Expanding of Businesses - Assignment Example

In this similar context, one of the chief factors related to exporting which needs to be considered by the small firms is to concentrate on sales activities for exporting in markets having better performance as compared to firms pursuing strategies in isolation. There are various reasons for firms engaging in expansion on global basis that include exploiting the unique knowledge possessed by the firms and potentially reducing costs through development scale of economies or through leveraging resources (Brouthers & et. al., 2009).

In order to determine the major factors that a small organisation has to consider before commencement of exporting, it has been viewed that the notion of export planning plays a decisive part in the commencement of exporting. In this regard, it can be affirmed that export planning might assist a firm towards accessing the potential of mitigating uncertainties and complexities related to exporting. Another key factor related to exporting for small firms is formation of strategic alliances with trustful partners.

This step could be beneficial for small organizations to maintain effective performance in long run (Sengupta & et.al., 1999). It can also be stated that through proper research of market, it is quite possible to make a thorough assessment of the markets resulting in acquiring a brief idea about the market nature. Efficient distribution and shipping assists smaller firms in exporting as an organization finds an appropriate market that has reasonable demand and regulations and bears no entry barriers that eventually results in smooth conduct of business (Samuels, 2013).

It can be stated that the small organisations needed to consider certain key factors prior to their commencement of exporting. In this similar concern, the small organisations strongly believe that they can attain significant benefits from considering the factors before commencing exporting. The benefits comprise raising sales along with revenues, minimizing risks, enlarging life-cycle of the products and most significantly penetrating into new business markets among others (Tekle, 2013). After acquiring a brief idea about the benefits that can acquire by the small organisations, it can be affirmed from a broader perspective that they need to consider a particular chief factor concerning building an effective corporate international image prior to the commencement of exporting.

It has often been viewed that financial risks generally occurs while carrying out transactions on an international basis. Thus, on the basis of the above discussion, it can be stated that the small organisations must consider certain other major factors like adopting as well as executing planning dimensions, conducting proper analysis of market and concentrating much upon product pricing and quality prior to the commencement of exporting (Tekle, 2013). Question 2 It has been apparently observed that the business organisations belonging to this modern day context tends to invest substantially in abroad for the purpose of raising profitability, overall productivity, business reputation and most significantly attaining superior competitive position.

However, relating to this context, it can be observed that a business organisation when investing abroad often has the difficult choice of either buying an existing facility or building a new facility. This can be owing to the reason