Global Business

The business of manufacturing and selling solar panels in China receives government support since it is one of the ways of providing clean energy. This makes it easier for people engaged in this business because it helps to cut down costs. The first strategy is to ensure that the solar panels attract many people. One way of doing this is by advertising them using the benefits of clean energy. If people are made aware of the benefits of using solar energy, they will be willing to buy the solar panels. Another strategy is to make sure that people know the advantage of using solar panels over other forms of energy. Another strategy the business can use is to ensure that it sells the solar panels at a lower rate than the market price. This attracts more clients to the business. The business can retain these clients by constantly improving on the quality of the products (John & Gillies, 1996).

An appropriate mode of entry would be foreign direct investment. This is where the company chooses to open manufacturing firms in the specific countries and use the local people as employees. It will be more beneficial for the company to locate and establish its operations in China because of the support provided by the government and the local financial institutions. Another advantage is that the operation costs are lower. The business will save a lot of money by employing the local people. Another advantage is that there is availability of raw materials for the manufacture of the solar panels. Since China has been in the manufacture of solar panels for a while, it has the technology needed. Technology advancement will enable the company to use less costs when manufacturing the panels. There is a ready market for solar panels in China, it has a huge population and the government is encouraging the use of clean energy.

The process of control and evaluation is important since it helps businesses to know whether they have been able to fulfill their objectives. The business should have set the objectives it aims to accomplish. It should have set the targets it hopes to achieve by a certain period. The business should measure its objectives against its results and note how well or how poorly it has performed. This process enables the business to know how it will proceed in case it has been unable to perform what it had planned. The process takes place after a business has been established because it is only then that the business can gauge its performance. The business can measure its returns by checking whether it has made any profits or it has avoided any losses. The company can check the growth of its market share, and note how fast it has been able to achieve this growth. It can also check the relationship with the various stakeholders such as the host country, employees, customers and clients, and other partners involved. The company should then check the reason for its poor performance. This can be caused by internal or external factors. If the cause is internal, the business should know the corrections it needs to make (Katsioloudes, 2002)

Despite all the preparation and observation done, businesses have to be ready for any eventualities. Businesses should identify the possible risks that they can encounter when opening up markets globally. Some of the risks involved in opening business in China include not finding the right people for the job. Since it is a new company, it can be difficult to find the right connections. This means that the business will not be able to know the government regulations concerning global business and it can be denied a license. The business can also suffer when it fails to find qualified employees for the job. The people available may not have the required knowledge to perform the work. There is the possibility that conflicts between the different cultures can affect the business negatively. Factors such as the political climate in the country can also affect the opening up of the business. It is important for the business to conduct thorough business analysis in such cases. Proper preparations are necessary and the business should consider all likely scenarios.

References

John, R., & Gillies, L. G. (1996). Global business strategy. United Kingdom: Cengage Learning EMEA

Katsioloudes, I. M. (2002). Global strategic planning: cultural perspectives for profit and nonprofit organizations. New York, NY: Elsevier