COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES

Week No: 10
nd
2 Trimester, AY 2020-2021
HOMEWORK NO. 3
MARKS

COURSE CODE BSIB514 COURSE TITLE INTERNATIONAL MARKETING

SECTION TIME DAYS THD ROOM
STUDENT NAME ID NO. DATE

TOPIC Choice of entry mode.

ASSIGNMENT
DIRECTION & Direction: Prepare a write-up of approximately 250 words for the
REQUIREMENT/ requirements given below:
S
(Identify the ILOs to The factors affecting the choice of entry mode depends on the following factors:
be assessed at the
end of each  Internal factors
requirement.
Include the rubric or
marking scheme for
 External factors
each
item/requirement.)  Desired mode characteristics

 Transaction specific behavior

1. Assuming that you are about to choose an international market from any of the
GCC countries for exporting the female accessories. Apply the above in an analysis
of factors which might affect your business.

ASSIGNMENT
OUTPUT An organization's choice of its entry mode for female accessories from GCC
countries to any foreign countries is based on several factors that make the entry
mode decision a complicated process with some trade-offs among alternative entry
modes. The choice of entry mode of course should be based on the profit. The
choices of criteria are qualitative rather than quantitative

. The 4 factors that determine the entry mode decision are:

1 internal factor
2 external factors
3 desired mode characteristics
4 transaction-specific behavior

EXTERNAL Factors Market Size: Market size is one of the main factors to be
considered when selecting an entry mode. Countries with a large market size will
be liberal at the modes of entry with an a higher level of investment, such as
entirely owned subsidiaries or partnership terms. Big markets like the US, Europe,
and Japan have enough and more of such female consumer goods such as cosmetics,

Prepared By Reviewed Approved by

1

Dr. Dr. Maria Cecilia P. Lagaras Dr. Vinodh Natarajan Dr. Marluna Urubio
Vishwas Chakranarayan Programme Head Associate Dean College Dean
Course coordinator
Date: Date: Date: Date:
 COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES
Week No: 10
nd
2 Trimester, AY 2020-2021
HOMEWORK NO. 3
MARKS

COURSE CODE BSIB514 COURSE TITLE INTERNATIONAL MARKETING

SECTION TIME DAYS THD ROOM
STUDENT NAME ID NO. DATE

clothing accessories, etc.

Therefore a higher investment in growing markets would countries extended

commitment such as be advantageous. For example, some /territories like south
India don't encourage female accessories like cosmetics or grooming accessories
like (US/UK). Since most of the women in such south Asian countries are normally
an established market refined to be homemakers.

Government Regulations: The choice of a market entry mode is affected by the

political/legislative framework of the overseas market. The governments of most of
the countries have made it mandatory for foreign firms to have a local partner. In
some countries, trade regulations formalities encourage modes, involving local
companies, that can give information on whereabouts and contacts in local markets.
The local partners help in developing local contacts, negotiating sales, and
establishing distribution channels, as well as in diffusing the foreign brand. and
customs Sociocultural differences between GCC & overseas.

Competition: Competitors in the important factor in deciding on an entry mode. The

level of infrastructure development has been responsible for major investments in
countries like Singapore, Hongkong, etc. So these places have developed as
international marketing hubs in the Asian region. overseas market are another

Level of Risk: Country risks & demand uncertainty has to be considered here.
Political Risk: Political instability and strict regulations prevent firms from
committing more resources to a market.

Economic risk: Some countries with dynamic inflation and deflation stops the GCC
countries from investing in such markets. Operational Risks: Operational problems
in foreign markets

. Production and shipping expense: Production cost variance in different locations

Prepared By Reviewed Approved by

2

Dr. Dr. Maria Cecilia P. Lagaras Dr. Vinodh Natarajan Dr. Marluna Urubio
Vishwas Chakranarayan Programme Head Associate Dean College Dean
Course coordinator
Date: Date: Date: Date:
 COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES
Week No: 10
nd
2 Trimester, AY 2020-2021
HOMEWORK NO. 3
MARKS

COURSE CODE BSIB514 COURSE TITLE INTERNATIONAL MARKETING

SECTION TIME DAYS THD ROOM
STUDENT NAME ID NO. DATE

Internal factors Size of the organization The size provides the basis for increased
international involvement over time.

GCC countries may need heavy resource commitments to foreign markets, they are
more likely to enter foreign markets using export modes because they do not have
the resources necessary to achieve a high degree of control or to make these
resource commitments. The 'firm size' may depend on the sales volume or
workforce at the time of foreign entry

. Company Objectives: Companies operating in GcC will be lesser in terms of sales

and production since the female accessories used by GCC women are normally
lesser compared to international requirements. Companies receive orders from
acquaintances, firms, friends, and relatives based abroad.

International experience: The direct experience with international markets is a

factor for committing extra resources to foreign markets. Product
features/specification characteristics of the product such as its value, weight,
worth, durability, and composition, are important in determining the production &
its location. Products with expensive direct specification: The high value/weight
watches/jewelry, ratios, typically used such as are for exporting, The nature of the
product affects the mode since products vary so widely in their characteristics, use,
and requirement. The technical nature of a product like an epilator/hair
smoothner(high complexity) may require service both before and after-sale. In
many organizations will use one of the foreign markets, hierarchical modes.
Flexibility Companies should be ready for exit barriers when entering international
markets. A market that is currently attractive may not be so after 10 years. There
can be political and legal restructuring, changes in customer preferences, the
evolution of new market segments, or changes in the competitive market.

Rubric for 10 Marks:

RUBRIC / 9-10 = Details are fully complete and demonstrate deep understanding of conent
MARKING 7-8 = Answer is acceptable but lacks minor details
5-6 = Answer is responsive but not fully complete
SCHEME
Prepared By Reviewed Approved by
3

Dr. Dr. Maria Cecilia P. Lagaras Dr. Vinodh Natarajan Dr. Marluna Urubio
Vishwas Chakranarayan Programme Head Associate Dean College Dean
Course coordinator
Date: Date: Date: Date:
 COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES
Week No: 10
nd
2 Trimester, AY 2020-2021
HOMEWORK NO. 3
MARKS

COURSE CODE BSIB514 COURSE TITLE INTERNATIONAL MARKETING

SECTION TIME DAYS THD ROOM
STUDENT NAME ID NO. DATE

3-4 = Major details are missing and shows low level of understanding of the content
2-1 = Answer is lacking multiple major details
0 = Question in not answered or answer given is inappropriate

LEARNING ASSESSMENT/MARKING FACULTY/MARKER’S FEEDBACK

ITEM CILOs MARKS MARKS AWARDED
1 C4 10

TOTAL 10

Prepared By Reviewed Approved by

4

Dr. Dr. Maria Cecilia P. Lagaras Dr. Vinodh Natarajan Dr. Marluna Urubio
Vishwas Chakranarayan Programme Head Associate Dean College Dean
Course coordinator
Date: Date: Date: Date: