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Expanding your business in the oversea countries will mean reaching more customers thus boosting the profits of the organization. When the markets in other countries offer a higher potential than the local market, there is a need for the organization to expand internationally. However legal and ethical structure will differ from one country leading to some issues in international business expansion. In this paper, we will consider two articles about international business.
The first article published February 6, 2017, explains the strategies Airbnb Company, an online platform hotel industry, and has taken to increase in its international markets. Currently, the company has hosted its services in over 35,000 cities and 191 countries. Airbnb has developed new strategies that will facilitate its growth in the international market allowing its customers to enjoy quality services all over the world. However, the business operations may be affected by the legal and ethical differences in various countries. Some countries may have policies that may conflict with those of the company thus affecting its operation. In some case, corruption and insecurity differences may be an issue with the business operation. Airbnb is an online platform and insecurity in some countries may affect online payments and operations. To deal this issue managers in the company should first understand the policies, legal and ethical differences of various countries before expanding their markets.
The other article published Nov 24, 2016, explains the expansion announcements of Domino`s Pizza company to the international market. The company intends to expand its market to the UK to over 1,600 stores. Expanding the market will increase the sales of the company and thus increases the growth. Expanding the market will, however, lead to issues relating to the cross-cultural differences. The major issue that may affect the organization are the different work terms. Employees in the new country may have different employment policies for example in their wages or working environment. An effective approach the managers can solve this issue is to develop standards that will protect employees and does not conflict with the local policies.
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