Global Business: Computer Solutions Expansion Analysis Report

This report provides a comprehensive analysis of global business expansion, focusing on Computer Solutions' potential entry into international markets. The report begins by assessing environmental forces, including socio-cultural, economic, political, and legal factors, in five countries: India, Austria, New Zealand, Pakistan, and Nepal. It then utilizes the SMART model to evaluate these countries based on key success factors, ultimately recommending India and New Zealand as the most suitable for expansion. The rationale for these selections is detailed, emphasizing India's economic growth and diverse market and New Zealand's political and economic stability. The report concludes with a summary of opportunities such as new customer bases, skilled labor, and technological advancements, and challenges like cultural barriers and political instability. It also includes a reflection on the importance of adapting to local needs and overcoming market entry barriers. The report provides valuable insights into international business strategy and decision-making.

Running head: GLOBAL BUISNESS
GLOBAL BUISNESS
Student’s Name
University Name
Author note

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Introduction
Expanding the business activities in the global working is highly essential in order to
survive in the highly competitive market environment and the exploit the opportunities
prevailing in the external markets. However, it has been analyzed in the previous module that
there are various challenges and barriers that the organizations need to overcome in order to
sustain in the international market. The purpose of this report is to analyze the opportunities
and the challenges that can be faced by the selected organization, Computer solutions in the
selected countries, Austria, India, New Zealand, Pakistan and Nepal. It determines the
potential targets for the locations and determines the most suitable country for business
expansion.
Discussion
PART A:
Assessing environmental forces
The business organization might face socio-cultural risks, economic risks, political
threats, legal challenges and other geographic barriers while expanding the business activities
and operations (Shenkar, Luo & Chi, 2014). The customs, traditions habits, rules, preferences
and tastes of the local consumers, languages are different from the country of origin.
Therefore, the business organization might face various challenges in determining the needs
and preferences of the local customers, it requires time and effort to make the products and
services sold presentable and accepted by the local consumers of the targeted country. The
business organization needs to invest in the market advertisings and promotions in the initial
stages of business expansion in order to influence the local consumers towards the products

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and services offered by the company (Dunning, 2013). Further, political and legal threats are
considered to be one of the major challenges that can be faced by the business organization in
expanding their business activities and operations in the global market. It needs to comply
with different set of laws and legations of the target country and the political norms of the
country (Bartlett, Doz & Hedlund, 2013). Frequent changes in the laws and regulations of
the country can affect smooth functioning of the business organization and hamper its
profitability. This can pose to be a challenge for the business expansion in the international
market. Moreover, there are economic risks prevailing in the market such as the inflation rate
of the country, the political and economic conditions of the country and the exchange rates
(Cavusgil et al., 2014). These factors must be considered by the business organization in
order to expand their activities as this factor can impact the profitability of the organization.
Additionally, the geographic location of the country must also be taken into considered for
expanding the business operations and activities in the international market.
The countries that have been targeted for expanding the business activities of
computer solutions are India, Austria, Nepal, New Zealand and Pakistan. The political,
economic, social, technological and legal factors of each of the countries will be discussed
below.
India can be considered for market expansion mainly because of its huge diverse
population. It implies that it will be easier present the products and services in the Indian
market as there is a huge possibility that the products and the services will be acceptable by
the Indian population. The country is developing into an open market economy, which is an
opportunity for computer solutions (Forsgren & Johanson, 2014). Further, there is an
abundant available of cheap labour due to young population. The government of India has
been planning to boost its economic development, hence it is an opportunity for Computer

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solutions to gain support from the government officials. The GDP rate of the country is 6.7%
(Forsgren & Johanson, 2014). The country has a well structured tax system and the cultural
of the country is highly favourable for expansion. However, political instability is a
challenge.
Nepal has been considered for business expansion due to significant infrastructural
development in the country. There have been significant improvements in infrastructural of
the country, which can be an opportunity for market expansion. Further, availability of young
population in the country is also an added opportunity for business expansion and offer better
quality products and services. The GDP of the country is 7.5% (Forsgren & Johanson, 2014).
The government of the country favours direct foreign investment which is a substantial
opportunity for the foreign investors. However, the non-transparent legal system, policy
uncertain, high corruption rates are some of the challenges (LEYVA, 2018)..
New Zealand has been considered for market expansion due to its stability, the
corruption rate of the country is lower as compared to the other countries. It is a developed
nation with many market opportunities. The GDP of the country is 3.5%. (Forsgren &
Johanson, 2014). It has a relatively simple tax structure. It is a culturally diverse country.
Technological advancement is an added opportunity for the company especially in the field
of IT security, software applications and software engineering. This can be an opportunity for
computer solutions. Moreover, the government of New Zealand supports direct foreign
investment. However, there is a gap between the rich and the poor people, increased levels of
crimes. These social challenges can be a threat to the company (Jurevicius, 2013).
Pakistan can also be targeted for company expansion as it is one of the major users of
IT technology, computer devices and IT products, which is a big opportunity for Computer
solutions. The GDP of the country is 5.3% (Forsgren & Johanson, 2014). . Further, the

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country focuses on importing new and fresh IT devices and new technology for different
sectors in the country. However, there are major political, social, legal issues. High level of
corruption, political instability instable laws and regulations are some of the major challenges
that can be faced by the company (LEYVA, 2018).. Moreover, there is a lack of education in
the country, which implies that there is a lack of efficient labours in the country.
Austria has also been considered for market expansion as it is a well developed
market economy, it has abundant of skilled labour force in the country and has high standard
of living (Pan, Chen & Zhan, 2018). It has a large service sector and comparatively sound
industrial sector. The fiscal conditions of the company are comparatively favourable. The
country is neutral and it has stable government. This can be an opportunity for Computer
Solution. However, the economic growth rate of the country is slow and high rate of
unemployment in the country. The GDP of the country is 2.3% and the inflation rate of the
country is 2.1% (Forsgren & Johanson, 2014).

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PART B:
Smart Model
Table 1: Simple Multi-Attribute Rating Technique Model—Competitive Analysis
(Letaifa, 2015).
KSFs/
Attributes
Weighted
Score
India New
Zealand
Pakistan Nepal Austria
Potential
market
25 68 70 54 50 60
Economic
Freedom
15 55 66 30 35 50
Political
stability
25 33 70 33 34 60
Taxation and
Tariffs
15 40 50 35 50 40
Technological
developments
20 30 40 60 40 30
TOTAL
100 226 296 212 209 240

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Therefore, the two selected countries for business expansion are India and New Zealand.
These countries are selected as they favourable conditions in the country for smooth
functioning of the business as compared to the other countries. India is highly diverse country
with high rate of economic growth and development (McFarlin & Sweeney, 2014). This is
highly favourable for the company. New Zealand has high political stability and the market
growth rate of the country is high with economic stability, hence it has been selected for
business organization.
PART C:
Rationale for the selected countries
India has been selected as the country for market expansion it is one of the largest
growing economy in the world, this increases the opportunity for market development,
infrastructural development. Further the GDP rate of the country is increasing at a faster rate
as compared to the other countries. Although, there are legal and political challenges, the
government of India highly favours foreign investments in the country as it boost economic
development of the country (Ja & Jo, 2018). Abundant available of young labours in the
country is an added opportunity in the country. Furthermore, the large populations and
diverse culture of the country is favourable for market expansion in the country.
New Zealand has been selected as due to political and economic stability. It has
favourable legal conditions as well as stable economic conditions which is attractive for the
foreign investors (McFarlin & Sweeney, 2014). The corruption rate of the country is
comparatively low than the other countries. Most importantly, the country is technologically

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advanced as compared to the other countries, which is an added advantage for Computer
solutions. The country excels in the field of IT security, hardware and software systems
which might be an opportunity for Computer solutions to excel in the market of New Zealand
(Dunning & Wymbs, 2013).
Therefore, India and New Zealand is believed to be appropriate for location of
international business.
PART D:
Summary
Therefore, from the above analysis, it has been identified that there are various
challenges and opportunities in international business. Therefore, business organizations need
to consider various aspects before expanding the market activities and operations in the
international market (Kedia & Harveston, 2018). The opportunities pertaining in the global
market includes wide availability of new customers, once the products or services offered are
accepted by the local consumers of the target market. The organization might access skilled
labour in the market which might enhance the business operations (Cavusgil et al., 2014).
Employing locals from the country might enable the business organization to gain local
knowledge about the market. Further, it can access better and advanced technology in
technologically advanced countries (Jurevicius, 2013). Due to increased levels of
globalization in the market, there is a high usage of internet services and IT services which is
an added opportunity for Computer solutions specifically. Further, business expansion helps
the organisations to diversify their assists and protect the bottom line of the company. It

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enables the organization to operate successfully in other international countries by
introducing innovative and unique products and services. This enables the business
organization to maintain its profitability (McFarlin & Sweeney, 2014). . Other opportunities
of expanding the business operations in the international market include better accessibility to
advanced skills and talent, diverse educational backgrounds. This helps the business
organization to increase their level of productivity and enhance its performance. Moreover,
international pool of talent might improve the innovation and creativity in the organization.
Additionally, there are foreign investment opportunities which might not exist in the home
country (Kedia & Harveston, 2018). Operating internationally might enable the business
organization to gain a competitive advantage. This also enables the business organization to
build strong brand awareness, acquire new advanced technology which in turn might improve
the operations and productivity of the business organization.
The cultural challenges in the international market can be a barrier for the organizations
(Shenkar, Luo & Chi, 2014). Therefore, it is essential for identify the local tastes and
preferences of the consumers which might impact the profitability and operations of the
business organization. Further, it has been identified that the political instability, levels of
corruptions in the target countries can hinder smooth functioning of the business
organization. The organizations might also face stiff competition from the local companies
therefore, it is essential to introduce unique and innovative products and services to local
consumers of the target market (Cavusgil et al., 2014). The organization need to adjust its
products and services as per the local needs and requirements of the organization as well as
cultural peculiarities. The multitude of local national laws and legislations of the country and
the cost of adhering to the governmental policies and taxes can pose a challenge to the
business organization (Ja & Jo, 2018). The other identified challenges for business expansion

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include language barriers, etiquette as well as corporate social responsibility issues.
Therefore, the organizations need to undertake effective measures to overcome the barriers in
the global market and exploit the prevailing opportunities in the target market (Cavusgil et
al., 2014).
Conclusion (reflection)
The report has identified the geographic, political, social, legal and economic factors
that might positively or negatively impact the smooth running of business operations in the
international market. It has identified five countries, India, Austria, New Zealand, Pakistan
and Nepal for expanding its business. It has analyzed the favourable and unfavourable market
situations prevailing in the countries and has selected India and New Zealand as the most
appropriate countries for business expansion. This assignment has helped me to analyze the
potential challenges and opportunities that might be faced in global business operations. I
have learnt about the factors to consider while expanding the operations of the business in the
international market.

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