Companies engage in international for a variety of reasons.docx

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Companies engage in international for a variety of reasons, but the goal is typically company growth or expansion. Whether a company hires international employees or searches for new markets abroad, an international strategy can help diversify and expand a business. MAIN POINTS Growth 1. Many companies look to international markets for growth. Introducing new products internationally can expand a company's customer base, sales and revenue. For example, after Coca-Cola dominated the U.S. Market, it expanded their business globally starting in 1926 to increase sales and profits. Employees 2. Companies go international to find alternative sources of labor. Some companies look to international countries for lower-cost manufacturing, technology assistance and other services in order to maintain a competitive advantage. Resources 3. Some companies go international to locate resources that are difficult to obtain in their home markets, or that can be obtained at a better price internationally. Ideas 4. Companies go international to broaden their work force and obtain new ideas. A work force comprised of different backgrounds and cultural differences can bring fresh ideas and concepts to help a company grow. For example, IBM actively recruits individuals from diverse backgrounds because it believes it's a competitive advantage that drives innovation and benefits customers. Diversification 5. Some companies go international to diversify. Selling products and services in multiple countries reduces the company's exposure to possible economic and political instability in a single country.Companies engage in international for a variety of reasons, but the goal is typically companygrowth or expansion. Whether a company hires international employees or searches for newmarkets abroad, an international strategy can help diversify and expand a business.1.Many companies look to international markets for growth. Introducing new productsinternationally can expand a company's customer base, sales and revenue. For example, afterCoca-Cola dominated the U.S.Market, it expanded their business globally starting in 1926 toincrease sales and profits.2.Companies go international to find alternative sources of labor. Some companies look tointernational countries for lower-cost manufacturing, technology assistance and other servicesin order to maintain a competitive advantage.3.Some companies go international to locate resources that are difficult to obtain in their homemarkets, or that can be obtained at a better price internationally.4.Companies go international to broaden their work force and obtain new ideas. A work forcecomprised of different backgrounds and cultural differences can bring fresh ideas and conceptsto help a company grow. For example, IBMactively recruits individuals from diversebackgrounds because it believes it's a competitive advantage that drives innovation andbenefits customers.5.Some companies go international to diversify. Selling products and services in multiplecountries reduces the company's exposure to possible economic and political instability in asingle countryReactive reasons for going international include :yMarket - the company is responding to demand it discovers in another locationoit could make this discovery by accident, or by having an affiliated company givethem a tipyCompetitive Environment - it sees competitors going to a particular placeofor example when Honda set up shop in Ohio, some other Japanese auto partscompanies also moved to Ohio to continue supplying HondayPolitical Environment changes - Trade Barriersotariff or non-tariff barriers: if an exporting company finds that the government inthe recipient country starts to build tariff or non-tariff barriers to block the export,then it might be a reason for the exporter to set up a manufacturing operationoverseas in order to avoid the tariffs

Case: John Higgins

1. How would you describe Higgins's and Prescott's attitudes toward implementing U.S. personnel policies in the Japanese operations?

Higgins and Prescott both have different opinions toward implementing U.S. personnel policies in the Japanese operations. I would describe Higgins's attitude more against the U.S. personnel policies and more toward the Japanese ways of doing things, considering he would rather spend his time in Japan. I would describe Prescott's attitude more for the U.S. way of implementing the personnel policies in the Japanese operations, since he really did not like the way Higgins handled situations.

2. What are the major reasons for the differences in attitude?

Well Higgins would rather be in Japan then he would in the U.S. He wanted the opportunity to improve the "ugly American" image the he believe held abroad. Higgins had taken to the Japanese culture. He married a Japanese woman, moved to a strictly Japanese neighborhood, and was active in different activities throughout his neighborhood. Higgins was known to register complaints and demands for many of the employees. He also transferred an employee that was actually fired, and said that he had done what was expected of a superior in any Japanese company by assuring a subordinate's continued employment. Now Prescott on the other hand, was trying to stick by the U.S. policies. He believed that Higgins was taken to the Japanese culture to such a degree that he had lost the U.S point of view. Prescott believed that there were dynamic changes occurring in traditional Japanese customs and culture, and he was confident that many Japanese were not tied to existing cultural patterns as rigidly as Higgins seemed to think they were. Prescott felt that the company's real contribution to Japanese society was in introducing innovations.

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