There are several strategies for entering foreign markets, including direct exporting, licensing, franchising, partnering, joint ventures, buying an existing company, piggybacking, turnkey projects, and greenfield investments. Each strategy has advantages and disadvantages depending on factors like tariffs, required product adaptation, costs, and regulations. Partnering and joint ventures allow sharing of risks, resources, and local knowledge but can also create competition if not structured properly. Turnkey projects provide a complete solution for complex infrastructure projects but local subcontracting opportunities. Greenfield investments require the most involvement but may be necessary due to various market factors.
Factors associated with Entry Mode
Timing of an Entry
FIRST MOVER ADVANTAGE
Scale of Entry & Strategic Commitments
ENTRY MODES
Explain exporting, turnkey projects and licensing entry modes with their advantages and disadvantages.
Explain franchising, joint venture and wholly owned subsidiaries with its advantages and disadvantages.
SELECTING ENTRY MODE
PROS & CONS OF ACQUISITION
PROS &CONS OF GREENFIELD VENTURES
What is strategic alliance?
What are the advantage and disadvantages of strategic alliance?
What are the factors contributing to the success of an alliance?
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
Factors associated with Entry Mode
Timing of an Entry
FIRST MOVER ADVANTAGE
Scale of Entry & Strategic Commitments
ENTRY MODES
Explain exporting, turnkey projects and licensing entry modes with their advantages and disadvantages.
Explain franchising, joint venture and wholly owned subsidiaries with its advantages and disadvantages.
SELECTING ENTRY MODE
PROS & CONS OF ACQUISITION
PROS &CONS OF GREENFIELD VENTURES
What is strategic alliance?
What are the advantage and disadvantages of strategic alliance?
What are the factors contributing to the success of an alliance?
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
Running head GLOBAL ENGAGEMENT 1 Global Engagement .docxwlynn1
Running head: GLOBAL ENGAGEMENT 1
Global Engagement
Student Name
Embry-Riddle Aeronautical University
Sample Paper for MGMT 335 IB Analysis – Author Note(s) and Key Words are NOT
REQUIRED for these short APA 6th edition papers.
GLOBAL ENGAGEMENT
2
Abstract
This paper will show the relationship between businesses that seek to expand in the global
community. Selection of key strategies for organizational success depend upon selection of
business partnerships that will expand markets and grow business. Expansion into the
international global community can bring increased value, new customer markets, logistic
support, and connections for both the home and host countries. Many companies seek to expand
through exporting, licensing, franchising, joint ventures or wholly owned subsidies in foreign
countries. This paper will focus on the alliances necessary to support the entry strategy into a
foreign market.
GLOBAL ENGAGEMENT
3
Global Engagement
The Issue - Business commitment to global operations or support can be key to the
business success or even continued operations. New and existing business must make strategic,
long term, decisions to increase or maintain growth and development of their products and or
services. A product and or service life cycle is based on many factors. Some of these factors
include selecting country relationships, business strategies, and the best strategies to develop low
cost or product differentiation opportunities to expand markets.
The problem – Finding the right product, country, and partner or business associate is
tough. Once a product/service is established and a country is selected the primary objective for
alliance must be decided. The firm’s strategies must also be compatible with a host partner. A
firm must spend the right amount of time investigating, visiting, talking, and collaborating with
potential strategic partners. Once a strategic alliance partner is selected the expectations of each
partner must be maintained. The integrity of the alliance must be a priority for each partner.
Developing expatriate and/or inpatriate manager associations and assignments can cement the
relationship as important and working for each partner. Getting stuck with the wrong partner can
add time, execution complexities, and cost to operations. Managers need to avoid this by
working diligently on this first step. Find the right partner (Taylor, 2015).
How do alliances and strategies meet to form and select the best entry mode and partner
relationships? Identifying the necessary skills and resources is key. Partners can be business and
other investors or business relations with the logistics necessary to buy, store, transport or sell
products that increase revenue above the costs necessary for each operation. Risk assessment and
sharing through partnerships can result in lower cost for required competencies like research an.
Improving profitability for small businessBen Wann
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Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
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In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
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RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...
Market entry strategies in foreign market
1. Market Entry Strategies
There are a variety of ways in which a company can enter a foreign market. No one market
entry strategy works for all international markets. Direct exporting may be the most
appropriate strategy in one market while in another you may need to set up a joint venture
and in another you may well license your manufacturing. There will be a number of factors
that will influence your choice of strategy, including, but not limited to, tariff rates, the
degree of adaptation of your product required, marketing and transportation costs. While
these factors may well increase your costs it is expected the increase in sales will offset
these costs. The following strategies are the main entry options open to you.
Direct Exporting
Direct exporting is selling directly into the market you have chosen using in the first instance
you own resources. Many companies, once they have established a sales program turn to
agents and/or distributors to represent them further in that market. Agents and distributors
work closely with you in representing your interests. They become the face of your company
and thus it is important that your choice of agents and distributors is handled in much the
same way you would hire a key staff person.
Licensing
Licensing is a relatively sophisticated arrangement where a firm transfers the rights to the
use of a product or service to another firm. It is a particularly useful strategy if the purchaser
of the license has a relatively large market share in the market you want to enter. Licenses
can be for marketing or production. licensing).
Franchising
Franchising is a typical North American process for rapid market expansion but it is gaining
traction in other parts of the world. Franchising works well for firms that have a repeatable
business model (eg. food outlets) that can be easily transferred into other markets. Two
caveats are required when considering using the franchise model. The first is that your
business model should either be very unique or have strong brand recognition that can be
utilized internationally and secondly you may be creating your future competition in your
franchisee.
Partnering
Partnering is almost a necessity when entering foreign markets and in some parts of the
world (e.g. Asia) it may be required. Partnering can take a variety of forms from a simple comarketing arrangement to a sophisticated strategic alliance for manufacturing. Partnering is
a particularly useful strategy in those markets where the culture, both business and social, is
substantively different than your own as local partners bring local market knowledge,
contacts and if chosen wisely customers.
2. Joint Ventures
There are five common objectives in a joint venture: market entry, risk/reward sharing,
technology sharing and joint product development, and conforming to government
regulations. Other benefits include political connections and distribution channel access that
may depend on relationships.Such alliances often are favourable when:
The partners' strategic goals converge while their competitive goals diverge
The partners' size, market power, and resources are small compared to the Industry
leaders
Partners are able to learn from one another while limiting access to their own
proprietary skills
The key issues to consider in a joint venture are ownership, control, length of agreement,
pricing, technology transfer, local firm capabilities and resources, and government
intentions. Potential problems include.
Conflict over asymmetric new investments
Mistrust over proprietary knowledge
Performance ambiguity - how to split the pie
Lack of parent firm support
Cultural clashes
If, how, and when to terminate the relationship
Joint ventures have conflicting pressures to cooperate and compete:
Strategic imperative: the partners want to maximize the advantage gained for the
joint venture, but they also want to maximize their own competitive position.
The joint venture attempts to develop shared resources, but each firm wants to
develop and protect its own proprietary resources.
The joint venture is controlled through negotiations and coordination processes,
while each firm would like to have hierarchical control.
Joint ventures are a particular form of partnership that involves the creation of a third
independently managed company. It is the 1+1=3 process. Two companies agree to work
together in a particular market, either geographic or product, and create a third company to
undertake this. Risks and profits are normally shared equally. The best example of a joint
venture is Sony/Ericsson Cell Phone.
Advantages
International joint ventures allow for much faster and less costly access to foreign markets
than can be achieved by purchasing an existing company in the jurisdiction or starting a new
venture.
IJVs provide quick access to channels of distribution, and they provide access for the nonresident partner to knowledge and know-how of the local marketplace, which substantially
enhances the probability of success for the venture. The resident partner also often has
3. existing relationships with key suppliers and customers, and proficiency in the local
language and customs.
These benefits can be especially critical to a small or medium-sized business that does not
have the capital, resources or expertise necessary to pursue the opportunity unless it is able
to share the risks and the costs through an alliance such as an international joint venture.
IJVs allow the partners to move quickly, cost effectively and with credibility (provided by the
reputation of the resident partner) in the local marketplace.
The parties to an IJV can also take advantage of complementary lines of business and
synergies that may exist between the two companies.
Disadvantages
An international joint venture can result in a frustrating experience and ultimately a failure if
it lacks adequate planning and strategy. Factors such as marketplace developments,
technology issues, regulatory uncertainties and economic downturns can be difficult to
anticipate and can have a debilitating impact on IJVs.
By their nature (and like all partnerships), profits derived from an IJV are diluted because
they are shared. Management issues can arise, in spite of having adequate mechanisms in
place to resolve disputes, because of different management philosophies of the partners.
The partners also may discover that they do not share expectations and are not flexible
enough to change and accommodate the evolving needs of the business.
Joint ventures are often difficult to capitalize as an entity, particularly in respect to debt,
because they are finite in their duration and therefore lack permanence. Unless an IJV is
adequately capitalized, its debt financing, if available at all, may have to be guaranteed, in
whole or in part, by the joint venture partners, which can increase their level of risk in the
venture.
Another potential disadvantage of an IJV is the possibility of the creation of a competitor or
a potential competitor in the form of one’s own joint venture partner. This can, as later
discussed, be addressed by non-competition, non-solicitation and confidentiality provisions
in the definitive joint venture agreement.
Buying a Company
In some markets buying an existing local company may be the most appropriate entry
strategy. This may be because the company has substantial market share, are a direct
competitor to you or due to government regulations this is the only option for your firm to
enter the market. It is certainly the most costly and determining the true value of a firm in a
foreign market will require substantial due diligence. On the plus side this entry strategy will
immediately provide you the status of being a local company and you will receive the
benefits of local market knowledge, an established customer base and be treated by the
local government as a local firm.
4. Piggybacking
Piggybacking is a particularly unique way of entering the international arena. If you have a
particularly interesting and unique product or service that you sell to large domestic firms
that are currently involved in foreign markets you may want to approach them to see if your
product or service can be included in their inventory for international markets. This reduces
your risk and costs because you are essentially selling domestically and the larger firm is
marketing your product or service for you internationally.
Turnkey Projects
Turnkey projects are particular to companies that provide services such as environmental
consulting, architecture, construction and engineering. A turnkey project is where the
facility is built from the ground up and turned over to the client ready to go – turn the key
and the plant is operational. This is a very good way to enter foreign markets as the client is
normally a government and often the project is being financed by an international financial
agency such as the World Bank so the risk of not being paid is eliminated.
Turnkey contracts apply to a form of international operation, often involving large-scale
complex projects, which may provide opportunities for smaller firms of the host country
to serve as subcontractors and suppliers.
In a turnkey contract, one client company contracts another company to build and
deliver a ready-to-operate industrial plant or infrastructure facility, such as a power
plant, a highway or a port, where the client can be a government agency. There are various
reasons why turnkey contracts represent the preferred option for the client, as compared to
other project implementation modalities, for example the client itself taking responsibility
for the coordination and management of the project activities. Industrial or infrastructure
projects are complex undertakings, the implementation of which involves the mobilization
and articulation of many different disciplines and a variety of suppliers. These may include
various engineering branches (mechanical, electrical, civil), the manufacturing and supply of
equipment, management of the project implementation activities and commissioning and
start-up operations. With a turnkey contract, the risks associated to possible delays,
defective deliveries from different suppliers, cost overruns and performance failures are
born by the turnkey contractor. The usual turnkey contractors are construction companies,
industrial-equipment manufacturers and engineering and consulting firms who assemble
and coordinate the other players and take responsibility for the overall project. The turnkey
operations conducted in developing countries provide an opportunity for local firms to act
as subcontractors in areas where local competencies may be available, for example selected
engineering tasks, the manufacturing of non-proprietary
Reasons for turnkey contracts
5. • The client lacks project management capabilities to implement complex projects.
• The contractor takes responsibility for the coordination of the overall project.
• The client avoids the risk of delays, cost overruns and performance failures.
equipments and metal structures, civil works, etc. Furthermore, the linkage of local
firms with international turnkey contractors will contribute to leveraging their capabilities
and pave the way for their own internationalization. Some turnkey operations are also
associated with or lead to management contracts. This could be the case when the client
has the plant or the infrastructure facility built and commissioned under a turnkey contract
but then needs to enter a management contract to acquire the skills for the operation and
maintenance, at least until local capabilities can be built up and made available.
Turnkey project service has below advantages:
Easily handing of all your purchased products
Quick delivery of all your goods together, including mould, machine and other product
Clear responsibility of whole project and avoid the argue and disputes from different
suppliers
Fast reply and response of your doubt of whole project
Easy QC control and product inspection
Less cost for paying service and prompt after-sale service
……
Greenfield Investments
Greenfield investments require the greatest involvement in international business. A
greenfield investment is where you buy the land, build the facility and operate the business
on an ongoing basis in a foreign market. It is certainly the most costly and holds the highest
risk but some markets may require you to undertake the cost and risk due to government
regulations, transportation costs, and the ability to access technology or skilled labour.