Globalization – Opening Retail Outlets

Essay by MrzNSmith72College, UndergraduateA, April 2008

download word file, 7 pages 3.0

ABC General Merchandising has been extremely successful with various stores throughout the United States. The President of ABC would like to open several stores off-shore. His main focus is Mexico City, Germany and India. The main office of ABC has chosen the locations and maintained the permits needed for operation. With my new acquired position as Senior Vice President, there are many obstacles I must triumph over before the stores can be opened for business.

ANTICIPATED PROBLEMS OF OFF-SHORINGProblems that could affect the opening of new retail outlets for ABC General Merchandising Company are:• Advertising that will accommodate cultural interest• Items for consumption• Changes in consumer preferences• Failure by ABC to sufficiently predict consumers demands and sales quantity• Supply risk• Lack of ability to acquire preferred pricing boundaries and profitability because of manufacturing circumstances,• Fabrication inefficiencies• Augmented costs of merchandise• Currency trends• Greater than-expected levels of client cancellations or returns• Lack of success in ABC 's retail ventures due to common retail market circumstances or loss of market share to the competition• Setbacks in meeting delivery goals because of designs, fabrication or allotment problems• Legal tender fluctuations,• Government actions• Start-up and software complications related to its global restructuring efforts.

ABC 's "ability to achieve desired operating and logistical efficiencies in the areas of distribution and information systems; start-up and software complications related to its global restructuring efforts." (Reebok International Ltd., 2000)This documentation of risk concerns is not in-depth. Certain aspects that could influence ABC's authentic outcome consist of but are not bounded to, the following; ABC maneuvers in an extremely aggressive and quickly shifting atmosphere. Consequently, new risk factors will be able to occur; also it is not likely management will grasp each risk factor, or be able to evaluate the shock of every single one on ABC's industry or...