Wednesday, 20 December 2017 05:53

Company Goes Global

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The decision to grow to foreign markets is mainly for the purposes of expanding growth. Foreign market expansions guarantee access to new markets thus increased sale. A company can tap into a new market thus acquire new customers for their products. Subsequently, the company will enjoy increased revenues. The foreign market is awash with different business model that a domestic company can consider. The secret lies in the ability of the domestic market to determine the ideal country to establish themselves. A domestic company must ascertain they target a country where there is an underserved niche that the company can provide. As the CEO, I will write a comprehensive report over the impending expansion exercise. The report on the planned expansion to two foreign countries will be sent to the two expatriates to be sent to the countries, the executive committee and the board of directors.


Benefits of the Report

The major benefit of having the report is that the report provides an overall guideline of the plans of expansion. The plan will address the potential challenges that the expansion process may experience. The management can then address the potential challenges and establish strategies to mitigate the challenges. The report also provides the company with an outlook of the new company. The management will have an overall understanding of the operations of the foreign branch thus make a decision on the viability of the expansion project (Asongu, & Marr, 2007). With the report, the management can determine whether to actualize the expansion plan, to make adjustments to the plan or to abandon the expansion plans. Overall, the existence of the report ascertains that the management and the expatriates are well-informed of the impending expansion exercise. The report thus creates a platform where the executive and board members can modify, suggest or disagree with elements presented, in the report. The report can be used to gain insights on the selected countries where the new branches will be opened. The board will analyze the viability of these countries against the information provided in the report. Similarly, the expatriates will begin to gather information on the culture of the country. The expatriates must be familiar of the culture of the new country (Forbes, 2013). The report will also guarantee uniformity in the new branches as the expatriates will execute their duties based on the expectations highlighted in the report.

Leveraging Expatriates

When deciding to expand to a foreign market, the organization must consider the workforce that will work in a foreign land. The company must ascertain that it adopts the best staffing strategy. The best staffing strategy will enhance performance and maximize profitability in the country. While it is common sense to hire the locals to work in the business overseas, the company will consider sending some expatriates to the new firm. The company will select employees who have specific skills that they can initiate in the company. The use of expatriates may be beneficial to the company in several ways. First the use of expatriates guarantees the home company of greater control of the new organization. The expatriates will have been sent by the host company, to a new company (Das, 2011). The expatriates will thus be answerable to the management at the host company. The ability to control the expatriates guarantees that the new company will operate as expected.

The use of expatriates also gives the expatriates the benefits of gaining experience in the local markets. The expatriates will have arrived at a foreign land thus marking the start of their learning experience. The expatriates can then transfer the knowledge to the rest of the management, at the parent company. The third benefit of using expatriates is that the expatriates have an understanding of the business strategy. The implementation of the business strategy as implemented in the parent company will be accomplished with ease (Asongu, & Marr, 2007). The expatriates are already familiar with the overall business strategy of the parent company and thus will establish effective strategies to implement the same strategy at the overseas company. The expatriates will also implement the existing organizational culture at the new company, overseas. The use of expatriates can also boost the morale of employees in host countries. There are many difficulties associated with the establishment of a new organization. The presence of expatriates would boost the morale of employees as the expatriates are familiar with the challenges of the company and how to overcome them. The expatriates can offer their counsel on how to handle complex situations that may arise with the start of a new branch.

Unfortunately, they are a few disadvantages associated with the use of expatriates. The first challenges deals with the ability of the expatriates to settle in a foreign environment (Forbes, 2013). The expatriates may take time to settle especially if the company settles for a country that differs from the parent country, in terms of culture and language. The expatriates may take time to settle thus affect productivity. There is also the risk that the selected expatriates may lack cultural sensitivity thus clash with the locals (Caligiuri, & Lepak, 2010). The risk of language barriers may also be high thus slowing the overall performance of the new company. Economic factors such as the cost of visas and the cost of relocation can affect the decision to use expatriates. The cost may be high to the extent that it may dent the finances of the company.

Employee selection

The two expatriates will be selected based on their contribution to the parent company versus the need for a new company to acquire the skills that the employee possesses. The employees may have technical skills needed for the effective development of a new branch hence the selection of the skilled employees as the idea choice (Das, 2011). The management will also select the expatriates based on the flexibility of the employees. Employees who demonstrate their willingness to learn new patterns of bachelor and new cultures will be ideal compared to those that are inflexible. The company will also select the best employee based on their demonstration of effective interpersonal skills. An individual with interpersonal skills can communicate and interact with others, with ease. The employee with effective interpersonal skills can communicate the organization’s culture to the employees at the foreign company thus enhance ease of adaptation. Employees who are knowledgeable on the language of the host-country will also be given priority over those unfamiliar with the language.

Incentives to Expatriates

Expatriates may show some degree of unwillingness to relocate to the host country. However, the organization can offer the expatriates paid leave allowances that include a return ticket to his home country. Alternatively, the company can pay for the expatriates relocation expenses that include his spouse and their children. The company can offer full education and medical coverage to the expatriate’s children. The spouse and children of the expatriate will also receive language and culture training, in relation to the host country. Training will ascertain that the children, spouse and employees settle in a new country, with ease. The expatriate will thus be assured of moving with his family, guarantee housing and smooth settling into the host country (Asongu, & Marr, 2007). The company will also increase the salary of the expatriates by approximately 15%. Additionally, the expatriates will receive a job promotion upon their arrival at the new company. A salary increment and a job promotion will motivate the expatriates to take a new job offers as they will not enjoy the same deals if they opt to stay at the parent company.

Books for the expatriates

The expatriates will have to be well-prepared for their lives in the host country. The expatriates can read the book: the Global manager’s guide to living and working abroad: European and American Perspective. The book addresses the issue of culture differences and how individuals can overcome the culture shock that engulfs individuals in their first few days at a new country. The book offers guidelines on managing in a foreign land. The book will be essential for the expatriates as it will shed light on what expatriates can expect with their arrival, in a foreign land (Caligiuri, & Lepak, 2010).

The expatriates will also read the book: Coaching Expatriates by Anne Herbolzheimer. The book will give expatriates a clear understanding of their job, and what is entails to be an expatriate. The selected employees will also have an improved understanding of the duties they are to play as expatriates. The purpose of reading the book will be to ascertain that the employees become productive expatriates, in the host country.

Guide for Expatriates leaving for 1-2 years

Items to Pack:

Personal belongings such as clothes and shoes (employee’s, spouse and children)

Correct travel documents for expatriate and family

A vehicle will be provided at the new company: current vehicle will be sold

Furniture will be sold as new furniture will be available at the new housing facility, in a new country

Expatriate and family can relocate with their pets

Factors of Consideration, in Country Selection

Cultural background

Culture is the shaping process where members of a particular society have a distinct way of life that is analyzed on the basis of values, attitudes and behavior. The cultural background of the host country should not be very different to the parent country. However, if different, the culture should not make operations in the foreign country difficult. Different countries have different cultures hence the employees should have the capabilities to learn, understand and appreciate the culture. The official language of the selected country must be similar to the parent country, or if different, a language that the expatriates are knowledgeable. Similarly, if the language is foreign, the parent company and the expatriates must be able to learn the language with ease (Asongu, & Marr, 2007). The ability to have a common language will enhance communication within the new company, and between the new organization and the parent organization. The knowledge about the selected country will also be a determinant of whether the country will be selected. A company must invest in a country where they are aware of the economic and social dynamics within that country. Additionally, the company must be familiar with the laws of the selected country. Some countries have strict laws e.g. women are not allowed to drive. The parent organization must also be familiar with the costs and regulations associated with the opening up of foreign companies. Countries with prohibitive laws affect the ability of a foreign company to establish itself (Das, 2011).

Selected Countries

The first country selected is Germany. Germany is an attractive hub for business for companies that desire to attain international expansion. Germany has strong business compliance standards that guarantee consumer protection and data protection and privacy of information. The compliance standards in Germany are almost similar to those in US hence the parent company will experience minimal challenges when settling in the German environment (Forbes, 2013). The successful of the penetration into the German market also guarantees successful entry into the rest of the EU countries, in the future. Germany is a leading business spot in the EU and thus products and services accepted in Europe are likely to be accepted in the other EU nations.

The second country for investment will be South Korea. Entry into the South Korean market would set the pace for further entry into Asia. South Korea is relatively free and open compared to other Asian countries thus making the country ideal for business. The economy of South Korea has also remained relatively stable and is considered one of the five Asian tigers (Das, 2011). The general South Korean culture revolves around the concept known as Kibun that strives to ascertain people execute their duties effectively. The south Korean emphasis on interpersonal relationships increases the chances of success as employees will be willing to work in teams thus ascertain company’s success.

Commitment to Expansion: Communication

The CEO will engage the executive committee and the board of directors in the outlining of the expected new company. The CEO will hold regular meetings with the committee and the board of directors where issues related to the expansion exercise will be discussed. Suggestions on the expansion exercise will be gathered from the executive committee, as well as the board of directors (Asongu, & Marr, 2007). A decision will be finalized after the board of directors and the executives agree to it. Overall, the CEO will ascertain the executives and board members remain abreast of the expansion strategies, at all time. The involvement of the executive and board members will minimize the risk of conflict and misunderstanding that may hinder the expansion exercise.


Companies that desire to grow must look beyond their geographical boundaries. A company must be willing to expand to foreign lands where the market is ripe. The visitation by many clients who show their intention to invest in the business is an indicator of the viability of the company in a foreign land. However, the company must conduct an elaborate assessment to determine the most viable geographical location. The selection of Germany and South Korea as the ideal locations to launch the company is because the successful venture into these two countries would results to an easier penetration to the European and Asian market. The management will emphasize on the recruitments of two expatriates who will oversee the establishment of the new branches. The selected expatriates will have appropriate technical and interpersonal skills.


Asongu, J. & Marr, M. (2007). Doing business abroad. Greenview publishing

Das, T. (2011). Strategic alliances in a globalizing world. IAP publishers

Forbes, (2013). Expanding your business globally. Retrieved from

Caligiuri, P. & Lepak, D. (2010). Managing a global workforce. John Wiley & sons

Janet Peter is the Managing Director of MeldaResearch.Com a globally competitive custom writing service which is the premiere provider of Essay Writing Services, Research Paper Writing Services at Term Paper Writing Services at very affordable cost. For 9 years, she has helped a number of students in different academic subjects.

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