Business and Management
Submitted By nfoe9
It is always important for any company to understand the potential internal and external risks that they could face if they are going to try and expand their business into a new market. It is generally easy for a company to predict and manage the internal risks because they are risks that they have control over. However, external risks are ones that the company has no control over and are generally very difficult to predict. Therefore, it is very important for Custom Snowboards to research everything that could possibly happen when expanding into Europe. It is essential that they are prepared internally for staffing, management structure, cultural and language barriers and possible loss of focus from current operations. Some of the external risks that CS needs to be prepared for include international legal issues, environmental risks, currency exchange rates, and economic factors. With all these potential risks it is vital that Custom Snowboards prepares for everything.
Staffing is an internal risk because as Custom Snowboards expands into a new market they will need to be able to find employees who understand that specific market and can speak the language. They will need to be able to recruit powerful leaders who can help drive business in the new foreign market. Having effective leaders will enable CS to take on the transition with more structure and help everyone understand the overall goal. Having the right staff will also help CS save money and make sure they aren’t having multiple people doing a job that can be done by one person.
Cultural and language barriers are a major risk as CS is trying to expand into a country. A company cannot expand into a new country if they don’t have partners who understand the culture and know how to speak the language. They will need to ensure that they have all of their documents translated into the new…...