Mr.

Pavan
Mr. Prem kumar
Mr. Venu gopal
Mr. Siddartha
Mr. Dileep
Mr. Arun

 Focal Firm
Distribution channel intermediary
Facilitator
Government

2) Stages of International
Value chain
HRM
IT
ADMIN

PROCUMENT
Primary /inbound logistics/operations/outbound
log/sales/after sales services.

3) Specific characteristics of a
focal firms and characteristics of
international Mnes and Smes
and born global firms
Focal firms are the large international players which
includes Mnes and Smes
They promote the international business transactions by
conceiving, manufacturing, producing for global
consumption.

MNEs
These are the fortune global 500 companies, which
have ample resources which has various operations
across the globe

Ex:citibank,sony,general motors.

SMEs

These are the medium sized manufactures or

service providers in the country
Ex:New zealand telecom

4) Unique characteristics about focal firms

as franchisors, licensors and turnkey
contractors
FDI
International collaborative venture
Exporting
Trade of products
Exchange of services

Manufacturing business
Licensor: A specific Period of time in exchange for
royalties and contractual agreement with a foreign
partner

Entry Strategies
Franchisor: To use an entire business system in
exchange for fees and royalties
Turnkey Contractors : To manage and implement all
phases of project and then hand it over to a foreign
customer.

5) Structure of distribution channel

intermediaries in international business
Intermediaries based in the foreign market:
1.Foreign distributor

2.Manufacture representative
3.Retailer
4.Agent- Brings buyers and sellers together.

Intermediaries in
International Business
Intermediaries based in the home country:
Wholesaler importers
Manufacturer
Trading company
Export management company

Intermediaries in
International Business
Online intermediaries:
Disintermediation- Elimination of traditional
intermediaries
Reintermediation- It is an online intermediary buying
and selling environment

6) The facilitators in
international business
Facilitator makes possible for international business
transactions
Ex: Banks, customs brokers

Logistic service provider that arranges for physical

distribution and storage of products on behalf of
focal firms
Consolidator: It combines the cargo and
international shipping containers for shipment
abroad.

facilitators in international
business
Customs brokers: To navigate foreign tariffs, taxes
and complex import rules
Commercial banks: To enable the foreign currencies
and provide financing to buyers and sellers
Insurance companies: To provide coverage against
commercial and political risks.

Reference
Cavusgil, S.T., Knight, Riesenberger, Rammal, H.G.,
& Freeman, S.(2012). Aus Ed.
Tutor : Frederick Finau