Foreign Market Strategy, Essay Example

Introduction

The concept of development is one factor that businesses are made of. Around the globe, no particular institution could be noted to not dream of making it big in the market; relatively, this is a common ground among many organizations at present. While there exist more modest organizations in the industry, only a few actually remain in the size that they are in. The fact is, the measure of any organization’s success is often dependent on how much expansion it has gone through within the time of its existence in the industry. The point of expansion of these organizations takes on different modes especially in creating a more distinct indication on how each business tries to face the different challenges of internationalization; a concept of business development that is welcomed by the emergent existence of globalization.

In this discussion, some of the key concepts of development that are currently considered as one of the most important factors towards successful business expansion shall be given particular introduction and relative analysis for application among modern business structures at present. What makes such expansions successful and which strategies are faulty; this particular point of comparison shall be the focal point of this presentation and analysis to be showcased within the context of this paper.

Article Reviews

For this discussion, five primary articles shall be given attention to. The exposition of the topics presented in each article shall provide a more constructive process of indication on how procedures and approaches to internationalization could make or break an organization and its hope of expanding to a much larger market to which it could render its products and services to. To note, there are six particular strategies to be examined as part of the most constructive sense of defining the proper assumption of development that businesses take into account as they intend to expand their operations further into entering to new markets that are expected to provide it with a much larger room for improvement and extensive progress. These strategies include: (a) overall cultural adjustments; (b) business management transformation; (c) Internationalization of procedures; (d) consideration of new procedures of operation; (e) development of better financial risk assessment and management; (f) industrial unification with business options of growth. These strategies have been seen to work for several organizations especially as they engage in different options of growth in the field of international trade business.

Anders Pehrsson’s (2008) article entitled Strategy antecedents of modes of entry into foreign markets provides a constructive picture on how business relativity could be better measured through the emergent existence of corporate international experiences. This reading provides a rather definitive description on how actually engaging in an international form of business development provides the administrators a better picture that allows the whole organization to become more connected to the idea of progression; one that basically gives the organization a chance to know what it takes to make a name in the field of operating internationally. In a way, the discussion this paper basically gives an ideal presentation on how expanding internationally ought to be considered as a sense of risk in determining the value of every business operation that an organization takes into account. The author of this research provides a distinct indication on how successful organizations that made a name in the international field of operation were able to see the value that ‘risk’ plays in defining he pattern of growth that the business basically wants to take into full account.

Meanwhile, in the written research of Paul Ellis (2007) entitled “Paths to Foreign Markets: Does Distance to Market Affect Firm Internationalization?” gives proper guidance to current hopeful administrators to see how foreign business engagements call for distinct management adjustments; one that would specifically make a mark on how the whole business operators as a whole [not only on branches that are situated abroad]. In this particular written piece, Ellis points out the need to recognize the need to adjust management options. One that would specifically affect both the internal and external engagements of the organization within the main branch and within the outside branches of the organization situated abroad.

Asmussen’s (et al, 2009) article gives a more distinct indication on how business motives create the proper foundation for expansion and development. The research entitled “Organizing foreign activities for entry mode choice to configuration decisions” introduces a more constructive guideline on how the idea of expansion ought to be welcomed and managed by business organizations from different parts of the world. In this presentation, Asmussen and his colleagues basically provided a more clarified insistence on how plans ought to be properly considered even before the entrant towards a new international market. This means that proper survey and research ought to be given attention to, thus making sure of what risks ought to be faced and how they are supposed to be managed accordingly. In this case, realigning the overall function of the business ought to mandate a more defined insistence of success; one that the business hopes to give attention to. Everything ought to be adjusted in order to welcome the products or the services that are designed to make the new market a successful source of profit for the organization not only at present but also in the long run of the business operation in an international market.

This idea of defining how expansion issues and concerns could be resolved through proper configuration of business ideals is further supported by the writing of Huang (et al, 2007) entitled Retailer’s foreign market entry decision: an institutional perspective. This article gives a properly explored insistence on what factors ought to be understood and dealt with especially in entering a new market under the conditional insistence of how institutional theory is applied as part of the expansion that businesses want to take into consideration. Herein, the developmental understanding of both the internal and external elements that make up the overall operation of the business has been taken into careful attention for research. Hence, as a result, the researcher[s] found out that in entering the international market, it is essential for managers to become more considerate in seeing what makes up the three factors of business existence in the market [both locally and internationally] which includes political, cognitive and sociological factors of improvement and correlations with those who are included in the organization as it enters a new realm of profitable source.

Such point of success is however, is dependent on the concentration of the leaders [the administrators] towards a more constructive form of improvement that would bring about a sense of progress for the whole organization. Musteen’s (et al, 2009) article on Ownership structure and CEO compensation implications for the choice of foreign market entry modes gives a proper way of mandating administrational direction plays a great role in making a mark on how businesses expand fully towards international operation. Noticeably, Musteen [and his colleagues] found out that when it comes to international expansion, the entry modes chosen by the administrational directors plays a great role in making a mark on how the whole organization would be able to make a name in the said industry [with which it hopes to engage in]. Definitely, the planning process in outlining a more conducive process of improving business options and how it actually makes a definite effect on the overall reputation of the business in the international market that it hopes to serve; this approach seals the deal on how the organization shall take progression as a serious consideration for the whole business as part of its decision to expand its effect to the international market [may it be through the internet or through a physical portal].

Conclusion

As realized from the discussion in this presentation, business expansion and internalization could take different forms and receive different results depending on the strategies taken into account by the administrators of the organization. One form of such internationalization is through internet-based engagement between business branches or perhaps directly connecting the organization to prospective clients [worldwide]. This form of expansion is a less risky approach to the point of progression that a business hopes to take into account. Nevertheless, this approach has its own form of challenges that basically causes administrators to take different forms of resolutions to simply keep the progression procedures intact and effective.

Another form of such expansion is more physical in form whereas the organizations need to enter the region through physical establishments that is often challenged by particular political, social and environmental concerns. Dealing with all these matters ought to provide a more defined pattern of developmental risks and assumptions that gives the organization a proper source of competence of actually operating in an international market. Risks will always be a part of the process; but dealing with such hardships with practical business strategies would make the process a lot easier and more practical to consider.

References

Huang, Y; Sternquist, B. (2007). Retailers’ foreign market entry decisions: An institutional perspective. International Business Review.

Ellis, P. (2007). Paths to foreign markets: Does distance to market affect firm internationalisation? International Business Review.

Asmussen, C.G. (et al). (2009). Organizing foreign market activities: From entry mode choice to configuration decisions. International Business Review.

Pehrsson, A. (2008). Strategy antecedents of modes of entry into foreign markets. Journal of Business Research.

Musteen, M. (et al) (2009). Ownership structure and CEO compensation: Implications for the choice of foreign market entry modes. Journal of International Business Studies.