Go Global Or No by Greg McNally Analysis

The following sample essay on Go Global Or No discusses it in detail, offering basic facts and pros and cons associated with it. To read the essay’s introduction, body and conclusion, scroll down.

Case study: Go Global or No Abstract Greg McNally, the CEO of the DataClear had owned the data analysis market for two years to itself. But British VisiDat had starting to compete by producing beta testing of data analysis package. DataClear had the potential to expand their business in other industries such as the chemical, petrochemical and pharmaceutical or expand overseas to prevent their business from going down and beaten by the competitor.

Issues As the British VisiDat starting to sell similar product, the data analysis package market will not owned to the DataClear anymore.

Worst, if the VisiDat are entering the global market, the DataClear performance will badly pressured if they did not take any action quickly. The CEO of DataClear are in dilemma if the company should go global or not.

They had to choose either not going global and expand their business in other industries such as, chemical, petrochemical and pharmaceutical or focus on data analysis software market and expand to Europe and Asia. Problem solving tools SWOT Analysis

STRENGTH * Leading software company * Experienced and high skilled staff * Good performance| WEAKNESS * New company * Lacks experienced to go cross-borders * Do not have international sales strategy * Lacks of international management experience| OPPORTUNITIES * Joint venture with Benro| Threat * Competitors * High cost across border * Difficulty to transfer equipments and installations * Language and culture difference * Staffing local experts| The CAGE framework Attributes creating distance | Cultural distance| Administrative distance| Geographic distance| Economic distance| 1.

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Different language 2. Different social norms 3. Different ethnicities| 1. Absence of colonial ties 2. Absence of shared monetary or political association 3. Government policies 4. Institutional weakness| 1. Physical remoteness 2. Weak transportation or communication links 3. Differences in climate 4. Different in time zone| 1. Differences in consumer incomes 2. Different in cost and quality of: * Infrastructure * Intermediate inputs * Information or knowledge| Industries or products affected by distance| Cultural distance| Administrative distance| Geographic distance| Economic distance| 1.

Go Global Or No Case Study Solution

Product features vary in terms of standards 2. Products carry country-specific quality association| 1. Government involvement 2. Management effected by culture| 1. Equipments are fragile 2. Communications and connectivity are important 3. Local supervision and operational requirements are high(many services)| 1. Distribution or business systems are different 2. Companies need to be responsive| Analysis In my opinion, DataClear should not expand their business to global yet. Basically, in order for a company to success, the benefits of the company must be greater than the input cost to run business.

Eventhough greater cost might give back greater benefits, it also can results in huge loss. For some company, they might take the risks to expand across border to compete in the market. DataClear which in the beginning owned the data analysis market for two years now held pressures from the start-up of the British VisiDat which produce a similar product of data analysis software and more likely to enter the global market. In order to compete or at least for the company to survive, they must take a very appropriate actions quickly.

The CEO of the company are in dilemmas either to go global to compete in the data analysis market or stay their business in U. S and expand in other industries such as chemical, petrochemical and pharmaceutical and they had no expertise in both option. By the SWOT analysis, we can see DataClear company has good reputation and performance. They are also the leading company in the data analysis software, besides having experienced, high knowledge, viable and professional skill staff. This shows that they are already a stable and strong business entity.

Eventhough, DataClear are still a new company in the market and they have a few weaknesses. They are lack of experienced to do business across-border, so they did not yet prepare to do so. They did not have international sales strategy and the CEO also lacks of international management experience. If they interested to go global, they have the opportunities to joint venture with Benro which are familiar to the Europe. As that can reduce the cost by making Benro as the distributor of their software, Benro also familiar to the Europe culture. Even so, they have many threats that trouble them to maintain their performance.

As they are starting to have competitors, they must do something to assure their business survives. If they decides to expand internationally, they must account the high cost of starting up business in other country. Besides the different language and culture, they lacks of expertise to recruit local quality staff. They also might faced difficulty to transfer their fragile installations equipments. Based on the CAGE framework, shows the analysis of the condition of the company if they want to expand their business internationally. In cultural distance, obviously, they use different language and have different ethnicities.

If they want to run business in other country like Japan, they have to know the social norm in the country. Like in Japan, they detailed their works perfectly and not likely to take risk and choose the safest option while the U. S people are risk taker and they are not too detailed like Japanese. These cultural distance is important to the company to know because the products sell to the country maybe should carry country-specific quality and products may vary in terms of standards and version. As example, the software sell to the Japanese should be in the Japanese language, so the consumer in Japan might buy the product.

They are also the administrative distance that attributes some difficulties. They are, absence of colonial ties, absence of shared monetary or political association, government policies, institutional weakness. The management are also get effected by the local cultures. Geographic distance contributes much in the cost needed to go cross-border. Such as physical remoteness and weak transportation and communication links. The other countries are also have different climate and time zone, this makes the top management to set up the working hours and communication wisely.

To go cross-borders, they had to transfer the equipments for installation; the problem is the fragile equipments might damage during the transportation. There are also low in connection and connectivity and local supervision and operational requirements needed are high caused to prepare many services. Lastly, I propose that DataClear should not go global as the company is still new and lacks of experience to expand across border as I analyze that there is more risks than chances to get succeed. They should focus in U. S and maybe can try to involve in other industries until the become a very profitable company before they go global.