Individual Reflective Paper

Individual Reflective Paper

The evolution of information technology and globalization of the economy has changed the concept of doing business. Companies can now plan and implement their operations and sales in multiple countries. The decision-making processes of companies operating in multiple markets should be different from those which focus on a single market. International business strategy is a course that offers great insights about factors that should be considered and strategies required to be implemented if an entity wants to successfully run business internationally (Twarowska and Kakol, 2013, pp. 1005-1011). Companies functioning face challenges like the presence of local competitors in those markets, developing a complex strategy which satisfies the all the market and at the same time, brings efficiency and integration in the production and value chain (Aslund and Dabrowski, 2008). Northern Feather Canada is a well recognized company which manufacturers man-made and down fibre sleep products for more than three decades (Northern-feather, 2013). The product range of Northern Feather includes pillows, feather beds, duvets and sleep pads. The major customers of these products include major hospitality companies and resorts like Sears, Bed Bath & Beyond, Home Outfitters, Fairmount Hotels & Resorts, Intercontinental Hotels and Pan-Pacific. The manufacturing facilities of Northern Feather are located in Canada and China. The sales offices of the company are situated in Vancouver, Toronto, Beijing, Shanghai, Guangzhou, Hong Kong, Macau and Singapore. The company aims at introducing new products and penetrating in new markets. However, like many other companies, it faces challenges in the International markets and fears that the further expansion can be detrimental, if it is not planned properly.

Before entering in a new market, the company should look at the general environment of the country in which it is interested. The general environment includes demographic, political, socio-cultural, economic, technological and global factors (Harrison and St. John, 2004). According to a research named 'Distance still matters', a company planning to expand should first the cultural, administrative, geographical and economic distance of the target country from the company's host country (Ghemawat, 2001, pp. 137-147). In case of Northern Feather, all four factors play an important role. The most prominent study on comparative management style and organizational culture done by Geert Hofstede shows that the power distance, individualism versus collectivism, uncertainty avoidance and long term orientation of Canada is different from Arab World and other possible markets as seen in appendix (Geert-hofstede.com, 2013). Similarly, geographic, economic and administrative distance must be analyzed in order to get a business friendly environment, achieve economies of scale and attain an effective supply chain design. After analyzing the general environment of the target market, the overall international economical, financial and trade scenario should be considered. This contemplation helps in answering the questions of 'when' and 'how' to invest in the potential countries. In some cases, although the market conditions of possible countries looked magnificent, still Northern Feather had to delay plans because of the global financial crises, poor trade relations or the economic ...