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    Ali Zaidi
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    This document discusses why companies choose to go global and strategies for competing in the global market. It outlines several entry modes for international markets including licensing, franchising, joint ventures, subsidiaries, offshoring, and outsourcing. Benefits of franchising include allowing companies to expand internationally using an established brand while franchises benefit from the support of a larger organization. Outsourcing provides benefits such as reducing costs, gaining expertise, and focusing internally on core competencies. Risks of the global market include threats from new competitors and cultural and regulatory differences across countries.

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    This document discusses why companies choose to go global and strategies for competing in the global market. It outlines several entry modes for international markets including licensing, franchising, joint ventures, subsidiaries, offshoring, and outsourcing. Benefits of franchising include allowing companies to expand internationally using an established brand while franchises benefit from the support of a larger organization. Outsourcing provides benefits such as reducing costs, gaining expertise, and focusing internally on core competencies. Risks of the global market include threats from new competitors and cultural and regulatory differences across countries.

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    4 views16 pages

    Session 19 Int Management

    Uploaded by

    Ali Zaidi
    This document discusses why companies choose to go global and strategies for competing in the global market. It outlines several entry modes for international markets including licensing, franchising, joint ventures, subsidiaries, offshoring, and outsourcing. Benefits of franchising include allowing companies to expand internationally using an established brand while franchises benefit from the support of a larger organization. Outsourcing provides benefits such as reducing costs, gaining expertise, and focusing internally on core competencies. Risks of the global market include threats from new competitors and cultural and regulatory differences across countries.

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    of 16

    Ch:6 INTERNATIONAL MANAGEMENT

    Why do companies go global?

    What are the strategies to compete in the global


    market?

    What are various entry modes that allow


    organizations to enter oversees markets?
    World as a global village?????
    Some global facts
    •Today’s large corporations—and many ambitious, creative
    small businesses need employees and sales in other countries
    to meet their objectives.

    • U.S. multinational corporations now employ almost one-


    third of their workers outside the United States, and the
    overseas share is growing.
    •
    •Companies have dispersed their manufacturing, marketing,
    and research facilities to locations around the globe where
    cost and skill conditions are most favorable.
    Why do companies choose to go global?
    Expansion of business means finding new markets
    as well as being able to develop competitive
    advantage for your business.
    Better Cost
    & Cheaper Advantage
    Resources

    New Profit
    Markets Maximization
    CP-1 Threats??? 6 marks
    • Describe any 3 threats/problems/ risks which
    a company might face in a global market.
    Offshoring vs Outsourcing
    • Offshoring is relocating • Outsourcing is using the
    production or any other services of another
    business operation to company for certain
    another country and functions/ services of the
    owning it yourself. business.

    • Production • Accounting services


    • IT service
    • Cleaning service
    • IT services
    • Marketing
    • Payroll
    • Human Resource
    Offshoring VS Outsourcing
    Choosing a global strategy.
    Global Model Multinational Model
    • Standardized products ???? • Tailoring and customization of
    products. ??????

    • Centralized operations • Decentralized structure.


    (production, marketing, (subsidiaries with all operating
    strategies). functions like manufacturing,
    marketing, research, and
    human resources functions) in
    • Maximize efficiency, cost
    the host market
    effectiveness

    • Local responsiveness
    Choosing a way to expand Internationally

    LOW Level of foreign involvement, investment and risk HIGH


    Licensing…brand value
    •  is defined as a business arrangement, wherein
    a company authorizes another company by
    issuing a license to temporarily access its
    intellectual property under specified conditions
    and for a limited time.

    • Licensor Licensee
    •
    Franchising, Brand value

    • In many respects, franchising is similar to


    licensing. However, whereas licensing is a
    strategy followed primarily by manufacturing
    companies, franchising is used primarily by
    service companies.

    • Franchiser Franchisee
    Joint Venture
    Business agreement in anther country
    https://www.educba.com/joint-venture-example/
    Subsidiary
    • An independent company owned by the parent
    corporation—is the most costly method of serving
    an overseas market.

    • Pros??? Cons???
    LMS reading folder
    • Biggest Challenges of International Business
    Written CP 5 marks
    • Explain two benefits of a franchise.

    • Explain 3 benefits of outsourcing.

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