Country Selection
Turkey
Purpose of Global Expansion
Global expansion is an expansion of opportunities for domestic organizations. First of all, this allows one to increase the company’s profits due to a larger distribution area and an increased number of customers. Expanding the business to other countries offers several benefits that could be based on different reasons. The main benefit is the potential budget expansion due to buyers from other countries. Additionally, institutional collectivism allows new employees to integrate into the process quickly (Rosenbusch, 2016). An equally important aspect is the cultural exchange of traditions and customs of some countries with others and doing business following the country’s foundations.
Business Impacts of Global Business
Strategic planning should be more extensive and sustainable, as it considers developments in different countries territories. After expansion, strategic planning must consider the direction of growth following the culture and customs of the new environments (Dunung, 2019). This way, the company can reduce the risks of bankruptcy associated with expansion and make the business more efficient. At the same time, organization marketing should be adjusted to the needs of each region, respectively, advertising campaigns should differ significantly. Supply-chain management will change concerning packaging, as a description in the language of the country of import will be required, and the legal side of delivery will expand, considering the country’s laws. In addition, suppliers may change, as it is more convenient and cheaper to look for them closer to the region where the goods are sold. Human resources can be found in the country of expansion, as in many cases, it is cheaper than relocating existing employees.
Societal Impacts of Global Business
The expansion of organizations has affected society in the context of the exchange of cultures. People began to understand that signs can have different meanings in cultures; therefore, the “American movement for OK means “zero” in Tunisia environments” (Dunung, 2019). Concerning transport, the expansion helped third countries develop; for example, the governments of Asia could accommodate large corporations that provided railways (Rodrigue, 2020). In Thailand, the quality of infrastructure has increased due to more transport, as various brands began to transfer production there due to cheap labor (Rodrigue, 2020). Employment rose as new jobs were introduced, as in Russia when Baskin Robbins entered the market environments (Dunung, 2019). However, the ecological climate suffers; for example, the beef industry is one of the leading causes of emissions into the atmosphere (Rotz et al., 2019). Thus, globalization can have both positive and negative consequences for the world.
Cultural Considerations for Global Business
Cultural aspects are essential in the desire to enter the international market. They allow at the stage of negotiations to respect the representatives and show them the importance of their traditions. In addition, a marketing strategy, including advertising, will be built on this to attract more customers. One of the main aspects that should be considered is the country’s main religion. This is because some cultural traditions can be very different, and their violation will cause discontent among residents (De Mooij, 2021). Such situations will negatively affect the business, which can lead to bankruptcy.
References
Dunung, S. P. (2019). Global Business Management . Boston, MA: FlatWorld.
De Mooij, M. (2021). Global marketing and advertising: Understanding cultural paradoxes. Sage.
Rodrigue, J. P. (2020). The geography of transport systems. Routledge.
Rosenbusch, K. (2016). Becoming an effective global manager [Video]. SAGE Knowledge.
Rotz, C. A., Asem-Hiablie, S., Place, S., & Thoma, G. (2019). Environmental footprints of beef cattle production in the United States. Agricultural systems, 169, 1-13. Web.