INTERNATIONALIZATION

Internationalization

Internationalization

Introduction

In order to move to international markets, as a manager i need to show proper understanding of the internationalization process. It's important to know how and why companies choose to internationalize in the first place and what factors motivate the firms to take such decisions. There might be many reasons for internationalization (Albaum, 1983) has attempted to explain the elements that motivate a firm in the decision of the foreign market entry. A firms' decision to enter in any foreign market is based on both internal and external stimuli. These stimuli in the context of internationalization are called 'international Stimuli'. The internal factors may also be referred as organizational factors, which represent the factors within the firm and the environmental or external factors may refer to the factors outside of the firm's control.

Discussion

Decisions and motives to internationalize

The organizational characteristics may be divided into two areas, firm-specific factors and the decision-maker characteristics. The perceptions of risk involved and exposure of the top management is very crucial in deciding whether to carry out the internationalization process or not Reid (1981). As a manager, it would be better for me to have some kind of foreign exposure such as travel; or experience from abroad. Since managers who have travelled abroad have more understanding of the culture and people and have more chances of successfully partnering and meeting potential stakeholders in business to make successful deals. It would also be an advantage if I would have a foreign language proficiency which would help me understand the proposals better. Also, being born outside, especially in the place where the company seeks to internationalize would serve as a great advantage for me. I am going to be able to understand the dimensions better then anyone else and would have a better perspective ton the risks and opportunities and have more contacts. Moreover, I usually take risks and I am highly ambitious, moving in to new markets is a huge risk which I am willing to turn in to an opportunity.

There are two factors which are firm specific which am going to have to consider (Aharoni 1966).These are firm size and International appeal. Since the firms bigger in size tend to internationalize well as compared to smaller ones. This can be seen in the case of 'Haier' compared to other small Chinese firms has enjoyed huge success. Since our company has enjoyed success in two foreign countries, I believe that internationalizing would be relatively easier and we have more chances of seceding.

Secondly our product should be uniquely presented so that it appeals to customers internationally. This would also increase our chances of survival. An example of Nike may be taken into consideration here. Nike has been successful in international market due to its international appeal. Similar is the case with MacDonald's.

The environmental factors would also have to be taken care of. There are three important external factors that can contribute to our success. Firstly, if we can manage some sort of unsolicited proposal from the ...