chapter 4 - international entrepreneurship opportunities

4-1

4-2

ChapterChapter44

International International Entrepreneurship Entrepreneurship

OpportunitiesOpportunities

4-3

Questions AboutQuestions About International BusinessInternational Business

Different From Domestic Different From Domestic

Business?Business?

Strategic Issues?Strategic Issues?

Options Available?Options Available?

Decision To Enter?Decision To Enter?

4-4

Strategic IssuesStrategic Issues

Speed Of EntrySpeed Of EntryJoint VentureJoint Venture

Competitive AdvantageCompetitive Advantage Reduce Expropriation ChancesReduce Expropriation Chances

Responsibility AllocationResponsibility AllocationStandardization PossibilitiesStandardization PossibilitiesSystems To Be UsedSystems To Be UsedOrganizational StructureOrganizational Structure

4-5

International vs. DomesticInternational vs. Domestic

EconomicsEconomics

Stage of DevelopmentStage of Development

Balance of PaymentsBalance of Payments

Type of System- Barter?Type of System- Barter?

Political/Legal EnvironmentPolitical/Legal Environment

CultureCulture

TechnologyTechnology

4-6

Strategic IssuesStrategic Issues

StageStage Decision MakingDecision Making

11 Highly CentralizedHighly Centralized

22Complexity Forces Complexity Forces

DecentralizationDecentralization

33Conflict Forces Conflict Forces RecentralizationRecentralization

4-7

Environmental AnalysisEnvironmental Analysis of National Marketof National Market

CharacteristicsCharacteristicsUniqueUnique

CommonCommon

ClusteringClusteringDimensionsDimensions

Operating/Planning Operating/Planning

4-8

Strategic PlanningStrategic PlanningMarketingMarketing

DecisionsDecisions Target MarketsTarget Markets

ProductsProducts NeedsNeeds BenefitsBenefits UseUse Ability To BuyAbility To Buy Competition- Competition-

Strengths & Strengths & WeaknessesWeaknesses

Program Program ModificationModification

Balance Of Balance Of Payments & Payments & CurrencyCurrency

Political ClimatePolitical ClimateOpportunity. Opportunity. Risk, CapabilityRisk, Capability

4-9

StructureStructure

Achieve ObjectivesAchieve Objectives

Skills & ResourcesSkills & Resources

ResponsibilityResponsibility

4-10

Operational MarketingOperational Marketing

Implement Effective PlanImplement Effective PlanPlanPlan

ProductProductPricePriceChannelsChannelsCommunicationCommunicationTarget MarketTarget MarketControl- Measure/MonitorControl- Measure/Monitor

4-11

Country Data AnalysisCountry Data Analysis

Market CharacteristicsMarket Characteristics

Marketing InstitutionsMarketing Institutions

Industry ConditionsIndustry Conditions

Legal EnvironmentLegal Environment

Resource AvailabilityResource Availability

Political EnvironmentPolitical Environment

4-12

International Market EntryInternational Market Entry

ExportingExporting IndirectIndirect DirectDirect

NonequityNonequity LicensingLicensing Turn-KeyTurn-Key Management Management

ContractsContracts

PartneringPartnering

Direct Foreign Direct Foreign InvestmentInvestment Minority InterestsMinority Interests Joint VenturesJoint Ventures Majority InterestMajority Interest MergersMergers

HorizontalHorizontal VerticalVertical Product ExtensionProduct Extension Market ExtensionMarket Extension

4-13

Barriers ToBarriers To International TradeInternational Trade

General Agreement on General Agreement on Tariffs and Trade Tariffs and Trade (GATT)- 1947(GATT)- 1947

Increasing ProtectionismIncreasing ProtectionismTrade Blocs & Free Trade Blocs & Free Trade AreasTrade Areas

Strategy & BarriersStrategy & Barriers