks to
minimize their impact. Some types of risks in business include: Financial Risk, Operational
Risk, Reputational Risk, Legal and Compliance Risk, Market Risk, Strategic Risk The
importance of risk management is to identify, measure, and manage these risks in a way that
is compatible with the company's objectives and risk tolerance. Risk management strategies
include portfolio diversification, insurance, development of business continuity plans, and
implementation of best practices in security and compliance. With a thoughtful approach to
risk management, a company can increase its resilience to uncertainty and improve its
chances for long-term success. The implications for international business risk can help
companies identify and manage risks, and develop strategies to deal with crises that may arise
in the global marketplace. By understanding these implications, companies can make more
informed and effective decisions in managing their business operations in international
markets.
CONCLUSIONS:
The research concludes with a conclusion that summarizes the key findings and provides
recommendations for further development in this area. Recommendations involve potential
follow-up research, business strategies, and policy implications to support growth a certain
percentage so that they will benefit (Blocher Edward, 2007).
ANALYSIS TIKTOK IN REACHING MARKET GLOBAL AND IMPACT ON
INTERNATIONAL BUSINESS
Abstract:
This study aims to analyze how the influence of the TikTok Platform to reach the global
market. The analysis method used is descriptive analysis with the sample used is data that is
already available and accessible, such as financial reports, press publications, and
media.TikTok has the ability to create trends and create interesting content that can help
businesses to go viral and expand the market. However, international businesses must also
pay attention to the challenges and drawbacks of using this platform in order to optimally
utilize Tik Tok.
INTRODUCTION
International Business, which involves transactions between parties from more than one
country, includes private individuals, companies, groups of companies, and government
agencies (Griffin & Pustay, 2015, p. 5). Exports and imports were the first forms of
international business activity to emerge historically. Today, international business has many
forms of activity that are prevalent in the highly complex world of international trade. Experts
believe that everyone is living in an era of globalization, where international business has
grown rapidly over the past decade (Griffin & Pustay, 2015, p. 9). Globalization is defined as
the process of international integration that occurs due to the exchange of worldviews,
products, thoughts, and other aspects of culture. TikTok is a social media platform that allows
users to create and share short videos between 15 and 60 seconds long. In recent years,
TikTok has become very popular around the world, especially among young people and
teenagers. Many businesses have started utilizing Tik Tok as a marketing tool to expand the
company's market reach and introduce the company's brand to a wider audience. TikTok
offers many opportunities for businesses to create creative and unique content that can capture
the attention of younger audiences. TikTok also allows businesses to reach global markets
more easily. The platform is available in more than 150 countries around the world, and has a
very diverse set of users from different backgrounds and cultures. As such, businesses can
utilize Tik Tok to create marketing campaigns that are relevant to the global market and
appeal to audiences across the globe various parts of the world. In addition, TikTok also
offers many features that can help businesses in promoting the company's products and
services, such as TikTok Ads and the collaboration feature with influencers. The TikTok Ads
feature allows businesses to create ads targeted at specific audiences, while the collaboration
with influencers feature allows businesses to work with influencers on the platform to
promote the company's products. However, as with other social media platforms, TikTok also
has risks and challenges that businesses must overcome. An example is reputational risk,
where businesses must ensure that the company's content does not violate TikTok's policies
and is in line with the company's brand values. In addition, TikTok also has stiff competition
with other social media platforms such as Instagram and YouTube, so businesses must create
engaging and unique content to differentiate themselves from competitors. This article will
discuss the influence of TikTok on International Business, as well as how this platform can
help businesses expand the company's market reach. The author will analyze how TikTok
allows businesses to create engaging and unique content, thus differentiating themselves from
competitors. The author will also provide some examples of businesses that have been
successful in utilizing Tik Tok as a marketing tool in the company's international business.
METHODOLOGY:
The purpose of this study is to evaluate the impact of TikTok on international businesses
with a focus on how the platform can help in reaching global markets. In this study, the
sample used is readily available and accessible data, such as financial reports, press
publications, and media. This sample includes information about TikTok users, TikTok's
popularity in the global market, and the impact of TikTok's use on international businesses.
Data collection is done by collecting available data from the selected sources. After the data is
collected, it is analyzed using descriptive analysis and inferential analysis techniques.
Descriptive analysis is used to analyze data obtained from public sources such as financial
statements, while inferential analysis is used to conduct hypothesis testing.
RESULTS AND DISCUSSION:
Based on the results of the literature review and data analysis, TikTok has had a
significant impact on international businesses. This social media platform has helped
international businesses expand their reach to the global market more effectively. In addition,
TikTok has also become an important tool in increasing business sales and profits. In today's
digital era, social media has become a very important platform for international businesses to
reach the global market. As one of the most popular social media platforms worldwide,
TikTok offers many opportunities for international businesses to promote their brand and
reach potential consumers around the world.
Analysis of Tiktok in Reaching the Global Market and Influencing:
In the literature study, it was found that TikTok users who are active around the world have
reached a very large number. Data from GWI reveals that TikTok is the 5th most popular
platform for Social Media users around the world, but when viewed from how long social
media users spend on each platform, TikTok users are ranked first for spending the most time
using the application. This shows that TikTok has great potential as an effective global
marketing platform. TikTok has been a very effective platform in increasing brand awareness
and its use also helps in increasing consumer engagement with the promoted brand.
In addition, TikTok also has the ability to create trends and create engaging content that
can help companies go viral. This can help international businesses increase their sales and
profits. However, as a social media platform, TikTok also has some drawbacks and challenges
that international businesses looking to utilize the platform must overcome. Some of these
challenges include limitations in accessing Tik Tok user data, different TikTok regulations
and policies in each country, and competition with other brands who also want to utilize this
platform.
CONCLUSION:
The conclusion of this study is that TikTok is an effective social media platform in
helping International businesses promote their brand and reach potential consumers around
the world. TikTok has helped international businesses by increasing their sales and profits,
although there are still some challenges and weaknesses that need to be overcome.
