BUS804 - International Strategy: Location as a Critical Factor

This essay explores the significance of location in the implementation of international strategies, arguing that it is a crucial consideration for firms seeking to expand globally. It examines how location impacts various aspects of a company's operations, including access to the right community, adherence to legal regulations, convenience for customers, and overall expenses. The essay further delves into key factors that should be considered when choosing a location for international business, such as labor availability, feasibility assessments, political risks, and necessary facilities. By analyzing these elements, the essay emphasizes that selecting the optimal location is essential for maximizing opportunities, reducing costs and risks, and ultimately achieving success in the international market. The study leverages academic articles, books and periodicals to construct a sustained argument that location is a critical factor when implementing international strategies.

Running head: International Strategy
International Strategy

International Strategy
“The most important consideration for the firm when implementing an
international strategy is that of location”
In this paper, the discussion will be made on the given statement. It has been seen that
location is considered as an important factor for the company at the time of implementing the
international strategy. Location plays a great role in conducting the activities of the company. If
location is not appropriate then it can be difficult for the company to sustain in the competitive
environment. In the first phase of the paper the discussion will be made on why location is
important at the time of conducting the activities in this the aspects related to right community,
legal rules, convenience, and expenses are discussed and in the next phase of the paper the focus
will be given to the factors that should be considered at the time of implementing the
international strategy like labor, feasibility, political risk, and facilities. The last phase is related
to the conclusion in which discussion is made of the entire report.
It has been seen that location is the important aspect that gives effect on the overall
productivity and profitability of the company. It has been seen that each and every company
should have the proper focus on the location so that in a smooth manner activities can be
conducted. If the location is not effective then it can be difficult for both employees and the
company to accomplish goals and targets (Kim, Hoskisson, and Lee, 2015). The location of the
business can impact the income and expense of the company. In the present scenario, related to
digitalization the location is the important factor as it is the places from all the activities are
done. In the failure and success of the organization, location plays a great role (Alcacer and
Chung, 2014).
When implementing the international strategy the company focuses on location as it helps
to manage the activities. Without having proper knowledge of the location it is not possible for
the company to decide the right strategy that should be implemented. When setting up a
business in the international market it is important for the company to focus on the location so
that pros and cons can be analyzed. International strategies are related to the strategies that will
help the company to open the business in the international market. If the business has decided to
open the business in the international market then focus should be given on the factors related to
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International Strategy
rules and regulations, convenience and many others so that activities can be conducted in a right
direction with proper care (Mishra et al., 2015).
There are various aspects which can state the argument related to why location is
important at the time of conducting the activities or in the business. The first factor is related to
the right community. If the activities are conducted out of the house or the on the international
platform the company focuses making the strategies so that failure cannot take place in the
business. Without strategies, the company is not able to decide where and when the activities
should be conducted (Hong, Wang, and Kafouros, 2015).
For instance: if a company is opening a new business in the international market then
location plays a major role. The location matters when the strategies are made or implemented by
the company. By analyzing the location the company can easily decide or make effective
international strategies. When the location of the business changes it is important for the business
to focus on various aspects like the demand of the customers, availability of the resources like
water, manpower, and electricity and also reach from customers (Svensson and Hooshyar
Yousefi, 2016). At the time of implementing the international strategy it has been seen that
focus is given to the following factors related to location like is customers are there to support
the business, is the overall economy of the market is healthy, no of competitors present in the
nearby location and values of the people in the location (McLean, 2018).
When implementing the international strategy related to legal actions then it is important
for the business to evaluate that the location which is chosen is legal to conduct the activities or
to open the business. There are many locations which are not legal so in this case, the company
has to face loss (Rohlin, Rosenthal and Ross, 2014).
So, when going on the international platform to conduct the activities or at the time of
making the international strategy it is important for the company to focus on the ethical aspects
related with the opening of the business. In many areas, it has been evaluated that legal rules and
regulations related to the codes are important to be followed. If they are not followed then it can
be difficult for the company to conduct the activities of the business (Ramadani et al., 2017). The
local government implements various rules and regulations on the location for example from the
size of the parking lot to the size of the business sign. If the company is conducting the activities
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International Strategy
then the ethical code of conduct should be followed related to the location. It is important for the
company to follow rules and regulations related to the locations so that in future it cannot be
difficult for the company to conduct the activities. The implementation of the international
strategy can be successful when the company focuses on the overall rules and regulations related
to the location. It can help the business to accomplish the overall goals and objectives in an
effective manner (Ewald, 2017).
Next factor is related to the convenience. When the strategies on the international
platform are made then it is important for the company to focus on the factor related to the
convenience. It has been seen that customers will visit those locations which are near to them.
Customers want convenience so they prefer to go to the location or the business to purchase their
item which is near to their house. If the business is related to the retail outlet then it is important
to focus on the residential location. So, the customers can easily visit and purchase their desired
product in an effective manner. It is important to focus on the needs and demand of the
customers in which the business will be located (Luthans and Doh, 2018). The company should
also emphasize the factor related to security at the time if implementing the international
strategies so that activities can be conducted with proper care. If the business is not secure then
it can lead to loss to the company so it is important for the company to choose the location which
is safe to conduct the activities (Glendon, Clarke and McKenna, 2016).
Next factor is related to the expenses. At the time of implementing the international
strategies, it is important for the company to focus on the overall expenses so that activities can
take place in an effective manner. It has been seen that location should be chosen by focusing on
the factor related to expense. If the cost of the location is high then it can be difficult for the
company to conduct the activities in a smooth manner. The expenses should be low then only
the company will be able to achieve the overall goals and objectives. Also, location helps to
guarantee the customers at the time of implementing the strategies (Risselada and Schutjens,
2017).
The international strategy that should be considered in this context should be related to
attracting the customers so that it can be easy for the company to achieve success in the market.
When there are more new customers or a large number of customers then it can be easy for the
company to accomplish overall goals and objectives. Fewer idea locations will have low rents
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International Strategy
and also it has been seen that if the rent is low then the company can easily earn more in an
effective manner. If the business is located in the mall then it is important to focus on the
advertising budget and also the number of customers that can be gathered. It can be one of the
best aspects on which focus should be given by the company so that growth can be achieved in
the international market and also it will help to enhance the activities on the international
platform (Tate et al., 2014).
It has been seen that to be on the right location can help the company to achieve large
market share and can also help to achieve success in an effective manner. If the selection of the
location in the international market is wrong then the company as to face loss in context to the
overall implementation of the strategies. Location strategy is related to the plan for achieving the
optimal location for the company by searching the overall requirements of the organization.
Also, it has been seen that the company will try to maximize the overall opportunity while
focusing on the reduction of the costs and risks which are related.
The location of the company is also the part of the corporate strategy and also it is
important for the managers to choose correct location at the time of making international
strategies. Strategies are not made correct then it can give adverse impact to choose the location,
so it is important to take into consideration the correct strategies that will help the company to
accomplish goals in an effective manner (Wheelen et al., 2017).
At the time of implementing the international strategy, it is important to focus on the
following factors so that it can be easy for the company to conduct the activities. First is related
to the facilities. It is important for the company to focus on the facilities. It is seen that the
strategies that will be implemented can only be successful when the focus is given on
considering the space a company requires to fulfill the long term and short term goals (Chen,
Olhager, and Tang, 2014). Next factor is related to feasibility it is important to make the strategy
related to the analysis of feasibility. The evaluation of feasibility is a proper focus on the overall
assessment of various operating costs and also other factors which are related to the various
locations. The strategy should focus on the factor related to the logistics so that it can be simple
for the company to conduct the activities in an effective manner. Proper analysis should be made
of the logistics so that the cost related with the transportation can be easily accessed and also the
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International Strategy
strategy should take into consideration manufacturing and warehousing facilities so that in the
right direction the company can conduct the activities.
Next focus that should be made at the time of implementing the international strategy in
context to the location is labor. When the company is opening any business it is important to
ensure the availability of the labor so that activities can be conducted in a right direction without
any problem related to labor. It has been seen that if there is proper labor in the area then it can
be easy for the business to conduct the activities and achieve goals and objectives. By proper
evaluation of labor, it can be easy to determine the need of the labor which the company has can
be fulfilled in an effective manner so that operations of the company can be completed in a right
direction (Renn, 2017).
Next factor on which emphasis should be given is related to the community and site. It is
important to focus on community and sites as it focuses on evaluating the company and also a
community that will help in completing the overall task within a short or long term.
Political risk is also important that should be considered at the time of implementing the
international strategies. It has been that the problems can take place in context to the political
problems in the location where the business has decided to open or start the activities. The
businesses that are focusing on expanding or opening a new business in the international market
should take into consideration the factor related to political risk (Brink, 2017). As there are many
countries where the political environment is unstable so in this case the company can face a huge
loss and can also affect the plans.
Therefore, the international strategies should be implemented in such a manner that
political risk can be analyzed in the initial stage and accordingly the company can take accurate
decisions (Bhat, Paleti and Singh, 2014). The risk related to political framework can affect the
entire long-term activities of the company and can also affect the routine activities. It is
important to focus on the growth by considering the strategies that will help to minimize the risk
in the particular area so that it can help in accomplishing overall goals and objectives in an
effective manner (Kraus et al., 2015).
Environmental regulations in the international market should also be taken into
consideration at the time of implementing the international strategies in the decided location as it
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International Strategy
is seen that it can give impact on the routine activities of the company. The environmental
regulations can also affect the relationship between the organization and the community in the
context of the various locations. So, it is important to focus on the environmental aspect so that
the activities can be conducted in the right location without any hindrances.
Location is only the place that helps to decide success and failure of the business. It has
been seen that there are small businesses that are established on the location where the demand
of the product is low or where the customers are not ready to purchase the products of a high
price, so in this case, the company has to face a huge loss. To start a business or to expand the
business it is essential to choose the best location or the company should be situated in the
middle of the city so that customers can be reached and purchase their goods and services in an
easy manner (Ferreira et al., 2016).
If the business has good interior and also the resources are available but it is located in
the corner of the city where it is difficult for the customers to visit. Then, in this case, it can give
a loss to the company and it is not possible for the company to survive in the competitive
environment. To choose the best place to a conduct the activity is a difficult choice for the
business. It has been seen that if the location is not good then to compete with the other
competitors or to give them a tough competition can be difficult.
When implementing the strategy it is important for the company to analyze that in the
chosen location the activities can be conducted or not. If the area is small or there are many rules
and regulations then the company should find any other place so that in future no hindrances can
take place and activities can also be completed in the right manner with the proper effeciency of
the employees. Employees are only efficient when they have all the resources easily available
and it can only happen if the location is good for the company.
Therefore, by analyzing the paper it has been concluded that the most important
consideration for the firm when implementing an international strategy is that of location.
Without location, it is not possible for the company to accomplish their goals and objectives. So,
it is important to focus on the location by focusing on the factors related to political risks,
convenience, environmental regulations, and labors so that the company can conduct the
activities in an effective manner.
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