Scribd Logo
Upload

Welcome to Scribd!

  • 32 views

    Forum 5

    Uploaded by

    Nishan Shrestha
    There are several business strategies that companies can use to enter the global market, including licensing, exporting, franchising, foreign subsidiaries, and foreign direct investment. To choose the best strategy, a company should consider its mission, products/services, and brand. McDonald's is an example of a company that has used multiple strategies for global expansion, such as joint ventures, franchising, and sole ventures. Franchising has allowed for rapid expansion without large capital investments while also allowing localization. Any company expanding globally should consider business models, market research, competition, and risks related to technology, intellectual property, products, markets, logistics, culture, politics, regulations, and compliance. While guidelines exist, there is no absolute

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Forum 5

    Uploaded by

    Nishan Shrestha
    32 views2 pages
    There are several business strategies that companies can use to enter the global market, including licensing, exporting, franchising, foreign subsidiaries, and foreign direct investment. To choose the best strategy, a company should consider its mission, products/services, and brand. McDonald's is an example of a company that has used multiple strategies for global expansion, such as joint ventures, franchising, and sole ventures. Franchising has allowed for rapid expansion without large capital investments while also allowing localization. Any company expanding globally should consider business models, market research, competition, and risks related to technology, intellectual property, products, markets, logistics, culture, politics, regulations, and compliance. While guidelines exist, there is no absolute

    Original Description:

    Forum post for strategies to expand business

    Original Title

    Forum-5

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    There are several business strategies that companies can use to enter the global market, including licensing, exporting, franchising, foreign subsidiaries, and foreign direct investment. To choose the best strategy, a company should consider its mission, products/services, and brand. McDonald's is an example of a company that has used multiple strategies for global expansion, such as joint ventures, franchising, and sole ventures. Franchising has allowed for rapid expansion without large capital investments while also allowing localization. Any company expanding globally should consider business models, market research, competition, and risks related to technology, intellectual property, products, markets, logistics, culture, politics, regulations, and compliance. While guidelines exist, there is no absolute

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    32 views2 pages

    Forum 5

    Uploaded by

    Nishan Shrestha
    There are several business strategies that companies can use to enter the global market, including licensing, exporting, franchising, foreign subsidiaries, and foreign direct investment. To choose the best strategy, a company should consider its mission, products/services, and brand. McDonald's is an example of a company that has used multiple strategies for global expansion, such as joint ventures, franchising, and sole ventures. Franchising has allowed for rapid expansion without large capital investments while also allowing localization. Any company expanding globally should consider business models, market research, competition, and risks related to technology, intellectual property, products, markets, logistics, culture, politics, regulations, and compliance. While guidelines exist, there is no absolute

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    There are several ways to enter the global market and conquer it.

    Depending on the companys


    mission and vision, brand and product/service I would choose from several business strategies to
    take my entrepreneur venture to the globe. Such strategies can be but not limited to licensing,
    exporting, franchising, foreign subsidiaries, foreign direct investment (FDI), strategic alliances
    The next step after identifying the business model would be to find the competitive strategy. I
    would use the 7Ps of marketing mix to set objectives, perform SWOT analysis and conduct
    competitive analysis. The 7P marketing mix tool is a practical framework to evaluate an existing
    business and work through appropriate approaches whilst evaluating the mix element that
    involves product/services, price/fees, place/access, promotion, people, process and physical
    evidence (Kreitner 2013). Each strategy provides businesses with a different level of cost, control
    and risk.
    One of the best example that explains this process would be McDonalds strategy for global
    expansion. McDonalds deploys various international market entry modes for rapid expansion:
    joint ventures, franchising, master franchising and sole ventures. Around 15% of McDonalds
    restaurants are operated as sole ventures. A sole venture requires high capital commitment but
    enable highest degree of control. It has also expanded internationally through joint ventures.
    This allows for rapid expansion and utilizes the knowledge of firms in closely-linked markets
    with lower financial risk for all investors. Most of McDonalds other restaurants are franchised.
    It allows rapid expansion without significant capital investments. Franchising also give the
    opportunity to localize and tailor the products adhering to the local customs and culture. This is
    well demonstrated by the menu differences by country such as it portrays vegetarian family
    values and offers Samosa in India similarly The Tsukimi Burger in Japan.

    In addition to accessing business model, market research and competitive analysis, there are
    other risks that entrepreneurs should take into account. Such risks can be technological
    risks, intellectual property related issues, product risks and market uncertainties. Further one
    should look at other impediments to international expansion such as logistics and physical
    infrastructure, cultural differences, political and economic volatilities, legal framework,
    regulations and compliances.
    Whilst the above mentioned principles and guide lines help entrepreneurs expand their ventures,
    there are no absolutes when it comes to business. There is always an opportunity for new ideas
    and methodologies to disrupt the norm. Going global present an unparalleled opportunity. One
    should choose the route that best suits their mission, vision, corporate culture and start planning.

    References:
    Kannan, Shilpa. "How McDonald's Conquered India." BBC News. BBC., 19 Nov. 2014. Web. 18
    Sept. 2016.
    Kreitner, R. Kinicki (2013). Organizational Behavior. 10th edition. McGraw Hill Publishing

    You might also like