Identify at least one potential disadvantage to initiating, continuing, and/or expanding international operations. Identify one action that you would recommend in order to overcome this disadvantage.© BrainMass Inc. brainmass.com December 24, 2021, 11:38 pm ad1c9bdddf
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Identify at least one potential disadvantage to initiating, continuing, and/or expanding international operations
Identify at least one potential disadvantage to initiating, continuing, and/or expanding international operations. Identify one action that you would recommend in order to overcome this disadvantage. Use at least 200 words and cite any sources used in APA format.
There are a few disadvantages for pursuing global operations. When a company pursues a global strategy, the company may be tempted to use a one size fits all approach to product development, product deployment, marketing and sales in all markets. There may be markets that desire specific products or product features that may not be desired in all markets. Also, the various global markets may be very sensitive to pricing and pricing changes. Eventually, a company's product will become more popular in one country vs. another country, which will force the company to focus on one country. However, the company may hedge its bet incorrectly, which could lead to reduced revenue.
When a company pursues a global strategy, there is a risk that the company will face operational risk. This will occur when a company tries to use the same rules or policy and procedures related to employment and corporation because the laws will be different in the different countries. Also, a company will be impacted if a war breaks out in one of their operation countries or a natural disaster, which will have a huge impact on a global product and may lead to the company not fulfilling customer orders (O'Farrell n.d.).
O'Farrell, R. (n.d.). Advantages & Disadvantages of a Global Strategy. Small Business. Retrieved August 5, 2014, from http://smallbusiness.chron.com/advantages-disadvantages-global-strategy-11664.html