International Management Case: How HNMC Board Of Directors Will Consider The Decision Of Going Global With Their Business Operations

In today’s fast growing and dynamic business environment the world is becoming a global village and businesses are free to enter most markets in the world globally and gone are the days when a local business was not affected by their strong international competitors. Expanding a business globally can spurt the increase in revenues phenomenally but it is important to understand that going global comes with certain challenges which can be uncontrollable. The real estate business is a global business and in this case the company can definitely go global but only after it has established itself in its home market. It also has to do a proper survey and study the unknown market well before entering into it since they cannot rely on the assumption that the process of running a business in their home country will be the same as in a foreign country.

Firstly, the company needs to understand the kind of people, their attitude, beliefs, behaviour and values that form their culture. They need to understand whether the people in the prospective country really has a need for their product or not. In this case the company is offering modular and modern homes at affordable rates which is a dream come true for people in many countries. The company needs to understand the pain points and things people in the prospective market are frustrated with because they are not getting that from the existing sellers in their home market. Say if your company is able to come up with a unique selling proposition (USP) or added benefit that is satisfying the unmet need of individuals with a creative, unique and innovative solution at an attractive price they stand a winner in the market. However even after achieving the right product and target market fit there are a number of challenges that can come one’s path to be successful in a particular market. For example, English is a universal language but it may not be necessary that the prospective country transacts business in this language and they may have preference for their own language In that case, companies must make sure to have a website that is translatable in the prospective country’s language as well. It may also help to have translators when on business meetings in the prospective country that makes business conversations much more trustworthy, interesting, relatable and a pleasant experience for both the parties. As for the legal environmental, countries can follow any of the four basic laws that exist which are; The Islamic law- which is prevalent in Saudi Arabia, Pakistan, Iran and other neighbour Islamic states. The civil law-which is prevalent widely in Japan, France, Germany and other neighbouring counties, the Common law- which is followed in USA, Canada, UK and other countries influenced by the English culture, and the Commercial legal system in Marxist socialist counties.

The prospective nation should not have any major political instability or war and must not impose any illegal or unreasonable trade barrios, quotas, taxes, price controls, labour, strikes or trade wars. If these matters are not looked into by the company prior to entering that particular market they maty face great political and legal hurdles that result in low profits and failure in reaching the business goals hence eventually shutting down international operation in the prospective country. The company must know whether they are doing business with a high context culture or a low context culture nation before transacting business with them. In low context culture, countries such as US and UK can do business with another country even if they do not have a personal positive rapport with the other partner in the business transaction, whereas high context cultures such as Asian counties like India and China require the prospective Business partners to have a cordial and stable relationship in order to transact business with them. Adaption to the style, design and technology used in the prospective country is important because they would buy a home or property only when they feel comfortable in that and would not buy it if it is not designed as per their taste even if it is offered as half the price.

Companies can make a fast buck by earning major profits from a particular market segment, in HNMC’s case in Australian market, but they are certainly not going on the right path if they are not ale to make a significant contribution to society. Companies that have selfish motives of building their profits and doing nothing towards Corporate Social Responsibility (CSR) are soon exposed to the public by the media and hence people start losing trust in their brand. Hence in the long term it is good strategy if HNMC company is able to achieve economies of scale and satisfy the unmet need of people across the world at an affordable price, will garner them positive media attention and a good name in society as well. It will only strengthen its brand value and option in its home country and is great nobility on HNMCs part for societies across the world which makes your brand a name to reckon with among generations to come. Firms such as HNMC must think globally in the 21st century since the world is becoming a global village and there is a great boom in international trade. A single country may have resources such as land, labour capital, human resource, other resources such as oil, gold, diamond, coal, petrol mines, crops, spices and other things that are of great value in abundance. While they may also a deficiency in some important resources that are necessary for life. Hence the need of “give and take” arises and hence trade takes place on an international basis. This leads to creation of employment, higher currency rate, a boon in the economy, a higher per capita income, a higher GDP, and a significant rise in the basic standard of living among people. Hence global operations are necessary to survive since may counties rely on international trade for their basic needs as well.

Companies need to tap the potential of booming markets and start their operation there and this has to be done by observing the prospective countries culture, climate, political, economic, social and legal environment before entering the market. The prospective country must have a reasonable amount of competition in the industry but must not be saturated with dozens of players in the marker. The company needs to understand the target market pain points and their frustration in finding something of value and unique which the existing competitors have not been able to provide them with. They need to transact in the prospective country’s native language and must have a translated website available as well, since English may be a universal language that is understood across most nations internationally however it may not be the case that the country prefers to transact business in English and may prefer their native language.

The company must do a SWOT and PESTEL analysis to understand the market thoroughly before entering into it and can also test their product or service on focus groups so that they do not lose a huge amount of money and make the correct decision of choosing a prospective country to do business. Prospective countries must not have many legal and political constraints that make it a tedious and lengthy process to start the business in their country. It is unwelcoming and not desirable since its waste both time and money which are among the most crucial resources of a business. Countries such Malaysia, Singapore, Australia and Canada and several major economically booming giant cities such as Mumbai, Bangalore, London, New York, Tokyo, Shanghai and Singapore are the hub of real investment opportunities, being home to an ever-growing middle class with high disposable incomes and who have the desire to live in plush modern homes with state-of-the-art facilities which they a buy at affordable prices as well. Hence international marketing is indeed a good blend of science and art of understanding and aligning a company’s strengths and weakness that form their internal environment with the external environment’s opportunities and threats and to able to operate efficiently and effectively to provide the right customer with the best quality product or service, in the best time and price possible.

In the 21st century the world is booming in international trade and the key of understanding the best market and learning to adapt to their culture and preferences as cn be challenging yet exiting. At this time the best target market for HNMC would be South Asia and South Seta Asia since Many people from these places work in Australia and would have seen HNMC’s homes in Australia and would be willing to invest if the company bring sup affordable homes in their native countries`