INTERNATIONAL BUSINESS

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Presentation transcript:

INTERNATIONAL BUSINESS Why do companies go internationally?

? WHY… Profit Maximization To earn foreign exchange To search new markets For new product development For understanding new management style ?

STAGES OF COMPANIES GOES INTERNATIONALLY PURELY DOMESTIC COMPANY DOMESTIC COMPANY WITH EXPORTS INTERNATIONAL COMPANY MULTINATIONAL COMPANY GLOBAL/TRANSNATONAL COMPANY

MODES OF ENTRY Exporting Joint Venture Licensing and Franchising Contract Manufacturing Management Contracting Mergers and Acquisition

Sourcing - whether to obtain products, make or buy? An organisation wishing to "go international" faces three major issues: Marketing - which countries, which segments, how to manage and implement marketing effort, how to enter - with intermediaries or directly, with what information? Sourcing - whether to obtain products, make or buy? Investment and control - joint venture, global partner, acquisition?

SCANNING OF ENVIRONMENT INTERNATIONAL BUSINESS DOMESTIC ENVIRONMENT GLOBAL ENVIRONMENT FOREIGN ENVIRONMENT

STRATEGIC DECISIONS IN INTERNATIONAL BUSINESS MARKETING MIX DECISIONS MARKET SELECTION DECISIONS MARKET ENTRY DECISIONS INTERNATIONAL ORGANISATION DECISIONS