...trend of globalization, more small and medium-sized enterprises have already started international expansion (Knight and Cavusgil, 1996). In the process of economic globalization, the competitive advantage depends largely on the enterprise innovation and the ability to enter into the market quickly. This essay will discuss the globalization process of a manufacturing company located in a G7 economy making high quality agricultural equipment and both the positive and negative features of globalization. The globalization process of the company Although internationalization is a common sense in today’s marketing, however, to discuss the internationalization process of enterprise, it is important to define enterprise internationalization itself clearly. Beamish(1990) defined enterprise internationalization as "the process by which firms both increase their awareness of the direct and indirect influence of international transactions on their future, and establish and conduct transactions with other countries." (Beamish, 1990, p. 77) It can be concluded that there are two most important elements in enterprise internationalization — internal organization and external investment. Welch and Luostarinen(1999) pointed out that “internationalization is the process of increasing involvement in international operations.” Both definitions are process-based which shows the nature of enterprise...
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...Introduction: Firms from big and developed countries internationalize by using many advantages and resources to compete and to survive in the economy industrial, they face many difficulties such us political issues, economy changes, environmental, technology and lack of resources and many obstacles they go through with it while the process of internationalization. However, firms in developing countries such as China, going global for them is very easy process because they seek advantages such as compete and gaining profit and to built up a strong economy region, on the other hand they face challenges when embarking on overseas investment. Internationalization of Firms: Internationalization of firms is a process in which the firms in developing countries gradually raise their international participation in the world-wild economy. Firms internationalize for two factors a) - Economy= increase country revenue. b) - Business= to gain profit. (The internationalization process of the firm- Jan Johnson 1973 university of Uppsala) The Internationalization Model: Market Commitment: It’s all about two factors, the amount of resources and the average of commitment to use these resources in the market. Market Knowledge: A firm before going international should have a basic knowledge of market s opportunities, market environment, and performance of activities, resources, culture, language and technology...
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...Internationalization at Toyota: A Case Study Examining the internationalization of the Toyota Motor Corporation, this essay argues that the firm’s strategy of localism, pertaining to both design and production, has lain at the core of the firm’s international successes. In this regard, it notes that Toyota learned from early failures, pertaining to export vehicles, and adjusted its strategy in longitude so as to make the most of export opportunities across the international economy. Noting that the pooling of research & development (R&D) resources which exists in Japan is highly relevant to success in this regard, the essay proposes that Toyota’s all-encompassing strategy of localism is responsible for its international success. Concluding, the essay does note that two areas of weakness, pertaining to quality control and emergent market penetration, still plague Toyota’s internationalization ventures. Thus, while the firm is highly successful in this regard, potent internal difficulties problematize its continued success. Toyota’s First Attempts at Internationalization To begin, understanding Toyota’s significant contemporary global posture requires an understanding of the firm’s humble roots. Indeed, in the pre-World War II era, Toyota was a very small automobile manufacturing firm with middling success in the country’s domestic market. Indeed, it is only through the American War Department’s industrial training program that Toyota ultimately succeeded, in the...
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...step to establish themselves abroad. Perhaps the local market is saturated, presence in a certain country grants access to strategic resources or there are cluster effects to be explored in a specific region. The decision makers of the companies that are becoming international have different experiences and are in different situations which influence their decision to take the step into the international market. Internationalization readies a company’s product and services for global markets and ensures it can be localized easily. Products that are internationalized often must be localized to fit the needs of that country's users. For example, an internationalized software program would need to be localized to display the date as November 28 for use in the United States and as 28 November for use in England. LITERATURE REVIEW Internationalisation is defined as developing networks of business relationships in other countries through extension, penetration and integration (Johanson & Mattsson 1988). According to Masum, & Fernandez (2008, p. 11), internationalization is the process of availing good and services to markets that are outside the country of origin or the country where the good are manufactured or the location of the company. In internationalizing, a company must be in a position to deal with the rules and regulations that have been put in place in foreign countries that they operate in addition to showing the ability to deal with the fluctuation of the currency...
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...access to industrialized markets and to gain access to superior technology, management resources and knowledge are the most driving factors of the Chinese automotive industry for the internationalization and going abroad strategy of China´s automotive industry. This study investigated whether different external globalization drivers and internal organization factors have differential effects on various dimensions of China´s automakers firms’ global strategy. Most of the studies written about global strategies have implemented only either of the internal or the external drivers of the internationalization of the firms. The contribution of the paper introduces a more comprehensive model on the global expansion of a firm. This paper concludes that China´s automotive industry has some competitive advantages such as low cost, while, facing a number of challenges that hinder the internationalization of Chinese automobile companies. It also shows that multiple factors play an important role in firms' internationalization global strategy plan. It is thus essential that the interaction among independent variables is considered in the determination of global expansion strategy. This paper suggests that in comparative application of China´s economy of internationalization process to most of other...
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...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, rather it was that they were essentially breaking the rules of international engagement and surviving to tell the story. This phenomenon caused researcher to revisit age old internationalization models such as the Uppsala and Innovative Models. As research continued, and still does, born global firms have been defined as having a certain set of characteristics evident across the spectrum....
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...INTERNATIONAL MARKETING CHAPTER 1 – GLOBAL MARKETING IN THE FIRM Globalization – Reflects the trends of firms buying, developing, producing and selling products and services in most countries of the world Comparison of the Global Marketing and Management style between SMEs and LSEs * Resources (Financial, Business Education) * Formation of Strategy * Organization * Risk-taking * Flexibility * Economies of Scale and Scope * Use of information sources Economies of Scope – Reusing a resource from one business in additional businesses Should the company stay home or go abroad? * Industry Globalism. Mainly determined by the international marketing environment * Preparedness for Internationalization. Dependent on the firm`s ability to carry out strategies in the international marketplace, that is the actual skills in international business operations Development of the Global Marketing concept The form of the firm´s response to global market opportunities depends greatly on the management´s assumptions and beliefs about the nature of doing business around the world: * Ethnocentric - Home country is superior and their needs are the most relevant * Polycentric (Multidomestic)- Each country is unique and should be targeted in a different way * Geocentric- The firm may offer global products but with local adaptations * Regiocentric- The firm tries to integrate its marketing programme within regions Glocalization- Development...
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...INTERNATIONALIZATION STRATEGIES FOLLOWED BY THREE MEXICAN PIONEER COMPANIES GRUPO MODELO, GRUPO BIMBO and CEMEX ISSUES AND CHALLENGES José G. Vargas-Hernández, M.B.A;Ph.D. Profesor Investigador miembro del Sistema Nacional de Investigadores Departamento de Mercadotecnia y Negocios Internacionales Centro Universitario de Ciencias Económico Administrativas Universidad de Guadalajara. Periférico Norte 799 Edificio G-306 Zapopan, Jalisco C.P. 45100; México Tel y fax: +52(33) 3770 3343 Ext 5097 josevargas@cucea.udg.mx,jgvh0811@yahoo.com,jvargas2006@gmail.com Mohammad Reza Noruzi, EMBA, PhD Candidate Policy Making in Public Sector Islamic Azad University, Bonab Branch, Iran Young Researchers Club Member, IAU Bonab, Iran Tell: +98- 412-7238893-5 mr.noruzi@modares.ac.ir mr_norouzi@pnu.ac.ir mr.noruzi.pnu@gmail.com Abstract The opening of the Mexican economy and globalization bring new opportunities for Mexican companies to expand their markets and get their products around the world. The internationalization process requires a sound strategy for the consolidation in foreign markets. The aim of this study is to analyze the different internationalization strategies followed by three Mexican companies with a global presence: Grupo Modelo, Grupo Bimbo and Cemex. We conclude that the differences in their strategies arise from the characteristics of each of these companies. Keywords: Mexican companies, strategy, expansion, internationalization. 1 INTRODUCTION The landscape of this...
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...Table of contents: 1. Introduction………………………………………………………………………………………………………….3 2. Critical review a well managed organization with culture of learning and innovation in international markets…………………………………………………………………….3 2.1 Literature review of a well managed organization with culture of learning and innovation in international markets………………………………..……………………………3 2.2 Examining Wal-Mart’s characteristics to the extent of learning culture and innovation …………………………………………………………………………………………………….4 3. Critical review internationalization theories and the case of Wal-Mart from 1994 onwards……………………………………………………………………………………………………….7 3.1 Theories of internationalization…………………..……………………….……………………...7 3.2 Wal-Mart’s internationalization strategies from 1994 onwards……………..……9 4. Wal-Mart entry Brazilian and Japanese market……………………………………………….10 4.1 Considerable issues of the company………………………………………………………… 11 4.2 Opportunity in those markets……………………………………………………………………13 5. Wal-Mart’s entry modes in international markets - Examining with Brazilian and Japanese markets…………………………………….…………………………………………… ….13 5.1 Mode of entry to Brazil ………………….…..……………………………………………………..13 5.2 Mode of entry to Japan……………………………………………………………………………….14 6. Summary……………………………………………………………………………………………………………15 7. References………………………………………………………………………………………………………….15 8. Appendices…………………………………………………………………………………………………………16 ...
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...Part 1: The decision to internationalize Chapter 1: Global Marketing in the firm Purpose of the marketing plan is to create sustainable competitive advantages in the global marketplace. Firms go through mental process. For SME’s, informal process, for larger organization it is often more systematized. Globalization: reflects the trend of firms buying, developing, producing and selling products and services in most countries and regions of the world. Internationalization: Doing business in many countries of the world but often limited to a certain region. Should a company stay at home, or strengthen the global position?? Two dimensions: 1.) Industry globalism (high degree of industry globalism -> many interdependencies between markets, customers and suppliers. Besides, industry is dominated by a few large powerful players (global, like software, cd’s, movies, aircrafts) and the other multidomestic market environment (local, like hairdressing, foods and dairies) 2.) Preparedness for internationalization Degree of preparedness is dependent on the ability to carry out strategies in international marketplace (personal skills, managers’ international experience or financial resources) Well-prepared company is called = mature Figure 1.2 very important decision model in the marketing!! (page 10) “The nine strategic windows” EPRG-framework = worldview of a firm’s business activities. 1.) Ethnocentric home country is superior, controls are highly centralized...
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...Table of Contents INTRODUCTION 2 THEORETICAL FRAMEWORK 3 Internationalization overview 4 Reason to get international 14 Issues in internationalization management 15 WINE MARKET 17 Profiles of Country Producers 17 CHINESE WINE MARKET 25 Overview 25 Wine market overview 28 Imported wine 32 Italian case 36 Future prospective 45 REFERENCES 48 Bibliography 48 Consulted website 52 INTRODUCTION The purpose of this work is to analyze the growth and evolution of the wine market in China. In particular we will focus on the internationalization of the global wine producer countries in this new emerging market and which are the futures prospective and possibilities of this young market. This paper is composed by four main sections: 1. Theoretical framework; 2. Wine market; 3. Chinese wine market; 4. Italian case. First of all we need to understand what we mean when we speak about internationalization. Through a theoretical chapter, using the existing literature about internationalization, we will explore its theories, evolution and which benefits it may bring to the firm that implement it, showing how important it became in the globalized world in which companies work nowadays. Afterward we are going to analyze, thanks to the data taken by reliable sources, the global market of wine, showing its fragmentation, which are the main player and their characteristics. Now that we have a general panorama, we can concentrate on the Chinese...
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...IKEA: Expanding globally Introduction……………………………………………………………………………….3 1. A learning organization: understanding the culture of learning and innovation….3 2.1 General concept of learning organization……………………………………3 2.2 IKEA – a learning organization in various market:………………………….4 2. IKEA’s internationalization strategy ……………………………………………..6 3.3 Internationalization strategy from 1974 onwards ……………………………6 3.4 From the perspective of internationalization theories: ………………………7 3. Issued considered in international market research and opportunity analysis: ….9 3.1The Japanese and Chinese market: ……………………………………………9 3.2 The Brazilian market: ………………………………………………………..9 4. IKEA’s entry mode strategy: …………………………………………………...12 5.5 Subsidiaries………………………………………………………………….13 5.6 Franchising………………………………………………………………….13 Summary Introduction Globalization is now playing an important role in the growth of economies across the world. The rapid growth of its process has led to social, economic, technical, cultural and ecological interdependence among nations. It also provides new and potentially profitable markets, increases firms’ competitiveness, facilitates access to new product ideas, manufacturing innovations. Thanks to its numerous advantages, the world is moving closer together and a great deal of organizations has great opportunities to expand their market to foreign ones. IKEA, the world’s largest furniture retailer, did not...
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...The Factors that Influence Successful Internationalization of Firms in Emerging Markets: A Case Study of MTN International Abstract Internationalization is essential in the modern world that is filled with many uncertainties. Companies internationalize because of many factors that include profit motives, costs minimization, diversification of the markets, search for new opportunities, saturated domestic market etc. the internationalization process of a firm involves many processes that are interlinked and the firm that wants to internationalize should always take these factors into considerations. The factors include the knowledge on the market, the availability of resources, the strategies to be used and the market environment. Before a company takes on an international assignment it should plan first. Planning will help the organization not to make mistakes in its initiative. Despite the many motives of companies to internationalize and the advantages involved, there are obstacles that the company must overcome for successful internationalization this paper analyzes the internationalization process in emerging markets, the process, motives, obstacles and benefits to a firm. A case study of MTN international will be used. The study is important to every person interested in international business and companies.More… CHAPTER ONE 1.1 Chapter overview This chapter will give a highlight of the whole study about internationalization of companies. Included in the chapter...
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...Internationalization and firm performance 1. Introduction The topics of internationalization and firm performance are introduced. Over the last decades the interest on the relationship and connection between internationalization and performance has grown rapidly. The aim of this paper is to focus on the strength and weaknesses of internationalization as a business strategy by stressing the positive and negative factors that influence the whole process. Moreover, internationalization well be discussed with regard on performance levels. Does firms expansion abroad has a direct positive or negative impact on performance? And, if yes, in what extend does performance, profit, market share as well as the position toward competition change? The first part of the paper deals with some of the important reasons such as resource, marker, efficiency, as well as strategic asset seeking, which directly influence companies to be multinationals. We live in the area of globalization, where “going global” and becoming international is a very common strategy used by firms in order to expand and spread their potentials abroad. Nevertheless, before some decades this topic was not as common as today and authors starting to study it by concentrating not only in the economical side, but as well as by dealing with cultural diversities, political barriers, local versus foreign customers, competition etc. The second part of the paper is focused in more details in the IP relationship. It is understandable...
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...developing the global marketing plan 2 3. Comparison of the global marketing and management style of SMEs and LSEs 2 4. Should the company “stay at home” or “go abroad”? 3 5. Development of the global marketing concept 3 6. Forces for global integration and market responsiveness 3 7. The value chain as a framework for identifying international competitive advantage 4 8. Value shop and the service value chain 5 9. Information business and the virtual value chain 5 CHAPTER 2: Initiation of internationalization 8 1. Introduction 8 2. Internationalization motives 8 3. Triggers of export initiation (change agents) 9 4. Internationalization barriers / risks 9 SESSION 2 11 CHAPTER 3: Internationalization theories 11 1. Introduction 11 2. The Uppsala internationalization model 11 3. The transaction cost analysis model 11 4. The network model 12 5. Internationalization of SMEs 12 6. Born globals 12 7. Internationalization of services 13 CHAPTER 4: Development of the firm’s international competitiveness 15 1. Analysis of national competitiveness (the porter diamond) 15 1.1. Factor conditions 15 1.2. Demand conditions 15 1.3. Related and supporting industries 15 1.4. Firm strategy, structure and rivalry 15 1.5. Government 15 1.6. Chance 15 2. Competition analysis in an industry 15 2.1. Market competitors 16 2.2. Suppliers 16 2.3. Buyers 16 2.4. Substitutes 16 2.5. New entrants 16 2.6....
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