****I expect in-depth discussions to show that you have the knowledge, skills and mind power from the executive perspective. Simple answers or a discussion of a few sentences will not earn much.
1. If you were the owner of a small, reasonably profitable firm, would you consider expanding overseas? Why or why not?
2. What are the key issues here?
3. What are experiences and lessens that you have got from your previous simulation operations and decisions?
PLEASE SEE ATTACHED EXAMPLE
Discussion ****I expect in-depth discussions to show that you have the knowledge, skills and mind power from the executive perspective. Simple answers or a discussion of a few sentences will not earn
EXAMPLE: 1. If you were the owner of a small, reasonably profitable firm, would you consider expanding overseas? Why or why not? If I own a small, profitable firm, I would like to consider expanding overseas when my company has passed the growth stage and entered the maturity stage. The benefits of this are more customers, access to a larger talent pool, more profits as the market expands, more efficiency and productivity. Therefore, it is a promising idea to expand overseas. But before venturing into the foreign market, I need to do my research by analyzing the key factors assessing the firm expansion globally. Some of the key factors are: The firm’s current strategy. The firm’s key resources and features. Do they give firm a lasting competitive advantage over competing firms. The firm’s strengths and weaknesses regarding market opportunities and external threats. The firm’s value chain activities affecting its cost structure and customer value proposition. The firm’s standings ( stronger or weaker ) than its major competitors. The firm’s strategic questions and concerns that deserve the attention of primary manager. Expanding into foreign markets tends to enhance revenue growth while improving a company’s return on capital and reinvestment rate. Revenue growth from non-domestic markets typically comes faster, while adding new revenue streams helps a company maintain security and stability. 2. What are the key issues here? The key issues in operating overseas are: Licensing and permission problem. Market oriented issues. Failure of business model. Under performance of management team. Liquidity crunch Product oriented problems If a firm does not know the laws, local customs, or business practices of a foreign country, it is likely to face some challenges that can reduce the manager’s ability to forecast business conditions. The additional costs caused by the entrance in foreign markets are of less interest for the local enterprise. Firms can also in their own market be isolated from competition by transportation costs and other tariff and non-tariff barriers which can force them to competition and will reduce their profits. The firms can maximize their joint income by merger or acquisition which will lower the competition in the shared market. This could also be the case if there are few substitutes or limited licenses in a foreign market. Many multinational enterprises face the challenge of political instability when doing business in international markets. This kind of problem mostly occurs when there is an absence of a dependable government authority. When this happens, it adds to business costs, increase risks of doing business and sometimes reduces manager’s ability to forecast business trends. Political instability is also associated with corruption and weak legal frameworks that discourage foreign investments. 3. What are experiences and lessens that you have got from your previous simulation operations and decisions? Simulation allowed me to practice critical work skills in a controlled environment. By participating in simulation, I developed my communication and technical abilities. It gave me the ability to better illustrate theoretical business concepts. It improved my knowledge retention, decision making and teamwork skills. Participants build relevant skills, improve conceptual knowledge, and gain a better appreciation of business strategy and the systems of business management to build skills and improve performance. Immersive simulations serve as the bridge between learning and real-life experience. Simulation provides a tool for making and evaluating such decisions that in turn make the results trustworthy, dependable, and accurate which is obviously crucial for decision makers.