When Companies Expand Into The International Arena They Do S

When Companies Expand Into The International Arena They Do So Either

When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Increasing the number of strategic business units requires a more complex business strategy. Sometimes the road to success in a foreign market can be a bumpy one. For insights into some of the more extreme cultural challenges posed when entering foreign markets as experienced by one of the United States’ largest fast food chains, read How McDonald's conquered India (Kannan, 2014) and McDonald's Settles Beef Over Fries (Grace, 2002). For this discussion, determine whether or not the company operates in the international marketplace. If so, research the company’s international strategy and evaluate it in terms of effectiveness in regards to one of the issues below. If your company is not involved internationally, then choose one that is and evaluate that company’s international strategy in terms of effectiveness in regards to one of the following issues: Cultural Barriers, Monetary Exchange Rates, Political Instability. Then, assess how your chosen issue potentially affects the strategic considerations of your organization involved in a global economic environment. Propose language to add to the organization’s strategic plan that addresses the potential impacts to the organization’s global strategy.

Paper For Above instruction

The Boston Whaler, renowned for its innovative and durable marine vessels, has historically operated primarily within the domestic U.S. market. However, in recent years, the company has recognized the increasing globalization of the recreational boating industry and has begun to explore international markets, particularly in regions with rising tourism and affluent populations such as Australia, Europe, and parts of Asia (Boston Whaler, 2020). This transition into international markets necessitates a comprehensive international strategy centered on understanding local cultural preferences, regulatory environments, and economic conditions.

Considering Boston Whaler's move into the international arena, the company's strategy has been multifaceted. It involves establishing partnerships with regional distributors, adapting products to local preferences where necessary, and engaging in localized marketing efforts. The effectiveness of this international strategy can be assessed through its emphasis on cultural adaptation, strong distribution networks, and compliance with international maritime safety standards. The company’s approach appears effective in navigating the cultural barriers typical in foreign markets, especially with marine products that often have regional preferences in design, boat size, and usage. For example, in Australia, where boating is a popular pastime, Boston Whaler has tailored its marketing messages to resonate with local outdoor lifestyles and water safety regulations (Marine Industry News, 2022).

One of the most significant issues affecting Boston Whaler’s international strategy is currency exchange rate fluctuations. Since marine vessels are high-value items, currency volatility can substantially impact pricing, profitability, and market competitiveness. For instance, a sudden strengthening of the U.S. dollar relative to the euro or Australian dollar can make Boston Whaler boats more expensive for foreign consumers, reducing demand and eroding profit margins. Conversely, a weakening dollar can increase exports but may also inflate costs if parts are sourced internationally (Investopedia, 2021). Therefore, currency fluctuations are a critical factor influencing the company's pricing strategies, cost management, and investment decisions.

The impact of currency exchange rates on Boston Whaler extends beyond pricing. It affects strategic decisions related to product positioning, market entry timing, and financial planning. A volatile currency environment can lead to uncertainty, making it difficult for the company to forecast revenues or set stable prices. As a result, Boston Whaler must implement risk mitigation strategies such as hedging, currency diversification, and flexible pricing models in its international expansion plans (Jorion, 2007).

To address these challenges, it is prudent for Boston Whaler to incorporate explicit language into its strategic plan concerning currency risk management. For example, the strategy could include measures such as:

• "Implement comprehensive currency hedging programs to mitigate adverse exchange rate movements."
• "Regularly monitor currency markets and adjust pricing strategies proactively to maintain competitiveness."
• "Diversify market presence to balance exposure across various currencies and reduce reliance on any single currency."
• "Establish local sourcing and production facilities where feasible to minimize currency-related costs."

By embedding these strategies into its global operational and strategic frameworks, Boston Whaler can enhance its resilience against currency volatility and better capitalize on emerging international opportunities.

Furthermore, integrating currency risk assessments into quarterly strategic reviews and aligning financial planning with currency forecasts will position Boston Whaler to respond swiftly to currency movements. Such proactive measures will ensure the company's continued growth and competitiveness in the international marine market despite the uncertainties posed by fluctuating exchange rates (Cohen, 2020).

References

• Boston Whaler. (2020). Corporate Overview. Boston Whaler Official Website. https://www.bostonwhaler.com
• Jorion, P. (2007). Financial Risk Management: Techniques and Insights. McGraw-Hill.
• Grace, R. (2002). McDonald's Settles Beef Over Fries. The Wall Street Journal.
• Kannan, R. (2014). How McDonald's conquered India. Business Standard.
• Investopedia. (2021). Currency Exchange Rate Risk. https://www.investopedia.com/terms/c/currency-risk.asp
• Marine Industry News. (2022). Boston Whaler Expands Market in Australia. Marine Industry News.
• Cohen, Y. (2020). Managing Currency Risk in International Trade. International Finance Journal.