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Why do companies expand globally & why do nations want their business?

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  • Post Date 2018-11-07T11:02:14+00:00
  • Post Category New Samples

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Why do companies expand globally & why do nations want their business?

Introduction to Internationl Business;Global Marketing

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Walmart has recently announced plans for expansion to China. Already a retail giant in the U.S., they now hope to tap into a growing and potentially lucrative new market. However, such expansion is not without risks. Doing business in China is a much different environment than doing business in the U.S. Furthermore the Chinese government has announced plans for a series of ambitious new reforms that add to the level of uncertainty and may change the business environment for international firms. Case Assignment Read the following two articles and do some of your own additional research on Walmart and the new enviornment in China: Roberts, M. (October 24, 2013). Walmart China Expansion Aims to Tap Urbanization, Business Week, http://www.businessweek.com/articles/2013-10-24/walmarts-china-expansion-aims-to-tap-urbanization Yao, K., Blanchard, B. (November 15, 2013) China unveils boldest reforms in decades, shows Xi in command, Reuters, http://www.reuters.com/article/2013/11/15/us-china-reform-idUSBRE9AE0BL20131115 After researching these issues, write a four to five page paper answering the following question: How will economic reform in China impact the success of Walmart`s expansion plans? In your answer, consider the following issues: A. The risks involved in expanding to China B. How specific aspects of China`s economic reform will impact the business enviornment that Walmart will face C. The potential benefit of Walmart`s expansion to China Helpful Tips: Please first read in-depth the background materials for module 1. Identify key concepts in the background materials write a list, and study them Read the case in-depth and conduct additional research, if necessary Develop arguments by applying the concepts of international business from the background materials to Walmart`s expansion plan in China Case 1 Assignment Expectations Answer the assignment question directly Stay focused on the precise assignment question, don`t go off on tangents or devote a lot of space to general background materials List supporting references and cite sources in proper format Use appropriate writing style in essay form (organization, grammar, & spelling- see Writing Guidelines). Module 1 - Background Introduction to International Business; Global Marketing Introduction Background Information Case assignment Session Long Project Objectives Click Here for a voice.ppt International Business Module 1: A history of globalization and the Multinational Enterprise 1. Why do companies expand globally & why do nations want their business? Nations need jobs and they want to develop their economies and enhance their standards of living. Companies need to expand globally to remain competitive. Expanding globally enables companies: to increase profits, to gain new market share to create new markets to locate new technologies and products for domestic markets to find new suppliers to increase shareholder wealth 2. Entry decisions? Where When? How? 3. Entry modes? Independent agents can agree to represent a foreign country in their home country`s business community. With franchising or licensing, a company can enter a foreign economy by granting the permission to produce their product or patent and develop it as their own, in exchange for a fee and often ongoing royalties. Joint ventures are a coalescence of two or more companies, that form a jointly held company operating within the foreign market. Using a foreign alliance in this manner is often called a strategic alliance. Mergers imply that two previously independent companies combined into one company. Acquisitions mean that a parent company purchases another one, in order to gain access to other markets and/or products. With the various options spelled out in the next module, we will embark on truly transnational business strategies and forms. Required Background Reading: Ball, D., Geringer, J., McNett, J., Minor, M. (2013)Chapter 1: Challenging World of International Business, International Business: The Challenge of Global Competition, 13th Edition, McGraw Hill, http://highered.mcgraw-hill.com/sites/dl/free/0078029376/889427/Chapter01.pdf Rao, P. (2010) Chapter 1: International Business: Nature, Theories and Competitive Advantages, Introduction to International Business, Himalaya Publishing House [available in Ebrary] Rao, P. (2010) Unit 2: International Business Environment, International Business Environment, Global Media [available in Ebrary] Required Case Assignment Reading: Roberts, M. (October 24, 2013). Walmart China Expansion Aims to Tap Urbanization, Business Week, http://www.businessweek.com/articles/2013-10-24/walmarts-china-expansion-aims-to-tap-urbanization Yao, K., Blanchard, B. (November 15, 2013) China unveils boldest reforms in decades, shows Xi in command, Reuters, http://www.reuters.com/article/2013/11/15/us-china-reform-idUSBRE9AE0BL20131115

CONTENT:
Introduction to International Business; Global MarketingName:Institution:Date:The case of Wal-Mart here is a case of International Business Management (IBM). Wal-Mart is the most successful retail store globally. Its strong competitive nature does not allow Wal-Mart to play second fiddle in any market. Therefore, despite the setback the company has experienced in other markets, it perceives the Chinese market as the new potential frontier for business. Recently, China has made some bold economic reforms that have attracted a lot of attention and discussion in the business world and has provided opportunities for business expansion for corporations such as Coca-Cola, Boeing, and Wal-Mart. The reforms made y the Chinese government include; freeing up its market so as to place it on a more stable platform, reforms in land and residence registration that will boost its urban population. This will allow western-style-service provision and an economy that is driven by consumption. Eliminating the one child policy and promoting social security programs that will provide a safety net. Finally, the prices for key resources will be left to the market forces and a capital account opened to enhance financial liberalization CITATION Yao13 l 1033 (Yao & Blanchard, 2013).According to Yates 2013, the reforms are positive and boost the confidence not only for the global economy but also companies like Coca-Cola and Wal-Mart that intend to expand within this market CITATION Yat13 l 1033 (Yates, 2013 ). Freeing up the financial market and enhancing financial liberalization in China the financial swings will be reduce and this will lead to a resultant decrease in consumption volatility. This will stabilize the consumption patterns in China and translate into high sales and profitability for Wal-Mart CITATION Yat13 l 1033 (Yates, 2013 ). The land registration and residence legislation will promote a western-like urban lifestyle. This will provide Wal-Mart with a more familiar environment to establish and expand hence its overall success in China as it will promote a western-style-service provision that will be dependent on consumption CITATION Yat13 l 1033 (Yates, 2013 ).In addition, elimination the one-child policy will increase consumer spending an effect that translates positively for Wal-Mart. The reform will also provide a large pool for workers that will be required by Wal-Mart in future as a future shortage of workers is anticipated in China CITATION Yat13 l 1033 (Yates, 2013 ). The increas...

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