FlashMobz: Individual Assignment on Business Expansion Challenges

This individual assignment examines the challenges FlashMobz faces in acquiring PhonesRUS and expanding its business, particularly in transitioning to e-commerce. The analysis covers various hurdles, including maintaining group momentum, communication difficulties, cost calculation issues, and global pricing strategies. E-commerce-specific problems such as linguistic barriers and trust issues are also addressed. Furthermore, the assignment delves into the broader challenges of international business expansion, such as structuring the company for global operations, navigating foreign laws and regulations, ensuring international accounting and tax compliance, establishing universal payment methods, and managing communication and cultural differences. The assignment also highlights the impact of political risks on business sustainability. Recommendations are provided to overcome these challenges and facilitate successful expansion. The paper is a valuable resource for understanding the complexities of business expansion in a global context.

Running Head: INDIVIDUAL ASSIGNMENT FLASHMOBZ
Individual Assignment FlashMobz
Name of the Student
Name of the University
Author Note

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Table of Contents
Challenges for FlashMobz in order to acquisition with PhonesRUS and transition to e commerce
.........................................................................................................................................................2
The main challenges that are faced for expansion of the business and recommendations..............5
Recommendations............................................................................................................................8
Reference.......................................................................................................................................11

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Challenges for FlashMobz in order to acquisition with PhonesRUS and transition to e
commerce
FlashMobz being a mobile and retailer established by Asif from the scratch of a business.
After gaining success in England Asif has bought three outlets of PhonesRUS, which are
intended to work under the brand name of FlashMobz. With all the concerns, two of the three
outlets of PhonesRUS are located in Belgium. Due to the undue expansion of the brand abroad
because of the fact that two outlets of the PhonesRUS are present in Belgium unlike the
originating location of the brand, the challenges of Asif regarding maintaining the business have
increased to a great extent. The challenges faced by Asif during the business acquisition with
PhoneRUS are as follows: -
 Maintenance of group momentum
In case of FlshMobz collaborating with the PhonesRUS one of the major problem that Asif is
going to face is the maintenance in momentum of the group. The momentum of the group is
important to maintain in order to keep the organizational staffs motivated regarding the project.
The momentum of the employees seems to degrade with regards with the lack of clarity in the
motive setting of the organization. The distance in the communication process leads to lack of
interaction among the stuff members of the company.
 Member’s difficulties in finding time
Due to the cause of long distance among the stuffs and the higher authorities of the company,
the communication among the higher authorities decreases (Ablo, 2015). This decrease in
communication among the higher authorities creates problem among the lower ranked staffs.

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Due to the lowering of the communication there is an increase in dilemma regarding the goal of
the company. The goal of the organization stays conflictive which increases the growth in
conflict among the lower ranked stuffs members, who do not get direct access to the higher
authorities of the company. Due to the lack of information being transferred to the lower
hierarchy leads to the performing of wrong task and the priorities of the task being not clear. This
lack of understanding of the work leads to the fact of decrease in efficiency of the task that the
stakeholders are to perform. This degradation in quality of the product leads to the downfall of
the goodwill f the company that has been earned after years of hard work done by Asif to make
the organization multinational.
 Cost calculation
The cost calculation of the product during its manufacturing process faces a lot of problem
when two-business organizations collaborate with each other. The aim of both the organization
does not always coincide with each other, which leads to the conflict that happens regularly
among the lower hierarchy stuffs of the company (Benn, Edwards & Williams, 2014). Thus, the
mismatches in the goal of the company cause the probation problem in calculating the cost of the
entire project. As the goal of the project is differentially set in the organizations located in
different parts of the world the cost management is the major problem in collaboration. Both the
companies that are collaborated has their own set of managerial committee that enables them to
keep a track on the cost calculation, due to the fact of increase in distance among the managerial
committee the cost of communication also increases for communicating among the higher
hierarchy of the organization (Ward, 2016). The collaboration between two organizations also
leads to the clash in target setting, which often lead to excess expenditure of money due to the
clash in target setting as the local managerial committee might take a decision which is not

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supported by the main branch of the organization. This aspect leads to the fact of undoing the
previously done work and starting the project afresh which costs the organization a hefty amount
as the costs of raw material as well as the service charges are wasted and the same charges are to
be paid twice to get the same job done only once.
 Global pricing strategy
The pricing of the product is the main marketing strategy that has been used by the
organizations to gain attraction of the clients in the market. This efficiency in attracting clients
will be a problem for FlashMobz if they intend on collaborating with PhonesRUS. Asif will face
a problem in setting the price of the products that they are about to sell in the shops as the pricing
structure of different countries are different from one another. The potentiality in currency varies
in large constants. Hence, to make the products available and affordable the product must have
differentiated pricing strategies, which will enhance the clients to get access to the product
irrespective of the fact of change in currency potential (Ward, 2016). This variation in pricing of
the product causes the deformation in standardization in terms of pricing of the product. This
lack of standardization causes imbalance in the marketing strategies in the project.
 E-commerce based problems
The main problem that e-commerce platform will face in case of collaboration of FlashMobz and
PhonesRUS are as follows:-
1. Linguistic problems
In case of collaboration of FlasMobz and PhonesRUS, whose two out of three outlets are
present in Belgium, the major problem will be the linguistic problem for the e commerce

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platform of the business (Lee & Lee, 2015). A basic language must be set to reference list, which
will be the mode of communication for the users of the e commerce platform for clients. English
is not generally spoken among the countries other than England. As the originating country is,
English speaking hence the basic language must be English in order to retain the previous clients.
However, the aim of expanding the business stays to a put, as English is not well accepted in the
states of Belgium, which hampers the growth of the company.
2. Trust
As e-commerce is one of the newest technologies in the market the trust issues of the
platform is always a reason of concern for the trading company. Without gaining the trust of the
mass, it is not possible to continue business as without goodwill of the business loyal clients will
not be available and a business cannot flourish without the loyal clients. The clients that have
been using FlashMobz product lastly may not have brand trust on the PhonesRUS in that case the
loyal clients of FlashMobz will not be loyal to the brand anymore and switch to some other
brand. Similarly in case of the PhonesRUS, the loyal clients might not be well accustomed with
the FlashMobz then due to the fact of PhonesRUS collaborating with FlashMobz will see a
decline in the client satisfaction rate. Hence the trust issue remains on the e-commerce platform
due to the collaboration of the two brands hence acting as a challenge in expanding the business
abroad.
The main challenges that are faced for expansion of the business and recommendations
 International Company structuring
The main issue for making the business worldwide is developing the structure of the
organization according to the global marketing tenure. Proper teams of experienced and

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specialized members are set up who will be efficient enough to handle the business executions of
the company abroad without concerning the managing committee who are located in the main
branch of the organization. This group of members takes surveys in order to gain the knowledge
regarding the taste of people where the organization targets to gain a grip on (Bryson, 2018).
This results that are evaluate from the surveys that are conducted by the team of managing
committee who are appointed to send in proper results for the upcoming project purpose. The
evaluated results are then used to stay updated with the facts of the needs and demands of the
potential clients who are located abroad.
 Foreign laws and regulation
The laws and regulation are different for every other country and abiding by the laws of the
countries where one’s business is based. In order to gain goodwill of the mass, it is necessary to
stay in the good books of the government. In case of starting an organization in a new country,
the business officials must be accustomed with the laws of that country (Bendell, 2017). Asif
being the sole owner of the organization it is not possible for him to take care of the business
after establishing the business worldwide. Issues once caused by the lack of maintaining the laws
of specific countries causes a lessening of the goodwill of the company which might turn to
losing the brand loyal clients as well as lessening the scope of gaining potential clients.
 International Accounting
Tax compliance is the most important aspect of pursuing business abroad. Tax compliance
leads to the major issues of fraud cases overseas, which leads to the decrease in the goodwill of
the organization. The accounting process posses threat to the multinational companies who are
comparatively new to the country as well as the laws and the accounting systems of the country.

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Accounting strategy has been the main reason behind the revenue collection of the revenue.
Accounting function has proven to be the most challenging task for an outsider to get into the
business. Proper transaction in the accounting department causes the impact of tax liability. For
mitigating the risk of tax fraud cases the higher authorities must stay indulged in the entire
process of accounting system (Boshyk, 2016). This act to be a difficult task for the higher
authorities as the task that might prove to be problematic for the managing committee as the they
themselves are located abroad and are dealing with the laws and facilities of the respective
countries they are located in.
 Universal payment method
E commerce has evolved to a great extent since the last decade. This propagation helps the
corporate sector to gain access to the global market (Neelankavil, 2015). Despite the fact of
increase in exposure in the market, the major problem that the e commerce faces is that the
payment process varies globally which in turn causes the problem of determining the
methodology of payment and trust issues regarding companies and brands that are foreign.
Possibilities of accepting transaction by the means of Paypal, Yandex has grown in last few years
but countries that are still not exposed to these platforms faces difficulties in processing the
transaction hence leading to the decline in business in those countries (Knoke, 2018).
 Communication and Cultural differences
Communication is the main layout path carrying out good business proceedings that are
needed to make a business successful. Communication does not only comprise of diversity in
language but also acceptance of the cultural and glorifying the need of the business proposal
(Doppelt, 2017). Communication does not mean only the communication between that of the

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clients and the business organization. The communication issues also deals with the intra
organizational services that are to be performed among the employees of the firm. In case of lack
of transparency among the employees, the business organization suffers due to the conflictive
decision-making in the terminology of the process (Brady, 2017). The issue of trust also appears
in case of lack of communication among the business organization and the clients of the
business.
 Political Risk
The sustaining of a product and a brand is completely dependent on the aspect of
acceptability of the product and brand by the mass. This process of acceptability is highly
dependent on the fact of acceptability scale of the product by the government of the country
(Crane & Matten, 2016). In case of the brand or the product, sharing a conflictive relation with
the government the mass of the country does not gains the trust on the product or the brand
which causes the lessening of the goodwill of the company and lessening of the brand value of
the company (Sekaran & Bougie, 2016).
Recommendations
 To resolve the problem caused due to the creation of the international infrastructure of the
business is by employing members who are well confident regarding conducting of
survey in the places where the higher authorities of the business cannot reach (Chang,
2018). The results that have been achieved by following the evaluation of the survey
conducted will help Asif to gain an access to the entire scenario of the business
organization.

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 To avoid the terms of not being able to cope up with the laws and regulations of the
foreign countries a native lawyer must be appointed who will be well acquainted with the
laws and regulations of the country to prevent any kind of law related problems.
 To avoid the problem that arises due to the fact of accounting problems can be solved by
setting up an accountancy firm for the project. Accountants must be hired who are
exclusively trained for the process of maintaining accounts issues of the multinational
companies (Morabito, 2016). In order to get the perfect results from the recruited
employees in the accountant firm proper training must be provided to the employees
before putting them in a real life scenario in order to get efficiency in the field of
accountancy department as this department plays a decisive role in increasing the scale of
the business.
 To avoid the problems that are being created due to the fact of international payment that
is to be made for clearing the debts of the services that are enjoyed by the clients is by
making an independent platform of payment for every country. In this method the
country allocated for the business proceedings has been allocated with a proper payment
platform that is available in the country with the standardized payment technique so as to
increase the stability of the tenure processing. With a stable payment strategy the increase
in business management is observed in the business.
 To avoid the political aspect of denial of the project Asif must maintain a proper
relationship between the government organizations by abiding by the laws stated by the
government for the proceeding of the business (Chang, 2016). This factor help in gaining
the trust of the company that will lead to the fact of gaining the good will for the brand

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name. the brand will stay in the good books of the government by paying the tax and
informatics in correct tenure period.
 To avoid the problems related to the fact of maintaining the connectivity among the
employees of FlashMobz a particular platform must be built in order to maintain the
communication among the employees of the organization in order to prevent the
communication gap among the employees of the organization. This decrease in the
communication gap between the employees of the organization helps the organization to
grow as a unit that helps to increase the motivation of the employees leading to the
increase in scalability of the organization in terms of production (Kolk, 2016). The aspect
of lack of conflictive communication also ensures that the proper information that is
generated from the higher hierarchy of the organization is delivered to the employees
with proper efficiency.

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Reflective Writing
I being a member of SBS Consultant Team was allocated the task of discussing the issues
that might take place when Asif, the owner of the FlashMobz buys three outlets of PhonesRUS.
Acquisition process between FlashMobz and PhonesRUS whose two of the three outlets are
present in Belgium whereas the origin of the FlashMobz is in England is to be critically
evaluated by me and provide the recommendation for the same. I would like to grade myself in
above 80, as according to me I have contributed in the processing of the business in an efficient
way. This efficient way of evaluation of the project brings into the project the term of efficiency
regarding the aspects such as giving all the employees of the organization a clear understanding
of their job prospect that enables the employees to perform their jobs wih better profficienncy. I
have further stated the procedures to overcome the problems that Asif might fae during
expanding his business abroad. The solutions regarding the process off FlashMobz acquisation
with the PhonesRUS hasv also been stated by me. The procedural method that I have state will
be of immense usage for the successful progression of the project that is initiated by Asif. The
refernence that I have provided in the report are all scholarary references that will indicate the
proffeciency of the report that I have prepared for the organization. The source of references are
authorized hence indicating the authentication of theb project. Solutions for the problems that
might arise due to the online aspect of the projec t is well discussed by me in the report wich will
enable the clients located in the differentb parts of the globe to get prper access to the
organization. The hindrances regarding the online payment issues and the mode of
communication among people of different linguists have also been solved by me in the report.

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