Question

Business Expansion Plan (Scenario)

As a business expansion director, Shana's goal is to scout potential locations for her company's planned expansion to other countries. There are many options, some of which include maintaining the business's head office in the United States. Other options send company representatives to foreign operations when necessary, or establishing separate operation facilities abroad and hiring locals as managers.

Q: If Shana's company "went global" several years ago. Which of the following was likely to have been the first step it took in going global?

A. Market Research and Analysis
B. Establishing International Partnerships
C. Setting Up Foreign Operation Facilities
D. Sending Company Representatives to Foreign Operations

Answer 1

The first step Shana's company likely took when going global was Market Research and Analysis, as it provides critical insights necessary for successful expansion and is a prerequisite before making further commitments.

Step-by-step explanation:

If Shana’s company “went global” several years ago, the first step it likely took in going global was A. Market Research and Analysis. Before establishing international partnerships, setting up foreign operation facilities, or sending company representatives to foreign operations, a company must understand the new market it is considering entering.

Market research and analysis are critical to determine the demand for the company's products or services, understand local competition, analyze economic conditions, and gain insights into legal and cultural factors that could impact business operations. In the context of business geography, this step helps in mitigating risks associated with costly mistakes in location or operational decisions. Moreover, with market research, a company can align its expansion strategies with the local needs and preferences, which is essential for successful global expansion.