Businesses are usually started with the aim of making profits so as to meet the pre-determined targets and remain competitive for a long time. Firms with an intention to gain reasonable competitive advantage across the globe have to embrace various international expansion plans which can make them recognized and considered in other countries. Adhering to the legal guidelines that several countries require any business organization to meet before it can operate within their geographical space helps to minimize most of the operational risks associated with businesses. Most businesses organizations such as multi-national corporations have to undertake various strategic measures that may help to withhold their global business position. To successfully achieve the international business growth goals, several factors have to be incorporated in the expansion plan.
Buy Business Strategy essay paper online
To begin with, businesses have to consider the common and civil law systems as recognized across all the countries they intend to operate. These comprises the code of rules and principles that have to be adhered to by all individuals and may include obeying people’s human rights by ensuring whatever a business engages in does not violate any principles expected in the judicial systems (Neubauer & Stephen, 2007). The managements of all the organizations wishing to expand and attain global recognition should understand the laws of all the countries they run their businesses in to ensure that they do not conflict with authorities who may withdraw their business operating licenses. Only the businesses organizations that show corporate social responsibility by carrying out their activities in an ethical manner and willing to put the interests of society first succeed in the international market.
International business expansion strategies also require that firms understand and respect the intellectual property and copyrights of other organizations. These may include trademarks and patents granted exclusively to firms to protect the entitlement to their inventions (Miller & Michael, 2000). The infringement of these rights may force countries to ban the operation of such firms within their jurisdictions. Therefore, all businesses should respect the property rights of other firms the same way they would expect their rights to be protected so as to compete effectively in the global market. Additionally, international business expansion needs a firm to be able to adhere to all the labor laws of different countries. These laws govern how employees are to be recruited and remunerated by prescribing the minimum wage rates and the child labor laws that should not be violated (Walker & Morell, 2005). In countries that require a large percentage of the workforce to be drawn locally, businesses should realize that this reduces their running costs.
Firms may consider joining forces with other established organizations that have similar fields of operation, through amalgamations, to avoid unhealthy competition. However, all stakeholders should ensure that their firms only merge with others that have a positive public perception and recognition (Seib & Fitzpatrick, 1995). Collaborating with viable firms that have a good public relation guarantees a continued enjoyment of goodwill and high profits due to the general acceptance of products.
Moreover, businesses should consider the impacts of the standards set by the European Union in the business environment. These standards may include environmental protection requirements that any firm intending to operate within their countries has to fulfill. Firms should consider the regulations which control how products are recycled since the countries may increase the production costs of different products. Other guidelines that the European Union has emphasized include market access and competition.
Firms that wish to succeed in international business have to consider the impacts of operating in countries that limit the extent of collaboration to contain the monopoly control of some firms in various critical sectors. Therefore, considering these impacts would ensure that firms are aware of the areas that are quite competitive and thus embrace relevant strategies to attain the anticipated international business expansion.
Finally, global business growth would also require a firm to research adequately to establish what consumers across different countries require and which other firms have been unable to offer. This would ensure that a firm establishes its market before engaging in production to avoid the consequences of low demand once products that could be perishable are ready for sale. The top authorities of various organizations such as managers and directors should undertake the above mentioned feasible international expansion business strategies. This will ensure anyone working within their organizations is aware of the expected outcome and works toward achieving all the objectives.