Strategies for Business Expansion into International Markets

This report examines the strategies involved in managing organizational change for businesses aiming to expand into the global market. It begins by outlining the steps necessary to identify the need for international expansion, including assessing the company's position, understanding the translation of business models, identifying target markets, developing comprehensive business plans, and seeking expert advice. The report then delves into the management and organizational strategies required for successful global expansion, emphasizing the importance of a clear international business plan, thorough market research, effective distribution methods, pricing strategies, and financial planning. Furthermore, the report details the implementation of changes within the international market, utilizing Kotter's eight elements of change implementation: creating urgency, forming a powerful coalition, creating a vision, communicating the vision, removing obstacles, creating short-term wins, building on the change, and anchoring the changes in corporate culture. The report concludes by emphasizing the necessity of evaluating the needs for expansion and implementing appropriate strategies.

BUSINESS CHANGE ADMINISTRATION 1
Business change administration
Student name
Institution
Professor

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Executive summary
The primary role of this report is to discuss the change management strategies in a firm
which aims to expand into the global market. The various techniques of identifying the need for
expansion into the international market and the international strategies required for expansion
into the global market have been clearly explained at the end of this report, the change
implementation approaches have been highlighted with reference to Kotler’s eight elements of
change implementation.

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Table of Contents
Executive summary...................................................................................................................................2
Introduction...............................................................................................................................................4
How to identify the need for expanding to international markets.........................................................4
Management organizational strategy required for the business expanding to international markets5
Implementation of changes in the international market.........................................................................7
Conclusion..................................................................................................................................................9
References................................................................................................................................................10

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Introduction
Managing organizational change involves recognizing new ways of working and new
methods of doing things which includes new styles of leadership and management in an
organization, (Appelbaum et al., 2012, p. 764). In this case, the organizational change in the
business is expanding to international markets in order to help the business realize its objectives.
Expanding to international markets involves a business selling its products globally.
How to identify the need for expanding to international markets
In order to identify the need for this change some few steps have to be followed which
includes;
Know your company and the industry: Before determining whether the products and
services are fit for the global marketplace, a manager should offer a clear picture of where the
company operates and where it will be in future, (Sarayreh et al., 2013, p. 627). Also it good to
consider supply constraints and other factors that might change the product. If in a business, a
manager is planning a major redesign, or foresee having problems obtaining raw materials in
future, it’s important to rethink the strategy, (Sarayreh et al., 2013, p. 627).
Determine how the business model translates: There are several ways for companies to
enter foreign markets including exporting, importing, joint ventures, licensing and offshore
production, (Anca, 2013, p. 138). For businesses that produce, manufacture or resell goods,
exporting is usually the easiest and least risky method. A manager should not overlook indirect
exporting, where an intermediary familiar with business in the target country handles the actual
transfer of goods, (Casillas & Acedo, 2013, p. 16).
Identify and investigate target markets: When it comes to target markets, the business
has to look for the markets that do not have the goods that they offer, (Vaccaro et al., 2012, p.

MANAGING ORGANISATIONAL CHANGE 5
30). All factors must be considered either negative or positive that impact on the organization’s
ability to penetrate a market, (Sarayreh et al., 2013, p. 628). A business might need to make
adjustments such as changing manufacturing materials to meet environmental requirements in
certain countries.
Develop a business plan: The business plan created when the firm was opened and any
subsequent plans previously made for operating and expanding domestically, would not translate
directly to foreign markets, (Weaver et al., 2014, p. 290). Issues to be considered include
Potential markets, sources, and customers, import, and export pricing strategies, initial financing
streams and anticipated revenues, additional costs, legal, regulatory and licensure requirements,
potential partnership and sales model, (Weaver et al., 2014, p. 291).
Seek advice and assistance: To ensure success in the business, the business should seek
advice and assistance from the already successful firms in the industry so as to know what efforts
they should put into place to meet the long-run objectives of the business, (He & Brown, 2013,
P. 8).
Management organizational strategy required for the business expanding into
international markets
Entrepreneurs have a lot to consider before expanding into international markets. To land
smoothly, entrepreneurs need a sturdy launch pad with a strong internal management to handle
an influx of new responsibilities, (Kuipers et al, 2014, p. 13). Good timing, international
competition, and integration into a different culture are critical to this process, (Kuipers et al,
2014, p. 13). The business should start with a clear plan to highlight shorter and long-term
growth goals. The strategy evaluation in a business should not be static but instead needs to be

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revisited as often as markets and teams change, (Kuipers et al, 2014, p. 19). Some basic steps to
expanding to international markets include:
Prepare an international business plan to evaluate the needs and set the goals of the
firm: Since the local business plan would not be suitable for the firm in an international
perspective, the management should prepare a new business plan. The plan should set out the
main objectives and goals of the organization and ways of achieving them, (He & Brown, 2013,
p. 20).
Conduct foreign market research and identify international markets: The
management should carry out a thorough market research. This enables it to understand its
international competitors, their products, competitive strategies, and cultures, (Weaver et al.,
2014, p. 296). A market research also enables the business to stay relevant in the international
market.
Evaluate and select methods of distributing your products abroad: The firm should
come up with a distribution plan, explaining how the specific products will be distributed to
customers in the international market. This may include developing stores in the international
market, sourcing an international distributor, franchising or outsourcing the distribution role to
another firm, (Weaver et al., 2014, p. 296).
Learn how to set prices, negotiate deals and navigate the legal morass of exporting:
The organization should come up with proper pricing strategies. This may be informed of cost
leadership or value pricing, (Anca, 2013, p. 140). It should also formulate better ways of
negotiating for price and product deals. In addition, the firm should also have a clear
understanding of the legal nature of the international business to stay relevant with the
international business laws.

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Tap government and private sources of financing: The firm should source for funds in
both private and government institutions to obtain the required capital for expansion, Anca,
2013, p. 140).
Move the products into their international market, making sure they are packed
and properly labeled: This is the last stage of the internalization process. The firm should
properly label its products to ensure that they are attractive and able to sell in the specific target
market, Anca, 2013, p. 140).
Implementation of changes in the international market
Change implementation refers to the process of putting into practice the proposed
strategies. This can be done using the Kotler’s eight elements of change implementation as
follows:
Create urgency: Urgency is the need for change, (Appelbaum et al., 2012, p. 772). The
firm should set out the reasons which necessitate the type of change to be initiated. In this case.
The expansion into the global market may be impacted by increased competition in the local
market. Limited customers in the local market and a need to diversify operations.
Form a powerful coalition: The management should bring together a group of
influential employees to assist in implementing the particular change, (Sarayreh et al., 2013, p.
628). In the case of expansion into the international market, the managers must communicate to a
group of employees who are the major decision-makers in the firm to help in implementing the
strategies. It can do this by identifying a true leader, asking for an emotional commitment from
the key people in the organization, and working on team building within the change coalition and
inspecting the set team for weak areas.

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Create a vision for change: Change comes with a lot of ideas and solutions floating
around which helps the business achieve its objectives of expanding to international markets.
Through vision creation, people are able to see for themselves what the business is trying to
achieve and the directives they are given to make more sense, (Appelbaum et al., 2012, p. 768).
The business can create a vision by creating values for the change. Values refer to the
primary beliefs in a particular firm, (Sarayreh et al., 2013, p. 627). The business must identify the
specific values that relate to the change being installed. For instance, in international expansion,
some values that the business may be interested in may include the need for diversity, need to
develop an international brand reputation and need to become the best global supplier.
Communicate the vision: The managers should communicate the need for change to all
the employees. This is important especially as it may reduce any instances of resistance to
change, (Anca, 2013, p. 140). Employees may have different interests. If some employees feel
that their interests may be compromised by the proposed strategy, then they may not readily
accept the proposal for change, Anca, 2013, p. 140). Communication may, therefore, act as a
convincing tool to enable the employees to accept the change.
Remove obstacles: Obstacles are the barriers to change, (Appelbaum et al, 2012, p. 765).
The managers may experience opposition from employees and other stakeholders who may not
support the strategies to be implemented, Anca, 2013, p. 140). Therefore, they should put in
place a structure for change and continually check for barriers to it. Barriers may also be
financial. For instance, the company may not have enough funds for expanding into the global
market. Therefore the managers should institute a proper financial planning in the organization to
ensure such barriers are solved.

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Create short-term wins: This involves creating short-term targets and not just one long-
term goal, (Casillas & Acedo, 2013, p. 18). The organization should formulate short-term targets
which are easily achievable to ensure the chances of strategic failure are minimized.
Build on the change: The business should launch a new product using a new system to
realize their objectives of expanding to international markets. Each success provides an
opportunity to build on what went right and identify what to can improve, (Sarayreh et al., 2013,
p. 628). The management should also anchor the change in the corporate culture. Corporate
culture determines what gets done.
Conclusion.
In conclusion, change is inevitable. Therefore, in expanding into the international market,
a firm must clearly evaluate the needs for expansion and come up with appropriate expansion
strategies. The firm should also formulate appropriate approaches that would ensure that the
proposed expansion is successfully implemented.

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References
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Appelbaum, S.H., Habashy, S., Malo, J.L. & Shafiq, H., 2012. Back to the Future: Revisiting
Kotter's 1996 Change Model. Journal of Management Development, 31(8), Pp.764-782.
Casillas, J.C. & Acedo, F.J., 2013. Speed in the Internationalization Process of the
Firm. International Journal of Management Reviews, 15(1), Pp.15-29.
He, H. & Brown, A.D., 2013. Organizational Identity and Organizational Identification: A
Review of the Literature and Suggestions for Future Research. Group & Organization
Management, 38(1), Pp.3-35.
Kuipers, B.S. et al., 2014. The Management of Change in Public Organizations: A Literature
Review. Public Administration, 92(1), Pp.1-20.
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Vaccaro, I.G., Jansen, J.J., Van Den Bosch, F.A. & Volberda, H.W., 2012. Management
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Management Studies, 49(1), Pp.28-51.
Weaver, T., Moen, O., Landstad, K. & Standeren, M.I., 2014. Investigating the International
Expansion of High Growth Power Providers in Emerging Markets: Motives, Management, and
Entry Modes. Journal of International Business and Entrepreneurship Development, 7(4),
pp.289-308.