International Business Management Essay Example | Topics and Well Written Essays - 4000 words - 2

International Business Management - Essay Example e of this report to be submitted to the Directors of Paltek Company, is to bid for a contract to help Paltek implement its international strategy successfully. The report based on the company’s resources and sector, will identify strategic challenges and market entry options in international markets. Paltek has an annual turnover of  £5 million, employing 70 people to provide specialist circuit boards for business-to-business (B2B) markets including the military and information technology sectors. The components for manufacturing the circuit boards are procured from a number of international markets. The company plans to sell its product on an international scale, and has marketed some of its goods to the United States. Paltek’s new aim is to break into the Nordic markets, because the economies in Northern Europe are highly advanced. Expansion of the company into the European market would prove to be beneficial because of its great numbers of electronic manufacturers and purchasers. In this region Paltek plans to achieve economies of scale by using innovative ideas necessary to remain competitive. Presently offering their products only to United Kingdom customers, Paltek plans to build the design and manufacture facility for niche markets on an international scale. Though procuring supplies of components from Asia, Paltek does not plan to enter the Asian market to sell its products. The company however sees international activities capturing wider markets as the approach to increase the company’s growth. Moreover, another reason for developing the European markets is that Paltek believes that the key to running a successful business is to be in close proximity to the customers. â€Å"For a young, resource-constrained, technology-based start-up embarking on international sales, the choice of entry mode is a strategic decision of major importance† (Burgel & Murray 33). The initial foreign entry behaviour of a young firm can be of major importance in its