International Business - Essay Example

the best two strategic investments that could be made by an American company overseas International expansion has been highlighted by most companies as a critical component of their overall growth strategy. As such, American companies can enter into global markets through alliances, partnering, licensing, franchising, distribution, and local branches. Hence, American companies can make strategic investments overseas by introducing American know-how to the business community in a cost-effective way.

One of the strategic investment decision that could be made by American companies overseas entail waste management. Companies offering comprehensive waste and environmental services are likely to grow significantly in the future as waste disposal problem persists. The services offered by waste management companies entail collection operations, transfer stations, active landfill disposal sites, recycling plants, power production plants, and beneficial-use landfill gas projects. Housing, healthcare, and consumer goods can be regarded as some of the investment picks in the present business environment (Estrin 136).

These sectors are likely to report significant growth propelled by growing middle class. Globally, consumer and retail sectors have been recording growth in all sectors. The burgeoning middle class and rising domestic consumption are increasingly creating an abundance of opportunities for investors. # 2) Dell ways of reducing costs to meet international rivals Moving beyond the home market demands that the company adapt its business activities and structure to match the diverse markets in which it operates.

In Asia-Pacific region, Dell can choose China as a production site. This is informed by the fact that China enjoys relatively low-cost labor. The other location that Dell can select as a production site entails Mexico, and Turkey. The selection of the production sites is informed by the need to reduce costs while extending the build-to-order model (direct sales model) across the globe. Driven the need to have production and support facilities with major markets, the selection of China, Brazil, and Turkey offers the company an opportunity to take advantage of relatively low labor costs, advanced transportation plus information infrastructure, relative proximity to markets, better government incentives, and market access (Graham 373).

The strategies that Dell could employ in China, Mexico, and Turkey so as to minimize manufacturing and distribution costs should take into account the rising labor costs within emerging markets and shifts in demand. Some of the strategies that Dell can utilize to minimize manufacturing and distribution costs entail: reducing waste by confronting the origin of the inefficiency; enhancing productivity with Real-Time goals; and minimizing changeover time via training and awareness. Some of the approaches to supply chain optimization encompass direct plant shipments that allow the delivery of goods from the plant to the client directly (Henry 259).

This is likely to minimize transportation and storage costs. 3) To survive international business most companies need to adapt their marketing Initially, Coca cola considered the globe as a sole market place and employed uniform marketing strategy; however, the trend has shifted and now Coca cola employs diverse marketing campaigns designed for diverse regions of the world. Although, the branding and position of Coca cola remains constant globally, its execution varies depending on what is perceived as best for each local market.

This is apparent in Coca cola’s “Live on the Coke Side of Life” advertisement campaign in which elements of local culture is incorporated. Coke has over the last decade undertaken a vigorous campaign to enhance consumption within Europe. For instance, In France, the company employed various tactics such as lowering prices and increasing advertising (Mercer 69). As a result, this has led to increases in per capita consumption within France. Coca-cola utilizes numerous strategies inclusive of advertisement and campaigns directed at certain markets.

“The Zero Movement” details a campaign by coke to sell the new sugar-free drink labeled “coca cola zero.” In Australia, the campaign entailed marketing strategies such as advertising in billboards and magazines, besides putting up posters within public places. Coca cola employs a series of global television commercials in an effort aimed at integrating various markets such as the African market. 4) Financial management techniques that they can be used to maximize profitability The tools and techniques employed in financial management to maximize profits and cash flow with reduced risk entail: financial forecasting; profit and cash flow planning; cost-volume-price analysis (utilizing break-even analysis to better control costs, maximizing profit with operating leverage, and analyzing pricing strategies), and employing financial statement as management tools (industry comparison, analyzing financial cause and effect, and analyzing loss and profit in the balance sheet).

The core technique of financial management centers on planning for the future; hence, a manager can utilize models and statistical data to predict how the present financial structure of the organization will persist over time. The core issue in utilizing planning software centers on employing numerous variables in the model to avail useful information. Financial planning embraces forecasting risks and planning methods of dealing with the risks (Brigham 2). For instance, some of the typical risks that Dodger Inc may encounter in countries in emerging economies like India, China, and South Africa include lack of coordination in government policy, substantial competition, and corruption within the industry.

The financial management technique, in this case, centers on taking these risk variables and attaching a real price tag to them. Dodger Inc can make considerable gains within the world’s office supplies industry by implementing supply chain solutions such as supply chain management (SCM) and enterprise resource planning (ERP), which is likely to make the company’s operations more efficient. Works Cited Brigham, Eugene F, and Joel F. Houston. Fundamentals of Financial Management. Mason, OH: South-Western Cengage Learning, 2009. Print. Estrin, Saul.

Investment Strategies in Emerging Markets. Cheltenham: Elgar, 2004. Print. Graham, Gary. Exploring Supply Chain Management in the Creative Industries. Bradford, England: Emerald Group Pub, 2005. Henry, Antony. Understanding Strategic Management. New York: Oxford University Press, 2008. Mercer, David S. Marketing Strategy: The Challenge of the External Environment. London: Sage, 1998. Print.