Global Operations: Strategy, Risk Management, and Expansion

This presentation provides a comprehensive overview of global operations, focusing on strategic development for businesses aiming to expand into international markets. It begins by outlining a five-step process for developing effective strategies, emphasizing the importance of analyzing current strategic positions, prioritizing objectives, and implementing plans with continuous review. The presentation then explores various methods for global market entry, including exporting, licensing, and partnerships, detailing the benefits and risks associated with each approach. A significant portion is dedicated to risk management, highlighting measures to minimize potential barriers in international operations, such as prioritizing risks, controlling growth, establishing a risk management team, and utilizing insurance. The conclusion synthesizes the key aspects of international expansion strategies, emphasizing the need for thorough risk assessment and mitigation techniques, supported by relevant references from books and journals.

Global Operations
Presentation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Development of strategy..............................................................................................................3
Risk management.........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Business commencement across the globe by a particular firm is known as global operation
which focuses on the wide international markets.
The following presentation will be highlighting the strategical development that can help a
business to operate profitably in the global markets.
Benefits and risk of certain strategies will be discussed which will be followed by the risk
management practices that can pursued by an organization for minimizing the risk in
international markets.
MAIN BODY
Development of strategy
To achieve any objective an organization has to make certain strategies that involves every
aspect.
While developing strategy management can consider 5 steps that can help in making effective
and accurate strategies for achieving objective.
First step towards making appropriate strategy is determination of strategic position that is
already implemented by the organization.
Determining the position of these strategies should include the factors that has effected the
respective plans.
This can be done by using various tools like swot, pestle and other tools which can help in
analysing internal and external factors that can impact the strategies.
The next step includes prioritizing objectives that can has to be achieved in the future.
Both long and short term objectives has to be determined in this for proper formation of plan.
Further, in the process the plan has to be formed in accordance with the objectives by
considering different affecting factors.
Consideration of every factor should be there to make accurate strategies. The fourth step
mentions that the plan has to be implemented properly in a way that is being determined in the
process.
After the implementation of the strategies its direction and outcomes has to be frequently
analysed and reviewed in order to make the plan more and more feasible by eliminating further
factors that are acting as a barrier.

There are various method by which a business can operate globally.
Such methods which there benefits and risk are mentioned below:
Exporting
This method of business commencement focus on selling goods or services in international
markets through transporting it from the country of origin to other regions.
This is one of the most common practice opted by many organizations in global markets.
Benefit of exporting globally is that it increases the efficiency of the organization by targetting
the global markets without setting up a physical outlet or factory instead of it the company has to
just establish an strong chain of supply.
The risk possessed in this strategy is that the organization may fail to gain the interest of the
customers of different regions due to diversified culture across the world.
Licensing
Licensing refers to the contract between more than one body creating an agreement for the rights
of using intellectual properties of a major company that may be well-established in the markets.
Using this strategy the company can give its intellectual rights to other business person living in
other regions so that the company can establish its presence in international markets.
This is a beneficial method in terms of foreign expansion as it provides income for the company
without making a major cost of production or overhead costs.
This strategy posses a threat of losing reputation in market due to the actions of other licensed
partners which are not controllable by the licensing firm.
Partnership
Forming alliance with the companies that has already established in the region in which the
expansion is desired is known as partnership.
This method can increase the effectiveness of business activities with the help of the local
companies as their experience can be used to determine the tendency of the customer and their
cultural aspects as well.
The risk associated with this method is that the risk of conflict between two firms and it can
impact the operations and productivity of the firm.

Risk management
Risk management is a very important aspect that has to be followed by a firm especially while
operating globally.
Various risk management measure can help the firm in tackling different barrier that comes in
international operations. Some of the measures for risk minimization in international markets:
prioritize
Factors which posses as a threat to the organization can be prioritized in respect with their
impact.
This can provide a direction to the management that which risk should be eliminated first and
which one should be considered last.
This can minimize the impact of different risky factors and the organization can attain more
survivability.
Prioritization can be based on different criteria such as occurrence, intensity of impact, timing of
occurrence etc.
Control growth
The objective of growth should be based on smart criteria and it shouldn't be too big and hard to
achieve.
The higher objectives tends to have higher risk so the objectives for growth should be made in
respect the capability of handling the risk.
Risk management team
A team for managing the upcoming risk should be appointed which has a sole motto of analysing
and eliminating the risks.
This can help a firm to a higher extent in survival by eliminating the risky factors.
Appointing this team is beneficial because a unit which is just focusing on risk can eliminate
major factors that can even result in shutting down the firm.
Insurance
Assets of the organization should be insured so that the loss from any miss-happening can be
recovered by the insurance amount.
This reduces the risks from unexpected factors which can't be determined by the management.
This can include the risk of theft, risk of fire or any other risks which are not determinable.

CONCLUSION
The above presentation has concluded various aspects that has to be determined while preparing
the strategies for international expansion.
Some of these aspects are risks, benefits, competitors etc. risk management techniques were also
discussed in the presentation that has highlighted various cautions and measure that can reduce
the risks.

REFERENCES
Books and journals
Demartini, M. and Taticchi, P., 2021. How Environmental and Social Issues Affect Business
Strategy. Corporate Sustainability in Practice. pp.3-20.
Kumar, S. and et.al., 2021. What do we know about business strategy and environmental
research? Insights from Business Strategy and the Environment. Business Strategy and
the Environment. 30(8). pp.3454-3469.
Peng, M.W., 2021. Global strategy. Cengage learning.
Sakti, A.S.A., Sutopo, W. and Hisjam, M., Lessons Learned in Developing and Implementing a
Global Business Strategy in Outdoor Gear Companies: A Comparative Study.
Tiwari, A., Sharma, R.R. and Sharma, T., 2021. A Case of Family Business Strategy of
Expansion. Global Business Review. p.0972150921989667.
1