Future Growth Paper

Future Growth Paper

Jeremy Stuart

October 7, 2013

MGT 401

Santosh Tolani

Small companies like Willamette Furniture Company need to expand their business into the global market which in today’s world is a must in order to survive and grow. There are many reasons on why a company needs to expand in certain times in the business’s life. According to Zimmerer and Scarborough some of the benefits of going global are: Offsetting sales declines in the domestic market, Increase sales and profits, extend the product life cycle, lower manufacturing costs, lower the cost of the product, improve the competition position and to enhance reputation raise quality levels and become more customer-oriented. There are many reasons why smaller companies go global when there are several benefits to smaller companies from lowering their overhead to increasing sales and profits.

Strategies

There are several different strategies that Willamette Furniture could use when going global but the first strategy that needs to be implemented is expanding the company’s online presence and allow customers to purchase products 24 hours a day 7 days a week and requires no sales person to go to their location. This also allows people to see the products the company offers and allows customers to purchase their products online.

Another strategy that could be used when going into the global market is to do a foreign joint venture which allows the company to expand globally but requires them to team up with a company that is already in that foreign country or market that they want to expand into. This is a low risk venture that allows small companies to start to expand globally without having to risk to much financially which might cripple the company domestically.

Foreign Licensing is another way that small businesses can expand their business in a way globally that allows them to generate more cash flow. “Some small companies enter foreign markets by licensing businesses in...