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Bba Courses Essay

418 words - 2 pages

Strategy One
Create a global with a multicultural strategy for the company including expanding the product lines to reach wider geographical areas. This can help the company identify new uses of its product that might not have been discovered in the international arenas.
This Strategy would include; Going Global with a multi-cultural approach
1. Description of the Strategy:
Currently Angustora is operating on an International level, but its strategy thus far has been to offer a general product to the countries that they occupy. Going Global therefore means that they would have to adopt a multicultural strategy in order to adapt each product to ...view middle of the document...

Additionally there is the added cost of being a multi-cultural company. Cost is also incurred from researching the foreign markets to tailor your product to meet their needs as well as even developing a new product that can do so.
However going global has its benefits as well more profits derived from a wider target market, increases in revenue due to foreign exchange rates, more manufacturing facilities to take the load of the few they currently have and thus decrease overhead costs for that division. More brand recognition can lead to greater sales. Going global can also mean obtaining cheaper raw materials and benefiting from economies of scale and scope, thus decreasing the unit cost which they can become a low cost leader in foreign markets especially new territories where they would need a competitive advantage over established competitors.

3. The Pros and Cons of this strategy:
Increased Liquidity of capital for the company which encourages investors to the company.
Reduce cultural barriers “global village”
Goods and individuals are transported easier
Increased sales through entering new markets
Greater pool of ideas for new products or product expansions

Expensive to undertake
There may be barriers to entry in some markets
Expensive to adopt a multi-cultural approach worldwide due to market research and product testing etc.
Increased productivity for the firm
Set up costs in host countries and well as labour cost.

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