Академический Документы
Профессиональный Документы
Культура Документы
Business
WEL COME
INDEX
Introduction to International Business
Nature & Scope & Feature of I B
Importance of I B
Approaches of I B
Motivation to do I B
Need for I B
Adopting to Customers Needs
Problems in I B
Entry Strategy
Advantages & Disadvantages of I B
Reasons for recent I B Growth
International Organization
WHAT IS INTERNATIONAL
BUSINESS ?
Theexchange of
or more countries.
WHAT IS INTERNATIONAL
BUSINESS ?
All Commercial transactions that take place between two or
more countries.
NATURE OF IB
1. Accurate Information & timely
2. The size of the international business
3. Market segmentation
4. International markets have more potential than
domestic markets
SCOPE OF IB
1. International Marketing
2. International Finance and Investments
3. Foreign Exchange
4. Global HR
FEATURES OF IB
1. Large scale operations
2. Integration of economies
3. Dominated by developed countries and MNCs
4. Benefits to participating countries
5. Keen competition
6. Special role of science and technology
7. International restrictions
IMPORTANCE OF IB
1. Earn foreign exchange
2. Optimum utilisation of resources
3. Achieve its objectives
4. To spread business risks
5. Improve organization's efficiency
6. Get benefits from Government
7. Expand and diversify
8. Increase competitive capacity
GOING INTERNATIONAL
I B APPROACHES
1. Ethnocentric approach
2. Polycentric
approach
3. Regiocentric approach
4. Geocentric
approach
I B APPROACHES
1. Ethnocentric approach
Under this approach , target market is own
country , Exccesive production will export due
to change in customer taste, preferences
1. Ethnocentric approach
Organization Structure
Managing Director
MGR
MGR
R&D
FIN
MGR
MGR
MGR
PROD
HRD
MKTG
Asstt. Mgr
Asstt. Mgr
Asstt.
Mgr
North india
South India
Exports
I B APPROACHES
2.
Polycentric approach
2.
Polycentric approach
Organization Structure
Managing Director
CEO
FOREIGN SUBSIDIARY
SOUTH AFRICA
MGR
MGR
R&D
FIN
MGR
MGR
MGR
PROD
HRD
MKTG
I B APPROACHES
3. Regiocentric approach
Under this approach, the company operating
successfully in a foreign country thinks of exporting
other neighbouring countries of the host country.
At this stage, the concerned subsidiary considers the
regional environment ( such as laws, culture, policies
etc) for formulating the policies & strategies.
3. Regiocentric approach
Organization Structure
Managing Director
CEO
SOUTH AFRICA
Mktg
Mktg
Mktg
MGR
MGR
MGR
MGR
MGR
I B APPROACHES
4. Geocentric approach
delicate sarees.
4. Geocentric approach
Organization Structure
Managing Director
Headquarters India
Subsidiary
Subsidiary
Subsidiary
Subsidiary
MOTIVATION TO DO I B
1. Proactive:
to increase profit
2. Reactive:
Competitive pressures
NEED FOR I B
1. Achieve higher rate of profits
2. Expanding the production capacity beyond the demand
of the domestic country
3. Availability of technology and managerial competence
4. Cost of manpower, transportation & Nearness to R/M
5. LPG Implt.
6. Market share
ADOPTING TO CUSTOMERS
NEEDS
1.
2.
3.
4.
PROBLEMS IN I B
1.
Political factors
2.
3.
Exchange instability
4.
Entry requirements
5.
6.
7.
Technological policy
8.
Quality Management
ENTRY STRATEGY
1.
Exporting
2.
Licensing
Agreement
licensees fee
ENTRY STRATEGY
2. Franchising
by franchisers to franchisee
Usage
3. Foreign Assembly
Subsidiary
local assembly
ENTRY STRATEGY
4. Turnkey Operation
Staff of an operating facility
foreign buyer
ENTRY STRATEGY
6. Foreign production subsidiary
Purpose of production
7. International Firm
Significant portion
In foreign countries
ENTRY STRATEGY
8. Multinational Corporation
Parent country
host country
9. Joint Venture
Property rights
ENTRY STRATEGY
10. Foreign Direct Investment
Arrangement in which a firm buys or establishes
tangible assets
In another country
Through direct investment
By buying a company stock in capital markets
MAIN BARRIERS
1.
2.
3.
Economic barriers:
ADVANTAGES OF I B
1. Faster growth
2. Access to cheaper inputs
3. Increased quality and efficiency
4. New market opportunities
5. Diversification
DISADVANTAGES OF I B
1. Increased costs
2. Foreign regulations and standards
3. Delays in payments
4. Complex organizational structure
INTERNATIONAL
ORGANIZATION
INTERNATIONAL
ORGANIZATION