Table of Contents
Introduction
Every business has their own success stories behind it. We read in newspapers and magazines about the stories of the successful people who have achieved the goals for the business. An important thing successful people do is that they control their expenditure and they are careful before taking a decision. They use SMART goals setting for their Company. SMART is like a guidance for setting up the Goals.
“The SMART acronym first appeared in the November 1981 issue of management review.’ There’s a SMART way to write management goals and objectives’. Was the title and it was written by George Doran, Arthur Miller and James Cunningham. Initially it was seen as a business tool and thousands of people across the world where taught how to use it. This was often a part of improving project management processes in business. When it came to creating project objectives George Doran’s framework was the way used to define and agree consensus on goals – it still is. Today smart goals are used by people right across the world ,for setting all sorts of goals, work and career goals, health goals, financial goals, personal goals and development goals” (Doran,Miller,Cunningham,1981).
One of the main objectives of any business is to expand their Business globally. The business needs to be expanded for the growth of a particular company and to increase its sales and profit in the market .A business can be expanded by applying SMART goals setting to it. The SMART goals setting needs to be kept in the mind of management team of a company before taking a decision. SMART Goals are an important part of company’s growth. The management and team of a company should apply the SMART goals setting rather than wasting time without having a plan.
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SMART Goals Settings
Specific
The first thing is to be specific. The company should know what goal they want to achieve for the company, who to be involved in the business .Where to do it and why to take that decision for the expansion of the business. The company should inform the management and the team or employees of the business that the firm is planning to expand its business globally and should get the support from the co workers of the company.
There are some few steps which should be kept in mind before taking a decision they are:
- Who is involved in it
One of the main things which should be known is that who to be involved in the decision made. The Company should select the people who are eligible to carry out the goal made by the company. The company should appoint the maximum number of qualified employees and a management to work towards the specified goal made by the company.
- What to accomplish
The next step is to know what type of goal needs to be achieved. The management of a company should have a clear picture or idea about the goal they want to achieve for the company.
- Where will it be done
This is one of the main things after taking a decision. The company should know where to expand their business.
- Why to do it
The company should have an idea about the reason behind carrying out the task. By expanding the business internationally or globally increases the sales of the products and it gives the company a huge profit of return back.
Measurable
The second thing of SMART Goals settings is to be Measurable. The Company needs to track the progress of their goal. The company or management should have an idea of how much or how many should be achieved as a goal. The management should know or should decide the countries which the management wants to expand their business.
Attainable
The Management of the company should know weather they can expand the business globally or not. The management of the company should have the skills and abilities to achieve their goal which is expansion of business. The company should have enough resources and money to achieve their goal and enough time is needed for the expansion of business.
Relevant
The goal which the company is aiming to achieve should be relevant. The expansion of business should be a motivation and it should also benefit the employees and teams by increasing the salaries of the employees.
Timely
This is one of the most important things to be taken in mind. The company should have a time limit to achieve the goal. The expansion of the business should have a time limit which should be taken by the management. This helps the company to achieve the goal at the specified time and it makes the company to have a better time management.
Expansion of Business Globally
The Business globalization is the main important factor which should be kept in mind. After the business being successful, the next procedure is expansion of the business. “Going worldwide’ is the overall development toward monetary, money related, exchange, and interchanges coordination. For a rising organizations, Expansion of business is an important thing that will benefit existing business of the organization. It is important, for CEOs and top managements to comprehend its full effect and decide.
Taking a small company or business worldwide is kind of a risky process. It should be done accordingly and the company should have a plan about the expansion of business.
Some of the steps which should be kept in mind before expansion of the business are:
Reason to expand the business
Before having a business globally, the management of the company should know the reason and should prepare for it.
- The Management should do a market research about the products if the products of the business will be able to sell at the local markets.
- The Management should do a SWOT analysis. The Management should research about the local products in the market and should know about the competitive business products.
Building up a strategic business plan
Each Market or business has their own styles in economic, cultural, governmental and market conditions. It is important to have a local business strategy and that helps to have a local success by remaining integrated with the overall corporate strategy and objectives.
- The Company or management should define the goals
- The Company should decide if it is a short, medium or long term goal.
- The Company should decide about what they are planning to do. The Management should decide if they are going to set up a separate company, a branch or sales office.
- The Company should have a fixed date to carry out their goal.
Appointing a good management team
The Company should appoint the right senior management team which allows the company to hit the ground running; quickly validate assumptions by appointing the right management team.
Item Readiness
Before taking the products of business to the market, The Company should have certain things done they are:
- The products of the business should get the countries government certification if needed.
- To know if any localization is needed for the product.
- To get the name of the product translated to the local language of the country.
- The Management of the company should find the local distribution network, to get the products sold in the market.
Organizational Readiness
The Management of the company should ensure if the employees are engaged and working towards the company’s plan. For that the Company should provide local requirements overall maintaining with the company’s policies.
Establish a Market Strategy
The selling of the Company’s products of business should require strategies that address sales strategy, branding, pricing which creates or gives a clear idea about the business. The Company should know the sales model, sales methodology and to decide weather new brand should be found or will use the current brand.
Check pricing model
The company should check the pricing model because in some countries customers are price conscious and the product of the company may not fit for their environment.
Tax and finance readiness
The Company needs to prepare proper Tax and finance infrastructures to receive proper timely reporting and the foreign entity or firm adhering to local policies and procedures.
- The Company should consider outsourcing accounting, payroll and tax.
- The Company should establish local banking relationships.
- The Company should develop a risk management plan.
- The Company should develop a transfer pricing study.
- The Company should develop a cash repatriation plan.
- The Company should prepare a report sales and VAT Taxes.
Prepare your final budget
The Company should prepare the final budget which should be attainable by the company. The Company should prepare a 3 year business budget and 12 months business plan which should be updated every six months. The Company should establish a real time or a weekly budget to actual reporting with variance analysis.
Establish a close relationship with local business
The Company should have a strong competitive advantage by creating a supporting eco system by giving complimentary products or services with the business. These relationships will support the company and it reduces the financial risks to the company.
Advantages of having Business globally
Today’s Global Markets have changed and it offers even the smallest of business opportunities to sell internationally. Going global helps the small businesses to be success because they can focus more on markets that offer them great chances. Some of the advantages of having business globally are:-
Product Flexibility
Doing the business globally gives so many benefits to the company. If the products, do not sell well in the local markets, the same products can be sold in the international market with high prices. This gives flexibility to the business and can also have a huge return of profit to the company.
Less Competition
In a Local market, the company may have to face competition as a local phenomenon because the local markets may have the same products the company has. The International markets have less competition and can quickly capture the market share. This can be more advantageous when the company has high quality version of products.
Protection from national trends and events
When there is an expansion of business globally, there won’t be any vulnerability to events in any other country. For e.g.: If the company sells the soft drinks with high sugar content in the local market or the country, it can be discovered that the home country frowns upon drinks that offer extra calories. But the same products may be able to be sold in other country that has much different positive attitude towards these types of drinks.
Learning new methods
By doing the business globally, new ways of methods can be learned from it. You can apply this knowledge to the other markets.
Gives ability to help more people
The solutions that the company or the business gives to the people may somewhat helps the customers. When the company is expanded globally, the customer’s number of questions can be answered.
Learning a new culture
Getting the information’s about a new country helps to make the company better-rounded. By understanding the people outside the company’s country will helps to understand about the global markets and customer tastes and it helps to build new relations with the domestic customers and business partners.
Improving Company’s reputation
Global expansion improves the company’s reputation. Once the business gets successful, the company can enjoy the prestige of calling them an international company.
In conclusion, expanding business gives huge return of profit to the company and the company can learn new ideas of business outside the local markets, tastes of the customers, the company can know about competitive markets but for most and it will offer greater opportunities for the growth and the difficult job by going global can produce greater results.
