Security and Expansion
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The United States and the Middle East will have different needs, company culture, disagreements, personnel issues, infrastructure needs, and demand. Any expansion from one country to another can cause instability, ineffective management, and financial loss.
Threats
A company will grow and eventually will begin to expand to other places outside of the United States. Wal-Mart is a retail store that is one of the top competing stores in the United States. This type of retail store has expanded over the Internet and has several databases for computer support and maintenance, customer help-lines, and purchasing support.
Expanding such a company will require planning, financing, managing, measuring, and evaluating. Wal-Mart has such a high demand already in the United States. Expanding can cause overwhelming demand and can cause problems of keeping up with the demand. After expanding a company this will make the costs rise because of the extra costs to keeps the company running. When planning on expanding a company it important to keep in mind, what kind of financial impacts the company will have overall. If the demand grows too fast, this can cause higher prices and more demands.
The Middle East and Africa are very unfamiliar terrains to the United States. Other countries operate differently and have different strengths, weaknesses, opportunities, and threats. Something that may be effective in one area may not be so effective in another area.
Expansion requires a lot of planning and research. In other areas that are unfamiliar there will be many unknown markets that may get involved in the expansion and can cause financial problems. Some unknown markets may create more problems for the company and managing it will tend to be more difficult. Anytime a company has to deal with unknown markets there is a chance of financial loss and this could have a big impact on the company as a whole.
Different countries will mean different kinds of competition. The competition may tend to be more aggressive because of the demands and resources available. The Middle East may have different kinds of demands and will be more aggressive to keep their profits and companies in business (Canada, 2009).
Expansion
Any company will require expansion strategies to be able to handle the threats and the changes in the exporting, licensing, manufacturing, personnel security, and business continuity.
Exporting or shipping will be different and require different licensing to be able to ship out of the country. Different measures will need to be set in place to protect the assets. In some cases, the shipping may require management to prevent from damaging, theft, and other threats.
Expansion is more possible now because of the ability to use the Internet to store, receive, and send information more effectively and easily. Computer and equipment support and maintenance will be a higher demand. Security is good for any company, it can help a company to protect all its assets and maintain a good environment.
A business that has personnel issues will not be able to expand effectively. A company that has good security and ways to handle the personnel issues can share the knowledge with the expansion. Good infrastructure is important to a company and the expansion.
Customer service is a requirement no matter where the company expands. The customer will always have questions and will need assistance and will have needs about the products. It is important that when expanding that customer service expands for the customers. A company is nothing without the customers. Keeping the customers happy will require special attention.
Ownership