Name: Jaycel P.

Bayron Yr/Course/Section: 3/BS Accountancy A

Professor: Sir Roy Gacus Date: May 26, 2021

A Reflection on A Strategy of International Business

Starting a business is the most difficult aspect in the world of economics. But once an entity
establishes its corporate image it could easily stand up and grab the market in its own hands. By doing
this, firms need a well-founded strategy especially on businesses who engages in international trade
since there are many factors that should be considered because of the diverse environment and norms of
each country. With this, I strongly believe that strategizing is really a significant aspect in the world of
trade.

I totally agree on the notion that a well-developed strategic plan results to a profitable and
sustainable business environment. It helps and aids firms on the courses of action that should be taken in
every milestone and season of their business. May it be on the positive side or on the negative aspect.
Having a strong foundation is really an edge to attain competitive advantage among businesses.

Allow me to elaborate my thoughts on strategies of businesses especially on doing investments

internationally by sharing my experiences on solving case analysis which involves different strategies that
results to maximizing their business’ profit. Upon formulating and understanding the different aspects of
business on the case analysis I took, the most important part or aspect that greatly affects the firms’
profitability is its strategic planning. On the case, the company was facing economic downturns due to the
pandemic. Moreover, their shareholders as well as members of the board did not anticipate the
phenomena, they lack corporate strategies which results to panic and then closing their company not so
long after. It took me seconds to understand and relate my experience as I read that case and now as I
formulate my thoughts regarding this topic since they are both inter-related. The word that best describes
the role of strategies on the part of firms is “crucial” since it really is vital and essential, especially on
cross-border and country trading.

Furthermore, I stand on agreeing on the part where lowering costs and maximizing revenue
through raising quality products are the primary way to compete into the global market. Since reducing
costs gives way to the opportunity of gaining more profit and allocating the residual money on capital
goods and other assets which helps to provide a greater number of goods which could then result to
higher inventory then higher sales. This strategy too is what I and my teammates formulate when we
solve the case analysis given to us. Cost-cutting really helps firms to attain the theory of benefit over cost.

Consequently, another factor that I think greatly affects businesses engaging in international
trade are the consumers or customers. With the different countries involved, comes with different
consumer behavior. Thus, there is a need of effective strategic formulation that could cater all sorts of
behavior of customers since in the first place they are the source of demand on the world of demand and
supply. I also personally think that this is a hard part for the firm and management since this requires a lot
of research and understanding both internal and external.

All in all, strategy differs from firm to firm. It is an unlimited and unique formulation of idea that is
specific in each company. However, the factors included in it are the same such as costs, consumers,
revenue, etc. Yet, the success of making it push through the small hole of competition lies on how it is
formulated and how it is implemented by the management.