Global Business Environment: Strategies for Expanding Business Globally

Global Business Environment
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Global Business Environment 1
Global Business Environment
Concept of strategy
In the current era, it is essential for the company to make the strategy to earn the profit. The
strategy is an action that managers take to attain the goals of the organisation. The course of
actions helps the company meet the goals of the company which majorly include earning
maximum profit. The major strategy which is followed by the company is to expand their
business operations to foreign markets which are essential to earn profit.
Firms can profit from expanding globally
The firm can make the profit by expanding their business in the global market. Some of the ways
are given below:
A wide range of customers: - The firm who expand the business will help them to offer the
products and services to the wide range of customers. The rise of potential customers can
improve the sales which will increase the profitability of the company (Rossum, 2017).
Increase in demand: - The rise in the demand for products and services in the global market will
allow the firm to earn an attractive profit. The expansion of the business is the only way through
which the firm will be able to offer the products to a large number of customers.
Influence on strategic choice
Pressures for cost reductions and pressures for local responsiveness generally influence the
strategic choices. The different strategic choices which are available in the market include