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Global Expansion into Kuwait and Qatar

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The purpose of this memorandum is to initiate a strategy that details a management decision to begin planning and research activities for market expansion into Kuwait and Qatar. These countries are apparently primed for the firm's executive leadership development programs and are willing to pay handsomely for highly effective training.

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Solution Summary

The solution provides a hypothetical strategy for business expansion plans into the Middle East (Kuwait & Qatar). The strategy is supported by annotation and references in APA format; 9 pages; 10 references. The strategy ideas are divided and presented in the following sections:
The Need for Globalization,
Mode of Entry Planning,
The Impact of Culture,
Operational Development,
E-commerce Process & Partnerships,
Recommendations

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Executive Memorandum
Paul B. Coleman
University of Phoenix
MGT/711: 21st Century Issues in Organizational Behavior
DBA09X-04A
Kathryn J. Moland, Ph.D., PMP
September 23, 2005

MEMORANDUM
DATE: September 23, 2005
TO: All Executive Officers and First-Line Managers
FROM: Paul Coleman, CEO
SUBJECT: Global Expansion into Kuwait and Qatar
The purpose of this memorandum is to initiate a strategy that details a management decision to begin planning and research activities for market expansion into Kuwait and Qatar. These countries are apparently primed for the firm's executive leadership development programs and are willing to pay handsomely for highly effective training.
Background and Choice of Strategic Market
The Need for Globalization
Many of our competitors are already competing on a global scale. Subsequently, by virtue of first-mover advantage, they are increasing the threat to our success and strengthening the potential for the market to exploit our weaknesses. The company has entered the phase of its 5-year strategic plan wherein the need to expand internationally has become vital. According to Gupta and Govindarajan (2004), "Two intertwining considerations are driving managers to make such decisions on an increasing basis: one, globalization is becoming increasingly feasible; two, globalization is becoming increasingly desirable" (p. 6), but this statement does not tell a very complete story.
Yergin and Stanislaw (2002), reviewed the historical march toward globalization from a free-market perspective. Accordingly, globalization has been propelled by the need to control what the late Vladimir Lenin called the commanding heights in 1922 Russia. The commanding heights are the core elements of economic stability, e.g., the means of production, heavy industry, technology, leadership, etc. The saga of economic and super-power antagonism between East and West that occupied the historical period we now term the cold war pitted two of the most influential men in economic philosophy, at least ideologically, against one another, i.e., John Maynard Keynes and Friedrich von Hayek. The former died in the prime of his life, although his General Theory outlived him (and perhaps its usefulness) until the Ronald Reagan and Margaret Thatcher era embraced the latter's The Constitution of Liberty with declarations like, "This is what we believe!" (Yergin & Stanislaw, 2002, p. 89). A side note of interest is that as of this writing, Hayek's The Road to Serfdom (1994)—originally printed in 1944, reached the 50th edition of its publication.
With the Reagan and Thatcher reforms in full swing, the subsequent tell-tale defeat of socio-economic experiments akin to Marxism and communism in the former Soviet Union, India, and elsewhere, coupled with the successful privatization of many of the commanding heights of the U.S. and Great Britain economies, the market-driven economic model was propelled onto the global scene—not to mention the instigation of sweeping economic adjustments in China and most of the far east in support of free-market models of commercial exchange.
However, if there is a dry spot in the wellspring of global economic expansion and participation, it is the countries of the Arab world. Granted, many of the Arab countries emerged from World War II as part of what we now refer to as The Third World, but a few have been able to leverage one of the pillars among the global commanding heights, i.e., petroleum production. Some of these oil-rich nations have been able to elevate internal social structures to first-world status but decidedly stay with socialist or monarchistic economic models that produce little self-sustaining capital—they have no vibrant working or middle-class.
DeSoto and Abbott (2002) ...

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