The fundamentals of global business

 

 

Scenario
You are a business analyst working at a small U.S. organization that produces high-quality cell phone cases. Your sales have started to flatten in the U.S. market. While the organization is not losing money, leadership would like to explore ways to continue to grow. Leadership indicated that they have noticed competitors entering international markets.

You have been asked to examine the benefits, drawbacks, and key considerations for your organization to enter one of the global markets below and to summarize your findings in a business brief for leadership.

Select one of the international markets listed below to use for your course project.

Argentina
Brazil
China
India
Indonesia
Japan
Nigeria
Russia
South Africa
Note: Contact your instructor if you would like to use another country for your course project.

Directions
In this milestone, you will complete Section One of the Business Brief Template, which is linked in the What to Submit section below.

Section One: Drivers for Global Entry
Develop the first section of the Business Brief Template that explains the purpose of global expansion, business impacts of global business, societal impacts of global business, and cultural considerations. Use evidence from course resources and outside resources to support your responses.

Specifically, you must address the following rubric criteria:

Country Selection: State the country you have selected to use for your course project.
Purpose of Global Expansion: Explain key benefits of successful global expansion for U.S. organizations.
Business Impacts of Global Business: Explain how global expansion of a U.S. organization can impact business operations such as strategic planning, marketing, supply-chain management, human resources, and so on.
Societal Impacts of Global Business: Explain how the global expansion of organizations has impacted society, citing specific examples regarding culture, transportation, employment, infrastructure, and environmental climate.
Cultural Considerations for Global Business: Explain the importance of researching the culture of a potential global market prior to market entry, as well as key cultural considerations to explore to inform expansion decisions.

 

 

Sample Answer

 

 

 

 

 

 

As a business analyst tasked with exploring global expansion for the high-quality cell phone case organization, I have chosen India 🇮🇳 as the target market. India presents a compelling opportunity due to its massive, growing, and increasingly digital-savvy population.

Here is Section One of the Business Brief Template, detailing the drivers for global entry into India.

 

📄 Business Brief: Drivers for Global Entry into India

 

 

Section One: Drivers for Global Entry

 

 

1. Country Selection

 

The country selected for global market entry is India.

 

2. Purpose of Global Expansion

Successful global expansion offers several key benefits crucial for a U.S. organization experiencing market saturation domestically:

Access to New Revenue and Growth: The primary purpose is to move beyond the flattening domestic market and tap into new customer segments, which is essential for continued growth and mitigating the risk of bankruptcy or acquisition. India, with its enormous population (over 1.4 billion) and rapidly increasing smartphone penetration, offers a massive untapped customer base for cell phone accessories.

Economies of Scale: Increasing the total volume of production to serve a global market allows the organization to reduce the per-unit cost of manufacturing, leading to improved profit margins.

Competitive Advantage: Entering an international market ahead of, or alongside, competitors establishes a global footprint, diversifies revenue streams, and enhances the brand's reputation as a world-class provider.

Risk Diversification: Reliance on a single market (the U.S.) makes the organization vulnerable to domestic economic downturns or regulatory changes. Global expansion spreads this risk across different economies.

 

3. Business Impacts of Global Business

 

Global expansion significantly impacts nearly every aspect of business operations, requiring adjustments to achieve success in a new market like India:

Business OperationImpact of Global Expansion (Entering India)
Strategic PlanningMust evolve from domestic focus to a Global/Local (Glocal) strategy. Needs to determine the right balance between standardized products (global brand) and customized offerings (e.g., cases tailored for locally popular phone models).
Marketing & SalesRequires localized messaging that respects cultural norms and language. Must adapt pricing strategies to account for the local currency (Indian Rupee) and lower average purchasing power, likely requiring a different tier of product pricing.
Supply-Chain ManagementRequires establishing an efficient local or regional distribution network (e.g., warehousing, local logistics partners) to minimize shipping costs and time, particularly important in a geographically diverse country like India. May involve onshoring manufacturing to qualify for "Made in India" incentives.