International Dimension for Business Essay Example | Topics and Well Written Essays - 3000 words

International Dimension for Business - Essay Example With the opening up of world economy, nearly all the business entities big or small, old or new are getting inspired in taking their business to the international level (Aswathappa, 2010, p.6). Companies are getting determined in their decision to operate across the globe. The shifting of organisations from a domestic viewpoint to a level of internationalization gives rise to a number of challenges for the firm (Turner & Johnson, 2009, p.2). The challenges may be in the form of setting up of infrastructure in the foreign market, purchasing the materials from overseas suppliers and the biggest challenge is to sell it to the foreign customers. One of the biggest trends of the recent times has been the lowering of international trade barriers. Different organisations such as World Trade Organisation, GATT and IMF are constantly working towards the intensification of globalised trade. In the recent past globalisation has been a catchphrase for the business organisations. Globalisation is a global phenomenon which can be defined as the movement of goods, services, resources, funds and labour around the world in a harmonized and synchronized way. In this process a global relation among the countries gets developed and ensures efficacy in using the scares resources of the world (Milward, 2003, p.10-16). The present study deals with the international dimension of business or in other words the other avenue to conduct business apart from the local listings. The study will reveal the international market entry strategies such as foreign direct investment, franchising, licensing and exporting. The study will also try to analyse the foreign market entry strategy of Volkswagen. The reason for choosing this organisation for conducting the study is because it is amongst prime multinational companies. A multinational company is described as the company which operates in its home country as well as in foreign market. The factors which contributed towards choosing this company a re its rich history, brand image and also considering the fact that it is the biggest car manufacturing & marketing company of the world. Company History The history of the company dates back to 1937, when the company was known as ‘Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH’. In the next year the company is renamed to ‘Volkswagenwerk GmbH’. The construction of the plant for manufacturing cars started on 1938 at Wolfsburg, Germany. During the period of 2nd world war the production of the company switched to weapons and arms. At around 20000 forced labours, prisoners were working at the plant. After the end of World War II the responsibility of Volkswagenwerk was placed on to the hands of British military government. During that era mass production of volkswagon beetle was started. During the 1950s the product line of the company was increased. In the meantime the production of Volkswagon bus was initialized. The bus is still popular even in this century for its multi-functionality and is popularly known as VB bully. As the wheels rolls on the company slowly touched the milestone of producing one million Volkswagon beetle cars. The employees and dealers from the country and overseas celebrated this memorable day in a special comportment. In 1972 the company has broken the all time record of car production with the figure touching mammoth 15,007,034 units. The company slowly moved towards the production of new age cars during 1973 with its model ‘passat’. With that initiation the company moved towards the production of varieties new age cars. That was the time when Golf was built inside the industrial units of the company. The