Dr. Jane Menzies' Class on May 2nd, 2015

1. REFLECTIONSON ENTREPRENEURSHIP,
STRATEGIES,NETWORKING AND DOING
BUSINESSIN THE ASIAN REGION.
DrJaneMenzies
jane.menzies@deakin.edu.au
DepartmentofManagement,DeakinBusiness School
DeakinUniversity, Australia
http://www.linkedin.com/profile/viewid=9062770&trk=nav_responsive_tab_profile

2. INNOVATION
Baregheh, Rowley and Sambrook (2009):
Innovation is the multi-stage process whereby
organizations transform ideas into new/improved
products, services or processes, in order to
advance, compete and differentiate themselves
successfully in their marketplace (p. 1334).

3. INNOVATION
• Win in international markets with innovation!
–Product
–Process
–Market
–Management tools & efficiency
–E-innovations
• Henderson & Clark (1994)
–Radical vs Continuous Improvement
–Architectural vs component innovations

4. INNOVATION
• How to improve innovation in your firm?
• Greater spend on Research & Development (R&D)
• Employment of highly educated staff (masters, PhD
level)
• Motivation and rewards
• Culture of innovation, creativity and freedom to
explore new ideas!

5. ENTREPRENEURSHIP
• Creative solutions to problems!
• Problems as opportunities!
• Inventors – create something new
• Engineers – someone who uses maths, science and
creativity to build something new!
• Entrepreneurs are people who can bring different parts of
a business together:
–Investors, R&D, marketing, sales, production.
–Have a vision.

6. ENTREPRENEURSHIP
• Self employment with an uncertain return
(McMullan & Long, 1990).
• Innovation, growth, uniqueness, risk taking,
proactive.
• Outcomes of entrepreneurship – creation of value.
• A person who carries out new combinations – new
products, processes, markets, organisational
forms or sources of supply (Schumpter, 1934).

7. ENTREPRENEURSHIP
• Are you going to create a new organisation or
build on your current one.
• Is “the process whereby the firms engage in
diversification through internal development…new
resource combinations to extend firms activities in
unrelated areas,” (Burgelman, 1983).

8. ENTREPRENEURSHIP
• Birth of a new business, and transformation of
existing businesses through a renewal of their key
ideas.
• Rapid departure from pre-existing organisation.
• “Liability of newness” (Stinchcomber, 1965).
• Selling the innovation
• Getting the funding/investment

10. HOW TO DO BUSINESS IN THE ASIAN
REGION
• Conduct a country analysis
• Think about what you actually want to provide to
your country in Asia
• Pick the country (or countries) that will offer your
business the greatest advantage

11. WHAT DO WE LOOK FOR IN COUNTRY
ANALYSIS
• Benefits (Customers, market share, brand awareness)
• Risks (Legal, political, economic, cultural)
• Costs of doing business (Legal, cultural, time, actual
cost)
• Politically stable
• Economically stable
• Country that protects legal/property rights
• Free market systems
• Low inflation rates
• Low private sector debt

12. DEVELOP STRATEGY
• Develop mission statement
• Do SWOT analysis
• Industry analysis
• Competitor analysis
• Set the strategic goals
• Set the international strategy
• Set corporate strategy
• Set business level strategy

13. INTERNATIONAL STRATEGY
• Pressures for cost reductions
• Pressures for local customisation
• International Home replication strategy
• Global standardised strategy
• Localisation (multidomestic strategy)
• Transnational strategy

14. SELECT AN ENTRY MODE
• Several factors affect the choice of entry mode including:
–transport costs
–trade barriers
–political risks
–economic risks
–costs
–firm strategy
• The optimal mode varies by situation—what makes sense for
one firm might not make sense for another.

15. SELECT AN ENTRY MODE
 When to enter?
 First mover advantages – enter a new market early
 First mover disadvantages – pioneering costs
 Late market entry
 Scale of market entry
 Large scale entry – indicates more commitment to the
market
 Small scale entry – gives an opportunity to learn about
the market.

16. SELECT AN ENTRY MODE
 Exporting
 Manufacturing Contracts
 Management Contracts
 Licensing
 Franchising
 Wholly owned foreign entity
 Greenfield site
 Acquisition
 Joint venture
 Strategic alliance

17. IMPORTANCE OF NETWORKING
 Internationalisation often occurs due to networking:
 My client asks me to provide a service in a foreign country
 Provide the service, and I meet other firms
 Other firms ask me to provide the service, and so on.
 Next thing I develop a reputation, more business.
 I set up an office, and then win more business.
 Therefore, Liability of Outsidership!
 Important to get into networks!

19. CONSIDER SUPPORT IN HOST COUNTRY
–International Trade Offices
• Austrade for Australia
• Matrade for Malaysia
–What do they offer?
• Information, contacts, networks
• Seminars, on the ground support
• Market development grants
• Training programs
• Export financing
• Export Insurance

20. CONSIDER SUPPORT IN HOST COUNTRY
–Chambers of Commerce or Business
• Australia Malaysia Business Council
• Malaysia Australia Business Council
–What do they offer?
• Introductions, contacts and networks
• Introduction into the community/support
• Events and seminars
• Information

21. DESIGN THE HUMAN RESOURCES
STRATEGY
–Depends on the entry mode used?
–How will you staff your international activity?
–Will it just be you as a one man/woman show or more?
–Expatriates?
–Will you use host country nationals and what are some of
the implications of managing them?
–Joint venture or strategic alliance partner staff?
–Training/development
–Performance Appraisal
–Compensation and rewards

22. DESIGN MARKETING STRATEGY
–Degree to which you customise or standardise the elements
of the 4Ps
–What is your customer target? Consumer or B2B?
–Product (Does it need adaptations of the market place?)
–Price (Price point, can my customer afford my price?)
–Promotion (What media is available – how to reach the
customer?)
–Place (Concentrated versus Fragmented distribution)

23. CONCLUSIONS
–Innovation and entrepreneurship are important to businesses
–Important to conduct appropriate country analysis before entering
markets
–Based on selecting the right country/countries need to
appropriately develop strategies.
–A business strategy can be established to tackle the international
market.
–Now we are going to:
• Develop strategies for the Asian region for either new or old products
or services.