International Management 6. International Management.
Added on - Oct 2019
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International Management1International ManagementBy (Name)The Name of the Class (Course)Professor (Tutor)The Name of the School (University)The City and State where it is locatedThe Date
International Management2IntroductionThe new era of business requires business to expand their transactions to meet a largerglobal audience. Firms are therefore required to take make a good assessment of their targetinternational markets and come up with strategies effectively implement their ventures. Thispaper considers the operations that I will take as a regional manager to make ensure that thebusiness effective expands its ventures to reach the target audience of the Muslim society in theSouth East Asia (SEA). We will consider at the market entry strategy, the approaches tooutsource for employees as well as the Malaysian culture scope to ensure that the organizationsuccessfully establishes itself in Malaysia.Entry StrategiesAs a regional manager, there are a variety of strategies that I can apply to enter theinternational markets of the Southern East Asia (SEA). The most effective strategy may dependon a number of factors that may influence the costs that the firm will incur during this operation.Some of the factors I would first consider is the available tariff rates in the international market,the extent to which our products will be acceptable to the SEA market as well as the amount ofcosts that the firm will incur in form of marketing and transportation. Having considered thesefactors, my best option would be adopting a direct exporting strategy to venture into theinternational market. Direct exporting would require the firm to make a direct venture in the SEAmarket using our own funds. This strategy would be the most favorable because it would exposeto the market directly thus familiarizing the company with the market place without makingsome indirect connections(Ahmed, Z.U., Mohamad, O., Tan, B. and Johnson, J.P., 2002). Inaddition, this strategy would be the most appropriate because at the long run, the company would
International Management3still be required to make a direct connection with the SEA market. Therefore, it would make uslearn and adapt to the market having already been into the trade. However, we may need tooutsource for agents who are more familiar with the SEA market to minimize the amount of risksthat are involved when making a direct exportation to a new international market. The agentswill ease the way for the company to make a successful venture by exposing us to the areas withthe most potential for our business in the SEA market. We will hire the agents through thenormal methods of hiring staff to ensure that they are the most effective for the task. The agentswould be paid in commissions for every successful deal that the firm makes so that they fullyutilize their productivity and capability. Afterwards, the company will have set their whollyowned firm and familiar with most of the important strategies to make it in the SEA internationalmarket.Making a direct export would be better than making a joint venture with one of localcompanies in the target market for a number of reasons. First, a joint venture would mean thatthe profits gained from the trade are shared between the two joint firms. However, being a newventure into a new market, the profits may not be expected to be as much as the two companieswould equally share and still fund their normal operations. Therefore, a joint venture can easilycreate conflict between the two companies and may result to losses or failure of firm if the costsincurred exceed the amount of profits that the company will get. In addition, direct marketingwould be more effective than a joint venture because the agents would be paid in commissionwhich would not cost the firm as much as sharing the profits would. In addition, the companywould ensure that the agents are specialists in the SEA market thus minimizing the amount ofrisks that the business is likely to experience during their new venture into the internationalmarket. Furthermore, direct exporting would mean that the company sets up a fully owned