Expanding abroad 1

2,355 views
2,141 views

Published on

Presentation meeting 2

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,355
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
22
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Expanding abroad 1

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

×