Expansion of the organization into new market: a systematic approach

Abstract

Purpose of the article A systematic approach together with the comprehensive study provides global and holis-tic understanding about the organization and its activities according to the potential market macro environment. All the studies, starting from market environment analysis, evaluation of the organization’s vision elements, business unite assessment system, evaluation of the companies added value elements in existing markets allows to identify majors gaps in all business elements and helps to minimize the risk. The main purpose of the paper is to determine how to implement a systematic approach going into new markets. Methodology/methods Achievement of this aim requires two empirical studies: Questionnaire survey of em-ployees and customer preferences business evaluation in Lithuania, Poland, Ukraine markets. Scientific aim How to evaluate organisational readiness to start expansion into a chosen foreign market by applying a systematic approach. Findings In the theoretical part of the article, evaluation methodology is analysed, potential markets and macro and competitive environments are investigated, and basic elements of assessment are differentiated; together with the methods of case analysis, a universal theoretical model of organisation expansion into a foreign market was structured. Conclusions In support of the research methodology, the logical sequence embracing the following basic steps was established: macro environment analysis of the potential market, competitive analysis of the market, the expert survey analysing separate elements of the corporate vision, the questionnaire survey of employees by applying the system of a business unit evaluation, assessment of the company activity priorities by clients in already functioning three markets, and identification of critical gaps. Systematic approach includes analysis of all business elements such as company’s structure, strategy, systems, skills, staff, shared values, and style.