Global Business Expansion Strategies

The assignment delves into the complexities of global business expansion. It emphasizes the importance of a well-structured approach to entering new markets, considering factors like market research, legal regulations, and cultural differences. The document highlights various market entry strategies such as exporting, licensing, franchising, and foreign direct investment. It stresses the need for adaptability to diverse cultures and effective communication. Finally, it underscores the role of managers in successfully navigating global expansion challenges.

Running head: GLOBAL LEADERSHIP
Global Leadership
Name of the Student:
Name of the University:
Author Note:

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Executive Summary
This paper will analyze the various issues which are faced by ABC Company. The client and the
stakeholders had several meetings with the managers to find out solution to the various
problems. The manager tried to adopt all the possible measures which could be taken so as to
expand rapidly in other countries and gathering international revenue in a short span of time. It
has been found that the various kinds of application portfolio and the rationalization of the
business must be done strategically. This is necessary for global expansion of business condition.
A framework must be implemented by the company and it must focus on the understanding and
analysis of the opportunities and implementation of the desired roadmap. The company must
identify the internal capabilities so as to succeed in the long run.

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Contents
Introduction......................................................................................................................................3
Issues identified...............................................................................................................................3
Literature review..............................................................................................................................4
Change in management................................................................................................................4
Transformational change management........................................................................................4
Leading with a global mind set....................................................................................................5
Leading change in global teams..................................................................................................6
Strategy of the company..................................................................................................................6
Word-of-mouth strategy..............................................................................................................6
Social platforms...........................................................................................................................7
Importance of interest value for the business professionals........................................................9
Rationalization and prioritization................................................................................................9
Importance of cross sectional teams..........................................................................................11
Limitations faced by the company.................................................................................................12
Recommendations..........................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
ABC Global is a consulting business and it had offices in many parts of the world. The
aim of the company is to help the clients to achieve the goals in data management, mining
operations, corporate advice, exploration and many more. This paper will analyze the various
issues that were faced by ABC Company in global expansion. The solutions to these issues and
problems are also highlighted in the paper. The report is a consulting report from the consultant
of the company to the client. Although the company has identified certain strategic goals for
expanding in other countries, but it was not considered feasible. There was steep competition in
the mining industry and ABC Company had to find out solutions to overcome these problems.
The international marketing director of ABC Company had several meetings and discussions
with the clients and the stakeholders of the company and he tried to find out innovative solutions
for further expansion of the company. The mission of the company was to gather international
revenue from all parts of the world. The manager also tried to adopt all the possible measures
which could be taken so as to expand rapidly in other countries and gathering international
revenue in a short span of time. Though the company has adopted inefficient and ineffective
means for further expansion, but the manager conducted further analysis of the company and
thus found out further ways for expansion1.
Issues identified
ABC Company had planned to grow their business and increase the volume of sales and
profitability of the company. The company has used certain methods for implementing the
growth strategies and expanding the business globally. The company has used market expansion
1 Adekola, Abel, and Bruno S. Sergi. Global business management: A cross-cultural perspective. Routledge, 2016.

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as the growth strategy so as to sell its products in the market. ABC has adopted this strategy
because there was no room for further expansion in Australia. This is because ABC Company
did not find any new product or strategy so as to expand in its own country.
Literature review
Change in management
Change in an organization is the ladder of growth and expansion for a company every
company at one point has to go through a change in the management which can give rise to
several issues within the internal as well as the external environment. According to An effective
Change Management is obtained by employing a continuous and reliable strategy. Some of the
challenges are resistance, impatient behavior, internal conflicts etc. These problems of the
organization should be handled by using tactful strategies which should be formulated out before
taking the decision of change2.
Transformational change management
Motivating the subordinates is an important job of a leader. A leader can inflict both
intrinsic and extrinsic motivation among the people who look up to him or her. In order to
initiate transformational changes, a company has to go through a number of research and
developmental procedure. Assessment of the SWOT and understanding of the status quo of the
company and its business environment plays the key role in the transformational change.
Generally there is a risk factor that is associated with transformational changes and a plan and
2 Valackiene, Asta. "Significance of Business Continuity in Change Management: Theoretical
and Practical Perspective." In European Conference on Management, Leadership & Governance,
p. 504. Academic Conferences International Limited, 2015.

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well organized strategies are required to generate transformational changes. Leadership plays an
important role in this sector as it guide the people through the changes that will bring about a
transformation in the management. A single change doesn’t transform a management system3.
For a multinational company the challenges become more complex as the operations of the
management are segregated. The coordination and communication process with the leader and
the managers at any level is regarded as the most important aspect.
Leading with a global mind set
Globalization has enabled companies with resources to expand into the international
areas. Expansion into the foreign lands require different approaches for different nation states
and the people of those country who will be employed will be looking forward to a leader or a
style of leadership that they are used to. There are countries which are used to having an
authoritative leaders where as there are countries who appreciate the leaders being transactional
and democratic in nature. The companies who are a global player are observed to employee
managers even in higher from the country of operation. The higher management of the company
should have a mind set to work and co-operate with the other stakeholder of the country of
expansion in order to ensure the smooth working of the operations4.
Leading change in global teams
The senior executives of the company are collectively called TMT or top management
team, these are the people who are responsible for taking any kind of decision and policy making
3 Van der Voet, Joris. "The effectiveness and specificity of change management in a public
organization: Transformational leadership and a bureaucratic organizational structure." European
Management Journal 32, no. 3 (2014): 373-382.
4 Winning, Orchestrating. "Developing a Global Mindset: The Five Keys to Success." (2014).

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changes in the organization. Unusually depending on the sector and segments in the industry the
managers are placed and this structure depends on the nature and scale of business. In order to
incorporate the changes the company has to go through resistance and to combat the situation
planning and formal approach is required5. The higher management should be well are of the
grievances and challenges faced by the employees so as to develop a solution and increase the
commitment towards the transition.
Strategy of the company
Word-of-mouth strategy
The word of mouth strategy played an important role in the global expansion of business
of ABC Company. The managers and the higher authority of the company must be aware of their
competitors so as to stay ahead of them6. It is important to understand the industry and the
problems that will emerge in this industry. The word of mouth strategy provides long term
benefit to the business. There are many customers who purchase the products of the company on
the basis of referral by the prior customers. These consumers stick to the product or the brand
and they prefer to choose this company rather than selecting other company. By analyzing the
competitors, the manager would be able to determine what the company is doing and what are
5 Hoch, Julia E., and Steve WJ Kozlowski. "Leading virtual teams: Hierarchical leadership, structural supports, and
shared team leadership." Journal of applied psychology 99, no. 3 (2014): 390.
6 Al‐Aali, Abdulrahman, and David J. Teece. "International entrepreneurship and the theory of
the (long‐lived) international firm: a capabilities perspective." Entrepreneurship Theory and
Practice 38, no. 1 (2014): 95-116.

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the loopholes of the company. This will help them to strengthen their business and thus
successfully adopt the word-of-mouth strategy. It is also important to analyze the needs of the
customers so as to run the business successfully. It is also the duty of the manager to keep a track
of the customers about the reviews of the company. This effective and successful word of mouth
strategy requires a lot of effort and hard work7. If the marketing manager knows the target
group, it will help him/her to analyze the likes and dislikes of the client. Thus, the company can
build the marketing strategy accordingly and provide services according to the preferences of the
client.
Social platforms
The social platforms are regarded as the easiest way for direct communication with the
targeted customer group. It has been found that there are more than 70% of the internet users
who use social media. It is also important for the manager to keep an eye on the brand promotion
content on the social media sites. These content sharing inspires the customers of other barnd and
they eventually get attracted to the brand. Moreover, the success of word-of-mouth marketing
will increase if the opinion makers in the community influence the people and they shape the
opinions in the society. Thus, it can be said that the word-of-mouth strategy plays an important
role in communicating the information to the audience. It has been found that ABC Company is
encouraging the customers for the promotion of their product and the customers are also happy
7 Cavusgil, S. Tamer, Gary Knight, John R. Riesenberger, Hussain G. Rammal, and Elizabeth L.
Rose. International business. Pearson Australia, 2014.

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in sharing their experience. This is considered as the most influential and powerful marketing
strategy8
The growing market, improvement in the business climate, rise in the consumer spending
are the major factors will help the business for global expansion in a short span of time. It is also
important that the company must choose the higher authorities i.e. people who are engaged in the
management in such a way that they have a good educational background in that particular field.
This will help them to solve the problems or to discuss the problems with the clients or the
stakeholders so as to find out further solutions to the problems9. Moreover, the person must also
have relevant experience in that field so that they can handle any situation. Moreover, the
manager must also be confident when they are taking any important decisions. This is necessary
because the managers need to convince the team members and the employees so that they can
adopt these steps. There must certain candidates in the team who can inspire the other workers or
has the capability to convince the team members. The new initiatives must be taken by the
manager of the company and they must focus on these initiatives before giving priority to any
other. Moreover, ABC Company must also choose such mangers who can think something
creative and come up with amazing ideas so that the company can expand globally in a short
span of time10.
8 Ruggie, John Gerard. "Global governance and “new governance theory”: Lessons from business and human
rights." Global Governance 20, no. 1 (2014): 5-17.
9 Mainela, Tuija, Vesa Puhakka, and Per Servais. "The concept of international opportunity in international
entrepreneurship: a review and a research agenda." International Journal of Management Reviews 16, no. 1 (2014):
105-129
10 Grant, Robert M. Contemporary Strategy Analysis Text Only. John Wiley & Sons, 2016.

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Importance of interest value for the business professionals
It is also important that the top most leaders of the company must be of that particular
country in which the company was set up initially. This is necessary because the leaders will
have a clear idea of the problems and threats that will be faced by the company in the long run.
This problem was faced by the manager of ABC Company because the manager was from South
Africa but she had worked in Australia with many global teams on various projects such as retail,
tourism. agriculture, finance and agribusiness. There were some business professionals who were
engaged in the business because of their interest value rather than professional development.
This has helped the company to gather various projects which were of different types and
patterns because there were different professionals who were eager to solve problems of various
kinds. They had keen desire so as to overcome the problems and find out relevant solutions for
the company. This has helped in the business expansion of the global. Moreover, this has also
enhanced the skills of the professionals and although they did not have much experience but due
to their keen interest, they were able to handle them.
Rationalization and prioritization
Rationalization and prioritization were the main expansion activities which were
followed by many businesses of Australia. It is important to establish a quantitative baseline on
the effectiveness and efficiency of the business environment so that the management committee
can take important decisions on the current and future development of the business activities.
The management committee must also have options for translating the applications for further
value improvement which will help the company for further development and yield meaningful
results. There must be clear communication of the expectations and objectives off all the relevant
resources between the management and the clients of the company. These objectives must be

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designed in such a way so that they are specific, measurable, realistic and achievable within a
short span of time11. The managers must also co-operate with the client and this is seen in case of
ABC Company. The manager supported the employees and took various initiatives for
development of the organization. The team must also align with the various kinds of application
portfolio and the rationalization of the business must be done strategically. There were certain
experts who agreed that strategic planning must be done according to the requirement and the
financial position of the company12. There must also be higher degree of confidence in
maintaining the financial data and the information. The decisions must be based on the
recommendations which are to be implemented and these must be done accordingly i.e. it must
be specified on which order it will be done and on the basis of the transformed financial benefit.
These will be important not only for the realization of the benefits but it will be considered as
robust and thus must be reinforced with a much higher degree of confidence. This will help in
supporting and strengthening the financial information of the company13.
11 Brannen, Mary Yoko, Rebecca Piekkari, and Susanne Tietze. "The multifaceted role of language in international
business: Unpacking the forms, functions and features of a critical challenge to MNC theory and performance."
(2014): 495-507.
12 Meyer, Klaus E., and Mike W. Peng. "Theoretical foundations of emerging economy business research." Journal
of International Business Studies 47, no. 1 (2016): 3-22.
13 Verbeke, Alain. International business strategy. Cambridge University Press, 2013.

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Importance of cross sectional teams
There must also be a cross sectional team in the company and these team shall comprise
of the business consultants, process consultants and domain experts who can provide relevant
solutions for the development of the business. These will help in driving the synergies and thus
improve collaboration which will help in gaining more alignment and solve the multiple
perspectives which was faced by the company. ABC Company had experienced team of
consultants and they took important decisions on which certain recommendations were
implemented. It must also be checked that there is proper availability of sufficient budget and
resources so as to implement the recommendations in the company. If there is lack of budget or
resources, it will be difficult to implement the appropriate recommendations. The company must
also assess the level of involvement and the cost which are necessary before the execution of the
various rationalization initiatives. Moreover, it must also be ensured that these desired benefits
are realized in proper time and condition. A necessary framework, if required must also be
implemented by the company and it must focus on the understanding, transformation and
analysis of the opportunities and implementation of the desired roadmap14.
The management committee must also try to identify the opportunity grid which is
created for categorization of the business initiatives and the opportunities which are identified by
various frameworks. ABC Company also does not have any hidden cost included and if they are
surfaced, they try to reveal the potential cost cutting opportunities in the market. This
rationalization process is not followed by ABC Company and thus it does not allow the company
14 Venter, Oscar, Richard A. Fuller, Daniel B. Segan, Josie Carwardine, Thomas Brooks, Stuart HM Butchart,
Moreno Di Marco et al. "Targeting global protected area expansion for imperiled biodiversity." PLoS Biology 12,
no. 6 (2014): e1001891.

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to alter the different cost structures. It also requires initial investment and thus this will help to
reduce the cost of running the business. An example can be cited of initial investment which can
help in the consolidation of similar types of utilities and application in the businesses and it will
also create a foundation for the long term and medium term payback by reducing the
maintenance cost and therefore improving the operational efficiency. This will also help in
reducing the redundant processes which were adopted by the company in the initial stage. The
will also help in maximization of reuse of the various utilities in different types of business
functions. The total cost of the quality will also be reduced and this will minimize the number of
applications that will pass through various quality compliance processes15.
Limitations faced by the company
The most important drawback of the company was the degree of autonomy which the
professionals of the company had in developing their own projects. There were many business
partners of the company in different parts of the world who did not have sufficient capacity to
handle the projects with integrity. This was considered as an inefficient and ineffective way of
handling the business. The manager of the company also conducted an analysis of the different
kinds of impacts which will impact the business. There were certain key issues which the
manager found that it could be resolved and this would be possible only with the current
arrangements and interests in maintaining those projects16. The stakeholders of the company also
played an important role and it is they who have helped ABC company for further expansion.
15
16 Driffield, Nigel, Chris Jones, and Jo Crotty. "International business research and risky investments, an analysis of
FDI in conflict zones." International business review 22, no. 1 (2013): 140-155.

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There were certain senior partners of the company who has developed different types of ad-hoc
projects based on their interests and expertise. This was considered as an important means for
business expansion and revenue generation of the company. It was also the responsibility of the
manager to define objectively the outcome goals which are considered as the main target of the
company17. These performance goals are the tactics which must be reached for the fulfillment of
the goals of the company. The performance objectives are set to fulfill the outcomes such as
providing training to the employees, reducing the expenses of the company and collecting the
receivables. It is also the responsibility of the manager to conduct market research on the
customers and the industry so that it will help to analyze the product which is provided by the
company18.
The production planning must align with the total operation strategy and these in turn
must align with the corporate strategic objectives. The operations strategy and the production
planning strategy must align so as to lower the cost of production. This is important so as to
ensure that the delivery process and the performance objectives are fulfilled. It is also the
responsibility of the manager to check that the customers are happy with the service of the
company. There must also be flexibility so as to adapt constantly to the demands of the
customers. There must also be a waste free and efficient supply chain so as to minimize the cost.
The other related performance objectives will also affect the costs.
17 Forsgren, Mats, and Jan Johanson. Managing networks in international business. Routledge, 2014.
18 Meyer, Klaus, and Mike W. Peng. International business. Cengage Learning, 2016.

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There were certain challenges which had to be faced by the company before going global.
ABC Company had to do the ad-hoc projects in the same way and this did not contribute to the
branding of the business. The company had to struggle hard so as to gain global reputation. It has
been found that the company had to pass through tough competition as there were many
competitors in this industry. A careful planning is required before expanding internationally
despite the various positive market indicators. The managers must also be aware of the positive
external factors such as unexpected channel complexities, shifting market conditions and the
aggressive competitors in the market. The company must also review and identify the internal
capabilities so as to succeed in the long run19.
Recommendations
It can be said that before going global, the leaders or the managers must analyze the
business environment. Localization must be done correctly and it requires development and
support. Moreover, in order to enter a market affordably it is necessary to acquire the smaller
business that has local presence and traction. This will be beneficial for market entry and it will
allow the company to expand globally. The companies do not want to concentrate all their efforts
in the limited region and they wanted to spread out. The companies also looks for such markets
which will behave differently from the existing ones in various parameters such as affluence of
customers, growth rate, size, various stages of market development and many more. Moreover,
the global expansion of business also requires cultivating the various opportunities which are
available in the market. As every countries as their own rules and regulation, it is necessary to
understand the local language and culture so as to communicate the vision and mission of the
19 Peng, Mike W. Global business. Cengage learning, 2016.

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company effectively. It is also important to develop a new market segment so as to move into a
new country. These also require cost and uncertainty and it is considered as an effective means
of global expansion.
Conclusion
Thus, it can be said that there are many criteria’s which must be evaluated and analyzed
by the company before going global. In case ABC Company, the increase in revenue and margin
is not always necessary to cope up with the new projects because there are comparatively larger
projects in the mining industry. The ad hoc ways for global expansion does not always facilitate
for global expansion. ABC Company must take this into consideration before global expansion
and this will enhance the global reputation of the company. There must be distinct and clear
communication of the objectives from the relevant resources between the management and the
clients of the company. These objectives must be designed in a smart way. It is also important
that the manager must adopt the various roles and responsibilities which are necessary for global
expansion.

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References
Adekola, Abel, and Bruno S. Sergi. Global business management: A cross-cultural perspective.
Routledge, 2016.
Al‐Aali, Abdulrahman, and David J. Teece. "International entrepreneurship and the theory of the
(long‐lived) international firm: a capabilities perspective." Entrepreneurship Theory and
Practice 38, no. 1 (2014): 95-116.
Brannen, Mary Yoko, Rebecca Piekkari, and Susanne Tietze. "The multifaceted role of language
in international business: Unpacking the forms, functions and features of a critical challenge to
MNC theory and performance." (2014): 495-507.
Cavusgil, S. Tamer, Gary Knight, John R. Riesenberger, Hussain G. Rammal, and Elizabeth L.
Rose. International business. Pearson Australia, 2014.
Deresky, Helen. International management: Managing across borders and cultures. Pearson
Education India, 2017.
Driffield, Nigel, Chris Jones, and Jo Crotty. "International business research and risky
investments, an analysis of FDI in conflict zones." International business review 22, no. 1
(2013): 140-155.
Forsgren, Mats, and Jan Johanson. Managing networks in international business. Routledge,
2014.

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Gaur, Ajai S., Vikas Kumar, and Deeksha Singh. "Institutions, resources, and
internationalization of emerging economy firms." Journal of World Business 49, no. 1 (2014):
12-20.
Grant, Robert M. Contemporary Strategy Analysis Text Only. John Wiley & Sons, 2016.
Mainela, Tuija, Vesa Puhakka, and Per Servais. "The concept of international opportunity in
international entrepreneurship: a review and a research agenda." International Journal of
Management Reviews 16, no. 1 (2014): 105-129.
Meyer, Klaus E., and Mike W. Peng. "Theoretical foundations of emerging economy business
research." Journal of International Business Studies 47, no. 1 (2016): 3-22.
Meyer, Klaus, and Mike W. Peng. International business. Cengage Learning, 2016.
Peng, Mike W. Global business. Cengage learning, 2016.
Ruggie, John Gerard. "Global governance and “new governance theory”: Lessons from business
and human rights." Global Governance 20, no. 1 (2014): 5-17.
Sui, Sui, and Matthias Baum. "Internationalization strategy, firm resources and the survival of
SMEs in the export market." Journal of International Business Studies 45, no. 7 (2014): 821-
841.
Venter, Oscar, Richard A. Fuller, Daniel B. Segan, Josie Carwardine, Thomas Brooks, Stuart
HM Butchart, Moreno Di Marco et al. "Targeting global protected area expansion for imperiled
biodiversity." PLoS Biology 12, no. 6 (2014): e1001891.
Verbeke, Alain. International business strategy. Cambridge University Press, 2013.

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