P5:
Identify why businesses operate internationally.
In this assignment I am going to give several reasons why a company such as
Perfetti Van Melle would choose to operate internationally.
Companies in general go internationally with their operations for a variety of
reasons. The most common reason for companies to go international is that they
want to grow or expand in size. More specific reasons include generating more
revenue in another market, invest in opportunities, reducing costs by taking
operations to another company, lower taxation in another country or to create
brand awareness. A few reasons for Perfetti Van Melle to go internationally with
their operations could be:
A big brand such as PVM looks constantly for opportunities to add customers and
revenue. Perfetti started of using growth strategies on national level. When they
had established a name for themselves in their own country Italy, the next step
was to seek out international growth. They decided to merge their own company
Perfetti with The Dutch Company Van Melle creating the name and company we
know today as Perfetti Van Melle. By distributing their goods in other countries
PVM increased their customer base. Currently PVM is one of the world’s largest
manufacturers and distributor of confectionery and chewing gum. They have 30
manufacturing facilities around the whole world and sell their products in 150
countries. Some of the brands PVM owns are; Mentos, Chupa Chups and
Alpenliebe. They also own a few regional brands like; Look-O-Look, Smint, Fruit-
Tella and Klene. By going internationally PVM opened up to new invest
opportunities. By buying regional brands like the ones which I mentioned before
they established themselves in that market and expanded even further more by
offering those products in different markets.
Another reason for PVM to operate internationally is diversification. The
international expansion allowed PVM to diversify their company in a few ways.
First of all, if the market they were operating in lost interest in their products,
they could simply just stop their operations there and continue in a market where
the people liked their products to cover up the loss in money they made in the
previous market. Also going internationally enabled PVM to connect with closer
Identify why businesses operate internationally.
In this assignment I am going to give several reasons why a company such as
Perfetti Van Melle would choose to operate internationally.
Companies in general go internationally with their operations for a variety of
reasons. The most common reason for companies to go international is that they
want to grow or expand in size. More specific reasons include generating more
revenue in another market, invest in opportunities, reducing costs by taking
operations to another company, lower taxation in another country or to create
brand awareness. A few reasons for Perfetti Van Melle to go internationally with
their operations could be:
A big brand such as PVM looks constantly for opportunities to add customers and
revenue. Perfetti started of using growth strategies on national level. When they
had established a name for themselves in their own country Italy, the next step
was to seek out international growth. They decided to merge their own company
Perfetti with The Dutch Company Van Melle creating the name and company we
know today as Perfetti Van Melle. By distributing their goods in other countries
PVM increased their customer base. Currently PVM is one of the world’s largest
manufacturers and distributor of confectionery and chewing gum. They have 30
manufacturing facilities around the whole world and sell their products in 150
countries. Some of the brands PVM owns are; Mentos, Chupa Chups and
Alpenliebe. They also own a few regional brands like; Look-O-Look, Smint, Fruit-
Tella and Klene. By going internationally PVM opened up to new invest
opportunities. By buying regional brands like the ones which I mentioned before
they established themselves in that market and expanded even further more by
offering those products in different markets.
Another reason for PVM to operate internationally is diversification. The
international expansion allowed PVM to diversify their company in a few ways.
First of all, if the market they were operating in lost interest in their products,
they could simply just stop their operations there and continue in a market where
the people liked their products to cover up the loss in money they made in the
previous market. Also going internationally enabled PVM to connect with closer
