Question

Identify and describe five key pitfalls that a company faces when attempting to go global.

a) Market research, cultural awareness, communication, legal compliance, logistics
b) Financial planning, workforce management, product adaptation, competitor analysis, branding
c) Export regulations, political instability, language barriers, market entry strategy, supply chain management
d) Employee training, cost control, social responsibility, technology integration, customer service

Answer 1

When a company goes global, it may face pitfalls such as inadequate market research, cultural misunderstandings, communication challenges, legal compliance issues, and logistical complexities.

Step-by-step explanation:

When a company attempts to go global, there are several key pitfalls that it may face. These include:

1. Market research: Companies must thoroughly research and understand the target market before expanding internationally to ensure that there is demand for their product or service.
2. Cultural awareness: Companies must be aware of and adapt to cultural differences in the target market to avoid misunderstandings or offense.
3. Communication: Language barriers and different communication styles can hinder effective communication between the company and its international stakeholders.
4. Legal compliance: Companies must navigate and comply with different legal systems, regulations, and policies in the target market.
5. Logistics: Managing the logistics of global operations, including transportation, inventory management, and distribution, can be complex and challenging.