Pod Company, Going Global, small organizations
Increasing foreign presence for small organizations serves to exploit broader market opportunities aiming to increase their sales revenue, counter declining domestic demand and fend off stiff competition from multinational companies. In particular, with most domestic companies yet to recover from the economic slap affecting their operations negatively, going international is a dual victory through better stability to absorb domestic market shocks and exploit opportunities of the fastest-growing overseas markets (Uchitelle, 2013, para 1). Although globalization and relaxation of trade barriers have its course for increasing foreign presence, the motive emerges from the pull factors comprising profit advantage and growth prospects, and push factors exhibited by domestic market constraints (Cherunilam, 2010, p. 8).
Increasing geographical presence translates to additional markets, increased wealth for shareholders and drawing skills diversity. Nevertheless, it is vital for companies to adjust appropriately and avoid losing their organizational identity and mode of operating. However, successful entry to the international market demand overcoming the inherent challenges as the organization perpetuates its identity against competing and dynamic ideologies in the global environment.
[...] (2013, December 12). Why Indonesia? Indonesian Food Sector. Retrieved December from http://www.business.vic.gov.au/operating-a-business/export/startexporting/country-overviews/south-east-asia/indonesian-food-sector West, L. (2013). Progress is Slow on Reducing, Reusing and Recycling Fast Food Waste. Retrieved December from http://environment.about.com/od/recycling/a/fast_food_waste.htm White, A. (2012, July 31). Pod Fast-Food: On a Healthy Drive Towards Expansion. [...]
[...] Pod Company: Going Global 2 Table of Contents Introduction Food and Drink Manufacturing Industry Pod Food Company Analysis Macroeconomic PESTEL Analysis Why Go International? Market Considerations Spanish Consumer Market Indonesia Halal Market Challenges Facing Companies Entering the International Market Competitive Strategies Conclusion and Recommendations References Pod Company: Going Global Introduction Increasing foreign presence for small organizations serves to exploit broader market opportunities aiming to increase their sales revenue, counter declining domestic demand and fend off stiff competition from multinational companies. [...]
[...] Secondly, internationalizing company's operations assist to eliminate committing their returns on the fortunes derived from one country. It is essential for them to consider beyond their host nation boundaries to shield them from uncertainty such as economic slowdowns. For instance, with higher-income countries demonstrating market saturation and low growth rate of their populations, companies are seeking economies driven by positive demographic trends (Cherunilam p. 10). Additionally, companies are internationalizing their operations from incentives associated with profit advantages and economies of scale that translate into price benefits (Paul & Kapoor p. [...]
[...] Therefore, going international will assist the company weather the impact of domestic competition from rivals with advanced resources. Going global for the company would assist exploit emerging market opportunities and existing opportunities in the mature economies. Market Considerations Spanish Consumer Market Although Spain was hardly hit by the economic recession demonstrated by high unemployment and stagnant growth, its consumer market presents opportunities owing to several reasons. Firstly, Spanish population of 46.5 million represent a complex and diverse consumer market characterized by affluent consumption and oriented towards high quality products (IMB p. [...]
[...] This sets 12 grounding for the Pod Company to exploit the large halal food market by diversifying to include halal requirements to their identity of health and nutrition principle. Challenges Facing Companies Entering the International Market Although going global translate into more sales revenue, cost minimization, generation of more wealth and reduced exposure to market risk and dependence on a single economic fortune, internationalizing companies must overcome several challenges. This suggests that companies must adequately overcome these challenges and generate the appropriate approach, when setting foot on the international shore. [...]
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