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International Strategy

Free «International Strategy» Essay Sample


Dell has enhanced and broadened its international competitive advantages of its business model by applying a well-developed market research to its entire business. Dell is the globe’s most popular computer systems firm, and a major provider of products and services required for clients worldwide to establish their Internet infrastructures and information technology. Dell’s rise to international market leadership is the result of a persistent goal of delivering excellent customer experience by directly providing computer products and services based on standard technology. Dell’s revenue from its international outlets in 2012 totaled $60.908 billion. The firm employs over 100,200 people around the globe (Doh, 2005).

Dell’s strategy depends on increasing its presence in the global markets, particularly in the developing economies. The executives of Dell are aware that business expansion on that scale requires waves of new global hiring across those markets. In order to deliver the performance of  high quality in a cost effective manner, Dell is trying to manage its staff according to the worldwide approaches of employee treatment while also adhering to different statutory regulations and respecting the local difference in the ways its employees are motivated, established, and paid (Doh, 2005).

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Dell has expanded to virtually all the continents in the world investing $58 billion in the computing systems, staff employment and marketing. The firm sells its products directly to the customers. The kind of business model curtails retailers who add unnecessary costs and time or can reduce Dell’s understanding of consumer expectations. As if forages into unchartered territories and regions, Dell is seeking to create a diverse combination of talent infrastructure suited to various markets while at the same time developing an international culture of shared values and sufficient human resources capacities which can support the firm’s business operations worldwide (Doh, 2005).

The Challenges of Managing a Diverse, Globally-Based Workforce

One of the challenges encountered in managing diversified international-based workforce is matching staff diversity to the optimal productivity. The matching is an issue because the company cannot employ people from its headquarters and deploy them around the world. Employee diversity is in terms of culture, competence, exposure, and religion among other aspects. In looking for strategies and plans to boost corporate competitiveness and profits, the company may find itself challenged by the issue of maintaining a balance between employee diversity and the firm’s profits. Sometimes, diversified staffing might lead to reduced profits. A diverse workforce might be unable to meet the company’s goals. Secondly, as more minorities enter the workforce, a shift in demographics implies that manning and multi-cultural workforce would become a challenge. However, companies should generally support diversity in order to avoid the risk of losing talent to its competitors (Doh, 2005).

How Various Legal, Political, Economical, Ethical, and Cultural Systems Affect Business Attitudes, Norms, Behaviors, Practices, and Philosophies

Countries with stringent legal requirement for establishing a business may negatively affect the attitudes of business investors due to the barriers of entry. Government has to tailor-make laws and other requirements that appeal to the foreign firms and investors. Businesses seeking to establish its presence globally should look for countries where citizens can afford their products. In addition, any business operation anywhere, abroad or local, should comply with universal ethical standards. Lastly, an effective marketing strategy should involve interaction with the people’s culture to the point where trust is established between the firm and the consumers (Morgan & Hunt, 1999).

Factors that Influence an Industry’s Potential for Globalization

Globalization refers to an ongoing process whereby regional economies, cultures and societies are integrated through a global trade. A firm’s potential for global expansion can be affected by technological, political, market, cost, and competitive factors.

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Various International, Multinational, and Global Strategic Plans

Managers have to appreciate that markets, contractors, financiers, localities, associates, and players are all over the globe. Prosperous establishments often maximize the available opportunities, and most of them have fallback plans. Competent managers have to understand the international similarities and differences to fully take advantage of opportunities and prepare adequately for any shortcoming (Morgan & Hunt, 1999).

An International, Multinational, and Global Management Plan

Generally, a firm develops its international, multinational, and global management plan by taking into consideration its overall strategy, which may include its various operations locally and abroad. There is a need to consider three aspects of the management strategy. The first element comprises of the geographic locations, such as countries and various regions, with possible operations and at the same time the prospective markets or functions in those regions. Since most firms have constrained resources and that different regions provide different advantages, business managers should select the markets that provide the company the maximum opportunities (Morgan & Hunt, 1999).

The second aspect focuses on the use of the firm’s resources so that the company can effectively compete in the selected markets. The element of strategic planning also determines the importance of various firm’s functions and bases the resource allocations on the comparative significance of each function. For example, a firm may choose to distribute its endowments on the basis of geographical locations or product lines (Morgan & Hunt, 1999).

Lastly, the management must make a decision on where the firm gains unfair competitive advantages over the competitors in the industry. The management could identify their competitive edge by evaluating what the firm does better or could do better than other companies could. Companies may discover this advantage via a host of techniques like utilizing superior technology, implementation of efficient institutional practices and distribution channels as well as developing the well-known brands (Morgan & Hunt, 1999).


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