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BTEC Unit 39 P5 identify why businesses operate internationally
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BTEC Unit 39 P5 (Pass)
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P5Identify why businesses operate internationally
There are different reasons why good running businesses choose to start operating
international. Thanks to the good technology, people can communicate way easier with each
other, this create opportunities. In this P I will explain how businesses can respond to these
opportunities and the main reasons why they choose to operate international. For this, I will
use different companies.
Growth
There are a lot of companies that took their business into foreign countries. Whether this is
an operational move to produce products at a lower cost or a marketing strategy which
involves selling an existing product in markets that couldn’t be reached before the move,
international business is and will continue to rise and evolve. This is why business owners
decide to expand their company into a foreign country, other reasons can be:
Better technology
Governmental decisions
Better Infrastructure
Other consumers
Less competition
New markets
Diversification
A lot of companies expand their companies to a foreign country
to diversify their assets. This action can protect a Businesses
bottom line. A good example for this is when a company makes
a negative grow in one market, they can compensate this with
making a positive grow in a different market. Companies can
also use foreign markets to introduce unique products and
services, which can help to gain a positive revenue stream. A
good example of a company who also did this is Coca-Cola.
The company recently bought a Mexican sparkling water company called Topo Chico, this in
a attempt to grow a more diverse portfolio
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