Global Strategy Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Global Strategy Case Study Solution

Successful Internationalization

In order to successfully integrate a business in international market;the company needs to see the most important aspects of establishing the business. The company initially will to face a few challenges, but if the company survives the pressure of these challenges it may survive and prosper in the international market. The greatest challenge that they are most expected to face is the resources as the customers expect that an international company will provide the standard that giant multinationals have. This becomes an issue for the firms because providing a standard quality of services in a totally new market is difficult than serving it in domestic market. Companies struggle to keep up with the expectations of customers.

In order to internationalize the business or take it to a global level, the company must have a motive or an aim to achieve. If the company has an aim to stand out in the global market based on their services like Smoll an did, they need to communicate this aim with the people working in the firm. The employees are the most essential element in a company’s failure or success.

When a company enters an international market, they are alienated by many competitors and they have to look for a way to establish themselves in the market. At such a time, large company partnerships help in stabilizing the grounds for the company. The companies do face problems in establishing these relationships, because the level of understanding, communication, cultures and traditions act as barriers. If they sort out a way through these barriers, it is beneficial for the company to partner with large companies established in international waters.

Secondly, the company has to establish a supply chain that would provide them with the raw materials to manufacture products or services, and they would also need a retailer to sell the products. The supply chain’s complexity depends on the type of business. Smoll an was a marketing service provider and so they didn’t need a very complicated supply chain.

Small V/S Large Firms

Entering the international markets demands a lot of capital investment, and the companies have to face a lot of competition. Small companies fail to operate in these markets as they lack the amount of finances required. Although small business have a very flexible business model and are more adaptive than the large firms who struggle to adopt the business model successful in different regions. By internationalizing the business; the company will become very diverse and the top management has to make sure that the operations run smoothly. The culture of the company will change due to diversification, small businesses can manage the cultural shock but large companies struggle to do so. Language becomes a barrier for the companies in international markets, regardless of the size of the business. Small companies and large companies have to hire people who belong to the local culture and know the local language. The large firms becomes partners with the larger firms in the international markets and establish themselves, but small businesses rarely get this opportunity. Exhibit 2

Exhibit 1

Title	Domestic	International
Area Served	Small	Large
Government Interference	Less	Comparatively high
Business Operation	Single Country	Multiple Countries
Use of technology	Limited	Latest Technology Usage