Final Recommendation
Le Vien Thong Pham
FINAL RECOMMENDATION
Le Vien Thong Pham
MAN3600 International Business
Professor: Andrea Brvenik
Date: 05/03/2016
Final Recommendation
Le Vien Thong Pham
This paper was prepared to provide Target with an insight into the significant characteristics of
undertaking business overseas as well as to answer some common questions that may arise
before making its first venture into the Vietnamese market. Although I will try, to the best of my
knowledge, to advise the company’s managers what they should be aware of when conducting
business overseas, professional and specific advice on each particular circumstance should
always be sought.
1. Target Should Be Prepared for Global Expansion
First of all, expanding business activity internationally will offer Target substantial
advantages such as diversification and additional revenue. Diversification, indeed, will serve as
the purpose and the need of the company when it is operating outside of its traditional market
area. In other words, Target will be benefited from better management practices by learning
different methods of running business, reaching new consumer base, gaining competitive
intelligence, and improving cultural sensitivity. Even though in this global economic society
nowadays, it is tough to avoid the cross-border effect when there is an economic slowdown,
going overseas may allow the company to become less reliant on domestic economic condition.
Another main reason, certainly, is to fuel financial growth – New markets provide new sources
for revenue and profit margin extension. There has been countless of articles written about how
enormous the populations and growing purchasing power are in developing countries. Entering
into these potential markets, however, involves tremendous resources and a very strong
competitive advantage.
At this point, we may want to ask ourselves a few different questions. “How can we
select the right market?” “What financial, human, and other capitals will we need?” “What
Final Recommendation
Le Vien Thong Pham
would be the return on investment?” These and other similar questions should, obviously, be
asked, but the answers lie across a broad spectrum.
2. Getting to Know the Market by Identifying Essential Economic Factors
Due to the relatively low employment costs, strong work ethic, government incentives,
and the improvement of legal and business environment, Vietnam became my recommendation
as one of the optimal destinations for Target to expand its business outside of the U.S. For one
thing, the Vietnamese business landscape is quite distinctive, and the fact that it is growing
rapidly complicates its evaluation further. Nevertheless, a lot of economic characteristics
continue to be untouched; therefore, Target needs to have a complete understanding of all of the
