<ul><li>Submitted By:-  Submitted To:- </li></ul><ul><li>Charu Mishra-08  Mr. Amit Sharma </li></ul><ul><li>Kanicka Vashis...
<ul><li>www.QuickMBA.com </li></ul><ul><li>http://www.indiacar.com </li></ul><ul><li>http://www.thehindubusinessline.com/ ...
9-
9- International Opportunities Higher Performance Returns Innovation Modes of Entry Exporting Establishment of New Sub. Li...
<ul><li>Increased market size. </li></ul><ul><li>Greater returns on major capital investments or new products or processes...
9-
9- <ul><li>Common way to enter new international markets </li></ul><ul><li>No need to establish operations in other nation...
9- <ul><li>CMC Technology Export Centre (CMCTEC), a partnership between Massey University’s e-centre Limited and Indian IT...
9- Choice of International Entry Mode <ul><li>Firm authorizes another firm to manufacture & sell its products -  </li></ul...
9- <ul><li>Coca cola is an excellent example of licensing  </li></ul><ul><li>In Zimbabwe , united bottlers have the licens...
9- Choice of International Entry Mode <ul><li>Enable firms to shares risks and resources to expand into international vent...
9- <ul><li>Joint venture between NTPC Ltd and Indian Railway </li></ul><ul><li>Set up Rs.5352 crore plant at Nabhinagar in...
9- <ul><li>Enable firms to make most rapid international  expansion. </li></ul><ul><li>Can be very costly. </li></ul><ul><...
9- <ul><li>Mahindra & Mahindra has added a company to its portfolio with the acquisition through its subsidiary Mahindra F...
9- Choice of International Entry Mode <ul><li>Most costly & complex of entry alternatives </li></ul><ul><li>Achieves great...
9- <ul><li>TVS Motor made a foray into Indonesia and three-wheeler segment even as it is set to expand within India by set...
9- <ul><li>Franchising  is a concept which involves The Franchiser providing branding, concepts, expertise,& infects most ...
9-
9- <ul><li>International diversification facilitates innovation in the firm. </li></ul><ul><li>Provides larger market to g...
9- <ul><li>National government instability may create problems for internationally diversified firms. </li></ul><ul><li>Po...
9- <ul><li>Economic risks are interdependent with political risks. </li></ul><ul><li>Differences and fluctuations in inter...
9- Economic Risks   Political Risks   Political instability in Indonesia brought about by continuing ethnic strife Uncerta...
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Strategic Management

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  • Strategic Management

    1. 1. <ul><li>Submitted By:- Submitted To:- </li></ul><ul><li>Charu Mishra-08 Mr. Amit Sharma </li></ul><ul><li>Kanicka Vashisht-18 (Faculty Strategic management) </li></ul><ul><li>Medha Prakash-22 FDDI, Noida </li></ul><ul><li>Neha Srivastava-30 </li></ul><ul><li>Suparna Bhaduri-50 </li></ul>9-
    2. 2. <ul><li>www.QuickMBA.com </li></ul><ul><li>http://www.indiacar.com </li></ul><ul><li>http://www.thehindubusinessline.com/ </li></ul><ul><li>WWW.fao.com </li></ul><ul><li>http://books.google.co.in/books </li></ul>9-
    3. 3. 9-
    4. 4. 9- International Opportunities Higher Performance Returns Innovation Modes of Entry Exporting Establishment of New Sub. Licensing Strategic Alliances Acquisition International Strategies International Bus.-Level Strategy Multidomestic Strategy Global Strategy Transnational Strategy Increased Market Size Return on Investment Economies of Scale and Learning Location Advantage Management Problems, Risk, and First Steps Management Problems, Risk, and First Steps
    5. 5. <ul><li>Increased market size. </li></ul><ul><li>Greater returns on major capital investments or new products or processes. </li></ul><ul><li>Greater economies of scale, scope or learning. </li></ul><ul><li>A competitive advantage through location. </li></ul>9-
    6. 6. 9-
    7. 7. 9- <ul><li>Common way to enter new international markets </li></ul><ul><li>No need to establish operations in other nations. </li></ul><ul><li>Establish distribution channels through contractual relationships. </li></ul><ul><li>High transportation costs. </li></ul><ul><li>May encounter high import tariffs. </li></ul><ul><li>May have less control on marketing and distribution. </li></ul><ul><li>Difficult to customize product. </li></ul>
    8. 8. 9- <ul><li>CMC Technology Export Centre (CMCTEC), a partnership between Massey University’s e-centre Limited and Indian IT leader CMC, it has brokered three new export deals for New Zealand technology firms with its Indian partners. </li></ul><ul><li>CMCTEC to give New Zealand technology companies better and easier access to a critical international market </li></ul><ul><li>Rapid uptake underlines the international quality of New Zealand innovation and the real value CMC’s networks provide in successfully taking it into Indian and global markets </li></ul><ul><li>The three New Zealand companies to reach deals in India through CMCTEC are: Sonar6, SMX Limited, Digital Learning Solutions </li></ul><ul><li>Companies can gain direct access to a huge market via CMC, and leverage the scale available in India </li></ul><ul><li>It enables Kiwi companies to overcome the classic barriers of size and distance, ensuring innovative IT solutions developed here can be launched on the world stage </li></ul>
    9. 9. 9- Choice of International Entry Mode <ul><li>Firm authorizes another firm to manufacture & sell its products - </li></ul><ul><li>Licensing firm is paid a royalty on each unit produced and sold. </li></ul><ul><li>Licensee takes risks in manufacturing investments. </li></ul><ul><li>Least risky way to enter a foreign market. </li></ul><ul><li>Licensing firm loses control over product quality & distribution. </li></ul><ul><li>Relatively low profit potential </li></ul><ul><li>Involves risk of licensee imitating technology and product for own use </li></ul><ul><li>May have inflexible ownership arrangements </li></ul>
    10. 10. 9- <ul><li>Coca cola is an excellent example of licensing </li></ul><ul><li>In Zimbabwe , united bottlers have the license to make coke </li></ul><ul><li>RCA a once licensed its color television technology to number of Japanese companies. </li></ul><ul><li>Soon Japanese companies had bigger share in market then RCA </li></ul><ul><li>However the risk is reduce by cross licensing </li></ul>
    11. 11. 9- Choice of International Entry Mode <ul><li>Enable firms to shares risks and resources to expand into international ventures. </li></ul><ul><li>Most joint ventures (JVs) involve a foreign corp. with a new product or technology & a host company with access to distribution or knowledge of local customs, norms or politics. </li></ul><ul><li>May experience difficulties in merging disparate cultures. </li></ul><ul><li>May not understand the strategic intent of partners or experience divergent goals </li></ul><ul><li>Facilitate development of core competencies </li></ul><ul><li>Involve fewer resources and costs required for entry </li></ul>
    12. 12. 9- <ul><li>Joint venture between NTPC Ltd and Indian Railway </li></ul><ul><li>Set up Rs.5352 crore plant at Nabhinagar in Bhiar </li></ul><ul><li>Rail network across conutry </li></ul><ul><li>Bharatiya Rail Bijali Company will excute 1000 MW plant </li></ul><ul><li>74% equity will be hold by NTPC </li></ul>
    13. 13. 9- <ul><li>Enable firms to make most rapid international expansion. </li></ul><ul><li>Can be very costly. </li></ul><ul><li>Legal and regulatory requirements may present barriers to foreign ownership. </li></ul><ul><li>Usually require complex and costly negotiations. </li></ul><ul><li>Potentially disparate corporate culture . </li></ul>Choice of International Entry Mode
    14. 14. 9- <ul><li>Mahindra & Mahindra has added a company to its portfolio with the acquisition through its subsidiary Mahindra Forgings Global based in Mauritius of a 90.47 percent stake in Schoneweiss & Co. GmbH., a leading company in the forgings sector in Germany. </li></ul><ul><li>This acquisition creates for them a strong European base as it is fully harmonious with their existing presence in Germany through Jeco AG. They are now well on the path to capitalize on and consolidate our position towards becoming a globally significant player in the forgings business. </li></ul><ul><li>Expanding Mahindra's 'Design to Delivery' bandwidth in the components space, Schoneweiss would be a huge step in the Mahindra's evolution as the first fully integrated auto component provider from India. </li></ul><ul><li>Together with Jeco, which the company , it creates a complementary and synergistic business platform. They hope to derive benefits across the various Systech entities from this acquisition. </li></ul><ul><li>This is furthering their strategic goal of being an auto component player with capability in design & engineering, adding value for our stakeholders. </li></ul><ul><li>Schoneweiss expect to derive benefits in both directions by the coming together of Mahindra & Mahindra and are delighted to be a part of this emerging global family&quot;. </li></ul>
    15. 15. 9- Choice of International Entry Mode <ul><li>Most costly & complex of entry alternatives </li></ul><ul><li>Achieves greatest degree of control. </li></ul><ul><li>Potentially most profitable, if successful. </li></ul><ul><li>Maintain control over technology, marketing and distribution. </li></ul><ul><li>Could require hiring host country nationals or consultants at high cost. </li></ul><ul><li>May need to acquire expertise & knowledge that is relevant to host country </li></ul>Choice of International Entry Mode
    16. 16. 9- <ul><li>TVS Motor made a foray into Indonesia and three-wheeler segment even as it is set to expand within India by setting up green field venture </li></ul><ul><li>The Indonesian venture will have an initial capacity of 1.20 lakh two-wheelers and will see an investment of $50 million. </li></ul><ul><li>The company zeroed in on Indonesia since it was the third largest market in the region with a two-wheeler population of around four million. </li></ul><ul><li>The two-wheelers in Indonesia were growing at about 35 per cent </li></ul><ul><li>The proposed project in Indonesia would be a full-fledged one and even make the engines. </li></ul><ul><li>TVS is looking at an initial capacity of one lakh three-wheelers. The proposed project at Himachal Pradesh will require an investment of Rs. 90 crores to turn out three lakh two-wheelers initially </li></ul><ul><li>TVS Motor preferred Himachal Pradesh for many reasons like income-tax benefits, sales tax deferral and excise sops </li></ul><ul><li>The company's foray into three-wheeler is an extension of our knowledge.&quot; The Rs. 3,000-crore three-wheeler market . </li></ul>
    17. 17. 9- <ul><li>Franchising is a concept which involves The Franchiser providing branding, concepts, expertise,& infects most facets that are needed to operate in an overseas market, to the franchisee </li></ul><ul><li>Franchiser grant right to use its brand name, trade mark & business format in return for a fee paid by the franchisee </li></ul><ul><li>E.g </li></ul><ul><li>Virgin Mobile brand launched in India through a franchise arrangement with Tata Teleservices. </li></ul><ul><li>TTSL would be paying Virgin what would be in the nature of a royalty fee </li></ul><ul><li>Jointly established a company ‘Virgin Mobile India Ltd’ to develop the new branded service </li></ul>Choice of International Entry Mode
    18. 18. 9-
    19. 19. 9- <ul><li>International diversification facilitates innovation in the firm. </li></ul><ul><li>Provides larger market to gain more and faster returns form investments in innovation. </li></ul><ul><li>May generate resources necessary to sustain a large-scale R&D program </li></ul><ul><li>Generally related to above-average returns, assuming effective implementation and management of international operations. </li></ul><ul><li>. International diversification provides greater economies of scope and learning. </li></ul>
    20. 20. 9- <ul><li>National government instability may create problems for internationally diversified firms. </li></ul><ul><li>Potential changes in attitudes or regulations regarding foreign ownership. </li></ul><ul><li>Legal authority obtained from previous administration may become invalid. </li></ul><ul><li>Potential for nationalization of firms’ assets </li></ul>.
    21. 21. 9- <ul><li>Economic risks are interdependent with political risks. </li></ul><ul><li>Differences and fluctuations in international currencies may affect value of assets & liabilities. </li></ul><ul><li>This affects prices & thus ability to compete . </li></ul><ul><li>Differences in inflation rates may affect inter-nationally diversified firms’ ability to compete. </li></ul><ul><li>Enforcing intellectual property rights on copyrights; CDs, software, etc. </li></ul>Risks in the International Diversification
    22. 22. 9- Economic Risks Political Risks Political instability in Indonesia brought about by continuing ethnic strife Uncertain future of peace in the Middle East because of changes of national leaders Failure of the European Community’s quest for economic superpower status because of inter-country disagreements China’s difficulty in enforcing intellectual property rights on CDs, software, etc. Russia’s struggle with low productivity, currency problems & high unemployment. Exchange rate exposure due to the U.S. - Canadian dollar fluctuations .

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