Global Expansion

Abstract

When any company decides to expand its operations into the global environment there are numerous factors to consider. In this paper we will research those factors and help the company and the host country overcome some of these obstacles. An expanding company should obtain a well-trained and knowledgeable staff to help with the major transition of operating in another country. Considering any factors of the social, legal, political, cultural, economic environments that can arise within the host country a business can be more adequately prepared and therefore ensure a successful future.

Global Expansion

There are many issues that a host foreign country could face as a result of global expansion. Some of the factors are internal while others may be external; some of the internal factors consist of human and physical resources, the host country’s infrastructure, and the development and growth rate of that particular country (Heizer & Render, 2012).

The country that host PPQ Parts will be the host for a company that is use to conducting business within an environment that is quite different from the business environment of the host company. The social, cultural, political, economical and legal environment of the host company can be quite different and PPQ Parts would have to learn to acclimatize and manage the new demands and challenges of the host country. One of the major issues is the legal system within a new country and PPQ Part’s should hire local legal representation to represent the country’s interest.

PPQ Parts original code of ethics and the rules and regulations that they followed in their home country should be modified to accommodate the new social, legal, political, cultural, and economic environment of the host country. The company can send senior management to ensure that the company is operating within the pre-set guidelines and to assist with the hiring of the employees, as well as ensure the legal and social issues are being addressed. Management that is trained in multiculturalism and diversity is quite capable of helping the company start its operations within the host country.

Many companies have already expanding globally and are successful in their operations. The host countries for these companies must also work hard to ensure the transition is a success, for both the host country and the company. With a new company expansion the host country can see a growth of new jobs and opportunities, as well as a challenge in accommodating the demands of the company. In order to attract potential new companies, a host country must ensure the companies will have benefits to expanding within their country. Many host countries offer businesses tax breaks, and a reliable way to ensure the proper paperwork