Management Strategies and Building a More Successful Global Business

In: Business and Management

Submitted By heyhatrack
Words 3379
Pages 14
Final Paper – International Management (2012-08-MAN-372-OL011)

Management Strategies and Building a more Successful Global Business

Introduction
Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. It has manifold dimensions: economic, political, security, environmental, health, social, cultural, and others. The focus here is on the concept of "globalization" as applied to the world economy. International expansion is simply about smart preparation and well-thought-out execution; it can be enticing and highly profitable, but only if you do it right. If you don’t plan for tax exposures, business model alterations, and international corporate structure in advance, then you’re setting yourself up for an uphill battle at best — and failure at worst. With the increasing trend of globalization, industries are rapidly expanding into the international market. With no exception, many U.S.-based companies are expanding beyond the home country despite the risks. Why is international expansion important? A company can grow by exploiting overseas market opportunities and imperfections through internationalization, and growth has a positive impact on the firm performance. In short, international expansion can be profitable to companies. Moreover, why is the relationship between international expansion and firm performance important? Ultimately, a company’s performance is the objective and outcome of the company. A company’s value can be enhanced by increasing cash flow, decreasing risk, or both.
International diversification is one of the ways to increase cash flow by increasing revenue. More specifically, the association between international diversification and the firm’s performance is a significant subject not only for academics who have struggled…...

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