Exporting refers to enter a foreign market by selling goods produced in the company’s home country, often with little modification. A company has many options for entering an international market, from simply exporting its products to working jointly with foreign companies to holding its own foreign-based operations. The company may passively export its surpluses from time to time, or it may make an active commitment to expand exports to a particular market. In either case, the company produces all its goods in its home country. It may or may not modify them for the export market. Exporting involves the least change in the company’s product lines, organization, investments, or mission.
More from this Section
- Portfolio techniques
An approach pioneered by the Buston Consulting Group that attempted to help managers ”balance” the flow of cash resources among their various business while also identifying their basic strategic purpose within the overall portfolio.
- Vertical boundaries
Limitation on interaction , contact, and access between operations and management personnel; between different levels of management; and between different organizational parts like corporate versus divisional units.
- Ethical responsibilities
Another social commitment for strategic managers is Ethical responsibilities . Ethical responsibilities reflect the company’s notion of right and proper business behavior. Ethical responsibilities are obligations that transcend legal requirements. Firm are expected, but not required, to behave ethically.
- Strategic business unit
An adaptation of the divisional structure in which various division or parts of divisions are grouped together based on common strategic elements, usually linked to distinct product/market differences.
- Leadership development
The effort to familiarize future leaders with the skills important to the company and to develop exceptional leaders among the managers employed.
- Corporate strategy
An organizational strategy that specifies what businesses a company is in or wants to be in and what it wants to do with those business, is called
Credibility in terms the degree to which followers perceive someone as honest, competent and able to inspire.