Farahiyah Binti Ghazali (Matric no: 828485)

Subject: GFMA6043 International Business – Dr. Azura.

Question: What are some of the common motivators for companies embarking on
international expansion?

In my opinion, some of the common motivator is these three (3) major factors which are for cost
effectiveness, looking for new customers or prospects in the business and the resources that are not
readily available in the home bound. We may refer this to the one of the popular technique that has
been uses globally – SWOT Analysis. The analysis used to help organizations to determine the strength,
weaknesses, opportunity and threats. SWOT Analysis excesses internal and external as well as current
and future potential. For strength and weaknesses refer to the internal whereby opportunities and
threats usually refer to the external factors.

Strength describes as what organization excels at and differentiates it from the competitors. In example
the organization does have capital as their strength which can be used in order to minimize the
weakness. The cost effectiveness can be alternative to the current facilities whereby in our current
Pandemic situation most of the activities are using the internet. It will also be variety choices of
distributor for the organization to choose in terms of logistic and/ or raw products.

The weaknesses are the area where the organization needs to improve to remain competitive. The
weakness for instant can be subject to a lesser knowledge or/and technology in the home bound or
obtained at the lower cost. For instance we can benefits the current employee by giving them online
training using expertise or knowledge abroad.

Opportunities can be referring to the external factor that can give advantages and benefit to the
alliance. By expanding into the new market for the new customers, the business will definitely give the
job opportunities to the market. In the globalization area, advance technology and/or systems that we’ll
get from expanding abroad will definitely give cost effectiveness. It will also cause a wider customer
base, more knowable as well as cross culture occurred. The cross culture recognized when different
business people of different nation, background, ethnicity meets.

The objective of an international expansion is to increase sales and profitability. To spread its business
risk across a wider market base as well give added value to the nation. However, there will some threats
that will harm an organization such as foreign currency fluctuation, unreliable source, and change of
buying trends and need and so on.