...means SEWTEX has to exports more & be the main actor on foreign market. Major commercial advantages for SEWTEX to be active in the international market: * First, it is an opportunity to dramatically increase their sales. * Increase profitability, the extent of the export price which can generate sufficient margin and the profits will grow. * Gain of notoriety worldwide * Better understanding of the competition * Better using of their production capacity. For example if SEWTEX is not working at full capacity and if its facilities are under-utilized, it will increase its production through exports * Boost business * Exporting can bring a breath of fresh air in the business and allow to leave behind any bad habits and improve on new strategies, thus, positive consequences will be saved in the working methods of the company. Arguments she can offer to explain why SEWTEX should make a commitment with foreign companies: * Easier and faster market penetration for a company limited in financial and human resources, while profiting from distribution channels already well established by local partner, thus allowing it...
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...Unit 3 – globalEDGE Chapter 14 Exporting Exporting can help play a major role in business development and growth, as well as influx into the economy that the firm does business in. Reduction in tariff barriers, lower transportation cost, and economies of scale have all helped exporting become an even bigger player in the field. When considering exporting as an option for the firm, one must consider several things, including but not limited to, the advantages and disadvantages of exporting, how to approach exporting, how to manage the transactions, what the payment methods are, and be prepared to make some adjustments and/or changes to the product to cater to the target market they are entering. Some of the challenges involved with exporting are advantages and disadvantages. It is up to the firm to decide which outweighs the other before moving forward with the decision. Advantages include the ability to diversify the client base and create new opportunities for sales. When a firm becomes saturated in their current market, they might hit a plateau. One of the ways around that is to go to a new market. There is an increase in sales and profits by selling goods and services to a market the company never had before boost sales and increases revenues. In addition, foreign sales over the long term, once export development costs have been covered, can increase overall profitability. Firms can also benefit with lower costs per unit. The foreign market will allow the firm...
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...into exporting, its definitions and other international business transactions, it goes on discussing the different strategies available to a firm internationalizing for the first time, and these include both direct and indirect strategies available, and provides examples of firms that use export strategies. It also gives the advantages and disadvantages of such strategies. At the end of the report it provides a conclusion and recommendations to what strategies a firm can adopt depending on the situation. 2.0 INTRODUCTION AND BACKGROUND The most conventional forms of international business transactions are international trade and investment. International trade refers to an exchange of products and services across borders. Exchange can be through exporting, importing or countertrade. Exporting is an entry strategy involving the sale of products and services to customers located abroad from the home base or third country. Importing is the buying of products abroad and bringing them to the home market. Countertrade is a business transaction where all or partial payments are made in kind rather than cash. Both finished and intermediate goods, such as raw materials and components are subject to trade. While on the other hand international investment refers to the transfer of assets to another country, or acquisition of assets in that country through foreign direct investment and contractual agreements, Cavusgil (2008). Among the organizations arrangements for exporting are Indirect...
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...Methods of entry A well planned market-entry strategy entails an operator greater management over its market initiation and launch expectations, thus providing assurance to meeting financial targets. Businesses nowadays attempt to accomphlish increment in sales, brand awareness and business sustainability by breaking into new markets. Formulation of a market entry strategy requires an in depth analysis of potential competitors and likely customers. There are numerous options to enter a market. The list comprises of direct and indirect exporting, joint ventures, Merger & acquisitions or licensing of technology abroad. The risks & benefits associated with each method are attributed to several elements. This includes the nature of the product or service you produce, the requirements for product or service support, and the foreign economic, political, business and cultural environment that the firm is seeking to enter. The ideal strategy is highly reliant on the firm's level of resources and commitment, and the level of risk that the firm is willing to take. Many businesses select exporting as their entry strategy. Start-up costs and risks are kept to its minimal, and it is less complicated in comparison to the other methods. Exporting can be performed directly or indirectly. Via the direct method, the business extends its business plan to include exporting as a new activity and gathers knowledge and workers to execute the plan, i.e., locating foreign buyers, labelling product...
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...A market entry strategy is to plan the a method of delivering goods or services to a target market and distributing them there. when importing or exporting services, it refers to establishing and managing contracts in a foreign country.Market entry is more than examining a set of economic data. Successful market entry begins with assessing feasibility, factors such as the trends, the culture, the nature of the competition and the opportunity. There are a variety of ways in which organizations can enter foreign markets. The three main ways are by direct or indirect export or production in a foreign country. Exporting methods include direct or indirect export. In direct exporting the organization may use an agent, distributor, or overseas subsidiary, or act via a Government agency. In effect, the Grain Marketing Board in Zimbabwe, being commercialized but still having Government control, is a Government agency. The Government, via the Board, are the only permitted maize exporters. Bodies like the Horticultural Crops Development Authority (HCDA) in Kenya may be merely a promotional body, dealing with advertising, information flows and so on, or it may be active in exporting itself, particularly giving approval (like HCDA does) to all export documents. In direct exporting the major problem is that of market information. The exporter's task is to choose a market, find a representative or agent, set up the physical distribution and documentation, promote and price the product. Control...
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...EXPORT STRATEGY ASSESSING A PRODUCT'S EXPORT POTENTIAL There are several ways to gauge the overseas market potential of products and services. (For ease of reading, products are mentioned more than services in this guide, but much of the discussion applies to both.) One of the most important ways is to assess the product's success in domestic markets. If a company succeeds at selling in a domestic market, there is a good chance that it will also be successful in markets abroad, wherever similar needs and conditions exist. In markets that differ significantly from the domestic market, some products may have limited potential. Those differences may be climate and environmental factors, social and cultural factors, local availability of raw materials or product alternatives, lower wage costs, lower purchasing power, the availability of foreign exchange (hard currencies like the dollar, the British pound, and the Japanese yen), government import controls, and many other factors. If a product is successful in a domestic market, one strategy for export success may be a careful analysis of why it sells here, followed by a selection of similar markets abroad. In this way, little or no product modification is required. If a product is not new or unique, low-cost market research may already be available to help assess its overseas market potential. In addition, international trade statistics (available in many local libraries) can give a preliminary indication of overseas markets for a...
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...Business Entry 4 1.4 Basic Issues an Organisation Faces 5 1.5 Strategies used by Firms 5 ENTRY STRATEGIES 6 2.0 EXPORTING 6 2.1 Advantages and Disadvantages of Exporting 7 2.2 Passive exports Vs Aggressive exports 7 2.3 Direct and Indirect Export 8 2.4 Case Study 9 3.0 PIGGYBANKING…………………………………………………………………………………….10 4.0COUNTERTRADE……………………………………………………………………………………10 4.1 Forms of Countertrade…………………………………………………………………………….10 4.2 Examples of Countertrade…………………………………………………………………………11 4.3 Disadvantages of Countertrade……………………………………………………………………11 5.0 BARTER………………………………………………………………………………………………11 5.1 Forms of Barter Trade…………………………………………………………………………….11 6.0 FOREIGN PRODUCTION……………………………………………………………………………14 6.1 Licensing…………………………………………………………………………………………..14 6.2 Joint Ventures……………………………………………………………………………………..15 6.3Ownership………………………………………………………………………………………….16 6.4 Exports Processing zones………………………………………………………………………….17 7.0 ANALYSIS AND CONCLUSION…………………………………………………………………...17 7.1 Conclusion and Recommendation………………………………………………………………..17 8.0 REFERENCES………………………………………………………………………………………...19 EXECUTIVE SUMMARY. There are a variety of ways in which a company can enter a foreign market. No one market entry strategy works for all international markets. Direct exporting may be the most appropriate strategy in one market while in another you may need to set up a joint venture and in another...
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...ASSIGNMENT ON TOYATA’S GOBAL PRODUCTION STRATEGY Submitted to: Mr. Md. Zillur Rahman Course 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...
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...Bibliography When an organization has made a decision to enter an overseas market, there are a variety of options open to it. These options vary with cost, risk and the degree of control which can be exercised over them. The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of the former, or countertrade, in the case of the latter. More complex forms include truly global operations which may involve joint ventures, or export processing zones. Having decided on the form of export strategy, decisions have to be made on the specific channels. Many agricultural products of a raw or commodity nature use agents, distributors or involve Government, whereas processed materials, whilst not excluding these, rely more heavily on more sophisticated forms of access. These will be expanded on later. Chapter Objectives The objectives of the chapter are: Structure of the Chapter The chapter begins by looking at the concept of market entry strategies within the control of a chosen marketing mix. It then goes on to describe the different forms of entry strategy, both direct and indirect exporting and foreign production, and the advantages and disadvantages connected with each method. The chapter gives specific details on "countertrade", which is very prevalent in global marketing, and then concludes by looking at the special features of commodity trading with its "close coupling" between production and marketing. Basic issues An organization...
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...EXPORT STRATEGY ASSESSING A PRODUCT'S EXPORT POTENTIAL There are several ways to gauge the overseas market potential of products and services. (For ease of reading, products are mentioned more than services in this guide, but much of the discussion applies to both.) One of the most important ways is to assess the product's success in domestic markets. If a company succeeds at selling in a domestic market, there is a good chance that it will also be successful in markets abroad, wherever similar needs and conditions exist. In markets that differ significantly from the domestic market, some products may have limited potential. Those differences may be climate and environmental factors, social and cultural factors, local availability of raw materials or product alternatives, lower wage costs, lower purchasing power, the availability of foreign exchange (hard currencies like the dollar, the British pound, and the Japanese yen), government import controls, and many other factors. If a product is successful in a domestic market, one strategy for export success may be a careful analysis of why it sells here, followed by a selection of similar markets abroad. In this way, little or no product modification is required. If a product is not new or unique, low-cost market research may already be available to help assess its overseas market potential. In addition, international trade statistics (available in many local libraries) can give a preliminary indication of overseas markets for a...
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...CHAPTER ONE 1.0 INTRODUCTION Exporting is the practice of sending or carrying merchandise to a foreign country for trade or sale. (Branch, Alan E. Elements of Export Marketing and Management. Chapman and Hall, 1990). International business is a potentially lucrative area of many businesses, but the small business owner should be aware that establishing one self in a foreign market is a complex, and time consuming task. Many small businesses in Ghana have dramatically improved their financial fortunes by pursuing export opportunities, but the vast majority of enterprises that have been successful in this regard did not enter the world of international trade until they had fully researched both their own exporting capabilities in various business conditions in the target market(s) abroad indeed, they are wide range of factors to consider when assessing a company’s readiness to expand its business these include company export readiness, potential foreign markets, product distribution options, legal factors, operating cost and profit margin, financing resources. There are many good reasons why countries export. And these includes gaining economies of scale, increased revenue and profit, increased productivity ,spread risk base of business ,smoothing effect on order book ,Offset lack of demand for seasonal products ,New product ideas and Additional markets. Just because exporting is a good idea, a firm or a country should not jump into it unless: * It is has an export plan ...
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...MODES OF ENTRY USED BY INTERNATIONAL FIRMS TO ENTER INTO NEW MARKETS. TERMPAPER SUBMITTED IN PARTIAL FULLFILMENT OF THE REQUIREMENTS OF THE COURSE GLOBAL STRATEGIC MANAGEMENT, DEPARTMENT OF BUSINESS ADMINISTRATION, AND UNIVERSITY OF NAIROBI. DATE17TH MARCH 2012 Modes of entry used by international firms to enter into new markets. Introduction A mode of entry into an international market is the channel which an organization employs to gain entry to a new international market. International firms use several entry modes to expand their businesses globally, and to enter into new markets, there are some basic decisions that the firm must takes before foreign expansion like: first they determine which markets to enter, when to enter those markets, and on what scale. The decision on which foreign markets to enteris based on the nation’s long run profit potential.-The international firm looks in detail at economic and political factors which influence foreign markets.-Long run benefits of doing business in a country depends on following factors:- Size of market (in terms of demographics)- The present wealth of consumer markets (purchasing power)- Nature of competition. By considering such factors firm can rank countries in terms of their attractiveness andlong-run profit. The time of entry is an important factor to be considered. Entry is early when an international business enters a foreign market before other foreign firms and late when it enters after other international businesses...
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...http://wiki.sdn.sap.com/wiki/display/ABAP/ best link for abaper Working with Multiple dynamic internal tables By Bhumika Mahawar, YASH Technologies The main objective of this article is not to show how to display two ALV’s on a single page rather it mainly focuses on the use of dynamic tables in ALV. My requirement was to create two dynamic table and display data into them. The first dynamic table was created in the same way as already known using the method “create_dynamic_table” but the problem was the second dynamic table creation. To do this, you don’t need to use the same method again rather the RTTC concept helps us in the same. The below code illustrates the same and displays the data in an ALV as shown in the diagram below. REPORT ztest. **** Data declarations DATA: dtab TYPE REF TO data, newstr2 TYPE REF TO cl_abap_typedescr, tab_type1 TYPE REF TO cl_abap_tabledescr, lref_ditab TYPE REF TO data, lref_new_line TYPE REF TO data. **** Field-Symbols declarations FIELD-SYMBOLS: <fs_dyn_tab1> TYPE ANY TABLE, <fs_dyn_tab2> TYPE ANY TABLE, <fs_dyn_wa> TYPE ANY. **** Field Catalog declarations DATA: ...
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...Export Behavior and Firm Productivity in German Manufacturing A firm-level analysis Jens Matthias Arnold* and Katrin Hussinger** Abstract This paper examines the causal relationship between productivity and exporting in German manufacturing. We find a causal link from high productivity to presence in foreign markets, as postulated by a recent literature on international trade with heterogeneous firms. We apply a matching technique in order to analyze whether the presence in international markets enables firms to achieve further productivity improvements, without finding significant evidence for this. We conclude that high-productivity firms self-select themselves into export markets, while exporting itself does not play a significant role for the productivity of German firms. Keywords: Exports; Export-led growth; Total Factor Productivity; Heterogeneous firms. JEL-Classification: F10, F13, F14, D21, L60 Addresses: *Bocconi University, Milan, Italy (Email: jens.arnold@uni-bocconi.it) ** Centre for European Economic Research (ZEW), P.O.Box 10 34 43 68304 Mannheim, Germany. Email: hussinger@zew.de (corresponding author) 1 Introduction Why do some firms in an industry export, while others in the same industry persistently serve the domestic market only? What are the determinants behind these different patterns within sectors? How are these differences in export behavior related to productivity differences among firms? Do the best...
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...EXPORTING Exporting is one of several methods an international firm can use to penetrate into a foreign market. It is the function of international trade where goods and services alike are sold beyond national borders. There are two types of exporting: 1. Direct Exporting 2. Indirect Exporting Direct Exporting Direct exporting refers to the act of an international firm involving itself directly to the exporting process of foreign market research, distributing the product to the foreign market, establishing market contact and setting up pricing/promotional strategies among other marketing activities. Usually such a firm sets up an exporting department within its organization to perform these tasks. Advantages of this type of export are: 1. Unified Control: As the firm is performing all the exporting tasks; all the authority in regards to exporting is centered in one organization and is not subject to any external pressure such as international marketing intermediaries. 2. Cost and Profit Control: Owing to the fact that there is an export department situated in the organization managing the cost of exports and the profits obtained as a result is easily achieved, this way an organization can increase its efficiency in terms of how it runs its internal affairs. 3. Customer Identification: The international firm is in direct contact with the foreign market that is buying its products, this way it is easier for the firm to identify what its market requires be...
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