Sunday, October 6, 2019

International Business & Strategy Essay Example | Topics and Well Written Essays - 2500 words

International Business & Strategy - Essay Example This has been made possible through employing an effective international business strategy, which helps the company to direct their business in the global market effectively with an aim of maximising profits. Carrefour is one of the businesses that employ international business strategy to enable them to achieve a competitive advantage and increase profits in the global market. The company was established in 1958 and it grew into a vast chain after the first sales. Carrefour operates currently over 9,994 stores in thirty-three countries; therefore, expanding the business into the new markets in Botswana will enable the company to increase their profits because the political stability of this country has catapulted the economy into emerging and one of the fastest growing economies. The Potential Target Market for Carrefour’s Future International Expansion Strategy Botswana will be one of the prospective target markets for expanding the business in the future using international growth strategy. Many companies have made significant attempts to expand their business across the globe. This is through employing internalisation or global strategies that will enable them to expand their business and also reach their targeted customers effectively. Mun (2010, p. 42) argues that employing an effective strategy in the global business environment is vital because it will enable an organisation to increase profits. The globalisation is set to continue and this will contribute to new opportunities and challenges for the future generations of entrepreneurs who are seeking to prosper in an increasingly interdependent world. Therefore, Carrefour can use this strategy to expand their business in the future to untapped developing countries such as Botswana. Global retailers have continued to expand their business into untapped markets due to increased technology advancement and increased consumption across the globe. Many international companies such as Carrefour have rea lised the significance of expanding their business into the new market, especially the emerging market; thus, there is a need to also target in the future many developing countries. This is because many global companies operating in developing countries have increased and tapped revenues 2.5 times faster than in their home markets (Doh, Lawton & Rajwani, 2012, p. 23). The research study reveals a wider range of possibilities for vendors seeking to capture an instant impact and a growth advantage in third world countries (Brown & Gutterman, 2003, p. 27). Possibilities do not only flourish in the largest markets in the industrialised nations but also in smaller markets in third world nations; however, third world developing nations have been ranked among the leading nations for retail investment; thus, Carrefour Group should expand their international strategy by expanding their markets to a potential target market in Botswana. Macro-Environmental Characteristics of the Market Organis ations are constantly scanning not only their internal environment but also the external environmental factors that may impact their business performance in the global market. Macro-environment characteristics take into consideration the external factors that may be favourable or unfavourable to business performance. The macro-environment is external forces that result from a

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