Pros and Cons of Going International Essay

Words: 1989
Pages: 8
Open Document
Pros and cons of going international

When thinking about internationalization, a lot of people instantly associate it with multinational companies. It cannot be said that they are wrong; however, internationalization is a far more complex phenomena as it does not only consist of companies setting their headquarters outside the borderlines of the countries of origin. If an entity simply decides to import or export commodities or services, their action can also be described as ‘going international’; producing effects both domestically and internationally. In recent years, the number of companies that chose to get involved in international business operations and transactions increased substantially to the point where becoming visible in …show more content…
Hence, the executives are to consider whether they can run business in the designated countries/regions first before attempting to do so. The best way of illustrating the risk versus reward system related to internationalization is through Lenovo’s acquisition of IBM’s PC division. Before getting to the middle of the problem, let us learn about both Lenovo’s and IBM’s background.
Figure 2: Lenovo’s Acquisition of IBM’s PC Division: A Short-cut to be a World Player or a Lemon that Leads Nowhere?

Background
Lenovo was the first Chinese brand to outsell any foreign brand in China, in 1996. The company based in Beijing started its life as a reseller/distributor for AST computers (HP and IBM later on); beginning as a result of the Chinese Academy of Sciences’ new technology unit in 1994. The reasons for Lenovo’s outstanding growth 6 years after starting to create its own brand of PC (it began in 1990) were the Academy’s strong support and the close relationship with the Chinese government. The company reached turnovers of HK$ 20 billion (approximately US$ 2.58 billion during that period) in 2003 and HK$ 23 billion (approximately US$ 2.97) in 2004.
Compared to Lenovo, IBM had a much longer history since its foundation in 1896. The company started as the Tabulating Machine Company and focused on the development and the production of punched card data processing equipment. After the merger with two other companies, it changed its name in
Show More

Related Documents: Pros and Cons of Going International Essay

A Brief Note On Boeing Contract

2013 Boeing Contract James Park Agenda  History of Company  History of Union  Past Strikes  Company’s position  Position of the Union and Voting  Cons & Pros of Proposals  What if  Resolution – what it means  Any Lingering Issues  Who was the winner/loser History of Company  In March 1910 - Boeing bought Heath's shipyard in Seattle  In July 1916 - Boeing was incorporated in Seattle by William Boeing as “Pacific Aero Products Co”  July 27, 1928 - the 12-passenger Boeing 80 biplane…

Words 497 - Pages 2

Case 2 ISL Essay

MKT 7300 A01 INTERNATIONAL MARKETING Yummy Indian Spices- Let the World Try Them! Submitted to Professor Brock Cordes by Student Number 7743858 Situation Analysis Indian Spices Limited (ISL) was founded in 1984 by Mr. Rajat at Mumbai- which is the commercial hub of India. He had a deep understanding of the business, industrial knowledge, experience, and strong leadership skills blended with an innovative…

Words 1182 - Pages 5

Essay on Micro Trade

Abstract In the following research analysis on trade agreement among different countries in the entire world, will provide an extend explanation on the analysis of pros and cons within five different agreements and a brief explanation of trade agreement and the reasons for the implementation of the trades to the countries. The purpose of this analysis is to demonstrate how trade agreement may appear to be a benefit for the countries in respect and even for the entire world yet, once analyzing and…

Words 2214 - Pages 9

Essay on Chauvco Analysis

in evaluating investment options. PROBLEM:      Extreme economical and political instability. Fifty percent of the economy was owned by the Argentina government High import tariff. Discrimination in taxation and rules & regulations for international companies. Inefficiency, low growth, hyper inflation, and currency devaluation were major problems. FACTS        Guy turcotte, an MBA graduate founded Chauvco resource ltd, which was from one of the top 30 companies. The Calgary trade…

Words 1256 - Pages 6

What Is The Role Of Peacekeeping

Con Cards ● Point A: Peace Merriam-Webster defines peace as “a state in which there is no war or fighting.”( 1) It would seem obvious that any action that goes “beyond self-defense” is the antithesis of peace. ● Point B: To engage in offensive operations is outside the role of, and contrary to, peacekeeping as defined by the U.N. “Today's multidimensional peacekeeping operations facilitate the political process, protect civilians, assist in the disarmament, demobilization and reintegration…

Words 1795 - Pages 8

Why Soulf Jijhiuh Essays

Save Other Answers (3) Freefrom... Below are employee reviews, pros and cons, of working at Panera Bread making sandwiches. Good Luck! Panera BreadSandwich Line Worker in Roseville, MI: (Past Employee - 2012) “Terrible for Training” Pros Probably the only positive thing about working there would be the 65% discount. And also they didn't do drug testing (which was surprising to me) but some may like that information! Cons They ask you where you want to work in there like cashier or sandwich…

Words 1197 - Pages 5

Essay about Why Toyota is Expanding Aggressively

other companies operating in the U.S. market have struggled with high gasoline prices and high competition, which have cut into profit margins. b. Toyota is faced by a corporate social responsibility about the labor in japan itself. How does it going to happen about people in Japan when there are no fieldwork for them. 3. Toyota…

Words 596 - Pages 3

The Pros And Cons Of Police Onion

over the world. Skimming down the list of pros and cons of having police body cameras, I could see that each bullet point is making fun of the police force. The funny part is that some of the lists they have down are true. Throughout their list of pros and cons, they were intentionally making fun of the body camera within the police task force. Having an ‘unlimited footage of police officers breathing heavily during a foot chase’ means that we are not going to see anything except out of shape officers…

Words 1229 - Pages 5

Debate over Iraq War Essay

is working. No, war is wrong under any circumstances. Current Results Here is a look from 2004 about the pros and cons of war against Iraq from information available at that time. It is included here for historical purposes. The possibility of war with Iraq is a very divisive issue around the world. Turn on any news show and you will see a daily debate on the pros and cons of going to war. The following is a list of the reasons being discussed both for and against war. This is not intended…

Words 663 - Pages 3

Starbucks & Conservation International Essay

Starbucks & Conservation International I. Starbucks & Conservation International - Introduction & Background Today Starbucks is more than a coffee chain and Conservation International is hardly a household name. Through its efforts, Starbucks has transformed into a location where friends to catch up, colleagues can have impromptu meetings, and others simply get their coffee fix for the day. Thinking back to Starbuck’s humble beginnings, they only sold roasted coffee blends, tea, and spices…

Words 2042 - Pages 9