...1.- What are some of the managerial characteristics of a Born Global firm? How are distinguishable from those of a traditional firm that seek to expand with a more traditional evolutionary process? The Born Global firm phenomenon refers to those special firms that adopt an international approach right from their birth The general characteristics of Born Global firms differentiate themselves from other multinationals in their growth stages. Born Global firms typically operate in a narrowly defined market niche, which makes it harder to grow in a small home market. A high degree of specialization requires internationalization if the firm wants to achieve substantial growth. Born Global firms often possess unique resources and capabilities such as entrepreneurial orientation of the founders, innovation behind products and technology, accumulated knowledge of the founders and managers from previous work experience, and networking capabilities. Managers with a previous background of international strong activity will give to the company a more sure address to its business expansion, for this reason a high level of entrepreneurial orientation supports the firm´s ability to recognize and create opportunities at an early stage. It can be argued that Born Global firms are typically found in niche business areas where products are unique, and require high amount of research and development like the high tech business area. It is very important to invest in products...
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...Firme born global și born-again global Profesor coordonator: Student: Lector Dr. Feder Emőke - Szidónia 1.Introducere Internaționalizarea firmei a fost privită pentru mult timp ca un proces incremental , în care firmele gravitau spre piețe "psihologic apropiate" și angajamentul față de piețele internaționale creștea într-o manieră graduală, pas cu pas printr-o serie de etape evolutive. Cu toate acestea, o mare parte din recenta literatură de specialitate oferă dovezi clare de internaționalizare rapidă și dedicată a firmelor firme "born-global”. Apariția unui nou flux de literatură pe firme "born global” la începutul anilor 1990 reprezintă o provocare semnificativă pentru opiniile tradiționale privind internaționalizarea firmei. Aceste firme antreprenoriale mici au tendința de a adopta o abordare globală încă de la început și de a îmbrațișa o internaționalizare rapidă și dedicată ( McKinsey & Co , 1993) . Evoluția lor a fost influențată de o tendință majoră spre globalizare și impactul omniprezent a noi tehnologii ( Knight și Cavusgil , 1996 ). În plus , firmele " born global ”, de multe ori posedă un avantaj competitiv bazat pe cunoaștere, care le permite să ofere produse și servicii cu valoare adăugată ( McKinsey & Co , 1993 ). O dovadă a existenței acestui fenomen este apariția firmelor „born-again” global. Acestea sunt firmele care au fost bine stabilite...
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...Title of the article selected is “Entrepreneurial Orientation, Strategy, and Marketing Capabilities in the Performance of Born Global Firms” which published in International Business Research Teaching and Practice- The Journal of the AIB-SE Volume 2 Number 1 in year 2008, from page 12 to page 38. Samantha Hartsfield, Douglas Johansen and Gary Knight are the authors of this article. The primary objective of the article is to investigate the antecedents that affect the international performance of born global firms, companies that export 25% or more within the first three to six year of their foundation. From the framework of the study, it reveals that organizational culture, business strategy and business tactics are the three main factors contributing to the international performance of those born global firms. By looking in depth at these three main factors, it actually is a process on how a born global firm can gain competitive position in this intense business environment and thus succeed in the market. In the article, the authors do argue that born global internationalized rapidly as compared to traditional companies due to its smaller size, flexibility, proactive, innovative and risk taking characteristic. Besides, it has better development and management of knowledge in the early stage compared to traditional firm. As for traditional company, it needs to unlearn the routine and operation and learn new process for the new market. It is costly and time consuming and...
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...Running Head: Born Global Firms Born Global Firms: Characteristics of Born Global Firms Michael R. Austin GBA-440 Prof. Sylvia Nelson Saint Leo University Table of Contents Cover Page1 Abstract3 Introduction4 Conventional Models vs. Born Global …..……………………………………………………………………………………………5 Characteristic of Born Globals7 Born Global Firm Example A: Ki-An Eco8 Marketing Orientation………………………………………………………………………………………………………………10 Brand Differentiation………………………………………………………………………………………………………………..10 Networks…………………………………………………………………………………………………………………………………..10 Born Global Firm B: Spoxil10 Technology…………………………………………………………………………………………………………………………….…11 Market Orientation……………………………………………………………………………………………………………….….11 Brand Differentiation…………………………………………………………………………………………………………….….12 Networks…………………………………………………………………………………………………………………………………..12 Conclusion…………………………………………………………………………………………………………………………………………12 Works Cited……………………………………………………………………………………………………………………………………...13 Abstract The term ‘born global was birth in 1993 by Michael Rennie (Tanev, 2012). From that time the concept of born global firms emerged as a subject of empirical study in international business relations. Researchers watched and marked small international firms as they emerged and survived, though seeming to have done so outside of conventional theories of internationalization. It was not simply the rise of these firms that caught the interest of the international business community...
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...THE BORN GLOBAL LITERATURE The emerging scholarly literature presents born global firms as an entirely new phenomenon. Traditionally, international business scholars have argued that firms venturing abroad follow a set process of development, beginning at home, with clearly defined stages which unfold sequentially.12 This conventional view was challenged by Oviatt and McDougall’s seminal 1994 analysis,13 which argued that these firms commence their internationalisation at inception, because local competitive forces prevent them from beginning operations within their domestic economies. Additionally, focus Oviatt and McDougall maintained that internationalising firms focus on controlling resources rather than owning them. Traditional international business theory was also questioned by the ‘innovation models’ approach, which identifies managerial innovations within the firm as the driving force of international expansion.14 The observations made in the present investigation accord in part with both the established view of internationalisation and its critics, as the additional extension of born global firms beyond exporting is characterised by impersonal processes as well as entrepreneurship. What is evident, however, is that the firms examined here did not follow a linear path of expansion. Rather, the processes they went through often occurred simultaneously and in a compressed period of time. Existing literature on born global firms lapses into...
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...Vol. 5, No. 1 International Journal of Business and Management International Market Expansion Strategies for High-Tech Firms: Partnership Selection Criteria for Forming Strategic Alliances Øystein Moen (Corresponding author) Norwegian University of Science and Technology (NTNU) Department of Industrial Economics and Technology Management N-7491 Trondheim, Norway Tel: 47-7359-3505 E-mail: Oeystein.Moen@iot.ntnu.no Ottar Bakås SINTEF Technlogy and Society, Department of Industrial Management N-7465 Trondheim, Norway E-mail: ottar.bakas@sintef.no Anette Bolstad Norwegian University of Science and Technology (NTNU) Department of Industrial Economics and Technology Management N-7491 Trondheim, Norway Vidar Pedersen Investment Office Nordic, Telenor Nordic Finance Snarøyveien 30, N-1331 Fornebu Tel: 47-9823-2599 E-mail: vidar.pedersen@telenor.com Abstract Newly established, technology-based firms entering international markets often have limited resources in terms of capabilities, time, and capital. As a consequence, these firms often use entry modes characterised by low resource commitment, including partnership agreements (strategic alliances). This paper, investigates which partner selection criteria that are important for this group of firms when they are selecting partners. Based on case studies of three Norwegian firms targeting the UK market, five selection criteria have been identified as important (trust, relatedness of business, access to...
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...vs. limitedly exporting companies. The past 10 years witnessed an increasing interest toward firms which do not try first to grow and get strong market positions in their home countries and after that start foreign op- erations but rather are involved in foreign operations in their first years of operations or even straightaway start their foreign sales. These firms have been labeled quite differently in various studies: born globals (Knight & Cavusgil, 1996; Madsen & Servais, 1997; Aspelund & Moen, 2001), inter- national new ventures (INVs) (Oviatt & McDougall, 1994, 1995, 1997), global start-ups (Oviatt & McDougall, 1994), or high-technology start-ups (Jolly, Alahuhta, & Jeanet, 1992). More recently, the term born-again global firm has also been proposed, to describe long-established firms that used to focus on their domestic markets, but suddenly opt for rapid internation- alization (see e.g., Bell, McNaughton, & Young, 2001). The main driving forces for the existence of these new types of companies are (see Knight & Cavusgil, 1996; Madsen & Servais, 1997; Rialp, Rialp, & Knight, 2005): (1) the increasing role of niche markets, (2) the advances in process technology, (3) the advances in communication technology, (4) the inherent advances of small companies, (5) the means of internationalization that have become more accessible to all firms and increasing support ac- tivities for the greater international contacts and cooperation, and...
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...Entrepreneur-related reasons l Global vision l Managerial and international competences l International networks Organisational reasons l Global mission and growth aspirations l Resource availability (human and financial) l Suitable products/services Company external reasons l Sectoral, regional, national export culture l International trade incentives, national trade disincentives (e.g. legal, tax) l Demand l Low/shrinking domestic demand l Strong/emerging international demand (‘global niche markets’) l Mobility of clients l Global value chains l Foreign trade facilitators (e.g. low transport costs, marketing possibilities through modern technologies) There are several strong external factors affecting whether a company becomes a born global. It might, for example, be located in a region with a strong export tradition in a certain sector. This creates an ‘internationalisation culture’ among entrepreneurs and enhances international activities due to interfirm relationships (for example, subcontracting or joint product development). Proximity to universities, technical schools, research and development centres and incubation parks can also be a factor, by helping to create a culture of ‘open innovation’ and providing a supply of highly qualified labour. Born globals are more likely to emerge from small and open economies (Freeman et al, 2006; Gabrielsson and Kirpalani, 2012) as these pose a higher level of risk and limited potential for starting up a...
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...many trade barrier in many countries in the world. These firms need to come up with international marketing strategies that will enable them complete favourably in these new markets. International marketing strategies mean that international subsidiaries act and formulate marketing ways independently as if they were local companies with minimal coordination or supervision from the parent company. This aims at meeting the local consumer needs in the market but at the same time not lowering the international standards of a brand. This paper discusses the two main marketing strategies that international firms like Coca cola use. These are standardization and adaptation. In standardization, a multinational company uses a uniform approach to marketing her brand so as to minimize costs and promote a global corporate image. On the other hand adaptation means that a firm uses unique marketing dimension that are adaptable to fit each of her local markets (Mathew & Zander, 2007).This paper looks at how practical a brand like Coca cola has used adaptation and standardization in international markets. Part 1: international marketing mix strategies: standardization and Adaptation It is important to note that the two market mix strategies can be used together by a multinational for one strategy may not be sufficient due to the uniqueness of the markets. It is of no use for a firm to use standardization for the whole global market when they exist cultural...
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...Chapter 9 1. One of the most common entry strategies for MNCs is the joint venture. Why are so many companies opting for this strategy? Would a fully owned subsidiary be a better choice? 1） wholly owned subsidiary is an overseas operation that is totally owned and controlled by an MNC. This option is often pursued by smaller companies, especially if international or transaction costs, such as the cost of negotiating and transferring information, are high. When MNCs make an initial investment in the form of a wholly owned subsidiary in a foreign country, it is sometimes referred to as “greenfield” or de novo (new) investment. The primary reason for the use of wholly owned subsidiaries is a desire by the MNC for total control and the belief that managerial efficiency will be better without outside partners. Due to the sole ownership, it has been found that profits can be higher with this venture and that there are clearer communications and shared visions. However, there are some drawbacks. Typically, wholly owned subsidiaries face a high risk with such a large investment in one area and are not very efficient with entering multiple countries or markets. This can also lead to low international integration or multinational involvement. Furthermore, host countries often feel that the MNC is trying to gain economic control by setting up local operations but refusing to include local partners. Some countries are concerned that the MNC will drive out local enterprises...
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...Managing the internationalization process Learning outcomes After reading this chapter, you should be able to: ➤ Understand the motives for internationalization. ➤ Apply the theories underpinning the internationalization process. ➤ Explain the Psychic Distance and Born Global concepts. 5 ➤ Advise a multinational firm on choosing an appropriate entry mode for internationalization. ➤ Advise a multinational firm on de-internationalization. 148 Global strategic development Opening case study Internationalization of a French retailer—Carrefour In 1960, Carrefour opened its first supermarket in France. In 1963, Carrefour invented a new store concept—the hypermarket. The hypermarket concept was novel, and revolutionized the way French people did their shopping. It moved daily shopping from small stores to enormous stores where customers find everything they want under one roof, in addition to selfservice, discount price, and free parking space. The first Carrefour hypermarket store was established at the intersection of five roads—hence the name, Carrefour, which means ‘crossroads’. Carrefour is the leading retailer in Europe and the second largest worldwide, with Exhibit A International development of Carrefour Year Country and mode of entry No. of stores (2009) 1969 1973 1975 1982 1989 1991 1993 1993 1994 1995 1996 1997 1997 1998 1998 2000 Belgium—Carrefour’s first hypermarket outside France Spain Brazil—Carrefour’s first hypermarket in the Americas Argentina Taiwan—Carrefour’s...
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...marketing chapter 1- introduction to global marketing principles of marketing a review The essence of marketing is to surpass the competition at the task of creating perceived value. Value equation = Benefits/Price (time, money, effort). Benefits are a combination of the product, promotion and distribution. A market = people or organization that are both able and willing to buy. When a company is able to create more value than the rest, he has a competitive advantage. A global industry – one in which competitive advantage van be achieved by operations on a worldwide scale. Global marketing: what it is and what it isnt Global marketing strategy, has 5 dimensions: 1. Global market participation: the extent to which a company had operations in major world markets. 2. Standardization vs. adaptation 3. Concentration of marketing activities: the extent to which activities related to the marketing mix are performed in one or a few countries. 4. Coordination of marketing activities: the extent to which marketing activities related to the marketing mix are planned and executed interdependently around the globe. 5. Integration of competitive moves: the extent to which a firm’s competitive marketing tactics in different parts of the world are interdependent. management orientations Ethnocentric orientation His/her home superior to the rest. Opportunities outside the home country are largely ignored domestic companies. Those who conduct business outside...
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...environmental scanning in order for the firm to intelligently plan for the future. The goal is to gather the environmental data in order to identify future market opportunities and threats. An example of the importance of environmental scanning would be if you were looking to open a coffee shop in a certain area, it is good to determine whether or not there may be a decline in coffee consumption in the area—this is something that environmental scanning would reveal. 2. How should Ford Motor Company market differently to Generation Y, Generation X, and baby boomers? Generation Y was born between 1979 to 1994 so they are in their late-teens to early-thirties—meaning this may be their first vehicle purchase for the majority of them. Their preferences tend to be cheaper since they were hit the hardest by the Great Recession. They also seem to have a high interest in technology so marketing the techy benefits of the vehicle would be a selling point for them. Generation X was born between 1965-1978 so they are mostly in their thirties and forties. They were also hit by the Great Recession and many carry debt over 20 percent of their annual salary. Many of them still have children under the age of eighteen so a larger vehicle, such as an SUV, may be a targeted interest for them. They have been known to be very difficult to market to but having an understanding to their needs and wants makes the process easier for companies. The Baby Boomers were born between 1946 and 1964. They range...
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...services across national borders * Exchanges can be made through exporting or can also take the form of: * Importing or Global Sourcing - the procurement of products or services from suppliers located abroad for consumption in the home country or a third country. * International Investment - refers to the transfer of assets to another country or the acquisition of assets in that country. Economists refer to such assets as factors of production and they include capital, technology, managerial talent and manufacturing infrastructure. * Foreign Direct Investment - is an internationalisation strategy in which the firm establishes a physical presence abroad through acquisition of productive assets such as land, plant, equipment, capital and technology. It is a foreign-market entry strategy that gives investors partial or full ownership of a productive enterprise. * International portfolio investment - refers to the passive ownership of foreign securities such as stocks and bonds for the purpose of generating financial returns. International portfolio investment and foreign direct investment are the two essential types of cross-border investment. The Nature of International Investment Foreign direct investment (FDI) is the ultimate stage in internationalisation and encompasses the widest range of international business involvement. Firms engage in FDI to establish: * A factory or other facility to produce products or services * A sale of rep offices to...
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...is a bit latter-day. Starting with the pioneering works of Dunning (1958) and Vernon (1965) on firm internationalization, the field has grown momentously churning out some time-tested theories. Unlike its counterpart business disciplines which focus on narrow subject areas, IB research is broader focused and draws on multidiscipline approaches (Aggarwal 2004) to explain the reasons why businesses go international. It has been argued by Wang et al. (2008) that a firm’s internationalization process being more sophisticated calls for a multiple approach to be able to understand its nuances, the aim of this report is to use at most seven IB theoretical approaches to analyze the internationalization of Hyundai Motors Corporation (hereafter HMC). The analysis will seek to test the basic assumptions and concepts of the various theories, identify and question basic deviations of the theories from the internationalization of HMC and search for answers as to the reasons for the deviation. This report begins with a brief historical account of HMC’s evolution, internationalization and current position in the global automobile industry. A brief review of the internationalization theories which are used in this analysis is undertaken. A thorough analysis of various phases of HMC’s internationalization using the theories (where applicable) then follows. A conclusion is drawn whether HMC’s global operations fit or deviated from the assumptions that these theories posit. 2 COMPANY HISTORY...
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