...Entering Foreign Market So you are considering entering the foreign market. Your company has been doing well in your home country and you want to approach another level of trade and sales. When it comes to a business entering a foreign market many things must be taken into account. Where, when, and how? Each question must be looked over carefully before making any decision. Where you decide to enter in the foreign market can help or harm your business. When and how you plan to enter is very important as well. You do not want to enter a country’s market at a very bad time because they may not be the best route for your business to take unless you actually plan to help and provide a service to whatever problem is going on within that country. Throughout this report I will explain where, when and how to enter the foreign market and why each is important. First, when considering the option of entering a foreign market the first thing you want to do is take a good look at your business and begin the process of deciding where you should consider making a presence in the foreign market. I believe it is important to start off with entering one country first before taking on the whole market at one time. You must remember factors greatly vary by country to country which can greatly affect the ability to successfully engage in business. So in other words the same thing that worked for you in the United States may not work for you in another country. It is smart to study the foreign market...
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...States, Canada and the U.K. It is consistently ranked in the top 100 best companies to work for and the top 100 best Corporate Citizens. Business Proposal: This document outlines the possibility of Whole Foods expanding into the German Market. Considerations are explored in the realm of German Culture, the Organic Food market, Competitors, Pros and Cons, Entry and Exit Strategy, and Human Resources strategy to declare whether or not Germany is an appropriate fit for Whole Foods. Whole Foods Entering Germany: Successful Whole Foods CEO John Mackey, is quoted as saying "If you want to be competitive in the long term, your business needs to have discovered its higher purpose and it needs to adopt a stakeholder philosophy." In a world where unhealthy food, rife with chemicals and saturated fats is becoming the norm; Whole Foods definitely seems to have found it’s higher purpose. Whole Foods, which is providing individuals with fresh organic food to promote a healthy lifestyle and a higher way of living is poised to spread this philosophy to the rest of the world. This stakeholder philosophy puts the ownership of healthy living on each and every one of us by providing the piece that has sorely been missing in the American market; options. The Whole Foods motto is “WHOLE FOODS, WHOLE PEOPLE, WHOLE PLANET”, therefore it is fitting that Whole Foods continues an expansion past Canada and the U.K into other areas of the world that can benefit from such options. The option...
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...Making Inroads into Brazil and Mexico 1. What were the major challenges facing Anheuser-Busch in entering the Brazilian market? In entering the Mexican Market? The export.gov website describes several market challenges that a company encounters when doing business in Brazil. These challenges include: 1) an intimate knowledge of the local environment, including the explicit as well as the implicit costs of doing business (the “Custo Brazil”); 2) Logistics, given infrastructure limitations posed by a decade of economic expansion; and 3) Tariffs and a complex customs and legal system (www.export.gov 1). The vscgrowth.com website lists the following market challenges for Brazil: 1) The language – Most professionals in Brazil will need an interpreter because English is not widely spoken in Brazil; 2) Time zones and distance – Being on the other side of the world there is no overlap in business hours meaning holding phone or video conferences will have one party up very early or late; 3) Business culture tends to be “laisse a faire” or “introspective” and the different cultural background means priorities don’t always coincide with the US business psyche; and 4) Brazilian infrastructure needs improvement so as to support and capitalize on growth opportunities (www.vscgrowth.com 1). The startupoverseas.co.uk website discusses the following challenges in entering the market in Mexico: 1) cultural and language differences; 2) the Mexican bureaucracy and a complicated tax regime;...
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...Business Research Report Entering the European Market Table of Contents Executive Summary 3 Introduction 4 Research Findings 4 Customs and Business Etiquette 4 European Law and Finance 5 Researching a Foreign Market 7 Recommendations 8 Conclusion 9 References 10 Executive Summary Expanding a business poses certain risks, and entering a foreign market can be additionally challenging. This report serves to guide foreign expansion in Europe by listing the main areas to be focused on, and recommendations for how to meet these specific needs in order to succeed in international ventures. Learning the customs and idiosyncrasies of the regions where the new business venture is planned is vitally important in order to penetrate the market. Understanding that good business practices can differ in other parts of the world, and applying best practices in all areas of business will create successful partnerships and customer bases. Applying foreign law is likewise important, as failure to comply with regulations where business is conducted can result in sanctions, fines, and have a generally negative overall impact on operations. Europe in particular has certain advantages of standardized laws that are applied throughout all European Union members, 27 countries in all. Thorough research of an organizations chosen market is another key stage to mitigate the risks of entering a foreign market. Through the use of focus groups and in-house research a...
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...Penetrating a foreign market has always been a big problem during a firm’s process to grow including the question of how and when going abroad. Therefore there are many reasons why firms decide to extend their business operations by entering foreign markets. Whether it is a defensive step aimed to avoiding the consequences of the saturated domestic market or an offensive strategy based on the expectations of unusual profits. So there is always the doubtful prospect if a foreign entry is worth or is it not worth. The main aim of the essay is to answer these questions. In the last few years it generally could be observed that globalisation has increased the competition amongst firms and enlarged the company’s willingness to enter foreign markets. Small, middle-sized and big companies are using different approaches to reach their target customers, increase profits or ensure the company’s growth. Different strategies offer these companies various opportunities to adapt modes to enter foreign markets and to find new channels of distribution. Moreover the European market consists of much originality which should be taken into account like the EU organization. But entering foreign markets is nothing new in a globalised world and interconnecting Europe. Merchants have dealt with international partners in nearly every decade throughout history. International represented firms like Siemens opened foreign subsidiaries more than 160 years ago. What is the fascination associated with...
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...1. Assume that Ben & Jerry's committed to entering the Japanese market. Answer the following questions: a. Should they join with Seven-Eleven or Mr. Yamada? Why? Giving the facts presented in the Ben & Jerry’s Japan Case study and assuming that Ben and Jerry’s did decide to ultimately enter the Japanese Market, I suggest that they do so with Yamada. After reading and evaluating the case study and learning some back ground information about Ben & Jerry’s Homemade Inc., the reasons that I would suggest that Ben & Jerry’s enter the market with Yamada are because Yamada provides Ben and Jerry with the expertise needed to penetrate foreign markets. Also, by giving Yamada full control of Ben & Jerry’s Homemade Inc., the company would no longer have to address issues involved in putting together an entry strategy. Yamada understands the frozen food market and possesses the entrepreneurial spirit and the marketing expertise, as seen with the development of Domino’s Pizza brand in Japan. These qualities all bode well for Ben and Jerry’s because after several unsuccessful attempts to penetrate markets in Canada, Israel, Russia, United Kingdom, France and Benelux I feel that Ben & Jerry’s lacks the managerial skill to put together marketing campaign for entering foreign markets. The down side of deciding to move forward with Yamada is that they would have to relinquish full control of marketing and sales and Yamada would have exclusive rights to sell Ben & Jerry’s Ice Cream in...
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...like the stage approach, foreign direct investment theory or the network approach. The following chapter describes the link between internationalization and entrepreneurship which leads to a definition of international entrepreneurship as “the discovery, evaluation, and explotion of opportunities across national borders” (McDougall, Oviatt 2005). Afterwards the authors introduce different motives and barriers of internationalization as well as factors that influence the foreign market selection and modes of entering new markets. To prove the stated characteristics the authors did a study using questionnairs which were sent to firms in Lithuania and Norway. As a result the authors get insights which internal and external motives and barriers as well as foreign market selection criterias and operational modes are most relevant for Norwegian and Lithuanian SMEs. There were many similarities among both countries like the “small domestic market” as a motive to expand their operations toward foreign markets as well as too much bureaucrarcy as one of the main barriers to enter new markets. On the other hand the authors found also differences, especially when it comes to internal barriers, selection criteria for foreign markets and modes of entering new markets. High start-up costs are the most important reasons that hinder Lithuanian SMEs from going international whereas Norwegian SMEs are more worried about limited management skills in their company. In the market selection process Lithuanian...
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...operations throughout North America, including the United States, Mexico, Canada, and Puerto Rico. Founded in 1980, it employs a workforce of 13,180 employees as of December 31, 2012 (Clean Harbors, n.d.). In addition to the management and recycling of hazardous waste, Clean Harbors also offers hazardous material management and disposal services including the collection, packaging, recycling, treatment and disposal of hazardous and non-hazardous waste, and a wide variety of environmental cleanup services on customer sites or other locations on a scheduled or emergency response basis (Clean Harbors, n.d.). While Clean Harbors has enjoyed success in the markets it currently operates, there is potential for the company to expand through FDI into ever-emerging foreign markets. Considering the company’s experience in the Latin American markets including Mexico and Puerto Rico, Clean Harbors should investigate entry into Brazil’s economy through FDI to further grow its business, and establish itself within the country. Brazil, which currently has the world’s fifth largest...
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...Adidas in Australia Adidas is a foreign company that is targeting Australia as a market destination for its sports products especial shoes and sporting attires. However, the prevailing conditions in Australia are very different from those of Germany where Adidas is based. The difference is in terms of societal, political, and economical factors. Therefore, before the organization considers venturing in Australia, it is imperative that the company considers foreign market entry strategies. Since the company specializes in sports attire, it is only considerate that the sports culture of Australia as a foreign market to the company is studied well. In addition, company should consider both political and economical factors of the Australian society. Successful businesses are premised on sound politics and economic environments of countries where they are located. The favorable the politico-economical factors of a country the success of a business and the contrary apply. However, potential alliances are also important for foreign markets and are also part of entry strategy (Walter & Murray, 1988). The above factors affect and are important to the entry into foreign markets. For instance, political and economical factors play key roles in the foreign markets entry through factors that influence them. Licensing, which informs the key option for entry into an international market like in the case of Adidas, is influenced by both economic and political factors. For instance, licenses...
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... Doing business internationally is not the same as doing domestic business. New skills are needed to learn in regards to laws and regulations, customers have different buying habits, and changes would need to be made to marketing strategies to appeal to the new market you are entering (Trade Start.CA, n.d.). Before entering a foreign market it is essential to clearly identify the motivations behind the decision to explore in the new marketplace. Determine what your domestic marketing strategy has been and how the plan employed by your company on local level might need to change in a positive way to tailor to the international territory (Forbes Woman, Sept. 2011). There are a few different things a business could do to prepare to leap in to the international market: educating yourself on the customs and business etiquette of the international market, gather historical data on the country’s currency value fluctuation and import/export timelines, becoming familiar with the country’s laws governing business, conducting a focus group to test the waters in the prospective international market, and find out what your competition is doing in the same market space (Forbes Woman, Sept. 2011). When entering a foreign market be sure to know the country’s history with the basics as far down to the proper way to greet someone, the average time citizens go to lunch. Be sure you are communicating with them in a way that caters to their culture, not your own (Forbes Woman, Sept. 2011). ...
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...and regulations, the different customer buying habits, and change your marketing strategies and materials to appeal to the new country you are entering. It is important to remember that the way you operate your business will be determined by culture of the market you are entering, not yours. It is important to understand the differences between domestic and international business but they should not inhibit your interest or drive for success internationally. Rather they should whet your appetite for success. Cultures No two cultures are the same and understanding both the social and business culture in another country is the first key to success. Culture defines everything a society does, from its business practices, to its response to advertising and marketing, to negotiating sales. It is important to include research on the culture of the country(s) that you intend to sell to prior to entering their market. Understanding these, often sensitive, areas will mean that you are better prepared when first entering the market. Although the people that you will deal with will not expect you to be completely in tune with the culture, respect and politeness will go a long way. Level of Competition The level of competition you will experience in foreign markets is likely to be more dynamic and complex than you experience in domestic markets. A good strategic tool to use to determine if you are able to compete in a particular...
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...Coordinator Course Code: MGT-601 Course Title: Strategic Management & Case Analysis Department of Business Administration Sylhet International University, Sylhet Submitted by: Shakhor Ranjan Dash Roll No. 11382 MBA 2-2 Submitting Date : 30.11.2012 Dell Case: Question 1 :: What are the advantages to Dell of having manufacturing sites located where they are? What are the potential disadvantages? Answer: Dell’s manufacturing sites are in Brazil, China, Malaysia, Ireland, and the U.S. Advantages of these locations are that some of them are low cost (Brazil, China, Malaysia and, relatively, Ireland), they have educated work forces that are highly productive, and they are near large regional markets. Dell Case: Question 2 :: Why does Dell purchase most of the components that go into its PC from independent suppliers, as opposed to making more itself? (Does does little more than final assembly of components into PC) Answer: Dell outsources because it enables Dell’s business model to be successful. Dell’s comparative advantage is in pricing, customization and rapid order fulfillment, all advantages gained through supply chain management and logistics. By outsourcing, Dell does not carry risks connected to inventory such as obsolescence, Dell can maintain flexibility in its manufacturing, and Dell has lower coordination costs than if it were vertically integrated, producing its own parts. Outsourcing allows Dell to focus...
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...Date: January 24th, 2012 Sheridan College Executive Summary With Orascom’s Algerian office being attacked and its failure to enter the Indian market, they have a real problem assessing risks in internationalization. The company has done really well locally becoming the market leader within Egypt by owning 43.6% of market share within the telecom industry. Algeria showed the right signs for entry as its GDP increased at a rate of 3.8% per year. There was also very little competition in Algeria since there was only one telecom company available. However there were country risks that were not assessed. This resulted in Orascoms office in Algeria to be attacked by angry soccer fans. India took on new liberalized laws that would open the telecom industry to the private sector and reduce tariffs. The telecom sector was projected to make $43 billion in revenues. This shows that there were investments to be made in the industry as there were millions of new subscribers every year. However, Orascom failed to capitalize on the huge Indian market as it failed in the Indian market within in a short amount of time of entering. If Orascom follows the recommendation of improving its strategic planning, then the risks of internationalization will be minimized and this will result in the company being very successful entering foreign markets. Table of Contents Introduction 4 Environmental Analysis 5 SWOT Analysis 10 Problem Statement 13 Alternatives 14 Recommendation...
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...1. Introduction: If the adage 'two heads are better than one' applies to business, then certainly Unilever is a prime example. The food and consumer products giant actually has two parent companies: Unilever PLC, based in the United Kingdom, and Unilever N.V., based in The Netherlands. The two companies, which operate virtually as a single corporation, are run by a single group of directors and are linked by a number of agreements. Unilever the Company Formed in 1930 considers itself the second largest consumer goods firm in the world, trailing only Philip Morris Companies Inc., and produces numerous brand name foods, cleaning products, and personal care items. About 52 percent of revenues are generated in the foods sector; brands include Imperial and Promise margarines, Lipton tea, Ragú foods, Lawry's seasonings, Breyers ice cream, and Birds Eye and Gorton's frozen foods. One-quarter of sales come from the personal care area; brands include Caress and Dove soap, Pears and Pond's skin care products, Degree, Fabergé, and Sure deodorants, Suave and Salon Selective hair care items, Close-Up, Mentadent, and Pepsodent oral care products, and Calvin Klein, Elizabeth Arden, and Elizabeth Taylor prestige fragrances&mdash well as such miscellaneous brands as Q-Tips and Vaseline. Unilever's third major sector is that of cleaning products, which is responsible for about 22 percent of turnover; brands include Wisk and All laundry detergents, Snuggle and Final Touch fabric softeners, and...
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... Yahoo! became partners with Google on 2000, which helped the company become the world’s leading search engine. Also, search was offered in different languages such as Chinese, Japanese, and Korean. Its first foreign office was opened in Tokyo and by 2009 Google offered search options in 110 languages and had offices in dozens of countries. By August 2004, Google raised $1.6 billion on its initial public offering and on 2008 revenues hit $21.8 billion primarily from two advertising products AdWords and AdSense. AdWords bid in auctions for rights to keywords on specific geographical regions. On the other hand, AdSense delivered relevant keyword ads to a network of third-party publishers. In addition, Google offered a variety of other services such as Gmail, Picasa, Goggle Calendar, Blogger, Google Docs, Google Images, YouTube, Google News, Google Finance, Goggle Scholar, Goggle Maps, and Google Earth. Google originally served the Chinese market through it Chinese-language version, but it has to use Chinese Internet service providers. These providers filtered the search making slow and sometimes unavailable to Chinese users. In 2005, Google established a research and development center in China employing Chinese engineers which will help attract most of the Chinese market to use Google search engine. Finally, Google.cn was launched in 2006 making easier for Chinese to access all Google’s services. What Google did not take into consideration was...
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