Your SlideShare is downloading. ×

1 international business

4,793

Published on

Published in: Business
2 Comments
4 Likes
Statistics
Notes
No Downloads
Views
Total Views
4,793
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
199
Comments
2
Likes
4
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. WHY STUDY INTERNATIONAL BUSINESS ??
    1
  • 2. Almost any large organization you work for, will have international operations or to be affected by the global economy – So, we need to understand this increasingly important area to be better assess career opportunities and to interact effectively with other managers
    2
    REASONS WHY WE MUST STUDY IB
  • 3. 3
    GLOBAL ISSUES
  • 4. 4
  • 5. REASONS WHY WE MUST STUDY IB
    2. Preparation for small companies to involved in international business – using foreign-made materials or equipment, competing with foreign firms, and perhaps even selling in foreign markets.
    5
  • 6. REASONS WHY WE MUST STUDY IB
    3. To keep peace with our future competitors. Foreign student study and be trained to be a manager. So, we need to ensure our global skills and knowledge will aid our career to compete.
    6
    AP – Raland Brooks, of Washington, who has been looking for work since February, makes notes about a job opening …
  • 7. REASONS WHY WE MUST STUDY IB
    To stay abreast of the latest business techniques and tools, because no single country has a monopoly on good ideas.
    7
  • 8. REASONS WHY WE MUST STUDY IB
    5. To obtain cultural literacy because cultures and political systems need to be understand and appreciating the similarities and differences.
    8
    many communities populated by various ethnic groups
  • 9. INTERNATIONAL BUSINESS
    9
  • 10. INTRODUCTION
    All business transactions, private and governmental that involve two or more countries
    Private companies undertake such transactions for profit
    Governments may or may not do the same in their transactions
    The goal :
    PRIVATE BUSINESS
    To increase or to stabilize profits
    Success is influenced by:
    - Foreign sales
    - Foreign resources
    GOVERNMENT BUSINESS:
    May or may not be profit oriented
    10
  • 11. WHY COMPANIES ENGAGE IN IB
    In operating internationally, a company should consider its:
    MISSION:
    What the company will seek to do and become over the long term
    OBJECTIVE:
    Specific performance targets to fulfill the mission
    STRATEGY:
    The means to fulfill its objectives
    11
  • 12. To expand sales
    To acquire resources
    To diversify their sources of sales and supplies
    To minimize competitive risk
    To have diplomatic collaboration
    To increase job opportunity
    To establish and control of RM and foreign exchange
    WHY COMPANIES ENGAGE IN IB ctd..
    12
  • 13. MODE OF ENTRY TO INTERNATIONAL BUSINESS
    Licensing
    Franchising
    Exporting
    Turnkey Projects
    Management Contracts
    Contract Manufacturing
    Joint Venture (FDI)
    Wholly Owned Subsidiaries (FDI)
    Strategic Alliances
    13
    Nonequity -
    No financial resources
    Equity based
  • 14. LICENSING
    A contractual arrangement in which one firm grants access to its patents, trade secrets, or technology to another.
    Licensor = firm that give the patents, trade mark, product formula or technology
    Licensee = firm that used the patents, trade mark, product formula or technology. Will pay royalties of license fees to licensor
    Ex: Coca cola, Disney, Pierre Cardin, Hyundai Electronics and Samsung Electronics
    14
  • 15. FRANCHISING
    A contractual arrangement in which one firm grants access to its patents, trade secrets, or technology to another and will provide operational & managerial help to franchisee
    Franchisor= firm that give the patents, trade mark, product formula or technology
    Franchisee= firm that used the patents, trade mark, product formula or technology. Will pay royalties of license fees to licensor
    Give franchisor franchising fee and regular payment of a percentage of sales
    Ex: McDonald’s, Pizza Hut, KFC, Hilton
    15
  • 16. TURNKEY PROJECTS
    Is an port of technology, management expertise, and capital equipment
    The contractor agrees to design and erect a plant, supply the process technology, provide the necessary suppliers and etc. before handing it o the owner
    The contractor have responsibilities to design, construction and operation of the project
    Usually made with government who have large public service and construction project such as building hospital, highway and ports
    Ex: Monorel in India, Building In Dubai
    16
  • 17. EXPORTING
    Indirect Exporting
    • The exporting of goods and services through various types of home based exporters
    Direct Exporting
    - The exporting of goods & services by the firm that produces them
    • Export business is handled by someone within the firm (such as sales manager)
    Ex: UMW Toyota, Petronas
    17
  • 18. CONTRACT MANUFACTURING
    Arrangement in which one company contract with another company to produce product
    The company will take responsibility to market the product with their own brand after produce the product
    Company that give contract will get royalties
    Ex: Sapura Crest Petroleum assembly the production plant in Saudi Arabia and Indonesia
    18
  • 19. JOINT VENTURE (FDI)
    Two or more firm will form a partnership
    - share ownership, risk, profit and control
    Ex: FORD & Volkswagen to join operation in Argentina & Brazil
    Ex: General Mills & Nestle to join operation in Europe
    19
    WHOLLY OWNED SUBSIDIARIES (FDI)
    • A company that wishes to own a foreign subsidiary and company take full responsibility (get all profit and faced all risk)
  • 20
    STRATEGIC ALLIANCES
    • Partnerships between competitors, customers, or suppliers that may take one or more various forms (such as joint venture etc.)
    • 20. Ex: Japan’s Panasonic, Germany’s Siemens, Korea’s Samsung & Swedish-Japanese SonyEricsson subsequently joined as equity partners in this alliances
  • EXTERNAL FACTORS THAT INFLUENCE INTERNATIONAL BUSINESS
    Economy forces
    Geographical influences
    Political & Legal Practice
    Technologies
    Culture (Values, attitudes and belief)
    21
  • 21. FACTORS INFLUENCE THE GROWTH OF INTERNATIONAL BUSINESS
    Expansion of technology
    Development of institution
    Liberalization and government policies
    An increased in global competition
    22
  • 22. GLOBALIZATION
    23
  • 23. DEFINITION
    The term “globalization” describes the increased mobility of goods, services, labor, technology and capital throughout the world
    Globalization is a term for the horizontal and vertical integration of manufacturing and trade on an international level
    24
  • 24. TOPIC TO BE DISCUSS
    Advantage of globalization towards business
    Disadvantage of globalization towards business
    Globalization, big companies forcing small companies to compete at an unfair level
    Globalization, international companies growing more powerful than some countries
    Globalization, created opportunities to small medium size enterprise to success internationally
    Globalization gives threat to small business to expand business globally
    Impact of globalization to world consumer.
    25
  • 25. Advantage of globalization towards business
    Increase resources, resources can be acquire from other country
    Everybody can involve at any level of business at any country
    Increase target market due to big no. of population
    Communication among people in different country more efficient
    Easy to locate/ market at any place of world
    Increase country collaboration
    Investment in different mode in different country.
    Every country have chance to develop and increase the level of economy
    Business can share the technology, professionalism, and expertization.
    26
  • 26. Disadvantage of globalization towards business
    Puncakegawatanekonomi – akibatkebergantunganekonomiterhadapsatu-satunegarasahaja.
    Tidaksemuamaklumatperniagaan yang diperolehiitutepat- penyaluranmaklumatperniagaan yang salahkeseluruhdunia
    Hilangkeaslian yang terdapatpadaprodukakibatperubahan yang terpaksadibuatuntukmemenuhicitarasapenggunanegara lain.
    27
  • 27. Globalization, big companies forcing small companies to compete at an unfair level
    Small company can’t compete at foreign level due to less chances given.
    Business more focusing on big companies rather than small company due to ability of big company to compete.
    Small company have to increase promotion which incur higher cost and small company difficult to afford.
    Less confident towards service or product offered by small company.
    Big company concurred/ monopoly the business
    Less opportunities given to small company to compete at international level.
    Less government support for small companies to do business at international level.
    28
  • 28. Globalization, international companies growing more powerful than some countries
    Certain country have high purchasing power, this give an opportunities to companies to increase sales volume.
    Different strategy used to enter different market in different country.
    Different economic level in different country give impact to MNC to grow in certain country
    Different government support in different country create opportunities or threat to international business to grow at international level.
    29
  • 29. Globalization, created opportunities to small medium size enterprise to success internationally
    Diversify the product due to different market in different country.
    Create global collaboration with different country
    Gain technology and expertise from other country
    Exchange resources with other country
    Compete at international level
    30
  • 30. Globalization gives threat to small business to expand business globally
    Due to law and legislation differ among country
    Different culture give an impact to adapt or to create new product
    Technology changes at different country
    Different system management have to follow might create problem
    31
  • 31. Impact of globalization to world consumer
    Large size of consumer
    Consumer are expose to different types of product or services due to different culture offered by home companies
    Consumer help to stabilize the economy of the country
    Fund flow among country more easier using technology
    Consumer can purchase product or service in different currency
    Different price of product and service due to different exchange rate make difficult consumer to purchase
    Consumer can get more information about varieties product or services through internet
    Consumer can explore information of product and services worldwide
    Sometimes information delivered not accurate or consumer wrong interpret.
    Consumer have different alternative to choose the market
    Can create new demand among consumer due to different lifestyle in different world.
    32
  • 32. MULTINASIONAL CORPORATIONS (MNCs)
    33
  • 33. INTRODUCTION
    Is a company engaged in producing and selling goods or services in more than one country.
    Its own production, distribution, service and other units in many nations.
    Plans the utilization of its resources on the global scale.
    It consists of a parent company located in the home country.
    MNCs seek to maximize its revenue at international level rather than national level.
    34
  • 34. THEORY OF THE MNCs
    Product and Factor Market Imperfections
    Financial Market Imperfections
    35
    THE STRATEGY OF MN ENTERPRISES
    • Innovation – based multinationals
    • 35. The mature multinationals
  • WHY MNCs SHOULD SURVIVE
    Cost reduction
    Economies of scale
    Multiple sourcing
    Knowledge seeking
    Keeping domestic customers
    36
  • 36. ASSIGNMENT P4504
    Find out the article related to International business from business magazine, newspaper cutting, business jurnal or any related web site.
    Discuss the issue from the article and try to elaborate the mode of entry of the company’s/ MNC’s engage to international business level.
    Date to submit:
    37
  • 37. Find ONE (1) Small Medium Enterprises (SMEs) in Malaysia or Malaysian Entrepreneurs which involved in International Business.
    Identify the mode of entry of the company’s engage to international business level.
    Date to submit:
    38
    ASSIGNMENT P4504

×