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Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
Expanding abroad 1
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Expanding abroad 1

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Presentation meeting 2

Presentation meeting 2

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  • 1. Expanding Abroad
    Motivations, Means, and Mentalities
  • 2. Multinational Enterprise (MNE)
    What is it?
    An enterprise that has a substantial direct investment and active management of entities in a foreign country.
  • 3. Scope
    In 1984, the UN’s definition of MNE changed.
    An MNE is an enterprise:
    Comprising entities in two or more countries
    Operates under a system of decision making permitting coherent policies and a common strategy through one or more decision-making centers
    The entities are linked in a way that allows one or more to exercise significant influence over the activities of the others
  • 4. Influence
    Top 500 MNE’s account for:
    MNEs produce __% of the world’s automobiles, __% of computers, __% of toothpaste, and __% of soft drinks.
    85
    70
    35
    65
  • 5. The Motivations: Pushes and Pulls to Internationalize
  • 6. Traditional Vs. Emerging
    Traditional
    Emerging
    Need to secure key supplies
    Market-seeking behavior
    Access to low-cost factors of production
    Increasing scale economies, ballooning R&D investments, and shortening product life cycles
    Global scanning and learning capability
    Competitive positioning
  • 7. Going International Prerequisites
    Motivation
    Strategic Competencies
    Organizational Capabilities
  • 8. Uppsala Learning Model of Internationaliztion
  • 9. Approaches to Foreign Market Entry
  • 10. Evolving Mentalities
    International Mentality
    Multinational Mentality
    Global Mentality
    Transnational Mentality
  • 11. International Mentality
    Overseas portions are distant outposts whose role is to support the parent company
    Products are developed for the domestic market and are only subsequently sold abroad
  • 12. Multinational Mentality
    Growing sales convince managers that the foreign branches have more than marginal significance
    The parent company will modify its main products to fit the needs of foreign markets
  • 13. Global Mentality
    Provide standardized products at low costs
    Provides the company with more central coordination and control
  • 14. Transnational Mentality
    Companies are more responsive to local needs and pressures to develop global scale competitive efficiency
    Resources and activities are dispersed but specialized to for efficiency and flexibility
  • 15. Questions?

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