INTERNATIONAL BUSINESS

DEPARTMENT OF BUSINESS ADMINISTRATION

Assignment 01

Describe, using academic references, the international challenges and possible opportunities for

managers operating in a global environment. Provide a recent practical example of an organization

which has faced the challenges of international competition and expansion. You can use companies

which have been in recent news. Give your personal view of how some of the conflict generating and

solutions could have been handled in a more effective process.

Submitted By: Roubaisha Zahid

Submitted to: Miss Nida Ather

Date of Submission: 20th July, 2020

1|P a ge
EXECUTIVE SUMMARY

International business relates to any situation where the production or distribution of goods or
services crosses country borders. The entities involved in international business range from large
multinational firms with thousands of employees doing business in many countries around the
world to a small one-person company acting as an importer or exporter. Different countries have
different diplomatic relations with other countries and this significantly determines international
trade; bad diplomatic relations between two countries or regional countries impairs international
trade between the countries. The foreign policies of a given nation also play a significant role in
determining the participation of a given nation in international trade. As the economy grows
slowly at home country, a business may have to look at selling internationally to remain
profitable. Before examining foreign markets, the manager have to be aware of the major trends
in international business so they can take advantage of those that might favor your company.
International markets are evolving rapidly, and you can take advantage of the changing
environment to create a niche for your company.

2|P a ge
 Table of Content

INTERNATIONAL CHALLENGES AND POSSIBLE OPPURTUNITIES ...............................4

International company structure ...........................................................................................4

Worldwide organization structure ........................................................................................5

Remote laws and guidelines .................................................................................................5

Universal bookkeeping .........................................................................................................6

Cost figuring and worldwide estimating technique ...............................................................6

Exploration is Vital for Successful International Expansion .................................................6

Google's Corporate Social Responsibility Activities ....................................................................7

FOCAL POINTS OF INTERNATIONAL EXPANSIONS .........................................................8

Inconveniences of International Expansion..................................................................................9

EXAMPLE OF SAFEGUARD ................................................................................................. 10

BROADENING LOCAL ADVANTAGES ABROAD ................ Error! Bookmark not defined.

3|P a ge
INTERNATIONAL CHALLENGES AND POSSIBLE OPPURTUNITIES
Expanding overseas market involves meeting new markets or companies, and eventually raising
profits. Given all of 2017's confusion and the obstacles that still remain to be uncovered, there e
certain guidelines for doing business on a global scale that you should always remember before
jump into new foreign operations. Here's our guide on how to handl 11 largest challenges

International company structure includes:

 Foreign laws and regulations
 International accounting
 Cost calculation and global pricing strategy
 Universal payment methods
 Currency rates
 Choosing the right global shipment methods
 Communication difficulties and cultural differences
 Political risks
 Supply chain complexity and risks of labor exploitation
 Worldwide environmental issues

4|P a ge
  Worldwide Organization Structure

In the event that your point is to be serious all inclusive, you should have a group set up that is
up for the test. One basic thought is the structure of your association and the area of your groups.
For example, will your organization be run from one focal base camp? Or on the other hand will
you have workplaces and agents "on the ground" in key markets abroad? Provided that this is
true, in what capacity will these groups be sorted out, what self-sufficiency will they have, and
by what means will they facilitate working across time regions? If not, will you consider
recruiting neighborhood advertise specialists who comprehend the way of life of your objective
markets, however will work midway?
Coca-Cola offers one case of powerful worldwide business structure. The organization is sorted
out into mainland gatherings, each managed by a President. The focal Presidents oversee
Presidents of littler, nation based or territorial regions. Regardless of its various worldwide
nearness, the Coca-Cola brand and item is controlled midway and steady the world over.
While Coca-Cola is a huge universal brand, the structure of your business and the number,
nationality, and level of skill of your group will shift contingent upon your industry, item, and
the size of your business.

 Remote Laws and Guidelines

Alongside getting your organization structure set up, increasing a far reaching comprehension of
the neighborhood laws and guidelines overseeing your objective markets is critical. From charge
suggestions through to exchanging laws, exploring legitimate necessities is a focal capacity for
any effective worldwide business. Qualification to exchange is a noteworthy thought, as are
likely taxes and the legitimate expenses related with entering new markets.
Note that work and work prerequisites additionally contrast by nation. For example, European
nations specify that at least 14-weeks maternity leave be offered to workers, while then again,
there is no such prerequisite for U.S. bosses. With the multifaceted nature engaged with outside
exchange and work laws, putting resources into learned and experienced corporate guidance can
demonstrate priceless.

5|P a ge
  Universal Bookkeeping

Of the principle lawful regions to consider with regards to doing universal business, charge
consistence is maybe the most vital. Bookkeeping can introduce a test to global organizations
who might be at risk for partnership charge abroad. Distinctive duty frameworks, rates, and
consistence prerequisites can make the bookkeeping capacity of a global association essentially
testing. Bookkeeping methodology is vital to expanding income, and the area where your
business is enlisted can affect your assessment risk. Relieving the danger of different layers of
tax collection bodes well for any association exchanging abroad. Monitoring charge bargains
between nations where your business is exchanging will assist with guaranteeing you're not
paying twofold assessments superfluously.

 Cost Figuring and Worldwide Estimating Technique

Estimating can likewise boil down to how you decide to situate your image — should the cost of
your item reflect extravagance status? Or on the other hand will low costs help you to infiltrate
another market? Swedish furniture goliath Ikea, known in Europe for its ease esteem, battled at
first in China because of neighborhood contender expenses of work and creation being a lot less
expensive. By moving creation for the Chinese market and utilizing all the more privately
sourced materials, the organization had the option to effectively slice costs to all the more likely
mirror its image and lift deals among target buyers. .

 Exploration is Vital for Successful International Expansion

In the event that you are thinking about worldwide development as the following stage, the
principal thing you have to do is research. Groundwork for growing comprehensively can be the
contrast among progress and disappointment. Before you start to set up substances and recruit
staff abroad, it's imperative to comprehend the new market you intend to venture into

6|P a ge
GOOGLE'S CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

There are remarkable endeavors made by Google to improve. Forbes has recorded
Google having the best CSR exercises.

Google's CSR dependent on Community

There is an opposition named Google China Social Innovation Cup for College Students in
which victor or champion is upheld by assets by Google so their plans or thoughts can be
actualized. It centers on strengthening of Chinese youth to transform them into main thrust of
Social Development.

Google's CSR dependent on Environment

There is a mindful exertion by Google called Google Green in which it utilizes assets carefully
and advances sustainable power source assets. Because of this reasonable thought, Google has
seen to a great extent fall of around 50 percent in power necessity. The chop down expense from
power prerequisite can bring increasingly creative thoughts that will help individuals around the
world.

Google's CSR dependent on Charity

Google allows or gives commercials words at no expense for specific foundations. These notices
guarantee good cause to show their motivation appropriately and instruct individuals about the
reason. Such causes include privileges of creatures to blinds to HIV training. Google has
tremendous range and it is conceivable on the grounds that Google has bigger length of
connecting.

7|P a ge
FOCAL POINTS OF INTERNATIONAL EXPANSIONS

1. Passage to New Markets

The primary favorable position of global development is access to new markets. When an
organization has been effective in their nation of origin, it bodes well to take the business abroad.
With access to new markets, a business can possibly construct another client base.

2. Access to Nearby Ability

Specific ability can be elusive in your nation of origin. Be that as it may, extending abroad gives
you access to a pool of possible laborers with exceptional ranges of abilities. If that wasn't already
enough, neighborhood ability with these aptitudes will give you an edge over your opposition.

3. Expanded Business Development

Probably the greatest preferred position of universal extension is increment in business
development. Entering abroad markets permits quicker development for organizations. By
expanding the organizations worldwide impression, new crowds experience your item or
administration. This could prompt further extensions.

4. Remain in front of the opposition

Go to showcase before your rivals do. Extending abroad permits you access to new clients and
deceivability that your rivals probably won't have. Extending abroad is likewise an advantage to
escape a soaked market and be out in front of the opposition.

5. Local focuses

One reason why organizations extend all-inclusive is to have the option to offer a dependable
support to their universal customers. By setting up in another nation, a business will have the
option to bring down their operational expenses. Furthermore, by recruiting neighborhood laborers
who know the nearby language and neighborhood customs, you can serve your customers inside a
similar time region with no entanglements. This empowers you to contact a more extensive
worldwide crowd.

8|P a ge
INCONVENIENCES OF INTERNATIONAL EXPANSION

Just as there being heaps of points of interest, organizations do confront difficulties while
extending abroad. Growing abroad can bring bunches of remunerations, yet it would be delinquent
of us to not clarify the difficulties a business can confront when bringing their business worldwide.
Underneath, we give data on the expected entanglements and dangers related with universal
extension.

1. Cost of setting up and end of a substance

Every nation's administration works in an unexpected way. Thusly, to work lawfully and
agreeably, you may need to enlist legal counselors, nearby expense bookkeepers and worldwide
HR specialists. Furthermore, progressing costs are required to continue maintaining the business
effectively.

Once more, if plans don't work out you might need to close the activity down. In certain nations,
shutting activities can be costly and may take quite a while—now and again as long as two years
relying upon the nation.

2. Consistence chance

Going into new markets can be mind boggling. While venturing into another market, a business
must adjust and work as needs be to the nation's guidelines. These guidelines might be totally
different from your nation of origin. In this way, it's imperative to join forces with the ideal
individuals who will assist you with remaining agreeable and guarantee the right business
methodology are set up from the very first moment.

Staying agreeable is vital to fruitful worldwide development. Inability to stay agreeable can prompt
genuine Cases and expenses.

3. Strategic approaches and social obstructions

Culture and business activities are distinctive in every nation and as such can introduce a few
difficulties. In the event that you are extending to a nation that has an alternate business culture to

9|P a ge
your own, it's ideal to get some social preparing in their strategic policies just as social traditions.
Language issues can likewise cause issues. Along these lines, it's advantageous to comprehend the
nation's language. This will likewise help smooth the change of venturing into the new nation.

4. Overseeing universal representatives – HR and finance commitments

Going worldwide brings numerous points of interest. Notwithstanding, recruiting worldwide

workers requires another degree of HR backing and organization. In the event that you don't have
the capacities in-house, at that point you should redistribute. As referenced previously, business
and work guidelines might be not quite the same as in your nation of origin. Accordingly, it's
imperative that you join forces with a global HR master who will guarantee your laborers are
legitimate and agreeable to work

EXAMPLE OF SAFEGUARD
For safeguards like Bajaj, the way to progress is to focus on the favorable
circumstances they appreciate in their home market. Even with forceful
and blessed by the gods remote contenders, they every now and again
need to calibrate their items and administrations to the specific and
regularly one of a kind needs of their clients. Protectors need to oppose
the impulse to attempt to arrive at all clients or to mirror the multinationals. They'll improve by
concentrating on shoppers who welcome the neighborhood contact and disregarding the
individuals who favor worldwide brands. Thus, some of Jahwa's remote opponents have been stuck
in plated confines at the head of the market, giving Jahwa a preferred position in arriving at
purchasers with minimal optional salary. Revlon, for instance, assesses its objective market in
China to be only 3% of the nation, or 39 million individuals, while Jahwa focuses on over a large
portion of the market.

EXAMPLE OF ASIAN PAINTS

Asian Paints carries significant focal points to these nations. Its chiefs are
accustomed to managing the sort of showcasing condition there—a large
number of dissipated retailers, ignorant shoppers, and clients who need just
little amounts of paint that would then be able to be weakened to set aside

10 | P a g e
cash. Global opponents, on the other hand, have assembled their tasks around the requests of
prosperous clients searching for a wide selection of hues and wraps up. Their ostracize
administrators are utilized to cooled workplaces and filtered water that costs more per liter than
most clients are happy to pay for paint. Considerably after they build up a low-end paint item, the
multinationals will even now have far to go to make up for lost time in developing markets. Asian
Paints definitely realizes how to communicate in the language of these clients.

11 | P a g e