Student: Chada, Jeremy
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Strategic Knowledge Studies
Faculty Use Only
2 ChadaJSKS-5001 – Assess Globalization
and the Legal Environment for Possible Expansion
has expressed desires of global expansion into other parts of the world. Today, we will discuss options such as barriers,
laws, and cultural issues to determine the most logical country for potential expansion. We will explore the possibility of expansion
into Canada, Poland and Great Britain by the following assessments. Also to be discusses,
will be global completive dynamics, a globalization strategy, and the processes
for gaining entry into the recommended country will be provided.
Cultural Issue Considerations
without saying that there are going to be cultural issues. All must be
considered before bringing our American products to the international
marketplace. Topics to explore include,
but not limited to, the values, social attitudes, aesthetics, organizations and
communication styles. A great example
for comparison of the cultural differences between two countries is America and
The overall social atmospheres
amongst American and Chinese cultures for example, differ a great deal. For example, American females value a career
oriented women, while women in China value nurturing women. The Chinese traditional family dynamic is
very important to its people, and in the United States, many put careers before
everything to include family. Fashion and
acceptable dress codes, in America, lean more towards sex appeal rather than
the ‘cute’ styles of China.
Aesthetics in the United
States are bolder and more daring, with bright colors. China consists of warmer,
softer and gentler pallets. The Chinese
female wants to look sweet and natural, in contrast to the United States
females seeking to look more desirable and sexy. It is extremely important to understand this
particular difference before bringing an American product into any country.
The importance of emotion is quite different between
the culture in the United States and the culture in China. In China, the culture does not express their
emotions outwardly like the United States.
The marketing of a product should be direct and to the point in China
while in the United Stated advertisements should try to connect with a human
Social organizations have a big influence on the
success of a product in various cultures.
In America consumers are purchasing products in a wider range of price
points and in China they tend to purchase either the most expensive item to
show status or the least expensive item depending on the type of product
Communication styles are different between the culture
in the United States and China. In China
consumers rely heavily on social media and word of mouth before purchasing a
product. The consumer in China will
generally write an online review of a purchase while in the United States
consumers are not likely to do so. In
the United States consumers rely on advertising of a product when making
purchases (Spelich, 2014 ).
has low entry barriers, banking stability, a highly skilled workforce and
competitive corporate taxes. Canada is
also in a position where future endeavors into Asian countries make the
location ideal for expansion. Culture in
Canada is like the culture in America. While these are all positives there are
also some issues to consider. XYZ should
take into careful consideration that manufacturing in Canada is quite
costly. Labor costs for employees is
higher than the United Sates. Purchase
prices in Canada are also higher than in the
United Sates and many Canadians will travel to the
United States to make their purchases.
This could cause low profits for XYZ.
XYZ into the Polish market may be easier than most would think. The Act of Freedom of Economic Activities has
reduced the number of permits and other required documents to set up business
in Poland (Glinkowska, B. & Kaczmarek, B., 2016). This act allows for a smoother transition
into the country. There is less government involvement with lower entry
barriers. In addition to the act, Poland
has lower labor costs, legal security and access to an abundance of specialists. A large disadvantage; however is that the
economy in Poland is, in actuality, developing. There is a potential for
economic growth. Realistically, we need to understand it may be a slower
process than we are used to before we see profits.
Britain has highly skilled, educated workers as well as advanced technologies
that make expansion into the country ideal.
Great Britain has recently voted to withdraw from the European Union
which will affect a variety of international businesses wanting to move into
Great Britain. The United States however
is not affected by this recent decision (Cumming, D.J., & Zahra, S.A.,
2016). Given the established
relationship that the United States and Great Britain already has achieved,
entry into the country would be a fairly smooth process for XYZ.
Canada, Poland and Great Britain as three possible countries, I recommend that
XYZ move business into Great Britain.
The economy, location and availability of the workforce needed make the
country the best choice for expansion.
Low entry barriers and the relationship already in place makes Great
Britain a good choice.
globalization strategy should focus on looking at the competition in Great
Britain of other successful clothing companies.
Determining the cultural issues discussed earlier will
greatly help the company to position itself as a
strong business. XYZ needs to market to
the emotions, aesthetics, values and attitudes of the culture. Along with these cultural issues,
understanding the communication styles, various social groups, and dress codes
the country may have will allow XYZ to position itself within the population.
consideration as to the pricing of products, product liability laws and the
corporate responsibility of the company should be addressed and reviewed before
expansion. XYZ will also need to
communicate effectively with all employees and understand how business is
conducted in Great Britain to ensure success.
Comparing successful companies within the industry in the country and
then tailoring XYZ’s efforts to position the company will greatly benefit and
contribute to our success.
Global Competitive Dynamics
should consider how to reduce competition amongst competing industry leaders by
effectively offering valuable resources and a unique product. We need to look at the competition and decide
what is unique or rare about our company and the products that we offer. Learning from the success of competitors and
considering some of the tactics used may be beneficial when creating our
marketing plan. Employing personal whom
are knowledgeable in the industry can provide a competitive edge that will help
with institutional barriers that the company may encounter.
Recommended Entrance Process
an entrance process to succeed in Great Britain should not be too complicated
as the United States has already established a strong presence within the
country. However not everyone may be
keen on buying from an American company.
XYZ, as mentioned before will need to direct its focus on appealing to
what the people of Great Britain want.
Utilizing the strengths of local laborers and employing knowledgeable
workers will help with the company’s transition into the country. The strategy needs to be organized and well
put together to ensure the success of entrance into the country.
the possibility of expansion into Canada, Poland and Great Britain. Poland and
Canada have the advantages of low entry barriers and competent employees.
However, relationships with Great Britain have previously been established
along with other positives previously discussed. This makes Great Britain our leading
choice for expansion and the path of least resistance. There are various factors to consider and
research further before committing to a final decision of an international expansion
location. XYZ should continue the
research the other countries discussed for future expansion.
Cumming, D.J., & Zahra, S.A. (2016). International
Business and Entrepreneurship Implications
Brexit. British Journal of Management, 27(4), 687-692. doi: 10.1111/1467-
Glinkowska, B. & Kaczmarek, B. (2016).
International enterprise in Poland – benefits and risks.
(1429-9321), 20(1), 310-320. doi: 10.1515/manment-2015-0041
Spelich, J. (October 28, 2014). 7 Key Differences
Between Chinese and Western Consumers.
Voigt, K. (November 21, 2012). What do Chinese
consumers want? Not Barbie. Retrieved from
Ward, S. (November 7, 2016). Setting Up and Doing
Business in Canada. Retrieved from