Executive Summary

If the company wants to expand its operation in foreign country, the first step that everybody
does is doing research. But there are some other factors that are needed to be considered
effectively and appropriately. Without considering them, it would be worst decision for the
company to go for global expansion. In this report, I will mention some important factors that
should be reviewed properly by top management.
 Table of Contents
Factors to be Considered for Global Expansion.........................................................................1
Knowing the Culture First...........................................................................................................1
Clearly Defined Goals.................................................................................................................1
International Rules and Regulatory Issues..................................................................................1
Local Competition.......................................................................................................................1
Willing to Change Strategy.........................................................................................................2
Best Way to Get Product.............................................................................................................2
Reinvestment...............................................................................................................................2
Employ Local Talent...................................................................................................................2
Recommendation...........................................................................................................................3
References.......................................................................................................................................4
 Factors to be Considered for Global Expansion
Going global is a big step for the company as it is the worldwide movement toward economic,
financial, trade and communication. As a top-level manager, he needs to consider some
important factors by which the company can achieve competitive advantage in overseas country.
These are given below:
Knowing the Culture First
Every country has its own culture. As a top-level manager, he has to gather proper information
about the culture of country and based on that he has to set his business plan for expanding
business operation in foreign country. According to Hilka Klinkerberg, founder of Etiquette
International in New York City, around 25% of U.S. companies who are operating their business
in foreign countries are successful. In addition, employee rights and their long tern welfare are
strongly supported by the government. For that reason, these factors provide a lot of power to
employees and gives extra administration, costs and potential liability for employers. Having a
strategy that fulfill what the culture wants will increase the goodwill of the company.
Clearly Defined Goals
When the top management decide to expand operations in foreign country, they should need a
define goals and strategies that are supported with reason of expansion. Because being an
employer in an overseas county is totally different from being an employer in the home country.
If the strategy that top management adopts does not match with the defined goals, the company
will not be survived in the competitive market for long period of time.
International Rules and Regulatory Issues
Every country has its own rules and regulation for giving permission for foreign companies to
conduct business in its land. According to DataCloud International Inc. which has its branches in
the U.S., Canada and Australia said that regulatory issues are the biggest challenges that the
company faced when expanding overseas. When this company wanted to expand its business in
Australia, it faced months to complete the essential paperwork for corporation and setting up a
corporation. As a top manager, we need to understand the rules and regulation of foreign country
in which we want to expand our business operation without facing any legal issue that might be
created a bad impact on our company.
Local Competition
It is not easy to build a relation with a foreign customer when a similar product is being produced
in their own country. Many small and midsize companies are working very hard to convince the
international market that customers can trust their brands and their products are better than other
competitors. In that situation, it would be tough for us to expand our business in order to capture
the market share in this competitive market. As a senior manager, we need to closely analyze the
current market of that foreign country where we are planning to build our company and properly
forecast the market so that we can have a clear knowledge about our company’s future position
in that competitive market.

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Willing to Change Strategy
The company needs to prepare for changing strategy when it faces some bumps in the road.
Because, the strategy that they have adopted for foreign country in order to expand their
operation might to be worked properly. There are many challenges and obstacles in the
competitive market that could harm the business operation heavily. Senior management should
always set an alternative strategy that helps them to compete with its competitor if their first plan
could not work accordingly.
Best Way to Get Product
It is the most important factor that every company has to determine it before entering in
international market. If the company is a manufacturer, it must choose from which location the
company has to collect its raw-materials for producing its products. On the other hand, if the
company wants to engage a distributor who has already a connection with the market the
company is planning to penetrate. He will assist the company to deliver to product to the actual
customer that the company selects as its target market.
Reinvestment
Whatever revenue the company gains should be considered as an opportunity to reinvest for a
global expansion. The company must have certain amount of money in hand for reinvestment,
because this strategy will help the company to perform well in financial activities.
Employ Local Talent
There are many talented employees working in their own country. When the top management
decide to go for global expansion, they have a great opportunity to recruit local employees in that
country. Because, these employees have some unique skills. In addition, they know geographical
areas, culture and familiar with the environment of their country.

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Recommendation
International expansion is not significantly the best way to grow the company. Some companies
have been doing remarkable job in their home country. But, entering in the international market
will help the company to protect its risk that it is facing is domestic market. The most significant
part will be increased the growth of the company.

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References
1. https://www.capital-ges.com/five-steps-to-successful-global-expansion/
2. https://www.businessnewsdaily.com/8211-expand-business-internationally.html
3. https://www.inc.com/hiscox-insurance/7-simple-steps-to-expanding-overseas.html
4. https://www.entrepreneur.com/article/159252