International Business Strategy Sample and Expert Guidance

Subject Code : dba-658
Subject Name : International Business Strategies

International Strategic Planning in 2013

In today’s scenario, International business plays a vital role among economy of scale especially in the fastest developing economies such as the BRICS nations. The word, International business is tempting to all those who are looking for the growth and expansion of their business globally. International Business can be defined as the business activities which are carried out across national borders. It is the purchase and sale of goods and services across the national country. Since the time of east India company, there is a huge rise in the expansion of multinational companies internationally. Nations that were away from each other because of some issues such as geological separations are trying to connect with each other. The reason behind the connection and building a relationship are the organisations which are established by administrations of different nations. There are various organisations that provides numerous opportunities for the growth and development of business. India had started trading to various nations so that it can expand its foreign trade and investment.

Strategic Planning allows an organization in achieving the objectives of the company by setting the priorities, utilizing the resources effectively and efficiently and adjusting as per the changes required in the business environment. There are some important things that should be looked into while making a strategic plan for international business. The first one is to find the correct market. The second one is to understand the competitors of the company. The third one is to identify the growth opportunities. The fourth one is to develop a local plan. The fifth one is to find the partners strategically. The last one is to stay flexible to changing needs.

As we all know that coin has two sides head and tail similarly, there are advantages and disadvantages of international business. One of the major advantage is a country can consume those goods which they can’t produce. One advantage is that one can utilise the resources in the productive manner. With the help of international business, the fluctuations of prices can be controlled and it also promotes peace and friendship. Talking about disadvantages, there will be so much of dependency on foreign trade that it can create a mess when it supposed to be needed the most. Another disadvantage is it can lead to destruction of industry such as home industry or cottage industry. This essay aims at understanding the managerial, monetary and marketing objectives of International Business (Shaikh, n.d.).

Shaikh (n.d) explained that when it comes to expansion of International Business there are many things that comes into a mind. The function of International Business is similar to domestic business but not in terms of technicality and procedures. There is so much increase in level of competition between the companies it is not kept in mind about the employees so that it would help in adaptation of different culture. With the rise in development of company the management of the company also changes and the managers are required to communicate each and everything about the company to other employees as well either it can be the changes or it can be the new vision of the company.

The first managerial function of International Business is planning. This function implies that an International Manager has the responsibility to plan the goal of the business and as per the needs and requirements it should function as per the global scenario. The things must be planned as per the business requirements whether it should be joint ventures or working through licensing or franchisee. The things which are mandatory i.e. which are needed to be accounted properly are deep understanding of close competitors, pressure of the government and the stability of currency. The second managerial function of International Business is Organising. When a company is planning for an International Business, they should be aware about government, the policies of employees and the structure of bureaucratic. Most importantly, they should evaluate the nature and policies of organisations throughout the international locations. The third managerial function of International Business is Staffing- An organisation cannot work without having talented staff members and they should be placed at the correct place. For the successful business, good staffing is mandatory so recruitment should be carried out in a proper manner. When recruitment is carried out, manager must ensure that the employees are aware about the labour laws as well as the policies of the country. With the help of this, manager should decide whether they want to recruit from the local people or they want to transfer the staff from the home country. The fourth managerial function of International Business is directing. Every culture operates at different level and it cannot be ignored at any level. After the formation of new internationally company, it is important to stay tuned with the local culture and understand the attitude of employees properly. Problems might occur in relation to communication and adapting the new culture. These issues can be resolved with the help of proper training programmes or workshops. The last managerial function of International Business is Controlling. The major role of International manager is to take care about the issues which are related to language, communication, salary, payment or legal issues (Thakur, n.d.).

The marketing functions of International Business can be explained in the following manner. The first function is Analytical function which signifies that the analysis of international business helps in entering into the foreign market and analysing the environment of international market. The second function of International Business is Production which includes organising the production of goods as per the needs and requirements of foreign markets. The third function of International Business is controlling which involves control of all the activities which are related to the marketing on foreign markets. The fourth function of International Business is Research which includes a deep understanding of the factors which are affecting the penetration to foreign markets as well as the evaluation of different kinds of strategies for entering into the foreign markets. The fifth function of International Business is Administration which helps in the development of context of company’s internationalization and enterprise management into foreign markets (Aliekperova, 2016).

The monetary functions of International Business can be explained in the following manner. The first function is to maintain the stability of the rate of exchange. The second function is to determine the par value of the currencies in which the company is associated with it. The third function is to advise the member of the countries on the matters which are associated with economy as well as monitory. The fourth function of International Business is maintaining the balance between demand and supply of different currencies. The fifth function of International Business is to maintain the liquidity of the resources (Sethy, n.d.).

There are opportunities as well as challenges in International Marketing. Talking about the opportunities, The first opportunity is to export and import opportunities which can lead to promising and lucrative profit. The second opportunity in International Business is licensing the opportunities. For many businesses, licensing can be lucrative as well as door opening. It is linked with the characters and extends as per the production process of the company. The third opportunity in International Business is Franchising opportunity which not only leads to earning more profit but also lead to growth and development of its brand in several cities and countries at the same time (Partners, 2018).

There are various challenges faced by the International Business. The first challenge is Logistic challenge which involves one is bound to enter into international market with several speed bumps. The second challenge of International Business is Cultural challenge is to be faced by many of them entering internationally. Adapting a new culture and its customs and practices creates the problem to local people. The third challenge of International Business is Consumer Differences so one should be aware about the market and the needs and requirements of the consumers so that the products or services of the business cannot get affected (Partners, 2018).

Since 1980, the competition in the global market is becoming necessary for the world as well as for economic development. International business is similar to the national business but still the difference between both of them exists which should be looked into for the successful implementation of international strategies. There are issues as well as the opportunities when one is thinking for an International Business and one can resolve the issues by considering them into account. “If the company thinks that they should go global, they firstly start strategizing and then execution should be carried out. Start preparing for the mistakes and modifications but don’t get afraid of it.”

References:

Aliekperova, N. (2016). Function of international marketing. Retrieved by https://www.researchgate.net/figure/The-main-functions-of-international-marketing-and-content_fig12_298791941.

Introduction to international business and its benefits. Retrieved by from https://www.toppr.com/guides/business-studies/international-business/introduction-to-international-business-and-its-benefits/.

Partners, P. (2018). 3 Challenges and Opportunities in international business. Retrieved from https://www.proglobalpartners.com/3-challenges-and-opportunities-in-international-business/.

Sethy, V. (n.d.) Top 10 functions of international monetary fund. Retrieved from http://www.yourarticlelibrary.com/international-trade/international-monetary-fund/top-10-functions-of-international-monetary-fund-imf/63295.

Shaikh, S. (n.d.). International Business: advantages and disadvantages. Retrieved by http://www.economicsdiscussion.net/international-trade/international-business-advantages-and-disadvantages/13951.

Thakur, A. (n.d.). Managerial function of international business, contemporary management. Retrieved by https://edurev.in/studytube/Managerial-Function-of-International-Business--Con/a0fea0da-ad2d-483c-a937-642797504ca4_v.