INT 220 Business Brief Template
Course Project

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Overview

Selling baseball bats domestically has been a great success, however our sales have begun to plateau. Opening our business internationally will bring a much larger target market and increased sales. Canada is a great opportunity for global expansion for the company because they are one of the top three countries in baseball bat sales. Baseball is a commonly played sport, they have their own Canadian baseball league, and they also have a baseball team in the Major League Baseball League in the United States. Through my research and presentation it will be clear why Canada is the best choice for our global expansion.

Section One: Drivers for Global Entry

There are many factors of globalization that benefit domestic organizations. Domestic businesses have many consumers, however the market is expanded when doing business in other countries, thus more sales are accrued. Outsourcing is a major purpose for global expansion. Manufacturing products internationally often-times reduces operation costs rather than producing domestically, especially in China and India due to labor laws among other factors. Tax laws and rules also vary all around the globe, so it is often cheaper to do business elsewhere. These are a variety of factors to consider when debating keeping a business domestic or exploring internationally.

Globalization effects many areas of the business. International businesses require adjustments to be made, especially in marketing. There is now a new target market, and each country has a unique culture and norms, so products will need to be adapted in order to suit those global consumers. For example, Mcdonalds has differing menus in every country. The U.K.’s menu cheese bites (similar to cheese curds) while in Japan they offer a matcha green tea mcflurry instead of flavors in the U.S. such as oreo or M&M (Glob Head Rest, N.D). Making these changes in order to attract as many consumers as possible is pertinent for global business. Global expansion also allows for expansion in sourcing whether that be for cheaper products or cheaper labor. There is also more opportunities to diversify the business when indulging in other markets, thus making an even larger customer base and scope of the business. Because of the advancements of technology, increased communication through the internet and applications such as Zoom make connections easier on a global scale, rather it be from coworker to coworker or from an employee traveling internationally (How Glob Imp Loc, N.D.). Strategic planning now has more factors to consider in order to incorporate an understanding of other countries’ cultures and markets as well as domestically.

Like I mentioned previously, outsourcing labor or manufacturing can greatly reduce the operational costs of a business. Due to this outsourcing, products are cheaper to produce for the company, and thus cheaper for the consumer to purchase as opposed to domestic manufacturing. A lot of the products sold in the United States are manufactured in countries like China. Wal-Mart is known for their cheap prices, and they do most of their outsourcing in China, specifically about 10,000 manufacturing plants (Stewart, 2014). Due to the minimal cost, Wal-Mart can compete with other businesses as well as keep achieve an adequate profit margin. Cultural considerations are essential when doing business in other countries. Each nation has separate norms and rules regarding business, so it’s important to understand and adapt to those standards. For example, while outsourcing to a mostly Muslim country, a necessary change would be allowing for their prayers throughout the day instead of the typical half an hour to an hour lunch break. Although this minor change might affect the company’s effectiveness, it is necessary for the company to understand their culture and allow them to practice their faith. Another example of understanding cultural differences is changing typical beef items such as hamburgers or steak sold in countries like the U.S. to pork options for countries who do not eat beef like India. If Mcdonalds was not diversifying their menu for other nations, they would not be as successful as they are incorporating different preferences. Adapting also shows a respect for other cultures and rules, making a more consistent consumer base. Due to the increase in revenue, it creates a an increased GDP. Jobs are created in other nations as well as sales creating a positive impact on multiple economic environments. Another factor to consider is that now environmental, economic, and political factors effect the company. For example, the United States changing their preferential status of India led to India adding a tariff to products like almonds. Because of the added tax, the almond industry is now losing jobs domestically and forcing changes in operations in order to keep the costs down. Because of the increased travel time, more carbon emissions are produced, contributing to pollution. Although most freight is transported by ship, increased infrastructure is needed for transportation of products such as building roads and bridges (Stobiersky, 2021). While transportation may be adapted for business, this has a negative environmental impact due to the polution and habitat loss (Stobiersky, 2021). It’s important to keep environmental factors in mind to reduce carbon emissions and overall negative impact on the nation. Another example of impacts of globalization on the environment is overfishing. “One third of the world’s assessed fisheries are currently pushed beyond their biological limits” (Overfishing, N.D.). Overfishing effects not only the ocean itself but also the millions that consume fish on a consistent basis. It will become harder to find fish in the future, causing the cost of fish to rise, effecting the economy the markets selling the fish as well as the domestic consumers depending on them.

Overall, global expansion is needed in order to expand the company’s market and is cost efficient. Because of the extended market, adaptations are necessary in order to comply with the country’s standards and norms and generate profit. Although global expansion has many benefits, it’s important to understand the economic, societal, and environmental factors that come along with diversifying the region of business. From understanding tax laws and regulations to the religious practices of employees, it’s essential to do research and gain insight in order to keep the company cost efficient as well as respectful to the culture and economy of other countries.

Section Two: Market Profile

Complete the tables below to use data and statistics to support your comparisons. Words, phrases, and numbers should be used to complete the tables, not complete sentences.

Cultural Profile

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