During last week, our class has studied the topic that refers to the international business performance. Basically, the main points of the export theory were discussed previously; therefore, we focused on the main factors that influence the international business performance. This week material was very interesting and had so many examples, which encouraged me to think more about exporting issues. This subject is very interesting for me, because I am willing to make my family business work internationally.
My father runs the business in Indonesia, and he wants me and my brother to study to help him in future to manage the company. As he found that our company has great potential to come into the international market, I try to study material as good as I can. During studying, I have discovered that the decision about the expansion of company into the international area should be accepted after the full company analysis is made.
Firstly, I have discovered that firms are classified according to their internationalization movement: non-exporters, passive, and active ones. This helps to define the potential competitors in the international arena that may cause strong competition among the firms. I had no idea that the major external factor for the firm is its competitiveness, and this factor is as important as exchange rate results. It is rather important to mention that before planning the export strategy, a company should examine the experience of other firms that beame international with the same range of products. This would help to avoid main mistakes and to minimize expenses. I have understood that if a company wants to become international, it should be prepared to change itself externally and internally. This means that the enterprise may change the main company’s strategies, long and short term goals, products/ services range, personnel policy, etc. I have discovered that some firms prefer to discontinue exporting after critical incidents had occurred.
This week, I have also learnt the determinants of export performance. After I have read this article, all day long I was thinking about specific determinants that my father’s company would face during the international market entrance. I have understood that a complex company analysis should be made to predict problems that may arise and to minimize entrepreneurial risks. Therefore, I want to compare foreign and domestic market characteristics, to find where they are different, and to adopt them before going international. Management characteristic is also very important issue to think about, because only managerial efficiency can affect the business development process, and the company success is always determined by the efficiency of decision making process. So, this is my motivation for good studying, because having good knowledge would help to move my family company into international business area successfully.
During the classes, we discussed the Aussiebum issues. That gave us a hook to discuss the e-commerce, its advantages, and disadvantages. I was really impressed by the opportunities that Internet creates for business. I was encouraged to read more about this topic. Therefore, now I want to point out the main points that I have discovered. I think that the main characteristic of the e-commerce is minimal expenditures and costs that it needs. This gives an opportunity for the quick business development, 24/7 availability and company’s presence in every country. These factors create huge segments of customers, which would raise company’s income. However, e-commerce has risks, and the main of them refer to the hackers, who can attack site, service or payments receiving process. Hackers can make you lose everything in several minutes.
There is still much information that I have to know, books I need to read, and questions I have to think about, before talking about helping to grow my family business. However, even now I have some ideas that would cause positive effect for the firm performance in the national and international area. I am confident that before talking about any suggestion, I would try to build a strategy to understand the situation and the challenges the company may face.