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    Anjali Singh
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    The stages of internationalization are: 1. Domestic operations where companies focus solely on their domestic market, like Patanjali currently in India. 2. International operations where companies export domestic products but maintain domestic production, like Indian companies exporting textiles worldwide. 3. Multinational operations where companies physically move some operations abroad through partnerships or joint ventures, like the joint venture between Maruti and Suzuki. 4. Global operations where companies have production facilities across many countries and regions but still centralize some decisions at headquarters, like McDonald's worldwide operations. 5. Transnational operations where companies achieve both global efficiency and local responsiveness through global markets and resources, like Coca-

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    The stages of internationalization are: 1. Domestic operations where companies focus solely on their domestic market, like Patanjali currently in India. 2. International operations where companies export domestic products but maintain domestic production, like Indian companies exporting textiles worldwide. 3. Multinational operations where companies physically move some operations abroad through partnerships or joint ventures, like the joint venture between Maruti and Suzuki. 4. Global operations where companies have production facilities across many countries and regions but still centralize some decisions at headquarters, like McDonald's worldwide operations. 5. Transnational operations where companies achieve both global efficiency and local responsiveness through global markets and resources, like Coca-

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    5 views11 pages

    International Business

    Uploaded by

    Anjali Singh
    The stages of internationalization are: 1. Domestic operations where companies focus solely on their domestic market, like Patanjali currently in India. 2. International operations where companies export domestic products but maintain domestic production, like Indian companies exporting textiles worldwide. 3. Multinational operations where companies physically move some operations abroad through partnerships or joint ventures, like the joint venture between Maruti and Suzuki. 4. Global operations where companies have production facilities across many countries and regions but still centralize some decisions at headquarters, like McDonald's worldwide operations. 5. Transnational operations where companies achieve both global efficiency and local responsiveness through global markets and resources, like Coca-

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    © All Rights Reserved
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    of 11

    Stages of internationalization

    BY-ANJALI SINGH
    (REG NO-B2021225)
    MEANING OF INTERNATIONALIZATION
     Internationalization is the designing of the product in such a
    way that it will meet the needs of users in many countries or
    can be easily adapted to do so.

     This process is used by companies looking to expand their


    global footprint beyond their own domestic market
    understanding as consumers abroad may have different
    tastes or habits

     According to WELCH & LUOSTARINEN, It is the process of


    business activities across home country borders with an
    increasing degree in operations.
    Advantages of internationalization

     Faster growth
     Effect on performance of enterprise
     Job creation
     Meeting our needs
     Attracting investment
     New technology and investment
    Disadvantages of internationalization

     Cultural identity issues


     Political issues
     Difficulty in time of needs
     Social welfare issues
    Stages of internationalization

    Domestic International Multinational


    operation operation operation

    Global Transnationa
    operations l operation
    Stage 1:- Domestic operations

     The firm’s market is exclusively domestic.

     Most
    international companies have their origin as
    domestic companies. These companies focus on
    domestic operations only.

     Example- PATANJALI currently have its major


    operations in India only.
    Stage 2:- International operations

     The firm expands its market by engaging into export


    operations and offering the domestic products to other
    countries also, but retains production facilities within
    domestic borders.

     Example- Indian firms exporting textiles, jute, spices, nuts,


    rice all around the world.
    Stage 3:- Multinational operation

     The firm physically moves some of its operations out of the


    home country

     There is a mutual cost, profit sharing and management in


    such method

     Example:- A joint venture between MARUTI(INDIAN


    COMPANY) and SUZUKI(JAPANESE COMPANY).
    Stage 4:- Global operations

     The firm becomes the fully global when the assembly of


    production facilities in several countries & regions of the
    world. Some decentralization of decision making is
    common but many personnel decisions are still made at
    corporate level in headquarters.

     Example:- Mc donalds is a MNC operating worldwide


    Stage 5:- Transnational operations

     Firms that reach this stage are often called transnational


    companies because they achieve both global efficiency and
    local responsiveness. They use global market and
    resources for their functioning.

     Example:- Coco-cola, Nestle


    THANK YOU

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