First question is a followup question…. I provided the question and answer……. Please answer in 150 words min 135
(previous)1. What are some of the advantages and disadvantages associated with a firm’s expansion into international markets?
Such firms are able to attain efficiency through leveraging of economies of scale. By selling the same goods in many international markets, firms buy inputs in bulk hence economies of scale as they are able to sell large amounts of money.
Global strategy is also beneficial in regard to product life cycle (Mourdoukoutas, 2012). A firm is able to phase product release, introducing products that are older into new markets thereby saving products launch.
Such firms face macroeconomic risk. This is likely since all markets do not have the same tastes and preferences, popularity of products may be different for various nations, and price expectation may be different. This may cost the firms if they don’t consider diversity.
They also face operational risks. If the laws of the firm’ manufacturers change or even war breaks it will inconvenience operations in all other markets.
1. thank your for your great input.
Class, how does an organization brush up on a country’s culture and laws? How do we prepare our employees to work in a different country?
2. What are some of the important ways in which a firm can restructure a business?
My organization (higher education) restructured when a new President was hired. The organizational structure was reviewed and positions were shifted. This was to be more efficient, to serve our students better, and to allow more individuals being involved in the recruiting process.
Due to state budget cuts we then also had to make some changes at the end of the fiscal year 16 (06/30/16) and for the fiscal year 17 (07/01/16 through 06/30/17). We eliminated one senior leadership position and consolidated positions on all levels.
In review, we did a great job controlling our payroll expenses, but I must say the service is suffering at times. Speaking for myself by being responsible for the Finance department and for the entire organization and its finances it has created a 12 to 13 hour work day, which obviously is leading to burnout.
Class, what are your thoughts?