Learning outcome 4: understand the strategies used by international
businesses.
Unit 39: International Business
P5 & P6: Report. (Resub)
Tutor: Xin
Student: Arno Vollebregt
Class: IBS 2B
Date: 15-06-2017
1
, Growth
My company chose to expand to foreign countries because we can increase our sales.
We expand the business to another country; this means more people that we sell the
products to. The total value of the company will increase because of the increasing
sales we make, the volume of the company will also increase because when we expand
our company more things will be included in the company; more people have to hired for
example. The total volume of the company will grow in each way. The market coverage
will also increase when we go abroad; we sell our products in another country and we
will cover another part of the market because we sell our products in another type of
market than we already did. South Africa has a dual agricultural economy, with both
well-developed commercial farming and more subsistence-based production in the deep
rural areas. Covering 1.2-million square kilometers of land, South Africa is one-eighth
the size of the United States and has seven climatic regions, from Mediterranean to
subtropical to semi-desert. While 12% of South Africa’s land can be used for crop
production, only 22% of this is high-potential arable land. The greatest limitation is the
availability of water, with uneven and unreliable rainfall. Around 1.3-million hectares are
under irrigation, and around 50% of South Africa’s water is used for agriculture.
Diversification
Within a specific product there is not much diversification possible for me, because all
strawberries are the same. You can differ within size and volume of the strawberries, but
they all look and taste the same. Within the type of product I can differ of products; I can
offer different types products, like raspberries, blueberries and other types of fruit.
With diversification of products you attract a bigger target audience, people might not be
interested in my strawberries but they might be in the raspberries or the blueberries. It is
always good for a company to expand the amount of products you offer to the clients.
More customers will visit your store or the online web shop.
Emerging markets
The South African market is growing; it already is one the biggest of Africa. SA was a
poor country with a lot of problems, but the last couple of years it is growing a lot.
Economy is doing better, government is doing better and people are well educated. It is
good to do business with an emerging market because it will not be that expensive yet
to do business. It is also good for that country’s economy because they are earning
money and can pay of their national debts.
2
businesses.
Unit 39: International Business
P5 & P6: Report. (Resub)
Tutor: Xin
Student: Arno Vollebregt
Class: IBS 2B
Date: 15-06-2017
1
, Growth
My company chose to expand to foreign countries because we can increase our sales.
We expand the business to another country; this means more people that we sell the
products to. The total value of the company will increase because of the increasing
sales we make, the volume of the company will also increase because when we expand
our company more things will be included in the company; more people have to hired for
example. The total volume of the company will grow in each way. The market coverage
will also increase when we go abroad; we sell our products in another country and we
will cover another part of the market because we sell our products in another type of
market than we already did. South Africa has a dual agricultural economy, with both
well-developed commercial farming and more subsistence-based production in the deep
rural areas. Covering 1.2-million square kilometers of land, South Africa is one-eighth
the size of the United States and has seven climatic regions, from Mediterranean to
subtropical to semi-desert. While 12% of South Africa’s land can be used for crop
production, only 22% of this is high-potential arable land. The greatest limitation is the
availability of water, with uneven and unreliable rainfall. Around 1.3-million hectares are
under irrigation, and around 50% of South Africa’s water is used for agriculture.
Diversification
Within a specific product there is not much diversification possible for me, because all
strawberries are the same. You can differ within size and volume of the strawberries, but
they all look and taste the same. Within the type of product I can differ of products; I can
offer different types products, like raspberries, blueberries and other types of fruit.
With diversification of products you attract a bigger target audience, people might not be
interested in my strawberries but they might be in the raspberries or the blueberries. It is
always good for a company to expand the amount of products you offer to the clients.
More customers will visit your store or the online web shop.
Emerging markets
The South African market is growing; it already is one the biggest of Africa. SA was a
poor country with a lot of problems, but the last couple of years it is growing a lot.
Economy is doing better, government is doing better and people are well educated. It is
good to do business with an emerging market because it will not be that expensive yet
to do business. It is also good for that country’s economy because they are earning
money and can pay of their national debts.
2
