1) Why do businesses expand globally?
There are many different reasons that a business may choose to expand into other regions of a world. With new technologies, our world has in an sense become smaller. Businesses now have the ability to enter new countries that would have been considered too far in the past.
One of the main benefits of global expansion is that it allows for a business to reach a larger customer base. There are companies like McDonalds for example that are so invested in different regions of the world that it is difficult to find people who don’t know their brand. By having an international customer base, companies can maximize their profits as their products sell all over the world.
2) How can we analyse a market’s suitability for expansion?
Companies are always trying to expand. It makes sense. In theory, the more potential customers your company has, the more money can be made. However, there are many other factors that can affect the success of an expansion. Using a PEST analysis (political, economical, sociocultural and technological), we can evaluate how a business might do in a different market. This is essential as the analysis covers a wide range of factors that might not have otherwise been considered.
3) How does one determine if an action is ethical?
When determining whether or not an action is ethical, one must compare that action with their individual core values. Often times peoples’ ideas of ethics vary. What is perfectly ethical to one person might be unethical to another. It is because of this reason that ethics are an extremely interesting topic to discuss in terms of a business. One should reflect on how the action under question impacts their life and the lives of those around them. Are there any factors that could be interpreted as unethical behaviour? Are there any laws or policies that restrict what has been done? Although these types of questions may seem quite rudimentary, they are quite the opposite and challenge a person’s moral judgement.
4) To what extent do businesses behave ethically?
So we have already determined that it is often up for debate on whether or not a business practice is ethical. However, with that said, there are some ethical standards (set by society) that a business is expected to adhere to. An ethical business is also one that is socially responsible. It should integrate social, environmental, and economic concerns into their values and operations (CSR).
5) To what extent does globalization create opportunities for business?
As mentioned above, globalisation can either make or break a business. While globalisation can create countless opportunities if done properly, it can also lead to the ultimate failure if the area for expansion is not analysed accordingly. Some businesses just don’t work in a given environment. For example, take the donut company Krispy Kreme. Although the business still flourishes in other countries like America, they liquidated the company in Hong Kong in 2008. The products that sold so well in other areas just didn’t catch on with the target market. This isn’t to say that the business or environment are bad but rather the decision to open one in that environment. Companies such as McDonalds, Apple and Starbucks find themselves in constant expansion. I think that the fact that the names of these large business wouldn’t mean anything to us if there was no globalisation, speaks for itself.