Question

2) What are the major foreign market entry strategies? What are the characteristics of each?

3) Define transnational strategy. Give examples of firms that apply a transnational strategy.

4) What is the difference between a centralized and a decentralized organizational structure? Why do firms often prefer to have a centralized structure?

5) What strategies and other approaches does IKEA follow that have allowed the firm to become the world’s leading furniture retailer?

please answer all questions

Answer 1

2.Foreign market entry modes or participation ways disagree within the degree of risk they gift, the management and commitment of resources they need, and therefore the come back on investment they promise. There area unit 2 major sorts of market entry modes: equity and non-equity modes.

Characteristics of equity mode -

The equity modes of entry into a remote market embody each direct investment in facilities within the overseas location, moreover as joint ventures with firms within the same trade with a base within the target market.

Non equity mode -

Non-equity modes of entry permit investors to enter overseas markets with tokenish investment and reduced risk. firms will use non-equity modes to enter these markets abundant quicker than with equity modes, as processes like mercantilism and licensing area unit abundant quicker than finding direct investment opportunities or drafting venture partnership agreements.

3..Transnational strategy differs from a world strategy therein a world approach takes one product and sells and promotes it an equivalent manner across all channels to any or all individuals. international strategy could be a additional customized approach to commercialism and promoting your merchandise and services, along with your target market in mind.

Transnational Strategy. A firm employing a international strategy seeks a middle ground between a multidomestic strategy and a world strategy. ... These corporations create some concessions to native tastes too. In France, as an example, wine may be purchased at McDonald's.

4.Centralized structure structures deem one individual to create selections and supply direction for the corporate. ... localised organizations deem a team atmosphere at totally different levels within the business. people at every level within the business could have some autonomy to create business selections.

Firm uses centralised structure as a result of

A centralized structure structure could be a setup during which most power and important decision-making responsibilities area unit focused with some key leaders. A centralized organization typically homes its primary call manufacturers or executives during a central headquarters with offices and meeting areas for leaders to debate business.

5.Ikea's forward-thinking strategy created it the highest furnishings vendor within the world.

It conjointly modified retail forever, analyst Warren Shoulberg writes on trade web site The Robin Report.

"There is maybe no different distributer on the world that has enraptured its basic model into such a lot of places with such a lot success," Shoulberg writes.

The furnishings store has a powerful 298 stores in twenty six countries, commercialism $36 billion a year.