This document discusses various modes of entering international business, including exporting, licensing, franchising, mergers and acquisitions, foreign direct investment, joint ventures, and contract manufacturing. It provides details on each mode, such as definitions, advantages, and disadvantages. Major issues in going global are also outlined, including target product/market, goals, entry mode, timing, and marketing plans. Political issues that could impact business environments are also addressed.
What are the benefits to firms of international diversification Wha.pdfdeepaksatrker
What are the benefits to firms of international diversification? What are the risks involved with
internationalization?
Solution
The following are the major benefits to firms of international diversification :
1. Profit Making Opportunities : International Diversification opens new platforms and markets
for firms products. Firm can access large and emerging markets, improve their customer base
and revenue numbers. It also provides access to regional trading area and first mover advantages
in case of some markets.
2. Business Growth : The firm can diversify into different product lines for different countries.
One of the best example is Nestle which draws most of its customer base for edible products like
maggie noodles from outside of its home country.
3. International Reputation : It helps a firm build a reputation beyond its national borders. An
internationally recognised brand sells well in the domestic country as well.
4. Competitive Advantage : Firms gain competitive advantage by outsourcing non core activities
to other nations, and can focus by producing/ manufacturing what they are better at.
5. Access to Resources : Firms get a much better access to resources in terms of labour and
capital. Firm can use of a pool of funds from international investors and source cheap labour
from other countries.
6. Cost Reduction : International diversification helps a firm to diversify its operational and
managerial costs, reduce its production costs and also helps to lower the selling costs at different
locations.
Risks Involved with Internationalization :
1. Changing International Environment : All firms operate in a dynamic environment. It is
difficult to predict the global trends, tastes and preferences of buyers, international trade policies
etc. Cross border transactions include huge investment in terms of labour, capital and resources.
Reversing them involves huge losses.
2. Uncertain Business Cycles : Global recessions and downturns are uncertain but deeply affect
an organisation\'s business. The Eurozone Crisis, U.S. Economic Crisis are examples of business
cycles that have adversely affected global economies.
3. Political and social instability: Political and social instabililty in the countries where a firm
operates can also affect the firm\'s business lines. Since, in case of interational diversification,
firms opearte in different environment, they have little or no control on external factors such as
these.
4. Government Policies : Sometimes frequent changes in government policies of foreign
territories pose a risk to international business of a firm. A more supportive environment is
important for a firm to operate effectively..
What are the benefits to firms of international diversification Wha.pdfdeepaksatrker
What are the benefits to firms of international diversification? What are the risks involved with
internationalization?
Solution
The following are the major benefits to firms of international diversification :
1. Profit Making Opportunities : International Diversification opens new platforms and markets
for firms products. Firm can access large and emerging markets, improve their customer base
and revenue numbers. It also provides access to regional trading area and first mover advantages
in case of some markets.
2. Business Growth : The firm can diversify into different product lines for different countries.
One of the best example is Nestle which draws most of its customer base for edible products like
maggie noodles from outside of its home country.
3. International Reputation : It helps a firm build a reputation beyond its national borders. An
internationally recognised brand sells well in the domestic country as well.
4. Competitive Advantage : Firms gain competitive advantage by outsourcing non core activities
to other nations, and can focus by producing/ manufacturing what they are better at.
5. Access to Resources : Firms get a much better access to resources in terms of labour and
capital. Firm can use of a pool of funds from international investors and source cheap labour
from other countries.
6. Cost Reduction : International diversification helps a firm to diversify its operational and
managerial costs, reduce its production costs and also helps to lower the selling costs at different
locations.
Risks Involved with Internationalization :
1. Changing International Environment : All firms operate in a dynamic environment. It is
difficult to predict the global trends, tastes and preferences of buyers, international trade policies
etc. Cross border transactions include huge investment in terms of labour, capital and resources.
Reversing them involves huge losses.
2. Uncertain Business Cycles : Global recessions and downturns are uncertain but deeply affect
an organisation\'s business. The Eurozone Crisis, U.S. Economic Crisis are examples of business
cycles that have adversely affected global economies.
3. Political and social instability: Political and social instabililty in the countries where a firm
operates can also affect the firm\'s business lines. Since, in case of interational diversification,
firms opearte in different environment, they have little or no control on external factors such as
these.
4. Government Policies : Sometimes frequent changes in government policies of foreign
territories pose a risk to international business of a firm. A more supportive environment is
important for a firm to operate effectively..
International market entry and expansions ajitjoshiin
Market entry methods
When you know the scale of entry, you will need to work out how to take your business abroad. This will require careful consideration as your decision could significantly impact your results. There are several market entry methods that can be used.
Exporting
Exporting is the direct sale of goods and / or services in another country. It is possibly the best-known method of entering a foreign market, as well as the lowest risk. It may also be cost-effective as you will not need to invest in production facilities in your chosen country – all goods are still produced in your home country then sent to foreign countries for sale. However, rising transportation costs are likely to increase the cost of exporting in the near future.
market entry strategy of textile and garmentsNasif Chowdhury
Market entry mode selection is very important for doing new business extension. This assignment is based on market entry mode for textile and garments business
International Business Dynamics module 2 by Nagarjun ReddyPNagarjunReddyReddy
Complete detail of Second Module International Business Dynamics contents, Globalization – Supporting Institutions in International Conflict Resolution
Senior Seminar in Business Administration BUS 499Internation.docxklinda1
Senior Seminar in Business Administration
BUS 499
International Strategy
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2009). BUS499: Strategic management: Competitiveness and globalization, concepts and cases: 2009 custom edition (8th ed.). Mason, OH: South-Western Cengage Learning.
Welcome to Senior Seminar in Business Administration.
In this lesson we will discuss International Strategy.
Please go to the next slide.
Objectives
Upon completion of this lesson, you will be able to:
Identify various levels and types of strategy in a firm
Upon completion of this lesson, you will be able to:
Identify various levels and types of strategy in a firm.
Please go to the next slide.
Supporting Topics
Identifying international opportunities: incentives to use an international strategy
International strategies
Environmental trends
Choice of international entry mode
Strategic competitive outcomes
Risks in an international environment
In order to achieve this objective, the following supporting topics will be covered:
Identifying international opportunities: incentives to use an international strategy;
International strategies;
Environmental trends;
Choice of international entry mode;
Strategic competitive outcomes; and
Risks in an international environment.
Please go to the next slide.
Overview
International strategy
Demand develops in other countries
Secure needed resources
An international strategy is a strategy through which the firm sells its goods or services outside its domestic market. One of the primary reasons for implementing an international strategy is that international markets yield potential new opportunities.
Typically, a firm discovers an innovation in its home-country market, especially in an advanced economy such as that of the United States. Often demand for the product then develops in other countries, and exports are provided by domestic operations. Increased demand in foreign countries justifies making investments in foreign operations, especially to fend off foreign competitors.
Another traditional motive for firms to become multinational is to secure needed resources. Key supplies of raw material, especially minerals and energy, are important in some industries. Other industries, such as clothing, electronics, watch making, and many others, have moved portions of their operations to foreign locations in pursuit of lower production costs.
Please go to the next slide.
Overview, continued
Increased market size
Return on investment
Economies of scale and learning
Location advantages
When international strategies are successful, firms can derive four basic benefits:
Increased market size;
Greater returns on major capital investments or on investments in new products and processes;
Greater economies of scale, scope, or learning; and
A competitive advantage through location.
Firms can expand the size of their potential market by moving into international markets.
The primary reason for investing in inter.
International market entry and expansions ajitjoshiin
Market entry methods
When you know the scale of entry, you will need to work out how to take your business abroad. This will require careful consideration as your decision could significantly impact your results. There are several market entry methods that can be used.
Exporting
Exporting is the direct sale of goods and / or services in another country. It is possibly the best-known method of entering a foreign market, as well as the lowest risk. It may also be cost-effective as you will not need to invest in production facilities in your chosen country – all goods are still produced in your home country then sent to foreign countries for sale. However, rising transportation costs are likely to increase the cost of exporting in the near future.
market entry strategy of textile and garmentsNasif Chowdhury
Market entry mode selection is very important for doing new business extension. This assignment is based on market entry mode for textile and garments business
International Business Dynamics module 2 by Nagarjun ReddyPNagarjunReddyReddy
Complete detail of Second Module International Business Dynamics contents, Globalization – Supporting Institutions in International Conflict Resolution
Senior Seminar in Business Administration BUS 499Internation.docxklinda1
Senior Seminar in Business Administration
BUS 499
International Strategy
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2009). BUS499: Strategic management: Competitiveness and globalization, concepts and cases: 2009 custom edition (8th ed.). Mason, OH: South-Western Cengage Learning.
Welcome to Senior Seminar in Business Administration.
In this lesson we will discuss International Strategy.
Please go to the next slide.
Objectives
Upon completion of this lesson, you will be able to:
Identify various levels and types of strategy in a firm
Upon completion of this lesson, you will be able to:
Identify various levels and types of strategy in a firm.
Please go to the next slide.
Supporting Topics
Identifying international opportunities: incentives to use an international strategy
International strategies
Environmental trends
Choice of international entry mode
Strategic competitive outcomes
Risks in an international environment
In order to achieve this objective, the following supporting topics will be covered:
Identifying international opportunities: incentives to use an international strategy;
International strategies;
Environmental trends;
Choice of international entry mode;
Strategic competitive outcomes; and
Risks in an international environment.
Please go to the next slide.
Overview
International strategy
Demand develops in other countries
Secure needed resources
An international strategy is a strategy through which the firm sells its goods or services outside its domestic market. One of the primary reasons for implementing an international strategy is that international markets yield potential new opportunities.
Typically, a firm discovers an innovation in its home-country market, especially in an advanced economy such as that of the United States. Often demand for the product then develops in other countries, and exports are provided by domestic operations. Increased demand in foreign countries justifies making investments in foreign operations, especially to fend off foreign competitors.
Another traditional motive for firms to become multinational is to secure needed resources. Key supplies of raw material, especially minerals and energy, are important in some industries. Other industries, such as clothing, electronics, watch making, and many others, have moved portions of their operations to foreign locations in pursuit of lower production costs.
Please go to the next slide.
Overview, continued
Increased market size
Return on investment
Economies of scale and learning
Location advantages
When international strategies are successful, firms can derive four basic benefits:
Increased market size;
Greater returns on major capital investments or on investments in new products and processes;
Greater economies of scale, scope, or learning; and
A competitive advantage through location.
Firms can expand the size of their potential market by moving into international markets.
The primary reason for investing in inter.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
3. MODES OF ENTRY INTO INTERNATIONAL
BUSINESS
1.EXPORTING
2.LICENSING
3.FRANCHISING
4.MERGER & ACQUISITION
5.FDI
6.JOINT VENTURE
7.CONTRACT MANUFACTURING
8. STRATEGIC ALLIANCE
4. Global Entry Strategy
A Global Entry Strategy is the planned
method of delivering goods or services
to a
new target market and distributing them
there.
5. Major Issues In Going Global
(1) the target product/market
(2) the goals of the target markets
(3) the mode of entry
(4) The time of entry
(5) A marketing-mix plan
6. Political Issues
• Political issues will be faced mostly by
the companies who want to enter a
country that with unsustainable political
environment.
• A political decisions will affect the
business environment in a country and
affect the profitability of the business
in the country
8. Franchising is a form of marketing
and distribution in which the owner
of a business system (the franchisor)
grants to an individual or group of
individuals (the franchisee) the right
to run a business selling a product or
providing a service using the
franchisor's business system.
9. Advantages of Franchising
1.Low political risk
2.Low cost
3. Allows simultaneous expansion
in to different regions of the world
4.Well selected partners bring
financial investment as well as
managerial capabilities to the
operation
10. Disadvantages of Franchising
1. Maintaining control over franchisee may be
difficult
2. Conflicts with franchisee are likely, including
legal disputes
3. Preserving franchisor's image in the foreign
market may be challenging
4. Requires monitoring and evaluating
performance of franchisees, and providing
ongoing assistance.
11. Mergers & Acquisition
Mergers and acquisitions (M&A) are
defined as consolidation of companies.
Differentiating the two terms, Mergers is
the combination of two companies to
form one, while Acquisitions is one
company taken over by the other.
12. Advantages
1.Obtain control over the acquired firm
such as factories and brand names
2. Integrate the management of the firm
into its overall international strategy
3. Another advantage is Synergy, that is
increased value efficiencies of the new
entity
13. Disadvantages
1.As a result of M&A, employees of the small
merging firm may require exhaustive re-skilling.
2.Merging two firms that are doing similar
activities may mean duplication and over capability
within the company that may need retrenchments.
3. Increase in costs might result if the right
management of modification and also the
implementation of the merger and acquisition
dealing are delayed.
14. Ajointventure
A Joint Venture (JV) is a business arrangement
between two or more parties. These parties are
coming together and pooling their resources to
complete a specific task.
The parties have joint ownership and therefore
share costs, losses, and profits.
15. Advantages
1.Entering related businesses that
previously presented high barriers to
entry.
2.Gaining access to expertise without
the need to hire more staff.
3.Leveraging existing technologies
and patents developed by other
companies.
16.
17. Licencing
A business arrangement in which
one company gives another company
permission to manufacture its
product for a specified payment
18. Advantages
1.Obtain extra income for technical
know-how and services.
2. Reach new markets not accessible
by export from existing facilities .
3. Quickly expand without much
risk and large capital investment.
19. Disadvantages
1. Lower income than in other entry
modes
2. Loss of control of the licensee
manufacture and marketing
operations and practices leading to
loss of quality
3. Risk of having the trademark and
reputation ruined by an incompetent
partner
20. Foreign Direct Investment
Foreign direct investment (FDI) is an ownership
stake in a foreign company or project made by an
investor, company, or government from another
country.
Generally, the term is used to describe a business
decision to acquire a substantial stake in a foreign
business.
21. Disadvantages
As it focuses its resources elsewhere
other
than the investor’s home country, it can
sometimes hinder domestic invest
Because political issues in other
countries
can instantly change, it is very risky.
It can affect exchange rates to the
advantage of one country and the
22. Advantages
1.Foreign direct investment can stimulate the
target country’s economic development,
creating a more conducive environment
2.Foreign direct investment creates new
jobs, as investors build new companies
in the target country, create new
opportunities.
3.One big advantage brought about by
FDI is the development of human
capital resources
