Opportunities and Challenges in Global Business Expansion

Running head: GLOBAL BUISNESS
GLOBAL BUISNESS
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Introduction
Expanding the business activities in the global working is highly essential in order to
survive in the highly competitive market environment and the exploit the opportunities
prevailing in the external markets. However, it has been analyzed in the previous module that
there are various challenges and barriers that the organizations need to overcome in order to
sustain in the international market. The purpose of this report is to analyze the opportunities
and the challenges that can be faced by the selected organization, Computer solutions in the
selected countries, Austria, India, New Zealand, Pakistan and Nepal. It determines the
potential targets for the locations and determines the most suitable country for business
expansion.
Discussion
PART A:
Assessing environmental forces
The business organization might face socio-cultural risks, economic risks, political
threats, legal challenges and other geographic barriers while expanding the business activities
and operations (Shenkar, Luo & Chi, 2014). The customs, traditions habits, rules, preferences
and tastes of the local consumers, languages are different from the country of origin.
Therefore, the business organization might face various challenges in determining the needs
and preferences of the local customers, it requires time and effort to make the products and
services sold presentable and accepted by the local consumers of the targeted country. The
business organization needs to invest in the market advertisings and promotions in the initial
stages of business expansion in order to influence the local consumers towards the products

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and services offered by the company (Dunning, 2013). Further, political and legal threats are
considered to be one of the major challenges that can be faced by the business organization in
expanding their business activities and operations in the global market. It needs to comply
with different set of laws and legations of the target country and the political norms of the
country (Bartlett, Doz & Hedlund, 2013). Frequent changes in the laws and regulations of
the country can affect smooth functioning of the business organization and hamper its
profitability. This can pose to be a challenge for the business expansion in the international
market. Moreover, there are economic risks prevailing in the market such as the inflation rate
of the country, the political and economic conditions of the country and the exchange rates
(Cavusgil et al., 2014). These factors must be considered by the business organization in
order to expand their activities as this factor can impact the profitability of the organization.
Additionally, the geographic location of the country must also be taken into considered for
expanding the business operations and activities in the international market.
The countries that have been targeted for expanding the business activities of
computer solutions are India, Austria, Nepal, New Zealand and Pakistan. The political,
economic, social, technological and legal factors of each of the countries will be discussed
below.
India can be considered for market expansion mainly because of its huge diverse
population. It implies that it will be easier present the products and services in the Indian
market as there is a huge possibility that the products and the services will be acceptable by
the Indian population. The country is developing into an open market economy, which is an
opportunity for computer solutions (Forsgren & Johanson, 2014). Further, there is an
abundant available of cheap labour due to young population. The government of India has
been planning to boost its economic development, hence it is an opportunity for Computer

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solutions to gain support from the government officials. The GDP rate of the country is 6.7%
(Forsgren & Johanson, 2014). The country has a well structured tax system and the cultural
of the country is highly favourable for expansion. However, political instability is a
challenge.
Nepal has been considered for business expansion due to significant infrastructural
development in the country. There have been significant improvements in infrastructural of
the country, which can be an opportunity for market expansion. Further, availability of young
population in the country is also an added opportunity for business expansion and offer better
quality products and services. The GDP of the country is 7.5% (Forsgren & Johanson, 2014).
The government of the country favours direct foreign investment which is a substantial
opportunity for the foreign investors. However, the non-transparent legal system, policy
uncertain, high corruption rates are some of the challenges (LEYVA, 2018)..
New Zealand has been considered for market expansion due to its stability, the
corruption rate of the country is lower as compared to the other countries. It is a developed
nation with many market opportunities. The GDP of the country is 3.5%. (Forsgren &
Johanson, 2014). It has a relatively simple tax structure. It is a culturally diverse country.
Technological advancement is an added opportunity for the company especially in the field
of IT security, software applications and software engineering. This can be an opportunity for
computer solutions. Moreover, the government of New Zealand supports direct foreign
investment. However, there is a gap between the rich and the poor people, increased levels of
crimes. These social challenges can be a threat to the company (Jurevicius, 2013).
Pakistan can also be targeted for company expansion as it is one of the major users of
IT technology, computer devices and IT products, which is a big opportunity for Computer
solutions. The GDP of the country is 5.3% (Forsgren & Johanson, 2014). . Further, the