Entry Mode

Firms, which have decided to enter into the foreign markets, have to face a challenge while
deciding on the right entry mode to enter into the market. This is a quite influential decision as it
may have a continual impact on the firm’s global business performance. Two major modes
which have been considered more often is the export of products and services and through the
usage of foreign direct investment. Firms, adopting the very first one, try to make their existence
in foreign markets by exporting to those regions. After having knowledge to that country they go
for having their own operation facilities in those regions. Firms using the second one use the
foreign direct investments to make their existence in foreign markets.
Mitchells foods
Mitchells use exports as entry mode to enter in other countries.
Mitchell's was one of the first food products companies to get an ISO 9001 quality accreditation
in Pakistan. It manufactures and packages grocery items including fruit drinks, canned fruits and
vegetables, sauces, pickles, jams and squashes. The company exports its products to
the US, UK and the Middle Eastern countries. Exporting of these products is cheaper and easy to
enter in other countries. Because the production of canned and citrus fruits in Pakistan is cheap
and is more than other countries. In future the Company is planning to make MITCHELL’S a
brand name familiar with households in every part of the world.
Nestle
As the markets are getting more competitive as well as more flat, it is very much apparent that
Nestle would be looking towards other new markets from the growth perspective. Successful
implementation of strategies for market development requires more flexibility, ability to adapt to
an unforeseen market conditions and the vision to achieve long term goals. Nestle has been relied
on the foreign direct investment for entering into different foreign markets (Rao & Murthy,
1999). Nestle, being the first mover, tries to enter the emerging markets in an early stage. Nestle
is not generally inclined to go through the expensive process of setting up its brand name in the
prospective markets; rather the company prefers to acquire local companies which are known in
the indigenous market.
Strategy Implementation
Nestle
Nestle is one of the renowned global organizations. So it is not surprising that the international
strategy would be at the core of its tactical focus. Nestle is a decentralized company with the
operational responsibilities spread out among the local units. The local units enjoy autonomy in
regards to pricing, marketing, distribution.
In Nigeria, Nestle has done away with its traditional distribution procedure of operating from a
central warehouse because of Nigeria’s poorly developed road system. Instead Nestle has
constructed several small warehouses around the country. This shows that the company’s
responsiveness to diverse local conditions. Nestle even employs local staffs for their regional
offices as they are better equipped to handle the business procedures and customers. This in turn
helps the organization to respond to the local demand more effectively and efficiently; resulting
in increased market share and profitability for the company.
Nestle inclination to adapt local products is its operation in Syria. In Syria there is a huge
demand for tomato and its related ingredient. The company used it to boost their sales. By using
local ingredients and concentrating on the local demand, the company has earned a good rate of
return in those regions.
Mitchells
Mitchells use International strategy to go international .Because mitchells exports the product
and there is no localization pressure. But in Pakistan mitchells use transnational strategy.

Conclusion: Nestle exerts nice efforts to attain its vision to be the leader in Nutrition, Health, and
eudemonia Company by manufacturing a higher quality of merchandise to the shoppers. Nestlé
conjointly studies regarding the consumer’s desires from time to time and satisfy the shoppers the
maximum amount as attainable. Nestle’s strengths like high monetary capability, effective
strategic selling capability, robust analysis, and development, likewise as nice leaderships have
helped them through the obstacles. Above all, Nestle focuses on its missions and ensures
consistency by creating the correct choices to manage and build its business to deliver the promise
of excellent Food, smart Life everywhere the globe and Mitchell also is incredibly a lot of acutely
aware and careful regarding its sales and regarding client level satisfaction.
Mitchell’s Fruit Farms could be a giant producing concern that turn out totally different variety of
eatable merchandise the corporate objection relating to managing capital company to safe guard
the corporate ability to continue as a going issues so as to supply come to shareowners, advantages
to different stakeholders and to keep up an optimum capital structure to scale back the value of
capital. The corporate obtaining large profits last year and giving all rights to its shareholders.
They’re providing employment and running totally different non-profits organizations.