Internationalization is a complex process. It is imperative for the companies to consider the macro environmental factors and the micro environmental factors for the sustenance of a company. Appropriate strategy enables the company to succeed. These are dynamic and changes according to the external events.
To succeed the company in the current times needs to have a niche consumer base. This can be achieved by innovative and successful strategies. Once this has been established the companies try to focus on their product life cycle and look for ways to expand into international markets.
To expand into international markets the companies consider a number of methods. Strategic alliance and mergers are some of the important tenets that are associated with the company. The companies need to make a choice based on the factors influencing the business. In the case of mergers, the economics of scale is increased and market competiveness is reduced. The company can establish and maintain control over the processes. However, it is found to increase in the costs of the services or products. Owing to these strategic alliances are considered as an alternative option. In this process the companies can succeed and establish only when there is effective communication and trust between the partners. Ultimately the companies make the decision of alliances or mergers based on the subjective nature of the events and from market analysis. These factors are understood in detail from the case study analysis of Tesco and M&S. The limitation and the merits of each process are understood in a greater detail form this process. There is a fundamental factor that leads to the sustenance of any company.
It is the establishment of credibility and trust. This can be achieved when the company has an ethical corporate governance practices. The failure of this leads to the failure of companies such as BHS. The failure of BHS is due to the individual greed and tone set by the top management to its employees. The companies and the government need to ensure there are better regulatory checks in place in order to prevent the practice of corruption or greed.
From this analysis, the importance of specific business strategies and the importance of ethical mandates in business have been understood. The ways to instil proper corporate governance are understood from this process.