This website uses cookies to ensure you have the best experience. Learn more

Global Expansion Essay

641 words - 3 pages

Karen Burgio
BUSN 110 E1
Writing Assignment 1
1. Briefly describe some of the general risks associated with global expansion (for any company selling a product) that are highlighted in the articles.  How has the Internet changed the way companies expand into new markets and helped mitigate these risks?
There is always a risk when a company wants to expand and the risk can be greater when a company wants to expand globally. The risk over extending resources or investments can leave already established businesses in the United States stretched thin for resources or funds. The risk of the market not interested in the products that company offers can lead to loss in profits. The internet has helped greatly with the expansion of companies globally. They only companies to start offering their products in a global market with little investment and resources. Companies do need to negotiate rents, and labor wages, and local customs, Instead they ...view middle of the document...

Chinese consumers are also afraid that items bought online are not the real deal.
3. In addition to the ideas in the article, what are some of the ways that Neiman Marcus might overcome the cultural challenges discussed in question 2?
Neiman Marcus intends to offer the Chinese consumers education on their company online and marketing events. They plan on offering exclusive content to the Chinese consumer that includes behind the scene videos with insider information on the products being offered. They intend to put a tracking device on products shipped to China thus ensuring that items are swapped out for counterfeits. They are also sending a reusable gift bag that shows off the brand of the item purchased so the Chinese consumer can display their purchases while they are out and about.
4. What are the similarities and differences in the strategies that J.Crew and Neiman Marcus are using to expand globally?
Both companies plan to sell their products online. Neiman Marcus plans on being exclusively a online global market to China. J. Crew plans on opening actual stores in multiple countries abroad including but not limited to Japan and England. Neiman Marcus plans to target luxury shoppers where J. Crew plans on continuing where the same marketing strategies that use in the United States and Canada. J. Crew will not offer any extra benefits, exclusive content or tracking devices that Neiman Marcus plans on offering their consumers.
5. J.Crew had a bad experience in Japan and now indicated it wants to avoid partners. What are the advantages and disadvantages of partnering with another company to enter foreign markets?  Hint: See Table 4.2 on p. 104 of the textbook.
One advantage of using a partner is the speed of entry in the market but that can lead to knowledge of local information. Another advantage for a franchise company that the costs and risks can fall on the franchisee but that can lead to the difficulty in control of quality of faraway franchise operations. Advantages for partners can have the benefit of having resources combined and shared costs and risks but leads to the disadvantage of having the business control being shared and the possibility of losing technology that was specialized to the company.

Other assignments on Global Expansion

Covergence And Divergence Essay

857 words - 4 pages 1. The authors describe a four-phase process for global expansion. What are the four phases? * In the initial entry phase, firms must establish a foothold in different foreign markets. Country markets of interest are identified as bases for future expansion. Strategic decisions are then made regarding how and when to enter the specific markets. Efforts to maximize international economies of scale are evaluated, paying particular

Swot-Ihop Essay

323 words - 2 pages compared to global food chains | Opportunities | 1. Global expansion especially in the emerging economies 2. Expansion by acquisition of smaller brands 3. Improve menu for lunch and dinner | Threats | 1. Competitive category by similar players 2. Smaller breakfast places offering better service 3. Health risks of consuming pancakes | Competition | Competitors | 1. Denny’s 2. Perkins 3. Waffle House | Description: Higher competition

Zara Case- Closing Statement

495 words - 2 pages approach; their designs are locally relevant and limited life creating buzz and excitement in-store. Zara can offer a large variety of the latest designs quickly and in limited quantities, it collects 85% of its of the full ticket price of its retail clothing; while the industry average is 60% to 70%. Expansion overseas Zara is seeing an immense amount of growth despite a slowdown in the global economy. Their methods prove to be efficient and


567 words - 3 pages Loyalty .10 3 .30 .15 2 .30 .10 3 .30 8. Global Expansion .15 4 .60 .10 1 .10 .05 1 .05 9. Market Share .05 3 .15 .10 1 .10 .10 2 .20 10. Financial Position .10 3 .20 .10 1 .10 .10 2 .20 1.00 2.90 1.00 2.40 2.30 Based upon the previous exploration, Mc Donald’s exceeds its competitors for numerous reasons, especially correlative of its enhanced menu selections, its value-added services, market


3158 words - 13 pages global market, multinationals are not common. Second, similar market environment within certain regions makes the exchange of products and services take place within a region than around the world. Based on the double diamond framework, the implication is that there are primary factors that affect a corporation’s market expansion: factor condition (resources), demand condition (customers), government condition and supporting industries (supply

Global Warming Controversy

698 words - 3 pages Shea Bellini Section 13 Issue Paper April 18th 2016 Global Warming The issue of global warming is one that affects every one of us, it is defined as the gradual increase in the average temperature of the Earth’s atmosphere and oceans. Temperatures on earth have increased 1.4° since the early 20th century, during this time period, levels of greenhouse gases such as carbon monoxide have noticeably

Whirlpool Case Study

853 words - 4 pages Joanna Nowicka-Jakubczyk EMBA XVII edition Whirlpool Corporation’s Global Strategy - Case Report As many American based companies, Whirlpool Corporation after building strong position and success in North America, decided to “go international” and start its global expansion. The main Whirlpool’s objective was becoming the world market leader in home appliances, in what CEO of Whirlpool – David Whitwam strongly believed. Whitwam’s “go

Globalization On Native Non-Western Cultures

684 words - 3 pages (Cheng, T, 2003) Part B The growth of the fast food business/restaurants into China is a great example of globalization on a native non-Western culture. Fast food restaurants found that global business expansion would be a way to grow business and increase profits. Fast food was only introduced into China in 1987, with opening of the first KFC. They become successful overseas by adapting to the local culture. McDonald’s opened their first

Convergence And Divergence Debate Over Ihrm Practices

1132 words - 5 pages other hand, according to divergence approach, companies will try to adapt its strategies with different host-country context in order to sustain its business continually in different countries. However, in my point of view, MNCs need to have a well-balanced strategy which combines global efficiency and local responsiveness strategy in doing their business around the world. Regarding this concern and how does it relate to HRM practices, this

Walmart’S Expansion In Africa: A New Exploration Strategy

3069 words - 13 pages prepare for the next step, which is continental expansion. South Africa is arguably the most westernized country in Africa. Western companies in general perceive it as easier to do business there than in other African nations. II. SWOT ANALYSIS The SWOT analysis of Walmart shows that the company can have higher long-term success potential through aggressive global expansion, especially in retail markets in developing countries. Strengths

Sanofi Aventis Exapnsion Plan

4340 words - 18 pages Introduction   The world is a cold place these days for businesses seeking profitable international growth. In a few industries, firms have to be global if they are to achieve leadership. Implementing a global expansion strategy is crucial to the growth of a business from small start-up to international brand name. Companies such as McDonald's, Home Depot, Starbucks and more have made their presence known around the world over the past few

Similar Documents

An Analysis Of Apple Corporation's Global Expansion

1231 words - 5 pages According to the AAA strategies, there are three main positions companies can use in foreign markets to their advantage. The first is aggregation and involves using regional groupings to minimize firms’ costs of adaptation and exploit larger markets to achieve scale. The second is adaptation and involves firms’ targeting their products to suit local markets. Finally, the third is arbitrage and involves firms taking advantage of foreign countries

International Management Essay

315 words - 2 pages workforce diversity and minority recruitment. 2. Describe how Avon’s business model has changed in light of demographic and social changes in the United States and abroad. What role has IHRM played in the company’s global expansion? In global market, Avon hires and trains the new local workforce in its door-to-door selling model (Avon’s salespeople and company representatives become more critical in their door-to-door selling in diverse markets


376 words - 2 pages Distance Still Matters The Hard Reality of Global Expansion Pankaj Ghemawat argues the reasons for driving companies to overvaluation profit potential in foreign markets in the article which is named “Distance Still Matters, The Hard Reality of Global Expansion”. He examines the problems of some companies’ international expansion strives to detect that makes these problems mutual. According to his researches, he decides that these problems

Mananagement Essay

312 words - 2 pages over its operations in India. They have opened a second factory in China to help its expansion in India and China. Their expansion has helped them to gain advantage over the competition from other global competitors like Caterpillar and Volvo. The drawback for the strategy if any for JCB is that being a pioneer to the Indian market, they must use their resources to rapidly develop a stronghold in India. They must capitalize on their experience in the country with their long vintage in the market.