A. What was W L Gore’s international strategy and mode of entry into their selected global markets
Firms who sell their products or services outside their domestic market will use one of three international strategies, global, multidomestic and transnational. WL Gore has offices in more than 25 countries with manufacturing facilities located in Japan, China, Germany, United Kingdom and the United States (“gore story,” n.d.). They use a transnational strategy which means that they seek to achieve both global efficiency and local responsiveness (Hitt, Ireland, & Hoskisson, 2016). This strategy gives the decision making powers to the regional departments and they are not handed down from the corporate office. However the brand development and finances remain within the corporate office in Newark, Delaware.
The mode of entry into an international market can vary but include exporting, licensing, strategic alliances, acquisitions and new wholly owned subsidiaries. Gore has used all of the modes of entry to grow their business. Some examples are Gore using licensing for some of their products which means they have given their permission to another to sell their goods. Franchising which gives the franchisee a license that allows them to access the main company’s products or knowledge. Gore has used franchising as a mode of entry with the example of Electro Enterprises who they made a franchise in 2015 for Gore Microsave/RF Assemblies in the military and aerospace markets (New Desk, 2015). An example of Gore using strategic alliance is when they partnered with Pall to give them exclusive worldwide rights to GORE-TEX filter technology (Businesswire.com, 2003).
B: (RJ): Analyze the effectiveness of this international strategy(ies). ?
C. What are the advantages and disadvantages relating to the strategy they employed?
Advantages and Disadvantages of Gore’s International Strategies
As previously mentioned, Gore utilized a multi-faceted approach with their international strategy. Licensing, franchising, and utilizing strategic alliances are a few of the tactics used by Gore in an attempt to gain a competitive advantage on the global market. Each of these strategies has unique advantages and disadvantages, which made it reasonable for a company such as Gore to employ different strategies for each new international market it sought to enter.
Licensing is when the company in question, Gore, provided a licensee company the rights to produce Gore’s materials in the licensee’s home country and distribute the goods in their own existing markets. Gore, of course, would receive royalties from these sales as the licensor, which is one benefit of licensing, however, that’s not where the benefits end. Expanding existing products into new markets where licensees operate can help increase returns, helping to cover costs faster than if products were only able to be sold domestically (Hitt, Ireland, & Hoskisson, 2017). This reduces risks con.
A. What was W L Gore’s international strategy and mode of entry in.docx
1. A. What was W L Gore’s international strategy and mode of
entry into their selected global markets
Firms who sell their products or services outside their domestic
market will use one of three international strategies, global,
multidomestic and transnational. WL Gore has offices in more
than 25 countries with manufacturing facilities located in Japan,
China, Germany, United Kingdom and the United States (“gore
story,” n.d.). They use a transnational strategy which means
that they seek to achieve both global efficiency and local
responsiveness (Hitt, Ireland, & Hoskisson, 2016). This
strategy gives the decision making powers to the regional
departments and they are not handed down from the corporate
office. However the brand development and finances remain
within the corporate office in Newark, Delaware.
The mode of entry into an international market can
vary but include exporting, licensing, strategic alliances,
acquisitions and new wholly owned subsidiaries. Gore has used
all of the modes of entry to grow their business. Some
examples are Gore using licensing for some of their products
which means they have given their permission to another to sell
their goods. Franchising which gives the franchisee a license
that allows them to access the main company’s products or
knowledge. Gore has used franchising as a mode of entry with
the example of Electro Enterprises who they made a franchise in
2015 for Gore Microsave/RF Assemblies in the military and
aerospace markets (New Desk, 2015). An example of Gore
using strategic alliance is when they partnered with Pall to give
them exclusive worldwide rights to GORE-TEX filter
technology (Businesswire.com, 2003).
B: (RJ): Analyze the effectiveness of this international
strategy(ies). ?
C. What are the advantages and disadvantages relating to the
2. strategy they employed?
Advantages and Disadvantages of Gore’s International
Strategies
As previously mentioned, Gore utilized a multi-faceted
approach with their international strategy. Licensing,
franchising, and utilizing strategic alliances are a few of the
tactics used by Gore in an attempt to gain a competitive
advantage on the global market. Each of these strategies has
unique advantages and disadvantages, which made it reasonable
for a company such as Gore to employ different strategies for
each new international market it sought to enter.
Licensing is when the company in question, Gore, provided a
licensee company the rights to produce Gore’s materials in the
licensee’s home country and distribute the goods in their own
existing markets. Gore, of course, would receive royalties
from these sales as the licensor, which is one benefit of
licensing, however, that’s not where the benefits end.
Expanding existing products into new markets where licensees
operate can help increase returns, helping to cover costs faster
than if products were only able to be sold domestically (Hitt,
Ireland, & Hoskisson, 2017). This reduces risks considerably
and adds very little in the way of additional costs. One major
disadvantage of licensing is the lack of control that the licensor
has in the distribution and sales of products by the licensee.
While this can be mitigated by having iron-clad licensing
agreements between both parties, it does not eliminate all of the
risk (Hitt, Ireland, & Hoskisson, 2017). Once the licensing
agreement ends, there is nothing stopping the licensee from
using knowledge gained from the technology and science behind
what they were previously doing for the licensor and creating
their own products, eliminating the licensor from the equation
altogether.
Franchising, alternatively, allows for an attractive alternative to
acquisitions or mergers. The franchisee incurs an initial cost in
the way of the franchise fee and ongoing royalties to the
3. franchisor, which is one of the main benefits for a company to
consider franchising. This also allows for a company to
dominate a market through the consolidation of independent
companies that are part of the franchise agreement (Hitt,
Ireland, & Hoskisson, 2017). There are a few downfalls to
franchising, of course. The first of which is simply the lack of
control that the franchisor has over franchised operations. The
franchisee has control over day-to-day operations, which
reduces control of the franchisor. Another disadvantage is that
the franchisor does not get the same kind of revenue stream
from a franchised operation as it would a company-owned
operation. With a company owned operation, the company gets
100% of all revenue, but it also owns 100% of the risk (Siebert,
2015).
Finally, strategic alliances offer unique advantages in
international strategies. Entering into this kind of relationship
allows partnering firms to create a level of value unattainable
through solo-ventures. Additionally, partnering with other
firms can assist a company in reaching lofty performance
objectives that may not be possible due to constrained resources
(Hitt, Ireland, & Hoskisson, 2017). Alliances of this nature do
offer disadvantages as well. As with franchising, strategic
alliances can result in a loss of control to an extent, however,
the loss of control is less about physical control of operations
and more about perception of the company from the outside due
to the merging of reputations between firms. Additionally,
without a fully-vetted contract between firms, the equality of
benefits between firms can be a source of uncertainty and
stress. Finally, the risk of liability can be a disadvantage to
firms in a strategic alliance. If one firm in the alliance runs
into legal issues, there is risk that other partners may be held
liable as well (McQuerrey, 2020).
A minimum of 100 words each and References Response (#1 –
6) KEEP RESPONSE WITH ANSWER EACH ANSWER NEED
4. TO HAVE A SCHOLARY SOURCE with a Hyperlink
Make sure the Responses includes the Following: (a) an
understanding of the weekly content as supported by a scholarly
resource, (b) the provision of a probing question. (c) stay on
topic
1. Being a Christian, I have always had the approach to service
as a sense of imitation. While I know that I will never be able to
compare to Jesus and the way he lived his life, I try to imitate
him as best I can through his teachings and modeling. I did find
it interesting that Islamic culture is similar in that they believe
in, not modeling after, but serving Allah. As you stated, in
serving Allah, they are able to serve others. These approaches
while still different are very similar. That being said, I think
that based on Greanleaf’s model, Jesus shows the way more and
develops his people in a more efficient way. Do you think that
by having people serve you, as in the Islamic culture, is the
epitome of servant leadership?
2. I like your statement on the leadership practices of Judaism.
I think this is one of the smartest ways to lead. Having one
mind and one way to think and lead is tough, simply because
there are so many diversities to deal with. This makes me think
of the presidency. So many issues in each state and across the
entire country make it almost impossible for one person to make
all the decisions. This doesn't even include the issues around
the world. Maybe a Judaism approach to U.S. leadership would
work a bit better for us.
3. after learning about the others religion and learning the
similarities and differences had anyone made you want to
convert or do you practice anyone other tahn christianity? Just
asking .
4. the author believes that Servant Leadership is a “valid and
5. viable leadership approach “ for all cultures. What does the
author mean and do you agree with him?
5. The two variables that I choose that is impedes leadership, is
the Latin American culture perspective on servant leadership.
One of the variables is how a servant leader should be and what
kind of qualities are desirable in Panama. As well as the
confusion between the word "servant" and "slave",which keep
leaders from adopting the practice of being a servant leader.
Another variable is the "higher-power", which Peruvians wanted
new leadership and tired of the Authoritarian form of
leadership. This only grew conflict in areas whether or not
servant leadership should be allowed. If I was established in
area I would try to break down barriers by implementing
programs to bring awareness in the workplace. I would also get
to know the culture a little bit more so I can try to be a better
leader for them, so they can have some examples they can take
away from.
6. The one specific cultural perspective I have chosen is the
Asian Perspective because the two culturally specific variables
that will impeded servant leadership are individualism and
power distance. I have chosen these two variables with the
Asian culture because it seems to lack great service and
authentic spirituality authority when it comes to the biblical
sense. For example, South Korea thinks that the biblical servant
leadership is considered weak, but little do they know that Jesus
Christ is a great example of being a great servant leader and
that needs to be known to bring people together (Spears, 2010).
In Asia, if researchers and practitioners need to pay more
attention to those who think weakness is associated with
servant-oriented practice, then they need to implement the
biblical sense to understand what it takes to be a great servant
leader for their community.
If I were to be transferred over to Asia, they have implemented
6. more of the biblical model of servant leadership because if the
Asian perspective is more focused on the business, government,
and educational side, they are most likely preparing them to the
life they have to handle if they were to move to North America.
So, they have demonstrated and researched what it takes to live
somewhere else and implementing as their own.