Globalization Business Expansion Strategies

Globalization business expansion strategies are turning a successful marketing venture. Boeing accepted a legal contract with Saudi Arabia aerospace engineering industries. The strategic alliance proved the best market entry mode for the firm. The business culture offshore and onshore separately needs proper research and development for the management team to have an effective globalization mindset. My group of strategic management for globalization and I integrated with an international organization to arrive at effective strategies.

Task 1. Assessing the Political-Legal Environment

Political Environment

The foreign investor ought to think about the current general condition in the Middle East and albeit Saudi Arabia stays sheltered and stable, remember that the circumstance may change quickly. Saudi Arabia is a government, and the King has all forces. Any law or arrangement influencing the foreign investor’s business in Saudi Arabia could change whenever, without prior notice. Religion pervades each circle of Saudi society. Saudi Arabia is a standout amongst the most traditionalist social orders on the planet and seen as a troublesome situation for foreign representatives and officials to live and work (Mohamed, 2015).

Enrolling foreign workers would thus be able to challenge. On the positive side, the improvement of significant activities in Saudi Arabia joined with changes went for modernizing the nation can animate financial development extensively and accordingly, to reinforce the local market. Saudi Arabian General Investment Authority (SAGIA) SAGA is the first office for foreign interests in Saudi Arabia. It directs a large portion of the international speculation permitting necessities. The Saudi Arabian Foreign Investment Law stipulates that must authorize interest of foreign investors in the market. Licensing of foreign capital is allowed in all speculation exercises, aside from those regions explicitly avoided by the rundown delivered by the Supreme Economic Council by its power as per Article III of the Saudi Arabian foreign investment law (Gudmundsson, 2015). Its negative rundown refreshed frequently. SAGIA has the ward to permit outside interest in Saudi Arabia, except if the licensing of a specific kind of remote speculation is endowed to another state organization this is the situation for oil or digging ventures for instance.

Legal Environment

The requirement in Saudi Arabia on a basic level, judgments issued by courts outside of Saudi Arabia upheld in Saudi Arabia. An application to authorize an outside evaluation will be evaluated on two bases. Reciprocity he ward that issued the foreign judgment should equally support judgments of Saudi courts. Consistency with Islamic law as implemented in Saudi Arabia the candidate must demonstrate. That the terms of the outside understanding are in consistency with Islamic law as translated, connected and upheld in Saudi Arabia (Allah, 2018).

The two principle wellsprings of Islamic law are the Qur’an a complete disclosure to the Prophet Mohammed and the works itemizing the Prophet Mohammed’s truisms and activities known as the Sunnah. Islamic law is the premise of Saudi Arabia’s constitution. In law of Islamic are 4 principal law school, in particular: Hanbali, Hanafi, Shafai, and Maliki. The Saudi Arabian courts and right boards, by and large, apply the Hanbali School. Occasionally the Saudi Government issues standards and directions with the goal of enhancing Islamic law when the need emerges. On the off chance that there is a contention between Islamic law and the Saudi Government’s principles and directions, Islamic law will work for the most part win. Where ordered tenets and courses are quiet, reference ought to make to the applicable guidelines under Islamic law.

TASK 2. Product & Target Market Planning for Foreign Market

Boeing’s Strength in SWOT Analysis

Stable Market Position; It’s a leading manufacturer of space, defense and security systems and commercial airplanes make Boeing product outstanding in the market. Its strong market position aids in attaining improved brand image and economies of scale.

Revenue Growth; It has recorded rise in the operating income and revenue positively since four years back. The timely delivery of airplanes leads to Boeing revenue growth. Therefore, growth in profit and receipt of the firm is experienced due to increased efficiency of operation.

Effective R & D; Its strong focus on research and development operations mainly in its operations & technology activities aim to extend the services, product-line and maintaining Boeing position in the market.

Focusing on Sustainable Energy & Product-line Expansion; Advancing its product line is the fundamental motive of Boeing to achieve the needs of clients. Putting the extra focus on sustainable energy that purifies environmental friendly emissions.

Boeing’s Weakness in SWOT Analysis

Labour Challenges: About thirty-eight percent of its task force are members of a labor union, and it causes stoppage of task most of the times. It finally affects the level of productivity & delivery from time to time leading poor communication with clients.

Relying on Government Contracts: Long-term contracts from the government influenced by economic and political factors. The U.S government makes a considerable part of total sales of Boeing. Hence, its dependency on government contracts is threatening.

Suppliers Bargaining Power: Boeing depends on some of their suppliers for some combined components & raw materials production. It, therefore, makes Boeing weak and the supplier string and if the essential suppliers fail to supply, the whole process of creation altered.

TASK 3. Measuring International Business Success

Administrative Microdata Resources

The collected microdata from Saudi Arabia firms, for example, if integrated with international trade data, can offer fresh information over cross-border operations of Saud’s firms, and how Saudi firms utilize local resources in foreign markets business operations. Not all researchers can obtain confidential micro-data. Hence, approaches like that are challenging to extend or replicate. The main reason behind is researchers get it difficult to reproduce and digest matching raw micro-data files and the painstaking task of cleaning.

Additionally, precise data sets of administrative tend to present only for individual nations & collected information in back up of specific initiatives policy are frequently out phased after completing the task intended to backing close. Regarding long-term trends and multiple countries involved, trainings founded on micro-data having limited scope (Boeing, 2017).

Summary & Conclusion

The key factor to consider in the international competitive environment is the power to advance a transnational organizational potential. It, therefore, can boost the company’s adaptation to the environment market dynamics.

However, the traditional business may render irrelevant due to the quick rate of globalization. But it is still crucial for the strategic management team to take into consideration an effective globalization mindset. The global strategic management emerged as a result of the globalization of business. Proper effective integration of international business team and strategic management team germinates effective strategies for global cooperation.

Although there exist constraints to success in the process, the challenges generated by these constraints approached by ventures for cooperative founded on the mutual benefits of the participants involved, effective proper communication will be an essential element for global strategies since what is useful and appropriate in one culture may perhaps improper and ineffective.

There are several factors, making the global marketing strategy a little bit technical. Choice of the worldwide strategy, communication, regional trade blocks, coordination, control of international marketing and the international strategic alliances are examples of these technicalities influencing global marketing. The chances of success depend upon firms with the practical choice of comprehensive strategy that takes into measures its weakness and strengths in the face of threats and opportunities in the environment.

References

Allah Pitchay, A. (2018). Globalization or Localization Strategy into Foreign Market Penetration: The Challenges Face by Home Country Manager to Make Wise Decision. SSRN Electronic Journal. doi: 10.2139/ssrn.2017483

Boeing, W. (2017). Business Heroes: William Boeing. Business Strategy Review, 17(1), 36-38. doi: 10.1111/j.0955-6419.2006.00389.

Gudmundsson, S. (2015). Global Partnering: The Boeing 787 Dreamliner and Beyond. SSRN Electronic Journal. doi: 10.2139/ssrn.2654993

Mauri, A., Song, S., & Neiva de Figueiredo, J. (2017). Determinants of Corporate International Expansion Beyond the Home Region: An Empirical Examination of U.S. Multinational Enterprises Expansion to Europe and Asia-Pacific. Global Strategy Journal, 7(4), 400-426. doi: 10.1002/gsj.1155

Mohamed, A. (2015). The international business environment: a proposed analytical framework. International Journal of Business Environment, 7(2), 168. doi: 10.1504/ijbe.2015.069013