Global Expansion

Global Expansion

Introduction

The world has now become more than every enriching and challenging place to work with different cultures, nations and systems. Organizations that are already operating outside their home country are not limited to a few huge enterprises anymore. The world has watched the proliferation of multinational companies from many countries and later from the developing economies. The following paper will discuss the history of the organization. Also, we will be discussing the key strategic decisions that the company can take to cater the international market. In addition, implementation challenges will also be discussed that Capulet can face while catering the international market.

Discussion

History of Milo and Saint

Milo and Saint is a Multi domestic company that caters women with its luxury women's accessories products. The company creates stylish, leather bags for today's fashionable women. The company was formed in 2007 by Lucy Holland-Smith. She loved and admired fashion, design and textiles and focused on producing exquisite collection of handbags. The company's philosophy is simple that is to produce beautiful bags, with the help of quality materials (miloandsaint.com). All collection of the company is designed in England. The company uses the finest hand selected Italian leathers and high quality Italian fittings for ensuring lasting quality (miloandsaint.com).

Country to Do Business With

Milo and Saint will be expanding its market to US, as it is currently operating only in UK. The main objective is to enjoy the untapped profits from the American economy where women are fascinated with new trends in fashion that can help them keep up their trendy yet sophisticated look in their daily life.

Products to be Launched in U.S

The company plans to introduce their franchise in the U.S market and their major emphasis will be on handbags that are trendy yet useful for the corporate ladies. The company realizes that U.S market and economy may not instantly respond to their products; therefore, the strategy is to attract the women who are more fashion conscious and like to experiment new looks in their daily life.

Why are you moving into the global market and what will be your global management structure?

When the company started its operations in 2007, it did not take into account the external factors that could harm the sales and profitability of the company. Therefore, the company started off its business at the time of financial crisis, when people were facing the worst time in the history of the world. At that time, there were less spending on luxury items, which affected the company in its initial phase. However, gradually it managed to establish itself and became a luxury and well-known brand amongst its target audience (Milo, 2012).

In addition, there are 5Ps for strategy, proposed by Mintzberg that the company may adopt in the future while heading towards the international market. Mintzberg states that there are five different definitions of strategy. It consists of plan, pattern, ploy, perspective, and position. Mintzberg consider that strategy is a plan that is a course of action or a set of ...