M Ch Kishore Babu

Lect in comm & Mngt

Fundamental Problems in International Trade / Global

Trade operations trade

About the Case:

The case is about a company which was located in germany (Smith Sports
Ltd). It was running successfully from decades with lots of experience. They have
a good organization culture with flat structure, highly motivated employees. These
employees ideas also taken into consideration for decision making also.

The company have outsourced the accounts of the organization,

and the company doesn’t have any other sites and no workers council. Now the
company want to build their own bikes, and also want to offer products for running
and swimming. They want to start global trade activities also.

Questions:

1. Being a committed student consultant, please prepare a (check-)list of all

criteria that you think are necessary to consider when going global.

Ans. If any company want to have a global presence means it has to follow
below criteria

 Economic Factors (Affordability of product and standard of living)

 Social and cultural factors (Difference in languages and customs)
 Political and legal factors (Attitude of Government)
 Market attractiveness (Evaluate market potential)
 Capability of company (Audit of resources and capabilities)
2. Define approximately 4-5 leading questions for the process and bring them in
a logical order.

Ans: Some logical questions as follows

 Determine is going global is right for your business

 Identify the product or service you have to sell
 Develop a global business plan
 Assess your competition & Segment the target market (Globally)
 Test your strategy in a single market with low barriers to entry by seeking
allies

3. Please name models, principles, tools, etc. that are helpful to plan and
operationalize the idea of global activities. Give a short explanation of the
mentioned aid including why it would be helpful in your opinion.

Ans. If the company want to enter into global activities, with the same process which
it have right now means, It have to follow the model of allies only, because as it was
running successfully from decades, by this we can segment the target group and we
can get the actual requirements of the people later on we can move with new product
development as per the requirements of the people

Allies is one of the easiest way to enter the global market with low
tariffs and trade barriers