Assignment task: Operations Management
While at university, a friend of yours who is studying information systems developed a computer program that can predict stock price fluctuations faster than existing products. You and he have built a solid, growing business in Australia, selling and servicing this software package to stock broking firms and in a cut down version, to professional private investors and 'day traders'. Sales have recently slowed in Australia because the local market is quite saturated and mature; however upgrades and servicing of existing clients continues to be profitable. As the business owners and founders, you have decided to expand overseas and are considering the following questions, being discussed at your strategy meeting.
1 Which countries will be most attractive to go to in the first instance, and what are the criteria for choosing these?
2 Should your firm go it alone or seek to partner with firms in those countries, or acquire businesses there as a platform?
3 What staffing capability will be required to expand outside Australia?
4 Should you expect that the product will need no adaptation or some changes for foreign markets?
5 Will economic and business conditions, cultures, costs, wages and prices be the same overseas?
6 What are the key risks of overseas expansion and how will you manage them?7 How can you best plan, organize, lead and control your overseas expansion?