GC INTERNATIONAL HOLDINGS INTERNATIONAL CONSULTING AND BUSINESS
GC International knows there is a substantial shift towards a more integrated global economy. This is expanding opportunities across all sectors of international business. GC International’s business transactions include contractual agreements that permit foreign firms and investors to utilize our services, products, and processes. These transactions also allow firms and investors to develop and operate manufacturing, sales, distribution facilities, and research and development in foreign markets.
The Global Economy has Become Standard In The Way GC International Operates.
These Global factors will continue to push all firms that are looking to enter the international markets. GC International to help businesses evaluate their strategic international policies. The financial and industrial technology and communications that GC International can offer are at the forefront of the possibilities of a limitless future. We help investors and companies work on a global scale and help bring more people and cultures into business trade.
GC International Operations
GC International understands that all firms that want to go international must the want, need, and desire to engage in international trade transactions and projects. To accomplish this goal, GC International will help each firm, individual, or investor develop its strategy and approach to maximize value, lower costs, and increase profits.
GC International’s primary function is to add Value
Value creation can be categorized as:
1) PRIMARY ACTIVITIES
a) research and development,
b) production,
c) marketing and sales,
d) customer service and
2) SUPPORT ACTIVITIES
a) information systems,
b) logistics,
c) human resources
These activities must be managed effectively and consistent with the firm’s or investors’ strategies. However, when extended internationally, firms' or investors' success directly depends on the core competencies and international skills that the firm or investor has, which will outmatch any competitor.
For a firm or an investor to succeed, their strategy must be consistent with the international environment in which they will operate. Here, GC International will help form their needs to adapt their international organizational structure to reflect the required changes in the setting in which they will be operating and the international strategies they will be pursuing.
Once a firm or investor has decided to enter an international foreign market, they must decide on a mode of entry. GC International will help direct their successful mode of entry in selecting the six different modes of entering a foreign market. GC International understands the pros and cons associated with each of the six modes of entrance and will direct the firm or investor to the appropriate venue.
GC International will help and direct the firm or investor in the appropriate mode that aligns with their goals and objectives.
The Six Different Modes of Entry
1) The first entry mode is EXPORTING.
Exporting is the sale of a product in a different national market than a centralized manufacturing hub. In this way, a firm or investor may realize a substantial scale of economies from its global sales revenue. For example, Japanese automakers have made inroads into the U.S. market through their exporting and sales of autos in the U.S. There are two primary advantages to exporting: avoiding high costs of establishing manufacturing in a host country (when these are higher) and gaining an experience curve. However, some possible disadvantages to exporting are high transport costs and high tariff barriers.
2) The second entry mode is a TURNKEY PROJECT.
In a turnkey project, the company hires an independent contractor to oversee all of the preparation for entering a foreign market. Once the preparation is complete and the end of the contract is reached, the plant is turned over to the company fully ready for operation.
3) The third mode is LICENSING.
It is a generally understood principle that Licensing and Franchising are similar in operations. However, Licensing allows a “licensor” to grant the rights to an intangible property or project to the “licensee” for a specified period of time for a royalty fee.
4) The fourth mode is FRANCHISING.
The other side of the two comparisons that are similar is Franchising. Franchising is considered a specialized form of licensing in which the "franchisor" sells the intangible property to the “franchisee." Also, it requires the “franchisee” to operate as dictated by the “franchisor.”
5) The fifth mode is a JOINT VENTURE.
A Joint Venture is when a firm or investor creates a jointly owned project with two or more companies or individuals.
6) The sixth mode is a WHOLLEY OWNED SUBSIDIARY.
A wholly owned subsidiary is when a firm or investor owns 100 percent of the company or project in the foreign country.
Types of Operation Consulting
Exports and Import
• Merchandise exports: goods exported—not including services.
• Merchandise imports: The physical goods or products imported into the respective country. Countries import products or goods that their country lacks. An example is that Colombia must import cars since no Colombian car company exists.
• Service exports: In the past few years, Service Exports have been one of the fastest-growing export sectors. The majority of companies create a product that requires installation, repairs, and troubleshooting. Service exports are simply a resident of one country providing a service to another. A cloud software platform used by people or companies outside the home country.
• Exports and Imports of products, goods, or services are usually a country's most important international economic transactions.
International Risks Consideration
The GC International Team will assist the Firm or Investor in the determination of Risks that are present in any business decision. The Team will carefully go through all of the inherent Risks that are involved and work with the Firm or Investor in mitigating these Risks if the they are wanting to enter that particular international market.
Faulty Planning:
To achieve success in penetrating a foreign market and remain profitable, efforts must be directed toward the planning and execution of Phase I. Using conventional SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats), market research, and cultural research will give the firm appropriate tools to reduce Risk of failure abroad. Risks that arise from poor planning include significant expenses in marketing, administration, and product development (with no sales); disadvantages derived from local or federal laws of a foreign country; lack of popularity because of a saturated market; vandalism of physical property due to the instability of the country.
There are also cultural risks when entering a foreign market. A lack of research and understanding of local customs can lead to the alienation of locals and brand dissociation. Strategic risks are the uncertainties and untapped opportunities embedded in your strategic intent and how well they are executed. As such, they are critical matters for the board and impinge on the whole business rather than just an isolated unit.
Operational Risk:
A company must be conscious of the production costs so as not to waste time and money. If the expenditures and costs are controlled, it will create efficient production and help internationalization. Operational Risk is the prospect of loss resulting from inadequate or failed procedures, systems, or policies; employee errors, systems failure, fraud, or other criminal activity; or any event that disrupts business processes.
Political Risk:
How a government governs a country (governance) can affect a firm's operations. The government might be corrupt, hostile, or totalitarian and have a negative global image. A firm's reputation in the market can change if it operates in a country controlled by that type of government. Also, an unstable political situation can be a risk for multinational firms.
Elections or any unexpected political event can change a country's situation and put a firm in an awkward position. Political risks are the likelihood that political forces will cause drastic changes in a country's business environment that hurt a business enterprise's profit and other goals. Political Risk tends to be greater in countries experiencing social unrest. When political Risk is high, there is a high probability that a change will occur in the country's political environment that will endanger foreign firms there. Corrupt foreign governments may also take over the company without warning, as seen in many international countries.
Technological Risk:
Technological improvements bring many benefits but some disadvantages as well. Some of these risks include lack of security in electronic transactions, the cost of developing new technology (the fact that this new technology may fail), and when all of these are coupled with the outdated existing technology, the result may create a dangerous effect in doing business in the international arena.
Environmental Risk:
Companies that establish a subsidiary or factory abroad must be conscious about the externalizations they will produce, as some may have adverse effects such as noise or pollution. This may cause aggravation to the people living there, which can lead to conflict. People want to live in a clean, quiet environment without pollution or unnecessary noise. If a conflict arises, this may lead to an adverse change in customer's perception of the company.
The actual or potential threat of adverse effects on living organisms and the environment by effluents, emissions, wastes, and resource depletion. This arising out of an organization's activities is considered an environmental risk. As new business leaders come to fruition in their careers, it will be increasingly essential to curb business activities and externalizations that may hurt the environment.
Economic Risk:
Economic Risks come from the inability of a country to meet its financial obligations. This inability occurs when there is a change in foreign investment and domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct international business. Moreover, it can be risky for a company to operate in a country and may experience an unexpected economic crisis after establishing the subsidiary.
Economic risks are the likelihood that financial management will cause drastic changes in a country's business environment that will hurt a business enterprise's profit and other goals. In practice, the biggest problem arising from economic mismanagement has been inflation. Historically, many governments have expanded their domestic money, supplying misguided attempts to stimulate economic activity.
Financial Risk:
Financial Risk occurs when it becomes government flexibility in allowing the firms to repatriate profits or funds outside the country. The devaluation and inflation will also affect the firm's ability to operate efficiently and remain stable.
Furthermore, the taxes that a company has to pay might be advantageous or not. It might be higher or lower in the host countries. Then, the Risk that a government will indiscriminately change the laws, regulations, or contracts governing an investment or will fail to enforce them in a way that will directly reduce an investor's financial returns. Exchange rates can fluctuate rapidly for various reasons, including economic instability and diplomatic issues.
Risk of Terrorism:
Terrorism not only affects civilians, but it also damages corporations and other businesses. These effects may include physical vandalism or property destruction, declining sales due to frightened consumers, and governments issuing public safety restrictions. Firms engaging in international business will find it difficult to operate in a country with uncertain safety assurance from these attacks.
Risk of Bribery:
Bribery is receiving or soliciting any items or services of value to influence the actions of a party with public or legal obligations. This is considered an unethical form of practicing business and can have legal repercussions. Firms that want to operate legally should instruct employees not to involve themselves or the company in such activities. Companies should avoid doing business in countries where unstable forms of government exist as it could bring unfair advantages against domestic business and harm the social fabric of the citizens.