Over the past two modules, you have explored the fundamentals of global business, such as key drivers for expansion of domestic business and cultural considerations. In this milestone, you will complete the first part of your course project by explaining what you have learned about global business thus far.
You are a business analyst working at a small domestic organization that produces high-quality cell phone cases. Your organization has begun to see its sales flatten in the domestic market. While the organization is not losing money, leadership would like to explore options to continue to grow. One option that leadership has noticed competitors attempting is entering international markets.
You have been asked to examine the benefits, drawbacks, and key considerations for your organization to enter one of the global markets below, and to summarize your findings in a business brief for leadership.
Select one of the following international markets to use for your course project:
In this milestone, you will complete Section One of the Business Brief Template (located in the Guidelines for Submission section of this document).
Drivers for Global Entry: Develop the first section of the Business Brief Template that explains the purpose of global expansion, business impacts of global business, societal impacts of global business, and cultural considerations using evidence from course and outside resources to support your explanations. Make sure to use evidence from course resources to support your responses.
Specifically, you must address the following rubric criteria:
- Country Selection: State the country you have selected to use for your course project.
- Purpose of Global Expansion: Explain key benefits of successful global expansion for domestic organizations.
- Business Impacts of Global Business: Explain how global expansion of a domestic organization can impact business operations such as strategic planning, marketing, supply-chain management, human resources, and so on.
- Societal Impacts of Global Business: Explain how the global expansion of organizations has impacted society, citing specific examples regarding culture, transportation, employment, infrastructure, and environmental climate.
- Cultural Considerations for Global Business: Explain the importance of researching the culture of a potential global market prior to market entry, as well as key cultural considerations to explore to inform expansion decisions.
The country selected for this course project is Japan.
Purpose of Global Expansion:
One key benefit of successful global expansion for domestic organizations is the ability to access new markets and customers. This can lead to increased sales and revenue, as well as the potential to diversify the organization’s revenue streams. Global expansion can also provide access to new resources, such as raw materials or labor, which can help to reduce costs and increase efficiency.
Another benefit of global expansion is the potential to increase brand recognition and reputation. Expanding into new markets can allow an organization to build a strong brand presence in those markets, which can improve customer loyalty and help to drive future growth.
Business Impacts of Global Business:
Global expansion can impact business operations in a number of ways. For example, strategic planning may need to be adjusted to account for the challenges and opportunities of a new market. Marketing efforts may need to be tailored to appeal to the preferences and cultural norms of the new market.
Supply-chain management may also be affected by global expansion, as the organization may need to establish new relationships with suppliers and logistics providers in the new market. Additionally, human resources practices may need to be adapted to account for differences in labor laws and cultural expectations in the new market.
Societal Impacts of Global Business:
The global expansion of organizations has had a number of impacts on society. One example is the impact on culture, as the proliferation of global brands can lead to the homogenization of culture, with local cultural practices and traditions being replaced by global consumer culture.
Global expansion has also had an impact on transportation, with the growth of global trade leading to increased demand for transportation services. This has contributed to the development of infrastructure such as ports, roads, and airports, as well as the growth of the transportation industry.
Global expansion has also had an impact on employment, with some arguing that it has led to the loss of jobs in developed countries as companies move production to lower-cost countries. On the other hand, global expansion can also create new employment opportunities in the markets where companies expand.
The environmental climate has also been impacted by global expansion, as the growth of international trade and production has led to increased greenhouse gas emissions from transportation and manufacturing.
Cultural Considerations for Global Business:
It is important for organizations to research the culture of a potential global market prior to market entry, as cultural differences can have a significant impact on the success of a global expansion. Key cultural considerations to explore include communication styles, business practices, social norms, and consumer preferences.
Understanding these cultural differences can help organizations tailor their products, services, and marketing efforts to better align with the cultural norms of the new market. It can also help organizations avoid potential misunderstandings or cultural missteps that could harm their reputation or cause other problems.