Globalising a new enterprice Essay Example | Topics and Well Written Essays - 1000 words

Globalising a new enterprice - Essay Example This paper would therefore address the issue from a heterogeneous point of intervention. This means that not only would the strategies needed for making the company go global be looked at but then interventions and models for rescuing the company from further decline in profit will also be reviewed. Of course when the company gains a good capital resource stand, employee retention would no longer become a problem for it. Global Business Expansion Procedure For the global business expansion to take place, there are a number of procedures to follow. First of these is what the International Expansion Organization (2010) describe as development strategy. As much as authors begin their publications with manuscripts and constructors complete their facilities with architectural plans, it is important that any company seeking to go global have well researched and expert driven strategies in place. Specifically, the International Expansion Organization admonishes businesses â€Å"to identify international expansion as a business development strategy to be based on sound business research.† This means that preparation of strategic plan to lead the company into the start of its global venture should be based on detailed research. Through this research, which is referred to in some quarters as feasibility studies, the company should be in a position to decide on a number of issues including the following: 1. Project Scope: the scope should define the areas of the company that will be affected by the expansion project and should include participants as well as end users who will be affected by the global expansion. 2. Current Analysis: This analysis should explain the current mode of expansion implementation. That is, there should be a roadmap on the implementation process. 3. Requirements: The feasibility study must state all resources that will be required to undertake the expansion. These requirements should include both financial and non-financial resources. 4. A pproach: The approach for takeoff and implementation should be clearly stated in the plan. Without such an approach, the project will be haphazard. 5. Evaluation: It should be stated clearly, how the company is going to evaluate its progress performance. The evaluation should not only be internalized but should employ the services of external peer reviewers. After all these processes are followed in the strategic plan, the company will be ready to make other moves. The second stage of the global expansion plan should be correction of internal management loopholes. This is to say that there should be management strategies that ensure that the basic crises of the company such as employee turnover and profit retardation are corrected. This stage is very much needed to make the image of the company lucrative to the international market when it finally moves. As ways of maximizing local profits, the following are suggested: 1. Internal Cost Reduction Strategy: Management should be bold o n taking decisions that will help in cutting down on internal cost spending in the company. For example in the allocation of funds in the company’s budget, sacrifices should be made to ensure that much capital is directed to profit generation sectors rather than human resource wellbeing programs. The challenge with this strategy will be that committed workers would not want to stay but there will be an eventual