Objectives of International Business
To tap into new markets and customer bases.
Starbucks' global expansion strategy. Starbucks has successfully expanded to over 80 countries, adapting its menu to cater to local preferences while maintaining its core brand identity.
Market Expansion
35,711 thousand Starbucks stores worldwide in 2022.
Diversification
To spread business risks across different markets.
Coca-Cola's international presence by operating in multiple countries.
Coca-Cola can navigate through economic downturns in specific regions while still maintaining overall profitability
Risk Mitigation
Financial risk has boosted the overall risk profile of the company with healthy liquidity ratios.
Operational risk is at par with the industry average, driven by its scale and business positioning.
To lower production costs through factors like labour arbitrage and economies of scale.
Nike's global supply chain. Nike produces shoes in countries with lower labour costs, which allows them to offer competitive prices while maintaining quality.
Cost Efficiency
To gain a competitive edge through technology transfer, access to resources and innovation.
Tesla's Gigafactories around the world. Tesla builds manufacturing plants in different countries to reduce shipping costs, adapt to local market demands, and accelerate production.
Competitive Advantage
Video on Tesla's Gigafactories
To maximize profits by tapping into high-growth markets.
Amazon's global expansion. Amazon expanded its e-commerce and cloud services worldwide, aiming to capture growing markets and increase its profitability.
Profit Maximization
To engage in socially responsible activities on a global scale.
Unilever's Sustainable Living Plan. Unilever, through its global presence, has committed to reducing its environmental impact and promoting sustainability in its products and supply chain worldwide.
Corporate Social Responsibility
Video:
Unilever's Sustainable Living Plan