Business internationalisation involves expanding company operations globally, driven by growth opportunities and market diversification. It requires assessing market attractiveness, choosing entry strategies like exporting or joint ventures, and managing the complexities of international business functions. Theoretical frameworks and strategic tools, such as the Bartlett & Ghoshal Matrix, guide companies in balancing global integration with local responsiveness, ensuring success in diverse markets.
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Business internationalisation is the strategic move of expanding operations beyond a company's home country to participate in the global marketplace
Business internationalisation is a significant aspect of globalisation, which involves the interconnectedness of world economies through increased cross-border trade and investment
When internationalising, companies must consider product adaptation and branding strategies to meet the diverse cultural and technological preferences of different international markets
Companies may pursue international expansion for various reasons, such as seeking growth opportunities in saturated or limited domestic markets
International markets can offer improved profitability, diversification, and increased competitiveness for companies
Market size, growth prospects, and ease of accessibility, as well as compatibility with the company's product portfolio and external factors, are critical in evaluating potential markets for internationalisation
Companies can adopt various strategies, such as exporting, direct investment, licensing, franchising, and joint ventures, to enter international markets
The Uppsala model, transaction cost analysis, Dunning eclectic paradigm, and network model are theoretical models that can guide internationalisation decisions
The Bartlett & Ghoshal Matrix presents four strategic options - global, transnational, international, and multi-domestic - based on the degree of global integration and local responsiveness required
Internationalisation impacts human resources management by requiring companies to address the complexities of managing a culturally diverse workforce
Internationalisation presents challenges for finance departments in managing investments and mitigating risks associated with international operations
Marketing strategies must be culturally sensitive, and operations management must ensure consistent product quality across all locations in international markets
00
In the context of ______, companies must tailor products and branding to suit various cultural and technological tastes across ______ markets.
globalisation
international
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Growth Opportunities in International Expansion
Companies expand internationally to tap into new markets for growth, especially when domestic markets are saturated.
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Profitability via Cost Efficiencies and Premium Pricing
International markets can lead to higher profits through cost savings and the ability to set higher prices.
