Attempt about the Strategy of Expanding a company right into a New Nation
Inside the latest aggressive business enterprise entire world, growing overseas could appear similar to a pipedream for future businesses (Brooks & Weatherston, 2012). Nevertheless, many firms have taken the plunge in spite of the recession allowing them to writingbee.biz/ diversify their risks and client base in overseas markets. Though foreign markets might appear lucrative to many firms, it is recommended for companies to do a thorough research before venturing into foreign markets. In most cases, it is usually a tedious and daunting task for entrepreneurs to determine the right timing to engage into the organization expansion approach (Jansson, 2012). In order for a company to expand successfully, it has to conduct a thorough research, secure a reputable business enterprise partner, and acquire enough capital for the procedure. Conducting a thorough research is one factor that determines the success of a business expansion. This is so because many corporations collapse due to lack of proper information related to the expansion process. Just like exploring a fresh market, it is crucial to conduct market research to the area and prepare a business plan. Additionally, the firm should also hire a private consultant who is familiar with the business terrain of the region it intends to expand to (Marinov & Marinova, 2011). This is so because it very difficult to cope up with realistic budgets and explanations if you don’t know how long the method could take or what wages are incurred. In most foreign countries, commercial services provide free consulting on topics ranging from evaluating small business partners to cultural sensitivity. Securing a reputable partner is also important to firms that expand to new territories. Having a trustworthy partner will enable the company to enter into a sales relationship with potential a customer at a level which would otherwise take long, for instance, a year or months to generate (Jansson, 2012). This is so because these firms already have adequate infrastructure, sales team and service personnel. For firms that enter new regions, the brand recognition of a well-established or know partner means an automatic endorsement. Additionally, having new staff is important during the sensitive period of enterprise expansion. The new staff will give an insight into the business as they are familiar with the business environment. It is therefore crucial to hire new staff as they help in meeting the demands related to the new administrative requisites, marketing campaigns, and record keeping (Akay, 2010). Firms that tend to go international should have enough capital for the expansion approach. This is so because capital is the backbone of the method. Many factors such as proper infrastructure and marketing strategies primarily depend on capital. In most cases, acquiring this capital may perhaps be a nightmare to the ill prepared entrepreneurs who lack prior knowledge of the new small business terrain. Therefore, firms that have well-structured business plans tend to expand successfully hence enjoy all the benefits related to the process (Brooks & Weatherston, 2012). It is also imperative for companies to keep updating their enterprise plan annually so as to keep them modernized with the present marketing strategies. Having done this, the company will be able to secure financial assistance with the most expedient terms possible. This could come from financial institutions such as banks inform of loans. In conclusion, organization expansion could appear a tedious and daunting approach to firms that have not prepared well. However, companies that approach this process well usually expand successfully and meet their goals and objectives. For a firm to expand successfully, it has to conduct a thorough research of the new company terrain, secure a reputable business enterprise partner, and acquire enough capital either through the financial institution like banks.
Brooks, I., & Weatherston, J. (2012). The company environment: Challenges and changes. Essex: Pearson Education. Marinov, M., & Marinova, S. T. (2011). Impacts of emerging economies and firms on international organization. Houndmills, Basingstoke: Palgrave Macmillan. Jansson, H. (2012). International Business Strategy in Emerging Place Markets: The Institutional Network Approach. Cheltenham: Elgar. Akay, V. (2010). Company is the people & people are the business enterprise: Break one and the other will break, how ethics and etiquette protect both. New York: iUniverse.