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International Management: Strategies for Expanding to the SEA Market

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Added on  2019-10-18

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This paper discusses strategies for expanding to the SEA market, including entry strategies, staff recruitment and engagement, and understanding Malaysian culture.
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International Management 1International ManagementBy (Name) The Name of the Class (Course) Professor (Tutor) The Name of the School (University) The City and State where it is located The Date
International Management: Strategies for Expanding to the SEA Market_1
International Management 2IntroductionThe new era of business requires business to expand their transactions to meet a larger global audience. Firms are therefore required to take make a good assessment of their target international markets and come up with strategies effectively implement their ventures. This paper considers the operations that I will take as a regional manager to make ensure that the business effective expands its ventures to reach the target audience of the Muslim society in the South East Asia (SEA). We will consider at the market entry strategy, the approaches to outsource for employees as well as the Malaysian culture scope to ensure that the organization successfully establishes itself in Malaysia.Entry StrategiesAs a regional manager, there are a variety of strategies that I can apply to enter the international markets of the Southern East Asia (SEA). The most effective strategy may depend on 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 of costs that the firm will incur in form of marketing and transportation. Having considered these factors, my best option would be adopting a direct exporting strategy to venture into the international 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 expose to the market directly thus familiarizing the company with the market place without making some indirect connections (Ahmed, Z.U., Mohamad, O., Tan, B. and Johnson, J.P., 2002). In addition, this strategy would be the most appropriate because at the long run, the company would
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International Management 3still be required to make a direct connection with the SEA market. Therefore, it would make us learn and adapt to the market having already been into the trade. However, we may need to outsource 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 agents will ease the way for the company to make a successful venture by exposing us to the areas with the most potential for our business in the SEA market. We will hire the agents through the normal methods of hiring staff to ensure that they are the most effective for the task. The agents would be paid in commissions for every successful deal that the firm makes so that they fully utilize their productivity and capability. Afterwards, the company will have set their wholly owned 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 local companies in the target market for a number of reasons. First, a joint venture would mean that the profits gained from the trade are shared between the two joint firms. However, being a new venture into a new market, the profits may not be expected to be as much as the two companies would equally share and still fund their normal operations. Therefore, a joint venture can easily create conflict between the two companies and may result to losses or failure of firm if the costs incurred exceed the amount of profits that the company will get. In addition, direct marketing would be more effective than a joint venture because the agents would be paid in commission which would not cost the firm as much as sharing the profits would. In addition, the company would ensure that the agents are specialists in the SEA market thus minimizing the amount of risks that the business is likely to experience during their new venture into the international market. Furthermore, direct exporting would mean that the company sets up a fully owned
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