Question 1: Globalization of Business

Question 1: Globalization of Business

Engagement in international trade improves the prestige of a small business entity besides job creation and profitability. Furthermore, it provides the most valuable way for leveling seasonal fluctuations. However, there are numerous critical factors to consider before a small business can join a global market. The business owner should get a companywide commitment, given that the workforce must play a critical role internationally, particularly in shipping, production, and purchasing.

Organizations should justify their intention to go global. If this is done, the firm will not only expand its market but also acquire key resources such as technology, brand, energy, and talents. Arguably, a small business should look to international markets as growth opportunity attainable through the introduction of new products internationally to expand the revenue, sales, and customer base. At the same time, the management should brace for an unintended spike in the cost of operations, especially if the targeted international market is characterized by high cost of doing business and competition.

The steps involved when entering the global market include a definition of a business plan for the international environment. It is necessary for the business owner to have plans on how to measure the results. Second, the affordable amount for investment in the international expansion should be determined. Global business experts recommend this to be based on the domestic profits. Lastly, the corporation should strategize not less than a two-year lead time to penetrate the world marked to allow a sensible implementation of the grand global plan.

Question 2: Business Plan

A business Plan refers to a written documentation that describes the business operations, strategies, objectives, and the market conditions. A realistic business plan must include financial forecast and projections of the potential cost of operation. It contains background information on the organizational members attempting to meet the annual targets and goals as outlined. Moreover, business plans targets changes in branding and perceptions of taxpayers, community, clients, and consumers.

            Long term business plan is important in decision making. Essentially, its format and content are determined by the audience and business goals. For instance, a business plan for an NGO (non-governmental organization) discusses the fit between the corporate mission and the available funding. On the other hand, business plans for a bank loan build a realistic and convincing case for an individual or business entity to repay the loan. For a business plan to be successful, the drafter should utilize SWOT analysis tool in accordance with the corporate mission statement. The firm’s activity should be described in detail through an analysis of the business environment. Other issues to be considered include the operations plan, market plan, and the financial plan. Finally, supporting attachments and milestones should be included.

Question 4: Defining the Target Market

Defining a target market is useful for the drafting of an economical marketing campaign. Small businesses and start-ups have lesser resources for product promotion and advertising, hence the need to avoid waste. An early definition of a target market allows business strategists to get their advertisement in front of potential customers without incurring expenses on the non-loyal market segment.

SMS and e-mail marketing campaign are  two of the most useful tools to reach a targeted customer. The business owner ought to be aware of the latest advancement in technology in a fast-evolving world. Personalized communication channels such as these are ideal for interacting with existing and new customers at any given time. Additionally, the firm should conceive a positioning statement to determine how the brand will be set in the market. Most importantly, the carefully worded statement should be differentiated from those of competitors to be noticed easily by those that need to know about it.