Export based strategy
The term export can be defined as a means of shipping goods and services from a countries port also known as selling goods from ones country to other countries or other markets overseas. Export strategy is a way in a company sets its rule of operation in the export business helping it to achieve the objectives set. With an export strategy a company will be able to will clearly define its raw materials, finances and the personnel to help it achieve its goals. It helps a company to provide quality services to the customers both new and old helping also to deal with service providers. The company will emerge as well organized one with clear goals and strategies to attain the goals. (Foley, J. F. 2004:22).
In case a company wants to be successful in their export business the following should be considered. The goals of a company are in harmony with the exporting business and what the company wants to gain from the export. The main company resources such as, capacity of production finances, management and personnel, that the export process will need. The last factor a company should consider is whether the cost incurred in the business will yield the required or worth profit/ benefits.
If a company has set its objectives there is need to look into the following. Which countries are their target market and who are the consumers and how or which marketing strategy should they use to reach the consumers. The company needs to know what products are best for their chosen customers and if there may arise a need to adjust the company should be ready for it. The other thing they should consider are the import regulations in their country, market and the global rules also should focus on the competition involved looking...
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...he market and lack of an all-round business plan covering all aspects. For the company’s discussed it will be very easy to achieve the goals and be one of the successful company’s in the country and global wise.
References
Adams, R., & Adams, T.(2003). Start your own import/export business: Your step-by-step guide to success. Irvine, CA: Entrepreneur Press.
Foley, J. F. (2004). The global entrepreneur: Taking your business international. United States?: Jamric Press International.
Loos, N. (2006). Value creation in leveraged buyouts: Analysis of factors driving private equity investment performance. Wiesbaden: Deutscher Universitäts Verlag.
Woodward, D. (2001). The next crisis?: Direct and equity investment in developing countries. London: Zed Books.
Woznick, A., & United States (2000). A basic guide to exporting. Novato, CA: World Trade Press.
Every company has internal and external forces that effect how they operate within the community in which they are located and also within their own walls. These internal and external forces play a strong impact on the company’s profitability and success. These forces have an effect on what consumers they attract or ignore and how they are perceived by those who have the buying power. A mistake any analyzing and implementing measures to assist with these factors could greatly affects a company’s bottom line and success. This is why any company wanting to grow and be successful will need to take all of these forces; sociocultural, technological, economic, environmental and political-legal into consideration in creating their strategic plan.
Last year, Canada received 443 billion dollars in revenue from exporting goods throughout the world. Almost 54% of that was covered by Canada’s three major exports (Stat Can.) - mineral products, transportation items, and electrical equipment and machinery. While preparing theses resources for export may be difficult, it is worth it. This essay will review the large role exports play in Canadian economy by being a immense source of income, allowing Canada to maintain robust trade routes and relations throughout the world, and providing Canadians with many jobs.
Globalization among companies has been increasing due to the high potential profits and the lower costs of labor and resources. Venturing to other countries, which have lower costs of lower costs of living, can support their families on lower salaries. Companies that don’t have to spend as much on salaries and benefits are a great way for the company to save money and increase their profits. When looking to other countries to expand to, they will need to review their value chain to make sure they are able to keep their same values with their expansion.
1. The product, country to export and the size of the market is $ terms.
There are numerous advantages to Maxons of exporting their products: firstly, it is a low cost entry mode because you are not using intermediaries meaning that Maxons will not need to pay many other businesses for their sweets to reach the new market (Delaney, 2017). Furthermore, exporting helps reduce risk by spreading it out over a larger customer base and protecting the business if demand in one country falls dramatically thus meaning that Maxons will still be creating revenue (HM Government, 2017). On the other hand, there are numerous disadvantages to this entry mode including; Maxons having to handle all of the logistics of exporting themselves such as; whether they will export via air or ocean and whether they will need an export license (Delaney, 2017). Exporting would be the best option for Maxons as afore mentioned there are less costs which for a small business is highly important as they cannot afford the high set-up costs associated with other methods.
The numbers presented about trade outside of the united states is impressive. What is even more impressive is that there are less than 1% of companies in the U.S. that export, which is the lowest level of active exporters in the industrialized world and 70% of the world’s purchasing power exists outside of the U.S. This means that export in America is virtually an untapped market and many businesses are overlooking the opportunity to service a majority of their consumers. There is no reason to let fear, uncertainty, and doubt prevent a business from growth. Knowledge is the most useful resource to any individual and business, therefore if knowledge is obtained regarding the matters that bring about fear, uncertainty, and doubt it can easily be determined whether these thought are substantiated or not. Prior to watching this video, I too believed that in order to be successful in the global markets a company had to reach the level of becoming a large, reputable corporation, however, now that I have been equipped with this knowledge I have a new perspective on the growth of a business’s finances and organization. As Scott Szwast stated “In
Johanson, J. & Vahlne, J. E. (1977). The Internationalization Process of the Firm—a Model of Knowledge Development and Increasing Foreign Market Commitments. Journal of International Business Studies, 8(1), 23-32.
There are many competitors; there are various rules and regulations to deal with in the expansion program. The company also considers the economic environment as it can adversely affect the performance of the company. Technology is another factor which cannot be left out. Geographic factors, demographic factors and the environmental factors also impact the company’s business. To start with, the competitors of the company incudes McDonalds and other such as the Burger Kings. The competition is stiff and for the company to remain afloat, it must ensure that the audience knows of the product for easy penetration. Failure to tis would bring the company to its knees and fail. The geographical factors also affect the company in that the consumption patterns of some products are affected by climate patterns. The company should maximize in the high seasons and reap big profits then. The legal factors also impact the company. In the expansion plan, the company intends to spread her services to other states. In the country, there are many states which have different rules and regulations governing the conduct of a business. This also relates to the type of advertisements that the company can bring forth, thus, for the company to cushion against such forces as the legal differences, there should be proper analysis of the legal requirements in the northern states before venturing into the business. The demographic environment is
Australia's total exports, according to the Australian Bureau of Statistics, equalled 97,286 million dollars (m$) in 1999-2000. Steady increases flowed to 121,108m$ in 2001-02, however by 2003-04, exports had decreased to 108,906m$ (ABS 1301.0, 2004). These figures are shown in Table 1. Australia's eight largest exporting partners in 2003-04 were Japan, China, United States of America (USA), Korea (South), New Zealand, United Kingdom, India and Taiwan, as shown in Table 2.
stripping them off their assets and saddle them with debt, private equity firms build companies; they
Globalization encourages worldwide business. Globalization is an efficient process by which all the nations of world will commonly try to set regular universal standards & regulations (both created & recommended) which will encourage business around different nations. Business around nations or elements crosswise over different fringes is called universal business.
Without a successful business strategy put in place the company would fail and be unable to compete with competitors. There would be on way of knowing what resources are required. No planning for the future of the business. If there are no targets set out to achieve there would be no way of measuring how successful the company has been.
It is highly recommended that company officials visit the countries to examine the markets where they are considering selling their products before any transaction occurs
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
Daniels, J. D., Radebaugh, L. H., and Sullivan, D. P., (2011). International Business: Environments and Operations. Prentice Hall, Upper Saddle River, New Jersey.