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Discuss ‘How Tony Could Have Avoided the Mistake He Made?’

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Discuss ‘How Tony could have avoided the mistake he made?’

International business is an attractive opportunity for companies in the world. It provides more potential profitable bargains for companies that have enough competitiveness. A company can gain extra income due to the development of international supply chain and demands from foreign market. It can receive lower-price components from international suppliers, then can assemble and sell final products to targeted foreign market. The whole operational procedure creates more residual value in international trade and avoids the cruel competition in domestic market. However, there are some threats which impact participators involved in international business. The threats are possibly from adverse external environment or wrong internal decisions or the integration of those. Some of threats such as political, legal and financial issues are uncertainties which are high dangers that affect a company seriously. A company should have valid preparation for facing complex external environment. Decision maker should scheme a flexible plan to handle uncertainties in business running. Nevertheless, some companies and managers might address threats unsuccessfully due to mistaken strategies. The case of Tony is a typical failed example for facing problems. The article will analyse mistakes made by Tony and provide solutions for Tony’s company.

Tony’s company is a medium monitoring equipment maker in the UK which has no exporting experience in the past (Kerr, W. A. and Perdikis, N, 1995). It received a great potential order regarding monitors from a chain of hospitals in a Latin American country which was larger than the existing producing capacity of the company (Kerr, W. A. and Perdikis, N, 1995). Before accepting the contract, Tony made a business plan which included seeking new cheaper supplier, financial assistance

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