Challenges of Cross Border Growth Strategies
Across the border challenges are an every day event for thousands of corporations. The struggles that are ever provoking cause corporations to strive daily for future growth and gain. The tasks accompanied by the demands of cross border challenges could lead to turmoil, unless the networks of trading companies are friends. How can corporations transition cross border challenges smoothly? What are the risks? What are the advantages?
Lester Electronics is a multimillion dollar corporation. Business has been successful for the better part of the years. But with every success, challenges are knocking at the door. The challenge that now faces Lester Electronics is buying Shang-Wa from John Lin, or selling Lester Electronics to a company like Silver Socks. Lester Electronics has had relations with a Korean manufacturing company for the past 35 years. Business has been very profitable with Shang-Wa. Business owners, Bernard Lester and John Lin have become very good friends through the years, but John Lin is getting older and would like to retire. Understanding that eventually changes would come, Lester understands his friend’s needs for time off. However, if Lester loses Shang-Wa’s business in Korea, Lester Electronics will most likely become bankrupt.
Good business etiquette has maintained between the corporations, which is very important for trade relations internationally. The contract that binds can hold a lasting relationship, as long as trust is there. As with any business that trades internationally, the importance of international navigation is necessary for proper locations. Researching the international location before committing to a long-term contract could save millions of dollars. Sometimes the problem could be, not knowing the customs and diversity of the location. Once a relationship is established, then the company can start making future plans.
For example, a challenge for cross...