Had we been looking towardinternational business all along, we would be geared for that change

andready to make the leap, but we have been surprised by it. Inany event, we should not make the
move until we are truly ready, even ifthat means some tense waiting.I'll admit that there is an
international competitive advantage that wecould exploit by going global. An Accenturestudy found
that "a high proportion of globalizers seemed to have no clearstrategy for capturing value through
global expansion," and that is ourposition at present as well (Jones, 2 ). markets" (Killen, 2 1, p.
While I acknowledge thethreat of competition from VisiDat and the potential that VisiDat
couldestablish an international business that would enable them to gain acompetitive advantage, I
do not agree with Susan that our best move is togo global now to combat that threat.First of all,
from the perspective of our own business, we are not readyfor that kind of expansion. (2 5). Global
Expansion Strategies Fail to Pay off for Most Financial Services Firms, But Winners Leverage Four Key
Strategies. Making the jumpright now would be like jumping off a cliff and hoping to land in the
rightspot. Workingcapital needs to be available, and the difference in currencies must
beaccommodated, in order to jump into the costly international market.Staffing must be considered,
as well. We could tap into the as yet untappedinternational market for our product and become an
international presence.However, first mover advantage is going to go to VisiDat; they have
alreadymade their move, and they appear to be ready for the change. MemorandumTo: Greg
McNallyFrom:Date: October 16, 2 8Re: DataClear global business opportunityI recommend that we
not go global at this time. We have to determinewhether we want a centralized versus decentralized
organizationalstructure, what global monitoring system we will put into place, whether wewill use a
global geographic structure as our framework, and whether wewill also become a global e-
corporation network (Deresky, 2 6, pp. We have no international base, no one on boardwith the
requisite background or experience, no way to evaluateinternational partners, and no distribution
apparatus abroad. International issues such as cultural differences and salarydifferentials must be
considered. We would do well toadopt one of the four key strategies that have been used by
successfulglobalizers: . 5), and our goalshould be to go global when we can be right in all of the
countries that wewill be servicing. Retrieved on October 17, 2 8 from: http://2 2.2
5.89.79/download/materials/2 6s/discipline/international_ hrm/CHAP 8PP.PPT[pic] Science Direct.
We are lookingat leaping into an area that we are completely unfamiliar with in hopes ofoffsetting a
competitive advantage that VisiDat has gained, by trying to dosomething that we do not yet know
how to do. Organizational structure needs to serveboth our local and overseas operations and must
be flexible enough toaccommodate both, including their differences. 3). Should DataClear go global?
Accenture. Internationalcompetition is a possibility, for example, and competition from
Internetcompanies is also a potential threat.If DataClear were to go global, its best approach would
be to start bylicensing. "Leveraging a competitive advantage of either skill or scale" . We could
approach our expansionindirectly in this manner, building our resources and taking the time toplan
and prepare before making the leap into full international business.Finally, we should only make the
move to go global if we have sound andthoroughly considered strategic reasons for doing so. With
thisinformation in hand, we need to revisit our mission, vision, and strategy.If we do not currently
have an international presence as part of ourdefined strategy, we either need to question why we
are trying to expandglobally or amend our strategy to reflect our new direction. A start-up is a much
larger commitment in terms of cost, time,and risk than licensing is, and if the licensing approach is
notsuccessful, our losses would be lower than with a failed start-up.My recommendation concerning
the initiative to go global would be to startby conducting a complete internal and external
environmental analysis, aSWOT analysis, and a Porter's Five Forces analysis to gain a
fullunderstanding of our company's strengths, weaknesses, opportunities,threats, and positioning
within the industry. New York: Prentice Hall. (2 1). "Pursuing a narrowly focused market entry
strategy" . International joint ventures are "typically unstable over time"(Nakamura, 2 5), and start-
ups require far more preparation and cost thanlicensing. When thosethings are not in place, as in
our case, it is a recipe for disaster.Before we attempted to go global, we would need a strategic
reason and planto do so, built over time, not a last-minute hurried idea with nopreparation or
research to back it up.Third, before we make the decision to go global, we need to examine all ofour
options to see if going global is really the best approach for us. Harvard Business Review, (Nov-
Dec).Sander, A. If going global isindeed our best move, then we need to apply some muscle to make
thathappen, but now would not be the time to do it. ReferencesJones, S. "Aligning the organization
and operations with globalization" . We are just not positioned and ready to embark onthis kind of
initiative.Second, our reasons for wanting to go global are not sound. I would recommend that we
incorporate a global geographic structurecoupled with an Internet presence. 13, 25,28). It is
essential, if we are to consider going global at any point inthe future, that we examine our readiness
for global expansion as itpertains to capital, staffing, and organizational structure. (1996). From that
point on, weneed to maintain a readiness to take advantage of new opportunities so thatwe will not
be caught again unable to take first mover advantage. Forexample, we could start by "targeting
global companies based in the UnitedStates" and "seek out a powerful channel partner with
connections to non-U.S. International Business Review, 14(4), (Aug), 465-493. I recommend
researching, analyzing, and preparing to goglobal but waiting to make the move until we know that
we have asustainable competitive advantage in that approach. This initiative is "reactiveinstead of
strategic" (Sander, 2 1, p. (2 6). However, rushing in todo battle with VisiDat over the international
market is a mistake. What Is Strategy? Chapter 8: Organization Structure and Control Systems. (2 1).
Using this approach, we can fall backon the Internet business if the international approach is less
successfulthan hoped. Harvard Business Review, (June).Kuemmerle, W. 6). Harvard Business Review,
(June).Nakamura, M. "Managing globally and empowering locally" (Jones, 2 ). International business
isexpensive and complex, even when the personnel and expertise are in placeto handle the
expansion. 4). Go Global-Or No? VisiDat doespose a threat to us, since they could corner the
international market whilewe are at home become prepared to enter the market. I recommend that
we move forward to analyze the global marketimmediately but that we wait to make a global move
until we have at leastdefined our market and put into place an appropriate strategy, as well
asidentified how we will implement that strategy. "Acompany can outperform rivals only if it can
establish a difference that itcan preserve" (Porter, 1996, p. A Ford European executivewisely said, "If
you misjudge the market [by globalizing], you are wrong in15 countries rather than only in one"
(Deresky, 2 6, p. Harvard Business Review, (June). International Management: Managing Across
Borders and Cultures, 6/E. Go Global-Or No? Moreover, you do not yet have international
management experience(Kuemmerle, 2 1, p. 62). Should DataClear go global? Moreover,
"Successfulglobalizers leverage an advantage in at least one of several key areas,including brand,
market strategy, core competencies, common systems andmanagement disciplines, among others"
(Jones, 2 ). Next, I advise specificallyresearching our international options, including licensing
opportunitiesand any connections we have in international markets. (2 1). Retrieved on October 17,
2 8 from: http://newsroom.accenture.com/article_display.cfm?article_id=3593Killen, H. 7). Joint
venture instability, learning and the relative bargaining power of the parent firms. We do not yet
even have the capability tofully serve the industry here in the United States (Kuemmerle, 2 1, p.
Deresky, H. Retrieved on October 17, 2 8 from:
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VGK- 4GFCPPY- 1&_user=1
&_coverDate= 8%2F31%2F2 5&_rdoc=1&_fmt=full&_orig=search&_cd i=6
41&_sort=d&_docanchor=&view=c&_version=1&_urlVersion= &_userid=1 &m
d5=72b4e7b55f7f1aec45ef8bcbb 3177eaPorter, M.E. We have to choose whether to exportexisting
staff abroad, hire locals there, or offshore support from acontractor. We're better off taking a step
backward to look at our options andfigure out whether going global is really what we need to do,
and then-ifit is-doing the legwork to get ready for that change as fast as we can. In addition,
DataClear mightencounter other competition in its quest to go global. (2 ).