International-Business-Dr-R-Chandran-E-book

11
International Business- Dr. R. Chandran
Fundamental differences between DOMESTIC BUSINESS
OPERATIONS AND INTERNATIONAL BUSINESS
OPERATIONS
Many well-known business units are highly successful in their home
countries. However, they are not able to face the challenges abroad. On
the other hand there are organizations that do very well in international
business but they lose out in local arena. There are a number of
organizations that do business, both domestic and international,
successfully, by properly allocating right resources in right countries.
These organizations are quick to see the advantages and disadvantages
involved in both operations. If business is slow in the home country, they
concentrate more on international business, and if risk is high in
international business they focus their attention on the domestic front.
Understanding differences and deciding policies and strategies enable
organizations to succeed or fail.
There are certain similarities between domestic and international business
in terms of broad objectives and goals of the company, namely:
1. Generating revenue- either by creating opportunities or by
optimizing strengths
2. Corporate image building
3. Customer satisfaction and building loyalty as patronage buyers
4. Carrying out their operations respecting and adhering to local
regulations
5. Generation of employment opportunities
6. Both are subject to a set code of conduct and ethics that includes
corporate governance.
7. Mass production through cost reduction and achieving economies of
scale
8. Building a strong network in order to make product and services
available in any part of the nation or world
9. Adapting new standards and change in style and function.
At the same time, there are major macro level differences. These are
analyzed below, under various parameters.
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