Ansewering the international business policy (questions) Essay

Ansewering the international business policy (questions) - Essay ExampleDogs often hurl business strategists to their wits end as they worry what to do with them. Unprofitable business units, as a matter of fact, consume similar financial resources as their profitable counterparts. Hence, business strategists often undergo a serious decision-making to handle Dogs among the portfolios of companies they manage. Some of the ways to deal with unprofitable business units or product lines allow (i) establishing a partnership with a brand social club that sells similar products (ii) undergoing merger with another company (iii) or selling the under-performing business units and invest the proceeds in other businesses that may yield some(a) lolly in the near future (Dalton et al., 2007). Selling of unprofitable companies have become the most popular pickax companies managers use to discard off low-yield business units in recent years. 2 2. Estonia, Latvia and Lithuania are examples of Bal tic States. The campaigner of finding new positions in their markets may be remote due to the poor economic activities in these countries. For a new company entering the countries must resort to a policy of market training before it could assume the market leadership in these countries. The process of market development is a kinda risk of exposurey happen because there is no 100% guarantee that it is going to be successful. The process involves use the companys limited resources (both physical and human) to research the Baltic markets, analyse the available opportunities, undertake products publicity, and ordinate distribution channels that may be different from the ones available in the countries (Stonehouse et al., 2004). There are some common risks associated with market development. Some of these problems are cultural risk, financial risk, market risk and resource risk (Haberberg and Rieple, 2008). Some of the questions to be asked about this process are (i) what of if th e cultures in the Baltic States are not undefended to foreign participation in a particular industry in the country, say, hospitality industry? (ii) how could the company entering into the Baltic markets scrupulously manage its resources? (iii) And what are the possible market risks associated with this kind of business adventure? Once these burning issues can be successfully resolved, it will possible to for the new company to view the market it targets, and also reap the complete benefits this adventure will bring (Haberberg and Rieple, 2008). 3 3. In an economically viable country like Austria, competition among the business operators in the country is inevitable (De Wit et al., 2004). loving in price wars is one of the characteristic features of competition in the markets. Price wars force every worker in the market to offer competitive prices that would draw consumers away from their rivals and promote continued patronage of what goods or services they offer (Winninger, 19 94). To win these wars, some companies may offer discounts on each of their products they may also provide subsidies to state or non-private organisations to purchase large quantities of their products (Winninger, 1994). Other incentives for consumers include reduced Value Added taxation (VAT), free delivery mechanism and post-delivery services that many other companies