International_Business_Management

As a successful manufacturing company that specializes in top-end decorative pottery operating domestically and wishing to expand their investment and business across the national borders. Going international means to find a country where you can produce goods with low cost, sell with high profit without government interference and in an open market. This study is conducted to find the best market to invest in, and having operating affiliate abroad according to PEST analysis. As a Company going international our vision and mission is as follows: Our Vision To provide high quality products and our strong competition makes us one of the best manufacturers and marketers of decorates pottery products. And we are continuously looking for new opportunities to expand our business. Our Mission * To exceed customer satisfaction by providing high quality products and services * To generate high profit margins and sustainable growth to shareholders * To be an the best employer * To work for the advantage of society at large The objectives that company seeks behind going international are mainly to grow and expand and for various reasons as follows: Our objective Growth We are planning to go international seeking for an open market to introduce our products to new markets where we can expand our sales and revenue. Employees We are looking to find new sources of labour with lower cost manufacturing and qualified and talented workers with good back ground about the business. Sources We are looking to locate our business where the resources are easy to obtain and can be obtained with low cost and better prices. Ideas Our objective from going international is to obtain new ideas and develop the products as a work force involves cultural differences and different back grounds that can lead to new ideas that help the company to grow rapidly. Diversification To be financially stable we should diversify our investment portfolio. And by going international and investing in other markets the company’s exposure to economic and political risk is reduced. The management of the company should be conscious that markets, supplies, investors and competitors can be anywhere in the world and the successful management should seek the best place to invest and expand the business and should take the advantage of the factors available in that country. We found that the best market that suite the nature of our business is turkey for the following factors: Political factors: The government is democratic (government consist of elected representatives), this type of government is considered friendly to private businesses. The government is stable and doesn’t allow sudden changes or interruptions. And this condition is preferable for many businesses to overcome the political forces which pose a significant threat to the stability and success of the work that any business should consider before going global. And to avoid the impact of political risk that might cause currency fluctuation, inflation and market risk, increase in taxation etc. Another reason why businesses like to invest in turkey is that they have one of the strongest financial structures and in the crisis 2008/2009 it was one of the least effected countries because the government has made significant changes in the financial system. And this feature has attracted many businesses to establish their work in turkey. Economic factors: The economy of Turkey is considered to be one of the top ten countries in the world in many sectors like production output and growth in the tourism sector which makes turkey a very attractive place to invest in. The political stability of turkey has led to many of the economic reforms that has been promoted by the government and have a positive results as we see today The economic factors are represented in the GDP of the country (Gross National Income (GNI)), GNI/capita, Private consumption, Unit labor costs, Exchange rates, Inflation rates, Interest rates, purchasing power. Turkey has the 15th largest GDP –PPP (purchasing power party) and the GDP per capita is 3200$ which very suitable. Unit labor cost is low comparing to European countries. Their currency is stable and it doesn’t fluctuate a lot and they use both USD and EUR in their interaction with other counties which reduced the exchange rate risk. The inflation rates are very low which is a good indicator too. The available resources are minerals, the level of production of petroleum and natural gas doesn’t reach to self-sufficiency so it imports some of its consumption from the neighbor countries. Turkey has the fifth highest direct utilization and capacity of geothermal power in the world. Social (socio culture) factors The culture of turkey combines between largely diverse cultures which are Othman, Middle East, Europe and central Asian traditions. they have a very similar traditions and habits that any business can corp with .So it’s very suitable to the nature of our business because the country is very interested in the field of heritage and antiquities and the decorated pottery since this type of products attract the attention of many of its tourists and visitors. While regarding the language we might face some difficulties which may put us in front of two decisions which are getting training and development or acquiring a Turkish company. But in the end we will get a strong market for our products in this area, where tourism is a key ingredient in this country and more tourists is to identify the concerns of the Ottoman and Islamic civilization. Natural environment Turkey’s government has worked hard in order to establish healthy environment and reduce the air pollution, water treatment and waste water treatment facilities. Ecological environment The location of turkey is very strategic place where it lies in the middle between Middle East and Europe, which considered being very attractive for multinational businesses because it facilitates the import and export between those countries. Technology The country allows and encourages the use of new technologies as it increases the productivity and facilitates the communication methods. Throughout our study of the essential factors that allow our business to expand internationally we have found that turkey is the most suitable place for the above mentioned reasons.