The document outlines four main international strategies: international strategy, multi-domestic strategy, global strategy, and transnational strategy. It then provides details on international and multi-domestic strategies. International strategy involves replicating the home country model in foreign markets, while multi-domestic strategy involves adapting products and services to local markets. Various modes of entering foreign markets are also discussed, including exporting, licensing, franchising, turnkey projects, mergers and acquisitions, joint ventures, and wholly owned subsidiaries.

1. GLOBAL BUSINESS
PRESENTED BY

2. THE FOUR STRATEGIES EMERGING FROM
INTEGRATION RESPONSIVENESS FRAMEWORK ARE
• International Strategy (also known as Home
Replication Strategy)
• Multi-Domestic Strategy.
• Global Strategy.
• Transnational Strategy.

3. INTERNATIONAL
STRATEGY
Home replication strategy is the international replication of home based
competencies such as production scales, distribution and brand power.
The company centralizes product development functions in its home country
After product differentiations are finished in home country, innovations will
be transferred to apply in local market in order to capture and extend
additional value.
Changes in these products are mostly neglected and distracted due to the
variations of the products.
When a firm pursues a home replication strategy, it simply duplicates
competencies that it enjoys in the home-country in its expansion into foreign
markets.

4. EXAMPLE OF HOME REPLICATION STRATEGY
 Mercedes-Benz is a multinational division of the German
manufacturer.
 The brand is used for automobiles, buses, coaches, and trucks
Some companies directly transfer their main competitive
advantages from their home market to a foreign market
Mercedes-Benz is a perfect example of taking an entirely different
approach to how the brand is promoted
Mercedes-Benz relies on its well-known brand name and its
reputation for building for well-engineered, luxurious cars capable
of traveling safely at very high speeds

5. MULTI-DOMESTIC STRATEGY
The multi-domestic strategy is an action plan that the firm
develops to produce and sell unique products in different
markets
Multi-domestic strategy is an extension of the home
replication strategy.
This strategy focuses on a number of foreign countries/
regions, each of which is regarded as a stand alone domestic
market worthy of significant attention and adaptation.

6. . EXAMPLE OF MULTI-DOMESTIC STRATEGY
• Starbucks
• Starbucks Corporation is an international coffee company and coffeehouse
chain based in Seattle, Washington
• To expand market, the company has adopted a multi-domestic strategy as
its global strategy
• It is multi-domestic because the company tailors its products and services
to the needs of the market
• Culture is a significant factor in their marketing strategy as well
• Starbucks also did not rely on traditional marketing strategies to promote
their products to consumers

7. MODES OF ENTRY
• There are some basic decisions that the firm must take before
foreign expansion like: which markets to enter, when to enter
those markets, and on what scale.
• Which foreign markets?
• The choice based on nation’s long run profit potential.
• Look in detail at economic and political factors which influence
foreign markets.
• Long run benefits of doing business in a country depends on
following factors:
Size of market (in terms of demographics)

8. MODES OF ENTRY
• 1. Exporting
• 2. Licensing
• 3. Franchising
• 4. Turnkey Project
• 5. Mergers & Acquisitions:
• 6. Joint Venture
• 7. Acquisitions & Mergers
• 8. Wholly Owned Subsidiary

9. 1.EXPORTING
• It means the sale abroad of an item produced ,stored or
processed in the
• supplying firm’s home country
• Advantages Of Exporting
• Need for limited finance

10. LICENSING :
• In this mode of entry ,the domestic manufacturer leases the right to
use
• its intellectual property (ie) technology , copy rights ,brand name etc
to
• a manufacturer in a foreign country for a fee.
• Advantages;
• 1. Low investment on the part of licensor.
• 2. Low financial risk to the licensor
• 3. Licensor can investigate the foreign market without much efforts on
• his part.
• Disadvantages:
• 1. It reduces market opportunities for both

11. FRANCHISING
• Under franchising an independent organization called the franchisee
operates the business under the name of another company called the
franchisor under this agreement to the franchisee pays a fee to the
franchisor
• The franchisor provides the following services to the franchisee.
Trade marks, Operating System, Product reputation
Continuous support system like advertising , employee training etc
• Advantages:
• Low investment and low risk
• Franchisee get the benefits of R& D with low cost.
• Disadvantages :
• 1. It may be more complicating than domestic franchising.
• 2. It is difficult to control the international franchisee.

12. TURNKEY PROJECT
• A turnkey project is a contract under which a firm agrees to
fully
• design , construct and equip a manufacturing/
business/services facility
• and turn the project over to the purchase when it is ready for
operation for
• a remuneration like a fixed price , payment on cost plus basis

13. MERGERS & ACQUISTIONS:
• A domestic company selects a foreign company and merger itself with
company in order to enter international business
• Alternatively the domestic company may purchase the foreign company and
acquires its ownership and control international business
• Advantages :
• 1. The company immediately gets the ownership and control over the
• acquired firm’s factories, employee, technology ,brand name and
• distribution networks.
• 2. The company can formulate international strategy and generate more
• revenues.
• Disadvantages
• . This strategy adds no capacity to the industry
• . Labour problem of the host country’s companies are also transferred to
• the acquired company

14. JOINT VENTURE
• Two or more firm join together to create a new business entity that is
• legally separate and distinct from its parents
• . It involves shared ownership.
• Various environmental factors like social , technological economic and
• political encourage the formation of joint ventures
• Advantages:
• 1. Joint venture provide large capital funds suitable for major projects.
• 2. It spread the risk between or among partners.
• Disadvantages:
• 1. Conflict may arise
• 2. Partner delay the decision making once the dispute arises. Then the
• operations become unresponsive and inefficient

15. ACQUISITIONS & MERGERS
• A mergers is a voluntary and permanent combination of
business whereby one or more firms integrate their operations
and identities with those of another and henceforth work under
a common name and in the interests of the newly formed
amalgamations.
• Motives for acquisitions:
• Removal of competitor
• Reduction of the Co failure through spreading risk over a
widerrange of activities.
• The desire to acquire business already trading in certain
markets & possessing certain specialist employees
&equipments.
• Expert use of resources.

16. WHOLLY OWNED SUBSIDIARY
• Subsidiary means individual body under parent body
• This Subsidiary or individual body as per their own generates
revenue.
• They give their own rent, salary to employees, etc.
• But policies and trademark will be implemented from the Parent
body.
• There are no branches here.
• Only the certain percentage of the profit will be given to the
parent body