Entry Modes in International Business - 2934 Words

| ------------------------------------------------- OFFICE USE ONLY – LATE SUBMISSION | ------------------------------------------------- Date Due: | ------------------------------------------------- | ------------------------------------------------- Received: | ------------------------------------------------- | | ASSESSMENT FRONT COVER SHEET | COURSE: | The Development of International Business since the 1870s | STUDENT NUMBER: | 2 | 1 | 8 | 5 | 9 | 4 | 1 | WORD COUNT*: | | 2 | 4 | 3 | 1 | *excluding bibliography, references and appendices Please submit your assignment to the designated submission venue. ------------------------------------------------- FOR OFFICE INFORMATION ONLY Extensions All†¦show more content†¦Consequently, these organizations are trying to reach new consumers to increase their customer base. The second most common motive is the opportunity of producing or offering a service cheaper in another company. This leads to a cost advantage. In addition, the companies can gain advantage in economy of scale and scope. Therefore, they safe production costs by producing a higher amount of their products, which is the third frequently used motive regarding to Nelly and Wach (2014, p.12). All motives are aiming to reduce the cost of production or finding new customers. 3. Forms of International Business By taking a closer look into the different types of international business, it is helpful to first define the two major categories. All types of international business are sub-categories of equity and non-equity entry modes. These are different in their commitment level of spending resources, which is extremely difficult to transfer to other business units. Therefore, to choose the correct entry modes to other countries is one of the most critical strategy decision of a multinational enterprise (Decker and Zhao, 2004, p.1). In addition, the risk as well as the control is a major difference. The equity entry modes require more investments and are therefore riskier. However, the companies using an equity entry mode have more control over theShow MoreRelatedInternational Business Entry Modes1458 Words   |  6 PagesAn international entry mode is an institutional agreement necessary for the entry of a company’s products, technology and human capital into a foreign country or mar ket. The reluctance of firms to change entry modes once they are in place, and the difficulty involved in doing so, make the mode of entry decision a key strategic issue for firms operating in today’s rapidly internationalizing market place. The choice of mode will depend on internal characteristics (eg firm size, international experience)Read MoreEntry Strategy in International Business1593 Words   |  7 Pages9.0 Entry Strategy 9.1 Introduction Entry strategy is about the decision to enter which foreign market, when in what scale and regarding the choice of entry mode. In our case we have already decided to enter the UK market and offer our products to a selected niche initially. It is the case of entry mode we should address in this chapter. The various modes to enter foreign markets are vast. A few popular methods are, exporting, licensing or franchising to host country firms, establishingRead MoreModes of Foreign Entry Essay1599 Words   |  7 PagesAll research fully carried out on Entry nodes on the long run remain limited to large manufacturing firms. The foreign market selection and the choice of its entry modes drastically ascertain the performance of a specific firm. Entry mode can be defined as an arrangement for an organization that is organizing and conducting business in foreign countries like contractual transfers, joint ventures, and wholly owned operations (Anderson, 1997). Internationalization is part of a strategy which is goingRead MoreEntry Strategy in International Business1602 Words   |  7 Pages9.0 Entry Strategy 9.1 Introduction Entry strategy is about the decision to enter which foreign market, when in what scale and regarding the choice of entry mode. In our case we have already decided to enter the UK market and offer our products to a selected niche initially. It is the case of entry mode we should address in this chapter. The various modes to enter foreign markets are vast. 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McDonalds Franchising: Since the inception of the company by two brothers, McDonalds Corporation has continued to use franchising as its mode of entry into the market. Actually, the inception of McDonalds Corporation was based on franchising as the mode of market entry as the founders operated a carhop drive-in restaurant. Through franchising mode of operation, the franchiser i.e. McDonalds CorporationRead MoreFactors Influencing International Fashion Retailers816 Words   |  4 Pages Paper Critique: Factors influencing international fashion retailers entry mode choice. Lu, Y., Karpova, E. and Fiore, A. (2011) Factors influencing international fashion retailers entry mode choice, Journal of Fashion Marketing and Management: An International Journal, 15(1), pp. 58-75. doi: 10.1108/13612021111112340. Summary: The aim of the paper is to provide a theory†based framework that informs a fashion retailer s entry mode choice into a foreign market. 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