3.1. evaluate the global market and potential business expansion

Many organizations strive to achieve global business expansion .nevertheless, it is essential to understand such expansions are faced with numerous challenges which need to be addressed.  Although several aspects of international strategy and its formulation are similar to those of domestic counterparts, it is essential to understand the fact that others are distinct. This calls for information gathering through different methods. Gathering international information remains a key aspect in developing and implementing an international strategy. For an organization to have a success market expansion, it must have a clear understanding of the target and potential markets. It is always important for the organization to examine all the pros and cons of entering each market and ensure that it only select markets that show greatest potential for entry and sustainability .

‘WheelWater’ a product of Wello is aiming at expanding its sales to several parts of Africa, Latin America, Eastern Europe and Asia. For a successful entry strategy, the company should carefully cross-examine these potential markets. Factors such as competition, market potential, cultural factors and other regulations are very essential factors. Crucial information such as GNP, GDP, per capita income, transportation, population and other figures in the countries of entry are very critical for consideration in business expansion. Such information can be very critical in determining consumers spending power in each country thus making informed decision on whether or not they should expand their business to such countries.

Wello is a not-for profit organization and therefore may not necessarily be concerned with competition either now or in near future. Nevertheless, the company may not be faced with competition since it is a new innovation and having exactly such innovations may not be instant projects. Increased competition would also serve as boost to Wello, since the objective of the organization is ensuring that as many households as possible have access to clean drinking water. Any attempt by other organizations to provide this essential service should be encouraged by Wello’s CEO madam Cynthia.

Another major evaluation factor in business expansion is the regulatory environment of the prospective and potential markets. Most federal states have different rules and regulations that govern the course of carrying out business in the respective countries. Several factors such as trade tax requirements and other licenses are very essential for international strategy. It is at this juncture that the management of Wello should understand the different tariffs and possible trade barriers that may exist in such prospective markets. For instance, the WheelWater manufacturer may opt to enter in such countries through Foreign Direct Investment (FDI). The WheelWater can be manufactured in the target country thus reducing transportation cost and avoiding possible trade barriers. Under this consideration, the company must also be concerned with is the country’s political stability. Several governments in developing countries are faced with numerous challenge of instability such as uprisings, coups, civil unrests among other political instabilities. A firm must always ensure that it base its operations in safe and stable countries where both the firms properties and staff are safe.

Cultural factors form another important factor for consideration in internationalization process. Management of different cultures may at times prove difficult. To avoid such difficulties, Wello’s management may look for new markets that have cultural similarities to their home market.  Evaluation of cultural differences proves to be a hard task compared to competition, regulation and market potential evaluation. The management must integrate the different cultures with the working hours, workers motivation and compensation. The cultural knowledge should include proper understanding of a prospective country’s attitudes, beliefs, language, dress, values, work ethics and customs relationships just to mention a few.  This information can only be obtained through extensive research carried out by the firm’s research and development team.

3.2 Apply appropriate global marketing and communication strategies to the identified

International market

Understanding global marketing is not an easy task, this is because it is an extensive process that not only involves selling a product internationally but it is also concerned with the process of planning, producing, placing and promoting the product at the global market. A perfect global marketing must be accompanied by an effective communication strategy. This will make it possible for the organization to make its presence felt in many parts of the world. Good communication strategy is essential for ensuring that potential customers are enlightened on the existence of a certain product in the global market.

Global marketing main objective is adjusting organization’s marketing strategies to align them with prevailing conditions in other countries. Wello want to expand the sale of WheelWater to many parts of Africa, Latin America, Eastern Europe and Asia. The company must therefore gather critical information regarding such countries in order to design a sound global marketing and communication strategy. This information is very essential in making decisions regarding to localization segmentation and pricing of the product. The product aims at reaching low and middle income earners who have no access to clean drinking water.

A perfect communication strategy must align itself with the organization’s goals and objectives. The strategy must be concerned with Return On Content (ROC). This is concerned with the strategy being aligned with the company’s ability to get the target market, achieve desired revenues and profit margins. the time taken to have back return on investment is of great concern to any organization intending to go international.  Wello, being a not-for-profit organization, may not be concerned with profits but its main corporate goal is to ensure increase in access to clean drinking water.  A good global communication strategy should provide a route map to the firm’s success.

An effective communication strategy must ensure that it gets to the target audience.  The different demographic definitions and attributes involved in international marketing require a good communication strategy.  In order to understand these concepts, research and market experience are critical in order to match the target to content. Failure of having a good communication strategy may affect the Wello brand significantly thus making its penetration to external market a difficult task. Market penetration will be made possible by effective communication strategy.

Any organization attempting to have a global strategy must be greatly concerned by information consumption by target audience. It is for this reason that it is important for the management of WheelWater manufacturer to lay out a global communication strategy that has proper understanding of the information required by the target market. The information mode of delivery is also very critical and should be assessed to ensure that right information get to the right people.

Rate and regularity should of be of great concern as far as Global communication strategy is concerned. Wello management led by Cynthia must understand the frequency and timing of the organization’s communication to ensure it gets the desired target. This can be achieved through adopting modern technology and other state of the art gadgets to ensure rate and frequency of information is desirable.

2.1 Identify the factors that would facilitate internationalization for a selected organization

Several different definitions to the term internationalization have been put forward by different scholars and researchers. While some define it as a process through which there is increased involvement of enterprises in international markets, others have defined it as a process of planning and implementing services and products to ensure that they are adapted to specific local culture and languages. This process is also referred to as localization. Others have also defined it as a process through which business practices are made international or are put under international control. However, it is important to understand that all these definitions have a common denominator; i.e.  Internationalization involves taking business to international stage

It is also of paramount importance to understand that there are several factors that facilitate the internationalization process in an organization. For instance, Wello’s attempt to internationalize will be orchestrated by the desire to ensure increased access to clean water. Being a not-for-profit organization, the drive to reach to more people will be more motivating than the earnings earned from the sale of WheelWater.

Another major factor that will influence the level of internationalization of Wello is the level of support received from the different governments. In the modern world, most federal states are in intensive campaigns sensitizing the public on the need for clean drinking water. This has been necessitated by the increase in number of deaths as a result of hygiene related illnesses. As a result, this product may be promoted aggressively by these governments to ensure that all members of the public have access to clean water. The governments may also offer other incentives such as tax exemptions to such firms in order to promote government agenda of increasing access to clean water.

Another major factor that will facilitate internationalization of WheelWater. Manufacturer is the technological advancement in the modern economy. In the recent years, the global economy has experienced dynamic changes in terms of technology and WheelWater being part of technological innovation will be welcomed in most parts of the world. This technology will be welcomed in most parts of the world due to its problem solving capabilities.

2.2 Develop internationalize strategies for a company focusing on the processes

Many managers in different organizations have always found it very difficult to developing an effective internationalization strategy. One of the greatest challenges faced by these organizations is determining the right strategy that match the nature of business. In order to have an effective internationalization strategy, it is always important to have a clear understanding of the current business model and how it impacts the ideal of going international. This can be achieved through extensive market research which will kick start the internationalization process.

several ways and processes such as mergers and acquisitions, trade, foreign direct investment, migration and capital flows just to mention a few have been constantly used in developing an internationalization process. In the case of Wello, it is difficult to adopt mergers and acquisitions in its internationalization process. This is because there are few or no other firms that deal with such products in the global market.

Since WheelWater is a unique product, the internationalization strategy that fits the company is only trade and foreign direct investment. The Wello will set up manufacturing plants in its target markets where it will manufacture and sell the products. This will be efficient and cost effective strategy for the organization. This is because shipping costs will be reduced significantly, have timely delivery and at the same time ensure that it avoids possible trade barriers and heavy tariffs.  The idea of foreign direct investment may also save the organization greatly in terms of tax exemption and government goodwill.

2.3 Identify issues of internationalization and take appropriate measures to mitigate them

As earlier indicated the internationalization process is a difficult task and has several underlying issues and limitations. A successful internationalization strategy calls for a proper understanding of these issues and the adequate measures to mitigate them. Most firms with internationalization objectives are faced with a lot of uncertainties that must be dealt with accordingly.

For the case of WheelWater manufacturer, the main underlying issue faced by its internationalization process is lack of managerial time. Cynthia who is the company’s CEO has several other duties and obligations and thus it may be difficult for her to manage the enterprise and at the same time pursue other obligations. For instance, Cynthia has management roles at Wello, she has her studies to pursue as well as other family and personal issues to handle. The management is also likely to be faced with inadequate internationalization knowledge thus hindering the internationalization process.  To mitigate this problem, the company’s management may delegate the management functions of the internationalization units to other capable people. Continuous research could also be important to have more internationalization knowledge.

Another major issue that undermines internationalization process of firms is limited information to locate and analyze potential markets.  It is very difficult to have adequate information of overseas markets and this has been confirmed as a major barrier to internationalization. The information gap has remained a major constraint to internationalization process despite the current era being of extensive information availability. For instance, in spite of the fact that many Latin America and Africa countries have no access to clean water, it is also important to understand that there also several parts of these states where there are plenty of clean water. To solve this problem, the company should be involved in an extensive research process to ascertain which areas need such products. Cultural differences should also be understood clearly to avoid cultural conflicts.

The other major factor that undermines the internationalization process is the shortage of the working capital to finance internationalization.  For instance, WheelWater manufacturing is an expensive process which requires heavy financing. However, these finances may not be an easy task to raise and has proved to be a tall order. The manufacturing process at Wello solely depends on the financing from Cynthia which at times may not be enough to finance its internationalization process. To mitigate this issue, the organization must solicit funds from donors in all parts of the world such as United Nations, well wishers and World Bank.

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(n.d.). Retrieved November 11, 2014, from http://www.ekonomi.gov.tr/upload/bf09ae98-d8d3-8566-4520b0d124e5614d/fatih_akkaya.pdf

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