Free Essay: An Organization That Does Not Do Business Globally

Trader Joe's is an American chain of stores that deals with grocery stores in many states of the United States, but it does not currently perform any business outside the country. It ranks poorly in the provision of sustainable foods, and it has had several negative reports which have caused a lot of criticism.

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Opportunities for International Expansion to the Organization

Trader Joe's expansion to the international market would have several benefits to the company as it would be able to grow its operations to countries, most of which would have lower costs and more profits (van Rossum, 2017). The chain of stores would have more opportunities in the international markets where it would generate more revenue, opportunities for investment, management of risks, learning new concepts, competing for new sales, recruitment of new talents, and diversification.

Strategies the Organization can use.

Going international is influenced by various factors and consumes a certain period so that it can be implemented. The company can use strategies such as exporting or franchising (Bortoluzzi et al., 2018). The advantage of Trader Joe's exporting its products to other countries includes minimizing risks, maximizing the utilization of existing resources, and increase in the speed of entering markets (Gareche, Hosseini & Taheri, 2019). The risks of exporting include trade tariffs, costs of transportation, and the company being viewed as an outsider. If the organization adopts franchising, it will experience the benefit of minimization of risks, quick entering speeds in the market, high return on investments, and an ability to circumvent barriers of trade (Gitman et al., 2018). The risks of franchising include lack of control over asset use, licensee turning into a competitor, and a possibility of knowledge spillovers causing competitors to beat the organization in the new markets.

International expansion is a viable strategy for exporting because the organization can reach high targets and increase sales while utilizing available resources to the maximum (Twarowska & Kakol, 2013). The organization can reduce costs and increase production due to the new talents and sources of employment that have better skills.

References

Bortoluzzi, G., Kadic-Maglajlic, S., Arslanagic-Kalajdzic, M., & Balboni, B. (2018). Innovativeness as a driver of the international expansion of developing markets' firms. International Marketing Review. https://arts.units.it/retrieve/handle/11368/2920159/268187/Bortoluzzi_postprint_Innovativeness%20as%20a%20driver%20of%20the%20international%20expansion%20of%20developing%20markets%E2%80%99%20firms.pdf

Gareche, M., Hosseini, S. M., & Taheri, M. (2019). A comprehensive literature review in competitive advantages of businesses. International Journal of Advanced Studies in Humanities and Social Science, 8(3, pp. 223-309.), 223-240. http://www.ijashss.com/article_84369_53251b62a882bfdaed5ffbd4b99f5f91.pdf

Gitman, L. J., McDaniel, C., Shah, A., Reece, M., Koffel, L., Talsma, B., & Hyatt, J. C. (2018). Franchising: A Popular Trend. Introduction to Business. https://opentextbc.ca/businessopenstax/chapter/franchising-a-popular-trend/

Twarowska, K., & Kakol, M. (2013). International Business Strategy-Reasons and forms of expansion into foreign markets. In Manage. Know. Learn. Int. Conf (pp. 1005-1011). https://www.toknowpress.net/ISBN/978-961-6914-02-4/papers/ML13-349.pdf

van Rossum, J. (2017). 5 benefits of international expansion. https://www.bizjournals.com/bizjournals/how-to/growth-strategies/2017/12/5-benefits-of-international-expansion.html