Internationalization of firms, factors and forces, internationalization of organizations, process of internationalization, U-model, International Entrepreneurship Theory (IET), ownership, location and internationalization, Porter's Diamond Model, export strategy, international strategy, Wal-Mart
The world is more independent in recent time more than ever and changes occur constantly. Due to such changes, most of the organizations with the potential to grow tend to take their operations to foreign countries away from their home country through internalization. The level at which a firm internationalizes its operations may be different for every organization since different organizations apply different methods and strategies depending on the abilities and resource availability. The influence of organisations to internationalize their operations modern advancement in technology, liberalisation of trade, convergence of cultural believes accessibility to mass of people and good competitiveness ability. However, the reasons are not adequate for a firm to settle on its decision of internationalization as many more factors need consideration. Thus, the primary objective of this dissertation is to investigate the factors and forces that influence strategic integration of firms and the benefits of internationalization to firms. The paper will use Walmart case study through use of various theories, models and strategies to determine the factors that promote its internalization.
[...] International Product Life Cycle Model This model was built on the principle that the process of internationalization should have a predictable sequence that makes it incremental and systematic. According Wang and Gupta (2011), the form used by organizations to enter international markets is determined by the stage of life at which the traded product is. However, Martin and Sunley (2011) observed that there are set stages where the product must pass including introduction phase to the market, product growth and then maturity. [...]
[...] The organizations that try to internationalize must be able to handle currency fluctuations as well as the changes in policies and regulations set for international market operations. Among the other factors to consider before going international is the organizational structure that is used in the internal operations of the organization (Barac and Moner-Colonques 2016). It is important to put into consideration the role of government of foreign countries. This helps in assessing the political climate of the country as well as the availability of people to work for the organization (Venzin 2011). [...]
[...] As a result, it is credible to say that during the internationalization of an organization, networks play a key role of bridging the gap between the company and the host country (Senra and Rocha 2014). The theory gives importance a lot in the use of network as well as their ability to bring the involved organizations closer with the maximum use of the acquired information about internationalization (Wach and Wehrmann 2014). The information is then used by the organization to establish relationships with distributors, customers and suppliers. [...]
[...] Another failure may be failure to understand the market complexity and the regulations that may be put forward by the government. Other organizations fail because they lack financial stability or their management fails to put forward the right strategies for its international success. Wal-Mart's management failed to do some of its responsibilities because it did not get adequate information on the cultural beliefs before taking its products to Germany Recommendations For the success of an international organization in its operations, there are various factors that need consideration. [...]
[...] The fact that Walmart did not have their own stores, and that it had to acquire existing supermarkets was a poor strategy since such supermarkets operated under different business structure and model. Analysis of Findings Major reasons, factors and forces that promote firms' internationalization process applying the direct opportunism There are a number of reasons, factors and forces that influence the internationalization process of any given firm. While the mission and goals of different firms may be different, most of the factors that promote the process of internationalization are almost similar for all firms. [...]
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