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Modes of entry into foreign market




     Ximena Rodríguez C.
     Andrés Felipe Tovar F.
Management service
                        contracts
                           
            When one firm provides management in all or
             specific areas for another firm, in exchange for a fee
             (The Firm gets regular payments as well as
             commissions.)




Areas
Technical Operation of Production
management of Personal
Accounting
Marketing Service
Training
PROS:
                       
 Entry to the market is rather simple.

 Using business experience to help similar companies
  in other countries is easy to set up, operate, and
  collect on.

 It also allows the experienced company an
  opportunity to research the market for other modes
  of entry.
CONS:
                     
 Lack of profit; a percentage of sales are not typically
  the largest margin possible when operating a
  business.

 The foreign company will gain much insight into the
  business procedures of the expert company.

 Detrimental to the expert company in the long run if
  the foreign firm ever becomes a competitor.
Example
            
Hilton Hotels   Delta Airlines
Bio
•
                             
    http://www.partnersinternational.co
    m/articles/foreign-market-entry.html

• http://www.slideshare.net/lova56/ma
                                           Support SlideShare
  nagement-service-contracts-17296112


• http://managementservicecontractsbus     Support Wikispaces
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Management service contracts

  • 1. Modes of entry into foreign market Ximena Rodríguez C. Andrés Felipe Tovar F.
  • 2. Management service contracts   When one firm provides management in all or specific areas for another firm, in exchange for a fee (The Firm gets regular payments as well as commissions.) Areas Technical Operation of Production management of Personal Accounting Marketing Service Training
  • 3. PROS:   Entry to the market is rather simple.  Using business experience to help similar companies in other countries is easy to set up, operate, and collect on.  It also allows the experienced company an opportunity to research the market for other modes of entry.
  • 4. CONS:   Lack of profit; a percentage of sales are not typically the largest margin possible when operating a business.  The foreign company will gain much insight into the business procedures of the expert company.  Detrimental to the expert company in the long run if the foreign firm ever becomes a competitor.
  • 5. Example  Hilton Hotels Delta Airlines
  • 6. Bio •  http://www.partnersinternational.co m/articles/foreign-market-entry.html • http://www.slideshare.net/lova56/ma Support SlideShare nagement-service-contracts-17296112 • http://managementservicecontractsbus Support Wikispaces inessi.wikispaces.com/home