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Paper on international business - Assignment Example

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To stay and hold the position in the present competitive market the company has planned to expand its business outside US like Europe and Far East Asia. XYZ (company's name) is encouraging other companies to advertise their product on their website. A study has shown that a company would make more profit in diversifying and expanding.
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There are two main existing strategies that XYZ used and need to keep using to keep the business profitable. As we look at those strategies those they should not change and need to find a way to keep them in their operation plan: Price and shipment- By offering the cheaper price in their products and free shipment had help to attract their customers and get new ones through the word of mouth. XYZ will always succeed when the customers is looking for better products. Customer Service- Customer receives great customer service in the product that they buy and when they return product back to the company.

The customers only have to deal with one company not other company that advertises the product in the web site. One of the important strategies to study is the feasibility study. Feasibility study is an important phase in the development process. It enables the developer to have an assessment of the product (like XYZ 's soaps, detergents, etc) being developed. It refers to the feasibility study of the product in terms of outcomes of the product, operational use and technical support required for implementing it.

Feasibility study should be performed on the basis of various criteria and parameters. The various feasibility studies are (1) Economic Feasibility, (2) Operational Feasibility and (3) Technical Feasibility. It reEconomic Feasibility: It refers to the benefits or outcomes. We are deriving from the product as compared to the total cost we are spending for developing the product. If the benefits are more or less the same as the older system, then it is not feasible to develop the product. The development of the new product greatly enhances the accuracy of the system and cuts short the delay in the processing of the product.

Operational Feasibility: It refers to the feasibility of the product to be operational. Some products may work very well at basic implementation but may fall in the real time environment. It includes the study of additional human resources required and their technical expertise.Technical Feasibility: It refers to whether the products available in the market fully support the present new one. It studies the pros and cons of using particular product for the development and it's feasibility. It also studies the additional training need to be given to the people to make the product work.

FDIFDI (Foreign Direct Investment) is of great significance for production as well as consumption of goods. It is through trade that goods produced at particular places are equitably distributed among users. With the help of trade goods are made available to consumers at the time of their need. It removes the hindrance of persons by bringing together producers and consumers who are widely scattered.Advantages of FDI for XYZ are outlined below:It enables the company to concentrate on the production activities; otherwise they would have to go in search of consumers for goods they produce.

Trade makes goods available to consumers who can concentrate on their own occupations.It results in specialization and large-scale production as the markets are now spread over wide territories. Sale of goods from one country and purchase of goods form other countries.It provides avenues of employment to various

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