International management. More details

Conquering markets in other countries is not as difficult as many believe, you just have to apply international business studies.

If you want to market your products or services outside the country but don’t know how, then you’ve come to the right place.

Today I will describe general aspects of this discipline that will help you make the best decisions to be successful.

To help you in this regard, I present the following points:

• What is international business administration?
• Goals of international business administration.
• Activities of the International Business Administration.
• Levels of International Business Administration.
• administrator functions.

What is international business administration?

Globalization has led business people and entrepreneurs to pay attention to the whole business process to improve their performance.

International deals are private and governmental transactions (exports, imports, investments, financing) involving two or more countries.

As you know, every nation has its own laws, taxes, cultures, languages ​​and currencies. All of this hinders commercial exchanges.

This is why the International Business Administration was born, to understand how the global market works.

Essentially, this type of administration is responsible for all import and export operations of products or services between different countries.

This discipline coordinates the processes of exchange of goods and services through the analysis of commercial information and applicable laws.

In short, this science applies administrative concepts, tools and processes to operations abroad.

In addition, you need to remove barriers to ensure the company’s further global expansion.

barriers it removes

Good business management with other countries allows you to break down geographic, cultural and language barriers.

Here are some of those obstacles:

• Regional inequality is the product of differences in wealth.
• Linguistic diversity, because there are more than 100 language groups worldwide.
• The size of the country.
• Geographical location.
• Cultural diversity.

Goals of international business administration

There are 3 main goals you can achieve when managing your business with other countries. I’ll explain them briefly:

1) Expand sales: A company’s income depends largely on the sales of commercials.

So if you want to increase your income, you have to be open to conquering markets in other countries.

2) Maximize Resources: Many entrepreneurs are afraid to risk selling in another country.

If you are one of them, think of the number of products, technologies and services that companies in other countries are looking for to meet their needs and those of their people.

3) Minimize risks. This is your goal if you want to take advantage of the economic situation in another country and counteract the low demand in your home country.

The advantages:

When managed efficiently, there are benefits. In international business, the benefits you get from proper administration are as follows:

• It helps increase or increase the economic income product of the sales.
• Economic and cultural advantages are used.
• It allows to increase the competitiveness of the company.
• Employment sources are increasing.
• It promotes cultural and linguistic exchange.
• Technological innovations are encouraged.

Activities of the International Business Administration

There are three basic activities carried out in this type of management.

• Trade in goods (import and export).
• import and export services.
• investments.

I’ll explain them briefly:

Trade in goods (import and export):

It consists of sending or bringing goods between companies in different countries.

This is how companies find the products or services they need. On the other hand, it serves to compare the price and quality of domestic and imported products.

As an entrepreneur, it is important that you manage all incoming and outgoing goods processes. In my article Customs Administration to Facilitate Foreign Trade, I explain what it is and the processes involved.

Import and Export Services:

It refers to trade in intangible products. For example, the use of trademarks or patents in exchange for license fees.

For example, McDonald’s is an American company that receives money for using its brand in other countries.

Investments:

It consists of making or marketing the product or service in another country while spending money. You basically have two options:

• Acquire other companies
• Start over.

Levels of International Business Administration

If you want to expand your sales to other countries to increase profit, here are the steps to follow:

Stage 1: Decision to internationalize:

This is the stage when the company decides to do business in another country for one of the following reasons:

1.- Reduce production costs: It is likely that you have a high level of production or that national demand has decreased or is stagnant.

If, on the other hand, your product is in the mature phase, you can benefit from the profitability in other countries.

two.- Increase competitiveness: It is a very common choice when:

• You realize that there is a niche market in another country.
• They want to compete with similar companies abroad.

If you decide to go international, be aware of government policies to encourage exports. For example, abolish or reduce taxes; Free trade agreement with the nation of your interest.

Stage 2: Planning and organization:

In this phase, you need to analyze the entire environment, both inside and outside the organization.

You have to take into account, among other things, the economic, cultural, religious aspects in order to get a screening of the entire panorama.

For this reason, the need to create the international business department arises. This will be responsible for managing the entire plan abroad based on information from the environment.

Stage 3: Preparation and implementation of the internationalization plan:

This is one of the most important processes, as the procedure and the goals to be achieved are reflected here.

The special features of the markets as well as the socio-cultural environment and regulations are taken into account.

Also, everything needs to align with your company’s mission, vision, and values.

Stage 4: Consolidation and Adjustment:

Once you put the plan into action, you need to adapt your product to the other country’s conditions.

Because of this, it is necessary for you to constantly evaluate the execution of the plan. That way, in case of a problem or discrepancy, you can make the necessary adjustments.

administrator functions

You may be wondering who is coordinating this area? You may think that the ideal is a business graduate, but it’s not.

Despite business knowledge, such a specialist lacks specific skills in the international field.

From the moment you decide to expand your distribution or enter new markets in another country, you should have an international business specialist or manager.

Why?

Because an administrator in this industry is trained to recognize market niches and to manage the corresponding processes.

In addition, it deals with the necessary legal aspects. And may know more than two languages, which is very handy in these cases.

These are some of the functions that the admin of this space must perform:

• Analyze the market to be conquered, i.e. competitors, customer expectations, purchasing processes, etc
• Study the regulations in force in the countries involved.
• Carrying out studies on the demand for the product or service to be offered abroad.
• Create strategies for entering the foreign market.
• Make decisions based on information from the environment.
• Manage import and export processes.

Continue:

International Business Administration is the discipline responsible for managing the entire process of importing and exporting products and services.

To do this, the administrator must analyze the environment and the socio-cultural, legal and economic aspects of the target country.

In addition, he will be responsible for leading the overall internationalization plan.

Effective running a business in another country increases income, improves competitiveness and creates employment opportunities.

Finally, I would like to remind you that there are other types of management that are important for your company, some of them apply before you decide to go international.

To learn a little more about it, I recommend reading my article Identifying the different types of management.

I hope that the information I have shared with you today has been helpful in the rapid international expansion of your business.

Thank you for reading us.

Until next time!