Global Expansion of PPQ Parts

Topics: Cross-cultural communication, Culture, Globalization Pages: 4 (1158 words) Published: February 23, 2014

Global Expansion of PPQ Parts
American Intercontinental University

Global Expansion of PPQ Parts
PPQ Parts has made the decision to expand their business globally. There are many factors the company will need to consider before venturing into international trade. The management team will be faced with a more challenging business plan with the new issues of transportation and shipping, language differences, and availability of technology resources. To be successful with global operations, PPQ Parts will first need to take the time to understand the effects of political and cultural differences. When considering a global expansion, cultural and ethical issues have to be addressed and understood. Understanding the culture of a host company is often more important than learning their language. What Americans consider acceptable behavior may not be acceptable in the host foreign country (Heizer & Render, 2012). Both PPQ parts and their new host country will need to recognize the differences in the legal, social, and economic business environments of their respective environments. In the long run, ignoring any differences could end up costing either country involved in business transactions. To enforce this requirement of the business environment, managers need to address the importance of cultural and ethical standards in their company mission statements and strategies (Heizer & Render, 2012). The host country may face additional challenges of supplying proper communication and transportation channels at low costs. There also may be a challenge to have enough housing, food and supply stores near the new operations for the number of people employed. It’s similar to planning for a new community. Another important challenge will be watching the exchange rates for both imported and exported products, as it affects the overall profit margins for each participant. As global business continues to expand, it is...

References: Heizer, J., & Render, B. (2012). Operations Management: Flexible Version, (10th ed). Upper Saddle River, NJ: Pearson Prentice Hall.
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