International Business Management: Strategies for Successful Global Expansion

International Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Entry mode.............................................................................................................................1
Core competency....................................................................................................................3
Operational strategy and corporate objectives.......................................................................4
Intended organisational design...............................................................................................4
Scope for expansion...............................................................................................................6
Financial capital requirements................................................................................................6
Staffing Policy........................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
International business can refer to the traffic of services, goods, capital, technology and
knowledge across borders of nation and at transnational or international level. Engaging in such
business practise require accurate understanding of business and trade regulations as well as
legal requirements of the nation in which enterprise are operating their business (Mills and Smith
(2011)). Generally this business enterprise can be operated by the private companies or the
government. The Bronze Snake Company is an Australian fashion retailing organisation i.e.
known for their trendy and high quality fashion wears. Bronze Snake is aiming to expand their
business in Malaysia to create a global recognition and spread its branches in international
marketplace. Enterprise has planned to launch NEW FEMALE SUMMER COLLECTION in
Malaysia for entering in the fashion market of the country. The report will cover different
operational structures, patterns and entry strategy to trade in global market. This will focus on
different corporate objectives, entry modes, organisation design, product expansion, financial
capital management and many other aspects i.e. required for expansion (Onetti, Zucchella, Jones,
and McDougall-Covin (2012)).
MAIN BODY
Entry mode
Market entry modes can be defined as the ways of involvement and technique which
assist an enterprise to enter to enter in a market strategically and successfully. These mediums
differ on the grounds of risk of entry, control and commitment of resource which is required for
enterprise and given return on investment. The decision of starting business in international
market can highly impact on the results of enterprise. Bronze snake currently need very effective
strategy to start their business in the Malaysian market in order to launch their NEW FEMALE
SUMMER COLLECTION for women (Papadopoulos and Heslop, (2014)). Here are mentioned
some of the core market entry strategies that can be utilised by Bronze Snake to launch new
product line in Malaysian business market environment:
 Exporting: - Exporting is refer to trade in and directly sale to the purchased domestically
goods to another country. This is already well organized technique and very traditional
way of communicating and reaching directly into the other foreign business markets
(Zott, Amit and Massa, (2011)). For exporting products, it is not that mandatory to
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produce commodities in that targeted country as this method provides the facility to
exchange the products from parent organisation to host nation. Bronze Snake can manage
to export their products of women new summer trendy fashion clothing line from
Australia to Malaysia as this is cost effective and doesn’t require production system in the
host nation (Renwick, Redman and Maguire, (2013)). The major drawback of this
technique is that this consists of cost, scarcity, space and time issues that can lead to
major problems to enterprise.
 Licensing: - International licensing contract permits international organization, either
non-exclusively and exclusively to production a proprietor’s goods for a determined term
in a certain market. The resources and rights may involve trademarks, patents,
technology, managerial skills and others which can assist licensee to sell and produce in
the host nation. For this, licensee pays certain amount to the parent enterprise in the
exchange of technical assistance, allowed rights and intangible property. Bronze snake
can also provide their license to their very trusted companies and organization to prosper
in the same country (Ruigrok and Van Tulder (2013)). This will let them to do their
business smoothly, beneficial and their new technique so they can get enter in the new
market. In the way, enterprise can expand their business in Malaysia with saving
numerous resources and avoid loss at the same time.
 Joint venture: - A joint venture can be refer as cooperative organization established into
through two or more than two business enterprises for the aim of certain project or other
activity of business. Major issue of this strategy is that it can create conflict over
asymmetric fresh organizational investment and lead to lack of parent support. This is
usually also characterized by their shared items, governance, risks and ownership etc.
Bronze Snake can use this approach for entering in the market of Malaysia as this provide
financial and other support to enterprise and aid in meeting the business objectives. It can
prevent enterprise from major financial loss (Scullion and Collings (2011)).
 Franchising: The system of franchising can be termed as a framework in which parent
enterprise gets the royalties and fees from semi-independent enterprise in return of
agreement of becoming recognized trademark, to trade its services or products and often
to utilize its business pattern, system and format. System of franchisee is a risky
technique as this can lead to preserving franchisor brand image. This is beneficial for low
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