...How does international business achieve its internationalisation objectives in the present-day context? 2. Write a brief overview of the organisation and its mission/objectives related to international business(maximum 500 words for this section) . Brief overview of Zara >>>> International business refers to a broad spectrum of business activities undertaken across national borders.This essay will discuss the international business and internationalisation objectives of Zara in the contemporary context with focus on the business done in the USA. The 1975 established, Spanish based, fashion retailer is a subsidiary of the parent company Inditex. Zara operated in 87 countries by 2014, having 45 stores in United States alone(http://www.inditex.com/en/our_group/international_presence). Zara’s Mission/objectives >>>> (http://wiki.answers.com/Q/What_is_Zara_mission_and_vision?#slide=1). Continuous design, production and distribution is Zara’s objective with a quick turnover maintained through updating stock twice a week (http://www.slideshare.net/shaheen1934/zara-the-inditex-group). The rapid turnover of new inventory allows Zara’s consumers to have access to the most trendy fashion available within the shortest time, this is one of the factors that distinguishes Zara apart from other fashion retailers (http://bura.brunel.ac.uk/bitstream/2438/2003/6/Internationalisation%20of%20Zara.pdf). Zara’s Business Model >>>> In order to better understand Zara’s international...
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...companies need for internationalisation as it focuses on the factors companies must consider before entering new markets or expanding abroad. Many factors that lead companies to invest in the international market have been identified. The research is based on theories. Internationalization factors that motivate companies to establish themselves abroad will be included in the theories. The identified categories include of resource, market, strategic resources, efficiency and seeking motives. Network seeking motives has been identified as an additional motive. The research was conducted based on the qualitative approach. Existing information of related to the motives for internationalisation and the factors to consider before internationalisation were used. The secondary material includes peer-reviewed journals, international business books and research papers. A case study of Chrysodalia Ltd was used to explain the PESTEL and SWOT analysis. Based on the case, it is concluded that companies internationalised in order to increase their competitive advantage. Companies rely on factors, which include Resource seeking, Market seeking, Efficiency seeking, Strategic asset seeking to create competitive advantage in an already saturate market. The factors that the company should consider before internationalising are proactive motivations such as home factors, external factors, and product factors in additional to target nation production factors, target nation environmental factors, and target...
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...Antecedents of Commitment to an Import Supplier Saleh @ 2006 Key Words: 1. Antecedents of commitment 2. Importer’ s commitment 3. Importer supplier relationship 4. Mediating role of trust 5. Cultural similarity 6. Communication 7. Knowledge and experience 8. Supplier’ s opportunism 9. Environmental volatility 10. Transaction-specific investment 11. Supplier’s competencies ii Abstract The concept of commitment has emerged recently in international business literature especially in explaining importer behaviour as a counterpart of the process of internationalisation. Importer commitment often plays a dominant role as one of the major factors influencing relationships in the exporter-importer dyad and facilitates the process of internationalisation by imparting access to the international market. This critical importer and supplier relationship and its animating factors are, however, overlooked and largely neglected in the literature. Accordingly, it is inconclusive as to which factors influence importer commitment and how they influence it. Drawing on the literature, this study strived to investigate the spectrum of importer commitment and has explicitly examined eight factors influencing importer commitment to a foreign supplier by integrating the factors in a comprehensive model. Cultural similarity between importer and overseas supplier, knowledge and experience of the importer, the supplier’s competencies, communication between importer and supplier, the supplier’ s opportunism...
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...INTERNATIONALISATION OF THE SPANISH FASHION BRAND ZARA Carmen Lopez Ying Fan Brunel Business School Journal of Fashion Marketing and Management (2009), 13:2, 279-296 INTRODUCTION Zara is one of the world’s most successful fashion retailers operating in 59 countries. However, there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap. The global textile and clothing industry The removal of all import quotas in the textile and clothing industry from January 2005, involving the unrestricted access of all members of the World Trade Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector (Keenan, et al., 2004). This...
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...INTERNATIONALISATION OF THE SPANISH FASHION BRAND ZARA Carmen Lopez Ying Fan Brunel Business School Journal of Fashion Marketing and Management (2009), 13:2, 279-296 INTRODUCTION Zara is one of the world’s most successful fashion retailers operating in 59 countries. However, there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap. The global textile and clothing industry The removal of all import quotas in the textile and clothing industry from January 2005, involving the unrestricted access of all members of the World Trade Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector (Keenan, et al., 2004). This...
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...[pic] International Market Selection – Issues and Methodologies A Global Marketing Paper Conducted by Kai F. Mahnert, 03113060 Sarah McGauley, 00359157 Laura McGrath, 00453340 Liz McGrath, 03113094 Conducted for Dr Aidan Daly, Lecturer in Global Marketing, NUI Galway Date 22nd March 2004 TABLE OF CONTENTS Abstract 3 Introduction 3 Objectives 5 Limitations 5 Rationale for International Trade 6 Objectives of an organisation 6 The creation of stakeholder value 6 Internal factors in Foreign market selection 7 Personnel 7 Management 8 Customers 8 Capital requirements 8 Social assessment 9 Corporate social responsibility 9 Time and research 11 Methodologies 11 Preliminary screening 12 In-depth screening 12 Final selection 13 external factors in foreign market selection 14 Market potential 14 Market size 14 Market growth 15 Competitive intensity 15 Competitive entry 15 Entry barriers 16 Political environment 16 Political issues for consideration in market selection 17 Risk assessment 17 Legal environment 19 Legal systems 19 Economic environment 20 Economic development 20 Culture 22 Infrastructure 23 Conclusion 23 References 26 International Market Selection Issues and Methodologies Kai F. Mahnert, Sarah McGauley, Laura McGrath & Liz McGrath MBS in Marketing, NUI Galway Abstract International market selection is one of the...
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...Subtitle: The Case of Disney By, Carlos Gonzalez Hernandez This thesis was written as a part of the master program at NHH. Neither the institution, the supervisor, nor the censors are -through the approval of this thesis- responsible for neither the theories and methods used, nor results and conclusions drawn in this work. International Modes of Entry: The Case of Disney 1 Abstract The case of Disney’s theme parks represents an opportunity to test major internationalisation theories in a setting of large investments with little chance for reversal of commitments. The purpose of the research is to study the benefit of different entry modes dependent on Disney’s Theme Parks value-generating resources and capabilities while conditioned to certain local industrial and institutional conditions in foreign markets. Five major theories and frameworks were used to analyze all four Disney’s ventures abroad. This resulted in 20 individual hypotheses analyzed. Results indicate that Disney followed a predictable internationalisation process in the cases of Tokyo, Hong Kong and Shanghai, but that it went off-path in the Paris one. In successful cases Disney followed a cautious approach, involving local partners to transfer and adapt the “Disney Experience”. In the case of Paris the company decided to enter the market alone, which neglected the unique needs of the local market. Page | 2 International Modes of Entry: The Case of Disney Table of Contents 1 2 3 4 ABSTRACT ............
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...Throughout this essay the internationalization process will be examined in depth and supported by evidence from the organisation known as ‘British Petroleum’. The purpose of this assignment is to grasp a comprehensive understanding of the critical aspects of British Petroleum’s internationalization process, the implications it holds for the international business environment and achieving their internationalization objectives through contemporary context. Overview of organisation When discussing globalization it is critical to emphasis the importance a multinational corporation holds over the international business environment. A Multinational corporation (MNC) is an organisation that has registered facilities and assets in business endeavors in more than one country. MNC’s are highlighted for their success in incorporating products, ideas and cultures from more than one country in order to achieve a common goal. With reference to the definition of a MNC, British Petroleum (BP) is undoubtedly a MNC as it undergoes its business ventures throughout the entire world and in countries such as China, Australia, Canada and Mexico. A key aspect of MNC’s is to multi nationalize every aspect of your organisation when aiming to expand internationally, BP are successful in ensuring that every branch of BP around the world has the common sustainable goals. BP has a direct correlation in Foreign Direct Investment (FDI). A FDI is when an organisation finances into production or business...
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...iniEnhance our standing as an international University Embed internationalisation into our activities This means that …. Our staff understand what internationalisation means for the University of Leeds. We have country and regional engagement plans which support our international strategic agenda and priorities and secure our international presence and profile. We provide an international experience for all students, through internationalisation of the curriculum and increasing opportunities for home students to engage with international activity through Leeds for Life. We understand how internationalisation supports research performance. We have a diverse and vibrant community, including high-quality international students and staff. Alumni relation activities support the internationalisation agenda. Create sustainable recruitment of high quality international students This means that… International partnerships, collaborative teaching programmes and student exchange schemes support our international recruitment activities. We experience a strong level of demand from high-quality international students. There is a shared common understanding of the primary factors which attract high quality international students. We recruit students from diverse markets to all levels of study and across subject areas, in accordance with our strategic priorities. Students receive excellent and creative teaching and are well supported, academically and pastorally, through the Leeds model for...
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...International Marketing assignment 1 Christian Dior Galway Business School Monday, November 25th Alexandra Dervaux Table of contents 1.Introducing the corporation . o Reasons to internationalise o Models of inernationalisation 2.Analyse the environment o Christian Dior in China PESTEL analysis o Christian Dior SWOT analysis 3.Marketing research 4.Entry modes 5.References Christian Dior 1. Introducing the corportation Christian Dior SA is one of the most important company in the luxury indutry .It is a french holding wich control several subsidiaries composed by the « haute couture » brand named Christian Dior couture (100% owned by the company ) , LVMH SA (40% owned by the company ). The holding business principal activities are : -‐Clothes -‐Wine and spirits -‐Fashion and leather good -‐Perfumes and cosmetics -‐Watched and sunglasses -‐Fine jewellery ...
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...Course Study Guide 2011–12 International Business Management BUSI 1493 [pic] Contents 1. Welcome 3 2. Introduction to the Course 4 2.1 Aims 4 2.2 Learning Outcomes 4 2.2.1 Knowledge and understanding of: 4 2.2.2 Intellectual Skills: 4 2.2.3 Subject practical skills: 5 2.2.4 Transferable skills: 5 2.3 Learning and teaching activities 5 3. Contact Details 5 4. Course Content 6 4.1 Session Reading 20 5. Assessment Details 21 5.1 Summary of assessment 21 5.2 Detailed description of assessment 21 6. Other Details 23 1. Welcome Welcome to the exciting world of International Business Management! In this era of globalization, there are very few companies that can say that they are not part of a global network. Every firm has to think of itself as a global company, if for no other reason than because it has to meet competition from global companies. This changes the entire strategy of the firm. In the future, we expect that all of you will be involved in managerial decision making that will take you beyond the realms of your geographical territory. This course on International Business Management will have the focus on helping you make better international decisions. Aside from the opportunities offered by globalisation, there are also many risks in entering into the global market. This course will attempt to address, in a structured format, the ways and possibilities of addressing...
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...international impact on higher education development. He contends that globalisation is predominantly economic, and points out that global exchanges in the economic, cultural and educational domains continue to be unequal. At the same time, education is increasingly treated as a business. By exposing the negative side of globalisation and its effects on universities, the author aims to counter the uncritical acceptance of globalisation as a positive force for higher education and society as a whole. Zusammenfassung – Ziel dieses Artikels ist eine kritische Analyse der Natur der Globalisierung und ihrer Auswirkungen auf die höhere Bildung. Der Autor beginnt mit einem Rückblick auf die Eigenheiten der Globalisierung und untersucht dann ihren internationalen Einfluss auf die Entwicklung der höheren Bildung. Er behauptet, dass Globalisierung vorherrschend wirtschaftlicher Art sei und weist darauf hin, dass ein globaler Austausch in wirtschaftlicher, kultureller und erzieherischer Hinsicht ungleich bleibt. Gleichzeitig wird Bildung immer mehr als eine Art Geschäft behandelt. Indem der Autor die negative Seite der Globalisierung herausstellt sowie ihre Auswirkung auf die Universitäten, will er der unkritischen Akzeptanz der Globalisierung als positive Kraft für höhere Bildung und der Gesellschaft als Ganzes entgegenzutreten. Résumé – L’auteur procède à une analyse critique de la mondialisation. Il en recense en premier lieu les caractéristiques puis examine son impact international...
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...direct investment (FDI), joint ventures and strategic alliances, among other forms of internationalisation (Moore and Lewis, 1999). Several multinational corporations (MNEs) can also be identified in Europe in the middle ages and in the beginning of the modern era (Dunning, 1993a; Jones, 1996). The origins of modern international business activity however, are associated with the industrial revolution. Modern MNEs, in particular, have their roots in the massive international movement of factors that took place in the nineteenth century (Dunning, 1993a: p.99). Resource-seeking was the most common motivation of FDI in this period, even if by 1850 many firms had already crossed the Atlantic, in both directions, in what can be defined as market-seeking investment (Dunning, 1993a: p.100; Jones, 1996: p.5). 8 Despite the presence of FDI, most foreign investment in the nineteenth century - and indeed until the late 1940s – was portfolio capital. As a result, international business activity was largely ignored in economic theory until the late 1950s. On the one hand, the phenomenon did not have a major perceived economic impact. It was widely assumed that MNEs were a passing post-war phenomenon originating in the United States (Jones, 1996: p.3). On the other hand (and probably more importantly), the neo-classical theory, based upon perfect markets and the international immobility of factors, did not easily incorporate multinational activity. The growth of FDI (and of the MNEs...
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...According to O’Sullivan, Appelbaum and Abikhzer (2001) and Black and Gregersen (1999), 10-20% of United States (US) expatriates returned prematurely due to job dissatisfaction or difficulties in adjusting to the host countries’ environment. This will have a huge impact to the parent company, which relates to direct and indirect costs. Direct costs will encompass expenses on transfer of location, training, remuneration and benefits (Mendenhall and Oddou, 1985). Whereas indirect costs will include loss of market share, relationship with host countries’ officials and low expatriate confidence (Zeira and Banai, 1984). In addition to the costs and negative outcomes which constitutes from the premature returned, expatriates will have to endure discouragement, loss of respect and credibility among peers, which may adversely affect their future performance (Mendenhall and Oddou,...
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...18/05/2009 TropExo | Ifruitrop International Marketing plan. Focus on TropExo [New Branch in UK] the document title] | Name : Veronica Maria Bento.Student Number : 047069350.Module : International Marketing.Course : International Business Management.Word count : 4400. | Table of Contents 1. Introduction. 3 2. Market Choice. 4 3. Objectives. 5 4. Environment. 6 5. SWOT Analysis. 9 6. Consumer target: Segmentation and positioning. 10 7. The market and competitors. 10 8. Market Entry Strategy. 11 9. The product. 14 10. The Price. 16 11. Channel of distribution. 17 12. Promotion. 17 13. Implementation / Future 18 14. References: 19 Additional reading: 20 15. Appendix. 21 Introduction. For the last several decades, Ifruitrop, based in Ivory Coast, has been a producer and exporter of tropical fruits. Using the effect of globalisation of taste and evolution of technologies, it exported its products in European and Middle Eastern markets. Until now it used an indirect channel of export, e.g. a middle man in foreign countries. However, it recently decided to internationalise through new channels. The stimulus to change the company’s strategy came from its CEO, who has found new opportunities in the European market. In addition, the home market is saturated and the company is reaching excess capacity, which cannot be sold through usual export channels nor on the home market. To assess whether or not they should “stay at home”...
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