Academic Master

Business and Finance

Explain the meaning of “corporate fit” about international market expansion. Identify and explain two common mistakes firms make when expanding internationally.

In the current world of globalization, every industry is supposed to expand and fit in the new markets by their potential as well as by making some better, sustainable and long-lasting income opportunities. For this purpose, they have to manage their corporate fit. In a corporate fit, every organization, project or system have to operate and maintain its every move precisely according to the objectives that are defined at the start. This helps in positive growth and very little divergence in the overall process. A company can get exposure to the international world and would be able to reduce by some strategic or corporate fits which the most uncommonly famous is the merger, and one of the most positive moves is the acquisition.

There are many common mistakes which different corporations have made and faced severe consequences the most famous mistakes included the hires, contracts, accounts, and some significant moves. The most effective two mistakes that could cause severe outcomes for the overall corporation, as well as everyone connected with it, are as follows:

  • Relying on informal agreements
  • Relying on the initial strategies and lack of flexibility

Both of these things profoundly affect the organization genuinely as well as the other organizations which are interconnected in other contracts and products. For example, a company don’t make a formal agreement on an international deal and starts inventing its resources on it. Meanwhile, if the tender is ignored or the receiver doesn’t keep his promise, then the loss is upon the organization which trusted the informal contracts. Changing strategies is also essential concerning the global flows of the markets and the ways of the change of the trends. Many organizations fail to achieve their goals due to their consistency on outdated strategies.

Works Cited

Weber, Yaakov, Oded Shenkar, and Adi Raveh. “National and corporate cultural fit in mergers/acquisitions: An exploratory study.” Management science 42.8 (1996): 1215-1227.

Barkema, Harry G., and Freek Vermeulen. “International expansion through start-up or acquisition: A learning perspective.” Academy of Management journal 41.1 (1998): 7-26.



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