Creating and Managing New Ventures

Subject:- Identifying and analysing domestic and international opportunities.Presented By :-

Group- 8&

Group- 10Group Members Name:-

Shradha Bhutra Souvik Day

Siddhanta Chatterjee Swapnojit Banerjee

Vishal Roy (B) &

Sunny

IDENTIFYING & ANALYZING DOMESTIC & INTERNATIONAL OPPORTUNITIES:-

OPPORTUNITY RECOGNITION AND THE OPPORTUNITY ASSESSMENT PLAN

Be shorter Focus on opportunity not VentureSpecific Aspects of the product or ServiceSocial condition underlying this market needSize of the Domestic & International MarketGrowth Rate of the market

INTERNATIONAL ENTREPRENEURSHIP

An entrepreneur doing business across his or her national boundary.

FACTORS AFFECTING ENTREPRENEURIAL PERFORMANCE

1.ECONOMICS2.STAGE OF ECONOMIC DEVELOPMENT3.CURRENT ACCOUNT4.TYPE OF ECONOMIC SYSTEM5.POLITICAL-LEGAL ENVIRONMENT6.LANGUAGE

CULTURE

The single most factor important problem.It is learned behaviour and the identity of an individual and

society.

ASPECTS OF CULTURE

1.RELIGION2.POLITICAL PHILOSOPHY3.ECONOMICS AND ECONOMIC PHILOSOPHY4.EDUCATION5.MANNERS AND CUSTOMS

Globalise Your Thoughts. Entrepreneurs have to think globally to survive locally.

Even the smallest "Mom-and-Pop" shop might sell products made overseas, and that shop can also sell to customers in other countries through the Internet. All this interconnectedness creates a domino effect when one country's economy suffers. Exports might drop in that country, leaving entrepreneurs without products and raw materials they were used to buying. Entrepreneurship today means staying abreast of worldwide trends.

Motivations to global (An Entrepreneurial Challenge).

Strategies are taken by the global entrepreneur.

Foreign market selection.

Team work makes an entrepreneur to reach a bigger goal.

How to find the area of expansion in the global market.

ENTREPRENEURIAL ENTRY STRATEGIES.

THE MODE OF ENTERING OR ENGAGING IN INTERNATIONAL BUSINESS CAN BE 3 GENERAL CATEGORIES:- EXPORTING NON-EQUITY ARRANGEMENTS DIRECT FOREIGN ARRANGEMENT

Exporting. An Entrepreneur starts doing International Business through Exporting. Exporting normally involves the sale & shipping of products manufactured in one country to a

customer located in another country. There are two general classifications of Exporting:-1. Direct.2. Indirect.

Direct Exporting:- It involves the use of independent distributors or the company’s own overseas sales office in

conducting International Business. Entrepreneur also can open their own overseas sales office & hire their own sales people to

provide market representation. As more business is done in the overseas sales office, warehouses are usually opened, followed

by a local assembly process when sales reach a high level enough to warrant the investment. Entrepreneur can then export the output from these manufacturing operations to other

International market.

Indirect Exporting:- It involves having a foreign purchase in the Local market or using an export Management Firm. For certain Commodities & manufactured goods, foreign buyers actively seek out sources of

supply & have purchasing offices in markets throughout the world.Non-equity Arrangement.

It is a Method by which an Entrepreneur can enter a market & obtain sales & profits without direct equity investment in the Foreign Market.

An Entrepreneur can enter into International Business by following three types of Non-Equity Arrangements:-

Licensing. It involves giving a foreign manufacturer the right to use a Patent, Technology, Production

Process, or Product in return for the payment of a Royalty. Turn-key Projects.

It is a method of doing International Business whereby a foreign Entrepreneur supplies the manufacturing technology or Infrastructure for a Business & then turns it over to local Owners.

It is a another method by which the Entrepreneur can do International Business without much risk is through Turn-key Projects.

Management Contracts. It is a Non-Equity method of International Business in which an Entrepreneur contracts his or her

management techniques & Skills to a foreign company. Several Entrepreneurs have successfully entered International Business by contracting their

management techniques & skills.Direct Foreign Investment.

It is a mode of ownership for entrepreneurs using direct foreign investment for doing business in International Markets .

Joint Ventures & minority & majority equity positions are also methods for making direct foreign investments.

Minority Interests. It Is a form of Direct Foreign Investment in which the investing Entrepreneur holds a minority

ownership position in the Foreign Venture. Japanese companies have been frequent users of the minority equity position in direct foreign

investment.

Joint Ventures. It is an another direct foreign investment method used by entrepreneurs to enter Foreign market. Joint Ventures joining of two firms in order to form a 3rd company in which the equity is shared. Entrepreneurs use joint ventures most often in two situations:-1. When the entrepreneur wants to purchase local knowledge.2. When rapid entry into a market is needed. Another reason for forming a joint venture to obtain a competitive advantage. It helps to access new customers & expand the market base.

Majority Interest. It is an another method by which an entrepreneur can enter International markets is through the

purchase of majority interest in a foreign business. The purchase over 50 % of the equity in a firm is the majority interest.

Mergers. An entrepreneur can obtain 100 % ownership to ensure complete control. For successful entry into a market an entrepreneur requires Capital, Technology, & Marketing

Skills..Merge Types:-

There are basically Five types of mergers:-1. Horizontal Merger.2. Vertical Merger.3. Product Extension.4. Market Extension.5. Diversified Activity.

ENTREPRENEURIAL PARTNERING: To enter an international market the entrepreneur should partner

with an entrepreneur of that country who is a good one and helps in achieving market goals share visions and not only exploits one another for their own benefits.

Barriers to international trade. Varying attitude throughout the world concerning trade.

General Agreement on Tariff and Trade (GATT): GATT is a multilateral agreement with the objective of

liberalisation of trade by eliminating or reducing tariffs, subsidies and imports quotas.

Increasing protectionist attitude: Support for GATT goes up and down. GATT is replaced by

WTO(world trade organisation) which came into effect on 1995 and is an extension of GATT, supplemented by several other agreements, including more efficient and legally binding means of dispute resolution.

Trade Blocs and Free Trade Areas: Many trade blocs and FTA(free trade areas) are established between nations

to support and development of more liberal trade relations and reduced barriers and quotas and encourage investments.

Entrepreneur's Strategy and Trade Barriers: Trade barriers becomes problems wanting to involve in international

business like cost of exporting rises, voluntary export restraint limits ability to sell in a country, etc

Strategies: Establish production facilities in that country to make it economical. Locate assembly or production facilities in a country to conform to the

local regulations of the country.

Implications for the Global Entrepreneur: Cultural, political, economic distribution system of a country clearly influence

its attractiveness as potential market and investment opportunity. Cost and political are lower in politically advanced countries. In long run

benefits depends on country’s future growth and expansion. So entrepreneurs must carefully analyse the countries before entering a country.