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Why Is Strategy Important To Business

786 words - 4 pages

When it comes to deciding to expand to a new country there is a lot to think about. Zip-6 has to decide if they want to expand to Japan, Argentina, or South Africa. I would think that South Africa would be the best choice because it allows Zip-6 to enter into new territory and use the resources that South Africa has to offer that other countries don’t have. They will have to deal with high taxes but this is part of South Africa and Zip-6 has to realize this. I think the best way for Zip-6 to enter South Africa is by acquisition.
Zip-6 does have a lot to consider when choosing between Argentina, Japan, and South Africa. What catches my attention is South Africa and the reason for ...view middle of the document...

Every country has their laws and regulations so this is why it is important for a company to develop relationships with other businesses in the country they want to expand in.
As CEO I would like to see Zip-6 use acquisition to expand into South Africa. By doing this they are able to merge with an existing company that is already recognized in South Africa. Even though South Africa is a developing country the FDI grew in 2011. Zip-6 can start establishing their name in South Africa before other investors come in and steal possible markets that are available now. This will allow Zip-6 to enter South Africa and grow in to the other countries in Africa. One other good thing about acquisition is the ability to be able to use plants that already exist. Zip-6 will be able to save expenses by using their partner’s equipment instead of building plants from scratch like the Greenfield Investment suggests. Also Zip-6 could learn new skills from their partner that may help Zip-6 in future growth. They might be able to use the now skills in the...

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