Problem:
Your proposal to expand into three countries was approved by the CEO. Now you have to decide on a strategy - will PM Company simply sell its products (trade) or expand its markets via investment? Choose one international trade and one international investment strategy to research and recommend. Research the advantages and disadvantages of your chosen strategies. Next, develop a set of recommendations for PM Company. These recommendations should be prioritized and should include time frames for their implementation. Accompanying the recommendations should be the rationale for the international market expansion strategy recommendation chosen and just a few bullet points on which international market expansion strategies would probably not be used by PM Company and why.
Since you will be presenting this to the CEO and senior management, use PowerPoint slides with notes. 7-9 SLIDES
- Discuss strategies organizations can pursue for international market expansion.
- Use effective communication techniques.
- Use team and problem-solving skills to collaborate on a project.
Case Scenario:
You have achieved great success at Physical Movement Company (PM Co.) as their Sales Manager. PM Company is a three year old, US$25 million home healthcare company, headquartered in the northeastern part of the United States. The firm creates and sells wheelchairs, walkers or other types of “mobility products” that give a person some level of mobility when they can no longer completely ambulate on their own. Recently due to an influx of inquiries about your mobility products and some very large, direct sales to customers outside your home country, you have been promoted to the position of Vice-President of International Sales, responsible for all sales outside the United States. The job sounds simple enough – just sell your great mobility products around the world! Benefits of the job include traveling globally, eating great food and shopping for bargains in your free time. Life is good!
However, after a few days in your new position you begin to realize there is more to this job than what you were previously accustomed to as a Sales Manager who sold only in your own country. Your previous job responsibilities included finding a need for your mobility products, overcoming any objections and closing the sale. You were very comfortable in this role. As you begin to call on companies around the world by phone and e-mail, you realize that the global business environment is far more complex, involves many more details, and requires much more knowledge than you ever realized! Because of the time zone differences, you are finding yourself working all the time as business is conducted 24 hours a day, 7 days a week around the world, so there is always someone you need to contact or follow-up with. No one in the company has ever sold internationally before. There are a few employees in the company who were not born in this country. They can provide some language skills and can share their cultural knowledge, but they do not have international business experience. However, you are now the global business leader for your company.
Late one night between calls to Singapore and China, you realize you need to quickly learn as much as you can about global business issues and their implications and to communicate these issues and their solutions to senior management so that together you and the company can achieve your new worldwide revenue objectives.