International business memo Essay Example | Topics and Well Written Essays - 1250 words

worldwide business memo - Essay ExamplePresented below is an draw of actions that need to be undertaken to successfully enter the Peruvian market. Firstly, it describes the current internal operations of ICC. Secondly, it illustrates relevant actions involving business strategy, form of international business, organisational structure, marketing strategy, IT and supply chain, which ar essential for a successful expansion in Peru. This will significantly help in evaluating on whether or not expanding to Peru is an effective strategy for ICC. Objectives dodging Global Orientation provide effective solution to the various chemical substance needs of clients across different industries effectively and efficiently distribute commodity chemical products to a broad range of industries in larger geographic areas Value Chain Configuration Take advantage of the strategic location of chemical suppliers in America primeval Advantages consistently deliver industrial firms with cost efficient and high value chemical products expand distribution of chemical products from Peru to potential markets in South America efficiently Take advantage of the strength of Industrial Chemicals Corporation maximise the benefit from the relationships with suppliers to deliver high value chemical solutions Key Disadvantage need to invest heavily in ways to increase cooperation and efficiency in the flow of chemical products from US headquarters to Peru Form of International military control Equity Alliance Enter into a strategic partnership with an existing industrial chemical distributor in Peru by gaining a minority ownership of the Peru based chemical distributor avoid exposure to high strategic, operational, and legal business risks Out of 185 countries, Peru got the 43rd spot for the best places for doing business in 2013 (World Bank) Peru ranked 44th based on the 2013 economic freedom indicator, and has the 29th freest economy among the 29 countries in Central and South America (P eru) Potential Problems run-down Ranking in the freedom from corruption Ratings from the freedom from corruption index is very much below the world average ((Peru)) business organisation Practices of Informal sector About 70% of firms directly compete with unregistered businesses which is higher than the regional average of 62% (World Bank) Business Culture Differences Time Orientation Time is regarded with flexibleness so it is usual to start a conflict late As an investor, it is still important to arrive on time during a business meeting (Business Culture, par. 1) High Power- Distance (National Culture Dimensions, par. 1) Hierarchical form of organisations tend to dominate decision making is concentrated on the top (Business Culture, par.10) It is essential to conduct business meeting with top executives since they make the key decisions (Business Culture, par.10) Low Individualism (National Culture Dimensions, par. 4) Business relationship reflects their unfluctuating prefer ence for collectivism a reflection of their closely knit family relationships (Business Culture, par. 2) Inquiries on family matters are common during initial stage of business meeting (Business Culture, par. 3) Searching for the best complementary strategic partner Conduct an analysis on the performance and culture of every potential alliance partner which operates in Peru Key characteristics of an effective strategic partner Committed and trustworthy potential partner (Mohr & Spekman, 135) Potential