The Corporate Planning Department of a US company is considering an international expansion strategy. What factors should this firm’s managers consider when determining the degree of international involvement that would be appropriate
While making an international expansion decision, the firm's managers should consider following factors.
(i) size of market the company wants to cater to. Bigger is the market size, greater will be the involvement. For market with huge potential the company can consider opening a fully owned subsidiary or work out strategic partnerships.Exports or franchising would be good if market is small but growing.
(Ii) company's understanding of the target market and the cultural similarities between the home nation and the target market.
(iii) Favourable conditions which might help the company to establish its presence and strategic position. These advantage s can be in form of economic policies, ease of doing business, low cost of operations and other specific strategic advantages.
(iv) Assessment of potential risks which a business might encounter. The risks can be in firm of political instability,natural disasters, armed conflicts, lawlessness or uncertain policies of the local government towards foreign businesses.
(v) Nature of the product and its long term demand scenario in the market chosen.
The Corporate Planning Department of a US company is considering an international expansion strategy. What factors...
The Corporate Planning Department of a US company is considering an international expansion strategy. What factors should this firm’s managers consider when determining the degree of international involvement that would be appropriate? (20 Points)
Rituals and symbols. What is the significance of these in planning international marketing strategy? Why should these be considered in marketing planning? How might a marketer use these to his/her advantage?
It can be said that global expansion does hold value as a corporate business strategy for many reasons. One reason that was outlined in the article Foreign entry, cultural barriers and learning was the ability to take advantage of lower labor costs while exploiting the same experiences along different cultural business parameters (Barkema, Bell and Pennings, 1996). Although there are cultural differences that can result in a cost to the company, there are more benefits to utilizing similar business strategies...
The Andrews company is considering international expansion. You have been asked to offer input on the location of the new business. In the elimination process, please identify two countries in the world where the Andrews company should NOT build a plant. Please provide your reasoning for your selection. A strong response will demonstrate the student’s global awareness and how the country’s social/business/political climate negatively impacts your recommendation.
1)Describe IKEA’s intended international corporate-level strategy in India. Is it different from other countries? 2)What is IKEA’s choice of international entry mode? What are the advantages and disadvantages compared to other international entry modes? 3)Identify IKEA’s current challenges in India. Based on your analysis, what additional recommendations would you make to help IKEA achieve its goals?
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