Businesses have crossed borders, and it has been growing rapidly in recent decades because of the liberalization of government policies, and technological expansion. To satisfy the global demand of customers, it requires strong managements skills, sensitivity to cultural issues, and intercultural competence. As the multinational corporations grows and improve the quality, and operate at international level, this is why managers should ask three critical questions, first why should I expand internationally? Second where should I expand? Finally, how to expand? Which will help to achieve successful strategic objectives. `In this memorandum the Board of Directors for ABC Complete Kitchens, Inc. concerns of the board of directors of the plant relative to international sales of products of for ABC Complete Kitchens, Inc will be examined. This memorandum analyzes the international management considerations associated with the plant. ABC Complete Kitchens, Inc is anticipating nearly twenty percent of the sales from the international and overseas market. Therefore, the board of directors has expressed their concerns about the management of international aspects for the plant. Some issues have been identified in overseas management procedures, and considerations for the same are to be provided. This memorandum expresses the concerns for the same. The ABC, Inc needs to adopt international management strategies to sustain its competitive position in the market via adequate cultural, technical, political, and economic environment. Localization Concerns
After knowing why to expand either to increase sales or to cut costs or for other reasons . The ABC, Inc, should decide which countries to enter first, which type of countries to chose, what criteria to follow to make these choices. The best suggestion for ABC, Inc is enter the countries with the largest potential customers for its products, however managers should also think about how likely they are going to success in particular foreign market, and how to measure not only the geographic distance, but language, cultural, administrative, and economic distances as well. Language Concerns
Language affects the way of employees, customers and business partners communicate with each other. Based on the level of foreign language knowledge–basically the English–in the country’s society, the ABC Inc. must carefully decide whether it can use English as a working and advertising language or if its management has to learn the country’s own language and build the strategy on that language (Kozenkow). Cultural Concerns
The habits, behaviors and consumer preferences of every society are determined with Culture. While implementing a business strategy overseas, ABC Kitchen Inc, should consider all the cultural characteristics of the targeted society. When entering new country the t firm should ask if the customers want the same thing, or it will have to modify the product to fit their satisfactions. . Therefore, for increasing overseas sale, ABC Inc, must plan its overseas strategy keeping in mind of the culture of the country for which the strategy is being planned. Administrative and International Laws concerns
The ABC kitchen, Inc, need to abide and respect the different regulations, government policies, and legal systems, because countries vary widely on these dimensions, which require the firm to has a deep understanding on how to meet those regulations to avoid failure, even if the firm has the best products in the markets. Technical development concerns
Differences among the technical development and facility of markets internationally or within the United States determine fundamentally the opportunities of production, sales and marketing of the operating businesses. Management can build your advertising and promotion strategy exclusively on the Internet if the majority of the national population or local community uses the Web as its primary source of information. Economic concerns
An other important factor is economic concern which is the average of purchasing power customers in different countries, and how elastic this power is, therefore, it means how much demand for the product changes, as the price goes up and down, because this is a big deal for the firm to know who are used to buy products in the market, where every one is wealthy. In other hands, may people with low wage should be a target. Economic differences like these have a major influence on what type of products will be demanded. Supply Chain Management
Supply chains are an integral part of global quality and cost management initiative, because a typical company’s supply chain cost can represent more than 50% of assets and more than 80% of revenues. (Ball, 2010), in other word, the ABC, Inc should reduce the inventory of chain supply to reduce the cost. In order to do that the Board of Directors of ABC Inc. has to expresses reconsiderations for management across business functions in supply chain management. Managing the flow of raw materials, supplies as well as finished products are equally important as the management of sales and marketing. Competition
Another concern is the competition in overseas market. Local products tend to be cheaper than the internationally exported products due to various forms of taxes included in them. Therefore, how will be the completion met in the overseas market and what the management plans to do with the taxes and prices in the overseas market, the board of directors should be interested in knowing these aspects. Finance and Accounting
Another factor that the firm should take it on consideration is the accounting practices and standard changes across the national borders, it is an obstacle to merge subsidiary financial results with those at the parent company, this is why there is a growing movement toward convergence of accounting standards across countries (Ball, 2010). This convergence will help the financial management to be more integrating, because the statements will be comparable. ABC complete Kitchen Finance management is particularly a concern point, as overseas countries change in value in terms of each other based on currency exchange rates. How will the ABC Inc. comply with financial laws and regulations in the host country, the concern particularly addresses following questions to be answered: What management is doing to understand how fluctuations in currency value change international business transactions? What is the process for financial tools such as derivatives, hedges, payment timing, exposure netting, price adjustments, balance sheet neutralizing, and swaps, and how they affect business performance? When and how to pay exporters in forms other than money; buyers frequently prefer payment rendered in the form of goods or services (countertrade)? Human resource concern
Board of directors of ABC complete Kitchen Inc. has expressed interest and concern about the strategies of management and have questioned that how will be the needs of the resources and workers will be met across different countries. Furthermore, what is the best way to meet the needs of these employees and also best utilize their skills and talents to keep the business functioning smoothly? (Business) Ethics and Society Concerns
After the ABC kitchen,Inc established a business global plan for marketing, operations, and human resource management , should now establish an ethically and socially business plan among its international management considerations.
“The purpose of the firm is not simply to make profit, but to create value for all of its stakeholders, business success is judged not simply by company’s financial, but by how well it serves broad social interests” (Laweren, 2008). In other words if ABC ,Inc want to successes internationally, it should adopt strategy that apply ethical values and the respect of people on its global environment and for different people that affect the company, from the stakeholder ,to the shareholders, employees, customers, and society. To achieve that the Broad Director of the firm should adopt a stakeholder theory that consists on: identifying the relevant stakeholders group, determining the stake of each group, determining how the expectation of each group are met, finally look for the stakeholder interests. By following these steps the firm will build a good relationship with the shareholder, moreover will build reputation and trust that will enhance its performance. Finally, for the hiring process the ABC ,Inc should put values and ethics as requirement to hire new employees, because it will not just help the organization but the global market place. Conclusion
In summary, getting global strategy wright can be very difficult, because it requires matching the wright reasons for going global with the wright places and the wright strategies. The ABC Complete kitchen, Inc should follow the steps suggested while managing significant differences between countries, and responding to the intense rivalry from both global and local competitors, however when the challenges are great, the ABC Inc should get it wright, to win in a really big way.
Ball,G. (2010). International business: The Challenge of global competition,12th Edition, New York, NY: the McGraw-Hill Companies
Boundless.com. (n.d.). Considerations-when-managing-a-global-corporation. Retrieved from https://www.boundless.com/management/textbooks/boundless-management- textbook/globalization-and-business-14/managing-international-corporations- 107/considerations-when-managing-a-global-corporation-499-10752/. Business, R. f. (n.d.). International Management. Retrieved from http://www.referenceforbusiness.com/management/Gr-Int/International-
Kozenkow, J. (n.d.). International Management Challenges. Retrieved from http://smallbusiness.chron.com/international-management-challenges-56168.html. Lawerence,W. (2008). Business and Society: Stakeholders, Ethics, Public Policy, 12th Edition. New York, NY: The McGraw-Hill Companies.
Sullivan, D. (2011). Business strategies for organizational effectiveness within the global Perspective. Pearson Education, NJ: Prentice hall.