Strategies for Operating Business Globally: Benefits, Risks, and Models to Minimize Risk

This presentation discusses the strategies for operating a business globally, including researching the competition, creating customer loyalty programs, and identifying new opportunities. It also covers the benefits and risks associated with each strategy and models to minimize risk, such as the Ansoff Model, SWOT, and PESTEL. The presentation includes references to academic journals and books.

Global Operations
Presentation

Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Strategies in operating business globally.....................................................................................1
Reason to choose strategies ........................................................................................................2
Models to minimise risk ..............................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Maximisation of profit is the core aim for every business organisation and it is important to take
business globally so as to capture new market. There are various opportunities which lies in
global market and companies can grab those opportunities by expanding business overseas. One
of the major advantage to take business internationally is that it facilitates in business growth. In
addition to that, entering overseas market allows rapid growth of business. By extending
business globally, it allows new audience to experience company's product and services.
Company can get access to new talent and can promote business. This presentation is based on
development of strategies that a business uses to operate globally. Moreover, it will cover
benefits and risks associated of chosen strategy. At last, it will cover practice models to minimise
risk.
TASK
Strategies in operating business globally
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 Research the competition – it is important to research level of competition in market and
to assess strengths and weaknesses of competitors. This will help company in formulation
of strategic plans which contributes in effective operations of business globally (Oh and
Contractor, 2021). In this dynamic business environment, many businesses are struggling
to survive due to cut throat competition. So it is imperative to conduct market research so
as to remain competitive globally. Creation of customer loyalty programs – it is widely used by many companies in order
to increase sales. In a report, it has been analysed that it cost three times to acquire a new
customer than to sell a product to existing customer. Thus, this strategy attracts potential
customers to opt products of company. Building a loyalty program to customers enables
in retaining existing customers.
 Identification of new opportunities- Business are full of opportunities but needs to be
identified is most critical process. New opportunities can be analysed better by
understanding demographics. There are numerous opportunities which company could
pursue immediately by undertaking proper analysis.
Reason to choose strategies Research the strategy – This strategy is very beneficial to company as it allows to operate
business smoothly. If a business knows about its competitors, their strengths and
weaknesses, then it becomes easier to take decision. This strategy will help company in
boosting sales by framing effective decision based on analysis. Marketers can target
customers in an effective way.
Benefits of Research the competition
 Facilitates smoother functioning - This strategy have numerous benefits as it will allow
company to operate its functions smoothly by formulation of effective management
strategies. In addition to that, company can improve its quality of products and services
so as to make unique from its competitors.
Risk of Research the competition
 Instable environment -The major drawback of this strategy is that due to fluctuation and
dynamic business environment, it becomes complex to assess effectiveness.
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 Creation of customer loyalty program -Companies should keep in mind that its all about
customers and tries to offer quality products and services to customer so as to retain them
(Coe, Johns and Ward, 2016). By developing customer loyalty program, it will be
benefited to company in various aspects.
Benefits of opting customer loyalty programs
Facilitates in retaining existing customers -By opting this strategy globally, it can be helpful to
company as it allows in retaining existing customers along with attracting potential customers.
This strategy will pay off to company in long run.
Risk with customer loyalty programs
Risk of stolen information and fraud – As whole business relies on technology and by opting
this strategy can be threat to company and customer's data. Customer data and information can
be stolen and may lead to fraud. Identification of new opportunities – New opportunities can be identified by collecting
information from reliable source and creating insight to assess available opportunities.
There are dozens of opportunities which lies in small processes of business but needs to
be identified.
Benefits of this identification of opportunities
Boosts sales volume -By identify opportunities in business allows in boosting sales volume by
taking actions to grab on (Etgar and Rachman-Moore, 2019). This will be beneficial as company
can enjoy higher profits along with lost cost.
Risk with identification of opportunities
Costly and time consuming- This process is costly and time consuming which becomes complex
for companies to opt. It may hamper work too as it requires knowledge and expertise to
implement this strategy.
Models to minimise risk
Ansoff Model – This business framework can be used to minimise risk associated with global
business strategy. It helps company in ascertaining on which products company have to focus
more and what corrective actions can be taken to minimise cost from low growth and low profit
products. This tool can help stakeholders in conceptualize level of risk that are associated with
various growth strategies. Risk cannot be eliminated but can be minimised or altered by taking
corrective strategies. In addition to that SWOT and PESTEL can also be used to mitigate risk.
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These tools helps company in assessing about various factors that can adversely impact on
company's operations. If used effectively, it can benefit company in numerous ways. By SWOT,
company can assess strength and weakness along with opportunities and threats so as to make
company more productive by framing strategic decisions. These tools are widely used by many
companies to makes process smoother in global market. Due to cut throat competition, it
becomes difficult to take decision but with help of these practice models, risk can be mitigate.
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REFERENCES
Books and Journals:
Ansoff, H.I., 2017. A model for diversification. Management science, 4(4), pp.392-414.
Coe, N.M., Johns, J. and Ward, K., 2016. Variegated global expansion:
internationalization strategies in the temporary staffing industry. Geoforum, 42(1),
pp.61-70.
Etgar, M. and Rachman-Moore, D., 2019. Geographical expansion by international
retailers: A study of proximate markets and global expansion strategies. Journal of
Global Marketing, 23(1), pp.5-15.
Oh, C.H. and Contractor, F., 2021. A regional perspective on multinational expansion
strategies: Reconsidering the three‐stage paradigm. British Journal of Management, 25,
pp.S42-S59.
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