Question

Explore your Own Case in Point: identify the appropriate Global Entry Strategy for your Chosen Company After reading this chapter you should be prepared to answer some basic questions about your target company.

4) Critically and objectively evaluate how ethical your company’s global operations are and determine if they are good corporate citizens (i.e., do they have a well thought-out corpo- rate social responsibility program for the long term?

Answer 1

Global strategy here can be framed as a strategy being framed inorder to make your companies position into international market.

I.e this global entry strategy forms as key to open the doors of international markets avenues to youre company.

Ways of global entry strategies :

How ever it always depends on the form of business being done by company and the form of avenues it wanto reach.

Many of global entry strategies are found as follows :

1. Direct exporting :

* If company A , U.S based company uses its own resources to manufacture/ process and then sells those items directly into the chosen international market say India / china / any other european countries.

Thus it directly reaches its destination matket via employing distributors / agents. Thus they acts as face of the company.

In such a way direct exporting can be framed as global entry strategy to enter global markets.

However it is responsibility of company to associate with ethical agents / distributors such that fair business transparency exists and commission to these agents / distributors hasto be fixed in sucha way that end product price doesnot end up higher than reasonability. In this way company can perform its own social responsibility by providing high quality goods at reasonable prices and invest those income in business expansion of that foreign country which increase revenue generating oppurtunities for its citizens.

2. Licensing :

This is a bit sophisticated arrangement where one firm gives its own rights of production / marketing to other local firm in foriegn country. By this the licensing charges to foreign firm becomes income to native firm.

It turns out good if marketing ability of foreign countries firm is wide and can handle it without spoiling reputation of root company

* this strategy in a way providing a chance for other countries firms to build their own kingdom by using goodwill of root company / firm. Thus it enhances ability of income generation to foreign firm and advanced products obtained to users of foriegn firm.

Eg : U.S co products are now being used by many indians which enhances knowledge advancements in technologies.

3. Franchising

It was typical north american process initially. But now due to its advantages its outraging popularity wprld wide. Its mainly observed in food outlets.

Eg : mc.donalds , KFC etc...

The origin company posess right to start any outlet in its name world wide. Companies with huge goodwill are in general found to use this strategy.

Now this irigin company provides permission to others on satisfying its franchise starting rules to set up place of business of their respective area.

A specific initial deposit is found to be initial profit of origin co. Along with profit sharing is also found in few practices.

Via these good quality and tastie foods are tasten worldwide. Obviously that is bliss to local residents there and inorder to protect goodwill of origin company it instructs franchises with specific processing methods and in few cases raw materials are also provided by origin co only.

Thus quality food with worlwide famous tastes and nutritive values of used raw material enhances strength of natives that itself can be termed a satisfying social responsibility of origin co.

4. Partnering

* when an origin company say A wanto enter global market but is unaware of specific tastes cultures and prefrences of natives in that foreign country. Then it tries to team up with any local co of that country say B.

Now the B co and A co forms partners for that respective business.

B provides knowledge of local resources , people tastes and scope of prefrences. So now A will try to adapt its advancement in manufacturing with local tastes of foreign countries citizens.

In a way it is 2 way profit to users of B. Cause now by purchasing products in local markets they can face world with confidence. And low price high quality can be enjoyed by them.

In a way this collabrative adaption improves quality of thoughts in locals mind and enhances their vision of perceptions. ( eg : greater acceptance in clothings like torn jeans , shorts etc let indians think beyond their origin fashion sense )

5.Joint venture

* it works on 1+1=3 strategy i.e

A , co 1 and B , co 2 collaborates and agree to work together in a particular market , either geographically / product wise.

And creat third co , C to undertake this.

Risks and profits ate generally shared equally.

6. Buying a company :

An existing company is bought by foreign co in its way to enter into local market. Tge substantial market space possesed by existed co forms as benifit for foreign co to encash its products.

Its a kind of win - win strategy where both users and producers will be benifited.

Users , as they will be now blessed with best products.

Producers , no huge investments needed for initial marketing. Nominal marketing investments are found sufficient.

7. Piggybacking :

* it is a unique way of entering international arena.

* if a company produces a unique machinery , then if reaches other companies which are already involved in global markets and finds if the founded machinery can be included in addition to their existing inventory.

This enhances both founder , backing co and final users to experience the innovative new blood creations.

8. Trunkey projects :

* a trunkey project is where the facility is built from ground and turned over to client ready to go. This is good way to enter foreign markets as client in general is govt and project is being financed by international financial agency such as world bank.

If govi itself promotes origin co businesses then that improves standard of living of individuals found over there

Eg : damns and other previliged constructions in native countries by renouned foreign companies.

9. Green field investments :

* a proccesses of starting your business right from foundation to advertising in foriegn market by native co is called green field investment.

Its geberally found to be highest cost and risk involved method / strategy.

But due to prsence of few advantages like tax holiday localities / low cost areas etc ... native companies tend to make green field investments

Eg : software industry in india and china.

Corporate social responsibility in this method is generally served to be high. Since the whole economic structure of foriegn countries change with their investments.