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Companies with Global Operations

With all the problems facing companies that go global, why are so many companies choosing to expand internationally? What are the advantages of expanding beyond the domestic market?

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While it is true that going global is plagued by numerous problems and issues, yet these are outweighed by benefits and advantages.

Johnson (2012) noted that going international will give companies the following benefits:
1. You will have more customers. Going global will expose your products/services to different markets and different nationalities.
2. You will have access to a larger talent pool. Engineers, consultants, marketers and strategist are found in various countries. Having expanded the business in these countries will enable the company to have contact with these talents.
3. You will have more profits. More customers in a global arena will mean more cash inflows, more cash inflows will mean more profit.
4. You will become more efficient. There is intense competition in the global. The presence of competing ...

Solution Summary

The solutions shows that despite of the challenges that lay ahead, companies that ventured in global operations will experience unlimited benefits and advantages. New markets can only be attained by tapping international clients.