International-Business-Dr-R-Chandran-E-book
International-Business-Dr-R-Chandran-E-book
International-Business-Dr-R-Chandran-E-book
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12<br />
<strong>International</strong> <strong>Business</strong>- <strong>Dr</strong>. R. <strong>Chandran</strong><br />
DOMESTIC BUSINESS VERSUS INTERNATIONAL BUSINESS<br />
Dimension<br />
1.Environment<br />
2. Plan and strategy<br />
3. Competitive<br />
forces and their<br />
intensity<br />
4. Currencies and<br />
their movements<br />
5. <strong>Business</strong> risks<br />
6. Research<br />
7. Human resources<br />
8. Organizational<br />
vision and objective<br />
9. Product and<br />
usage<br />
Domestic <strong>Business</strong><br />
Operations<br />
The economic, political, legal,<br />
socio-cultural, competitive and<br />
technology environments are known<br />
Can be worked out for short terms<br />
and carried forward to long term<br />
The maximum domestic competitive<br />
forces operate and one can<br />
understand their movements as they<br />
are visible<br />
Local currency is used for<br />
transactions. Costing, pricing,<br />
revenue and margins are computed<br />
in a single currency. Volatility may<br />
have a minimum impact in business<br />
in short term. One can overcome<br />
easily.<br />
Comparatively one can predict<br />
future risks and shocks and they will<br />
not have a major impact on the<br />
businesses with strong background.<br />
It is reasonable and easy to conduct<br />
business research, demand analysis<br />
and customer surveys. It is also<br />
reliable.<br />
Due to past laurels and established<br />
systems, corporates can succeed<br />
even if the human resources have<br />
minimum skills and knowledge.<br />
Team commitments is evaluated and<br />
appraised<br />
Narrowed down to work in a single<br />
country with a steady growth<br />
objective. Each one will understand<br />
the vision and objective easily.<br />
Adapted to the local environment, as<br />
per the requirements of the domestic<br />
customers affordability, beliefs,<br />
values, cultural elements and buying<br />
<strong>International</strong> <strong>Business</strong><br />
Operations<br />
The environment is not fully known.<br />
Innumerable hidden factors which may<br />
emerge any time to pose as problems.<br />
They will lead to pitfalls.<br />
Only long term planning and strategy<br />
will work. Strategic inputs are required<br />
in multiples.<br />
<strong>International</strong> competitive forces play a<br />
vital role and its difficult to understand<br />
their motive and movement<br />
Transactions are carried out in various<br />
currencies. Fluctuations in cross<br />
currency movement and associated risks<br />
are common. Currency fluctuation<br />
influences pricing and costing and<br />
investment decisions.<br />
Very difficult to predict and risks may<br />
crop up at any time, due to the political<br />
situation, the society itself and several<br />
unknown factors.<br />
Very expensive and difficult to conduct.<br />
Reliability criteria depends on<br />
individual countries and there is no<br />
uniformity in the output and findings.<br />
Multilingual, multi-strategic and multicultural<br />
human resources and they<br />
should be able to withstand large risks.<br />
Every individual is profit center, hence,<br />
accountable.<br />
Broadened to cover many countries and<br />
geographic and cultural diversity may<br />
influence the vision and objective.<br />
Varies from country to country subject<br />
to regulations. This is especially true for<br />
consumer & medicinal items.<br />
Standardization, adaptability, usage<br />
Only for Private Circulation
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