Learning Paper Starting International Operation

Viduya, Lileth Anne P.
December 8, 2020
BSA - 3 International Business and Trade
Learning Paper
Starting International Operation
International expansion enables a business firm to take advantage of new opportunities

that are likely to have a positive impact on their long-term growth. And to boost their sales,
many companies broaden their activities into other international markets. That is why many
corporations are likely to be attracted to a foreign nation to take advantage of the different
business opportunities that exist there. However, the customer segments are needed to be
analyzed by the company who expands its activities into a foreign market. They have to ensure
that its operations are suited to the business environment that exists in a particular country.
Starting international operation helps a business firm to strengthen the brand appeal of
products they sell to consumers. They also have to choose an appropriate market strategy to
make its operations more competitive in a foreign market. And if it is to achieve a competitive
advantage and superior profitability, the company's method, practices and organization must all
be compatible with each other. They will make profits by resource allocation focused on
competitive advantage, leveraging of economies of scale and improved capacity utilization,
technological improvements, increased domestic savings and foreign direct investment.
There are also 4 basic strategies when competing internationally. This includes global
standardization strategy, localization strategy, transnational strategy and international strategy.
The objective of global standardization strategy was to follow a low-cost strategy on a global
scale, focusing on rising profitability and profit growth by reaping the cost savings that come
from economies of scale, learning impact, and local economies. While, localization strategy
Focuses on increasing competitiveness by adjusting the company's products or services to
provide a good match for tastes and desires in various national markets. Third is the transnational
strategy wherein the companies following this strategy are attempting to achieve low costs
simultaneously through local economies, economies of scale, and learning effects and encourage
a multidirectional transfer of expertise through different divisions in the global operational
network of the organization. And lastly, international strategy in which many companies are
taking goods first produced for their domestic market and exporting them internationally with
just limited local customization. However, they should be always reminded that a firm who
chooses to exploit opportunities in a foreign market is exposed to various risks that have an
impact on its operations. They may be affected by strict regulatory conditions, poor knowledge
of the local market and low demand for its goods and services. That is why there are firms that
prefer going into strategic alliances with other firms based in foreign countries where they aim to
expand their operations to.
In conclusion, to find out how they are beneficial to its long-term operations, a firm needs
to evaluate various forms of international expansion. To find out if it has the ability to meet
various consumer needs in a foreign market, a company needs to conduct a study. This will help
prevent risks and issues that are linked to a poor strategy for expansion.
International Logistics
A very important economic phenomenon in the modern world is foreign logistics. It is the
management of the flow of commodities, information and other resources between the point of
production and the point of consumption, including energy and people, in order to satisfy
customer requirements.
The integration of information, transport, inventory, warehousing, material handling and

packaging, and sometimes security, are part of logistics. Logistics is a supply chain channel that
adds the importance of the utility of time and place. Its strategic objective was to minimize costs
and to improve the quality of the product by removing faulty goods from both the supply chain
and the production process. The final choice for logistics management is outsourcing. Using this
form of method, there are many cost savings, but the lack of control can have a negative impact
on many businesses.
In conclusion, it is important to remember that for modern business, the field of

international logistics is very important. It will continue to grow rapidly and create new
opportunities for successful business operations, align numerous states with shared interests, and
create more employment for skilled specialists. Not all countries have logistics systems built
equally.

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Viduya, Lileth Anne P.

International expansion enables a business firm to take advantage of new opportunities

The integration of information, transport, inventory, warehousing, material handling and

In conclusion, it is important to remember that for modern business, the field of

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