With globalization, organizations care less about country frontiers in their usual business operations, looking for opportunities across borders to:
- Increase their base of customers,
- Take advantage of cheaper labor to manufacture items, and
- Avoid the increasing competition in their domestic markets.
Companies go international for different reasons. Such a move can be really profitable; however, sometimes challenges can diminish the positive outcomes. Good planning is crucial for a successful and profitable international operation.
Using the Argosy University online library resources and the Internet, search recent business news on two companies that expanded their operations abroad.
- Describe the global business environment and discuss the implications globalization may have on strategy formulation.
- Concerning the two companies chosen for this discussion, analyze the reasons that led them to expand their operations internationally, as well as the main advantages and challenges of such a strategic move.