...between a country in home country region and foreign country region. Therefore, adjacent markets are more likely to be similar to one another in in terms of business environment than home and foreign markets. More specifically, referring to the table 1 in the Rugman’s research, amongst fortune 500 firms, many have much higher intra-regional sales than foreign sales. This means that truly global, having penetrated the global market, multinationals are not common. Second, similar market environment within certain regions makes the exchange of products and services take place within a region than around the world. Based on the double diamond framework, the implication is that there are primary factors that affect a corporation’s market expansion: factor condition (resources), demand condition (customers), government condition and supporting industries (supply chains). If these primary factors share lack of commonality, it is unlikely for the firm to achieve...
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...ZARA: History and Background Inditex is a global specialty retailer that designs, manufactures, and sells apparel, footwear, and accessories for women, men and children through its chains around the world. Zara is the largest and most internationalized of the six retailers that Inditex owns: (Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho). By the end of 2001, Zara operated 507 stores around the world, including Spain. Of Inditex’s total employees, over 80% of them are part of the retail sales force and 8.5% are in manufacturing, design, logistics, and distribution. The remaining 11.5% are part of the corporate headquarters of Inditex, which is located in the region of Spain called Galicia. The role of the corporate center at Inditex’s headquarters is that of a “strategic controller” only, and is involved in setting the corporate strategy, approving the business strategies of the individual chains, and controlling their overall performance rather than as an “operator” functionally involved in running the chains. This gives Zara autonomy to operate independently and be responsible for its own strategy, product design, sourcing & manufacturing, distribution, image, personnel and financial results. With this freedom, Zara was able to make major investments in manufacturing, logistics, and IT, including establishment of a just-in-time manufacturing system and a 130,000 square meter warehouse close to its corporate headquarters. Zara manufactured...
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...ZARA: History and Background Inditex is a global specialty retailer that designs, manufactures, and sells apparel, footwear, and accessories for women, men and children through its chains around the world. Zara is the largest and most internationalized of the six retailers that Inditex owns: (Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho). By the end of 2001, Zara operated 507 stores around the world, including Spain. Of Inditex’s total employees, over 80% of them are part of the retail sales force and 8.5% are in manufacturing, design, logistics, and distribution. The remaining 11.5% are part of the corporate headquarters of Inditex, which is located in the region of Spain called Galicia. The role of the corporate center at Inditex’s headquarters is that of a “strategic controller” only, and is involved in setting the corporate strategy, approving the business strategies of the individual chains, and controlling their overall performance rather than as an “operator” functionally involved in running the chains. This gives Zara autonomy to operate independently and be responsible for its own strategy, product design, sourcing & manufacturing, distribution, image, personnel and financial results. With this freedom, Zara was able to make major investments in manufacturing, logistics, and IT, including establishment of a just-in-time manufacturing system and a 130,000 square meter warehouse close to its corporate headquarters. Zara manufactured...
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...ZARA: History and Background Inditex is a global specialty retailer that designs, manufactures, and sells apparel, footwear, and accessories for women, men and children through its chains around the world. Zara is the largest and most internationalized of the six retailers that Inditex owns: (Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho). By the end of 2001, Zara operated 507 stores around the world, including Spain. Of Inditex’s total employees, over 80% of them are part of the retail sales force and 8.5% are in manufacturing, design, logistics, and distribution. The remaining 11.5% are part of the corporate headquarters of Inditex, which is located in the region of Spain called Galicia. The role of the corporate center at Inditex’s headquarters is that of a “strategic controller” only, and is involved in setting the corporate strategy, approving the business strategies of the individual chains, and controlling their overall performance rather than as an “operator” functionally involved in running the chains. This gives Zara autonomy to operate independently and be responsible for its own strategy, product design, sourcing & manufacturing, distribution, image, personnel and financial results. With this freedom, Zara was able to make major investments in manufacturing, logistics, and IT, including establishment of a just-in-time manufacturing system and a 130,000 square meter warehouse close to its corporate headquarters. Zara manufactured...
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...ZARA: History and Background Inditex is a global specialty retailer that designs, manufactures, and sells apparel, footwear, and accessories for women, men and children through its chains around the world. Zara is the largest and most internationalized of the six retailers that Inditex owns: (Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho). By the end of 2001, Zara operated 507 stores around the world, including Spain. Of Inditex’s total employees, over 80% of them are part of the retail sales force and 8.5% are in manufacturing, design, logistics, and distribution. The remaining 11.5% are part of the corporate headquarters of Inditex, which is located in the region of Spain called Galicia. The role of the corporate center at Inditex’s headquarters is that of a “strategic controller” only, and is involved in setting the corporate strategy, approving the business strategies of the individual chains, and controlling their overall performance rather than as an “operator” functionally involved in running the chains. This gives Zara autonomy to operate independently and be responsible for its own strategy, product design, sourcing & manufacturing, distribution, image, personnel and financial results. With this freedom, Zara was able to make major investments in manufacturing, logistics, and IT, including establishment of a just-in-time manufacturing system and a 130,000 square meter warehouse close to its corporate headquarters. Zara manufactured...
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...Kristal Steward BUSA 3000 International Business October 27, 2013 Panama is located between Colombia and Costa Rica in Central America. Panama is literally a land bridge between North and South America, and its territorial size is slightly smaller than North Carolina. Panama has a population of approximately 3,608,431 people. 70 percent are Mestizo (Mixed Amerindian and white), 14 percent Amerindian and mixed (West Indian), 10 percent White, and 6 percent Amerindian. Panama has one of the fastest growing economies in Latin America. The president of Panama is Ricardo Martinelli and has a constitutional democracy as its political system. The Civil law system is Panama’s form of law, and the Democratic Change is the political party in power. Founded in the World Fact Book, major products that are exported are gold, bananas, shrimp sugar, iron, steel waste, pineapples, and watermelons and the top exporters are the United States, Canada, Costa Rica, Netherlands, Sweden and China. The major imports are fuel products, medicines, vehicles, iron & steel rods, and cellular phones. The major countries imported are United States, China, Costa Rico, and Mexico. The Panama’s currency is the Panamanian Balboa (PAB) and the currency is freely exchanged. (The World Fact Book) Panama was discovered by the Spanish in the 16th century, and moved from Spain in 1821 and joined the Republic of Gran Colombia - which included Colombia, Ecuador, and Venezuela. With help from the United States...
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...Table of Contents Executive Summary 3 Issue Identification 4 Slowing Growth in NAFTA Trade 4 Continuation of NAFTA Strategy versus Expansion into Latin America 4 Taking Advantage of Economic Growth in Asia and Emerging Markets 4 Expanding Overseas 4 Environmental & Root Cause Analysis 5 Slowing Growth in NAFTA Trade 5 Continuation of NAFTA Strategy versus Expansion into Latin America 5 Taking Advantage of Economic Growth in Asia and Emerging Markets 5 Expanding Overseas 6 Alternatives and/or Options 6 Slowing Growth in NAFTA Trade 6 Continuation of NAFTA Strategy versus Expansion into Latin America 6 Taking Advantage of Economic Growth in Asia and Emerging Markets 7 Expanding Overseas 7 Recommendations and Implementation 7 Slowing Growth in NAFTA Trade 7 Continuation of NAFTA Strategy versus Expansion into Latin America 7 Taking Advantage of Economic Growth in Asia and Emerging Markets 8 Expanding Overseas 8 Monitor and Control 8 Executive Summary Since Canadian National Railway Company (CN)’s privatization by the Canadian government in November 1995, CN has not stopped growing its sales, profits, cash flow and, as a result, market value. Privatization and deregulation of the rail industry led to some of CN’s success, but CN had to cut costs and increase revenues. Cutting costs meant reducing workforce and closing or selling unprofitable tracks. It also meant investing in more efficient rail equipment and technology. Increasing revenues required focusing...
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... | |Zoe Cole | |Aoife Hughes | |Tinuola Omoyele | | | | | Contents Terms of Reference / Executive Summary 2 Introduction 3 Main Body / Findings 4 References 10 Terms of Reference / Executive Summary In this report, we propose IKEA expand its international market into San Juan, Puerto Rico, South America as mode of entry. The purpose of this report is to make a case for the expansion of IKEA into a new market. The reason we chose Puerto Rico is because the research has already been completed for such a move, and only narrowly missed out to the Dominican Republic as a new destination for the self confessed flat-pack-giants. Zoe, Tinuola and I hope that our proposal will convince you that Puerto Rico is a good move and hopefully the next move. Introduction We propose IKEA go into Puerto Rico, San Juans ,with the hopes of Over the past number of years IKEA has had great success stories of entering new countries and is now...
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...Integrated Company Analysis John Deere Group A9 Eric Dolan Adam Plunkett Nina Rozell Tom Schar Kan Zuo Agenda • Company Profile – Financial Overview • Recommendations • Conclusions COMPANY PROFILE: FINANCIAL OVERVIEW Overview of Financial Situation 2009 Performance Revenue down 18.7% Gross profit down 21% Earnings per share down 56% 2010 Projections Ag. sector growth of 14% Const. & For. segment to grow in double digits over the next 3 years Overall 2010 revenue down just 0.5% COMPANY PROFILE: FINANCIAL OVERVIEW 2009 Net Sales By Product Category Ag. & Turf Divisions Other 11% Turf 9% Small Ag. 35% Large Ag. 45% John Deere. (2009, November 25). 8-K. Retrieved from http://www.capitaliq.com COMPANY PROFILE: FINANCIAL OVERVIEW Business Cycle $1,000 Net Income by Quarter (millions) Q1 Q2 Q3 Q4 $745 $604 $500 $257 $128 $$142 $477 $624 $764 $472 2001 $(500) 2002 2003 2004 2005 2006 2007 2008 2009 Accounts Receivable by Quarter (millions) Q1 Q2 Q3 Q4 $5,000 $4,422 $4,089 $4,000 $3,561 $3,747 $3,964 $4,426 $4,424 $4,675 $4,425 $3,000 $2,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 COMPANY PROFILE: FINANCIAL OVERVIEW Valuation • Discounted Cash Flow – Projected revenue growth for business segments – Net Present Value of John Deere stock: $51.18 – $53.22 • John Deere’s 12/11/09 market close: $52.44 • Stock Repurchase Program Recommendation: Monitor price for buyback...
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...flame broils their burgers. In addition, Burger King allows and encourages consumers to customize the unique flame-broiled burgers with options to their liking. This creates a win-win situation for both Burger King and the consumer. Burger King has the benefit of offering a different product and the consumer benefits by having numerous burger options. Although Burger King has expanded its menu selections, they have remained true to their original flame-broiled burgers. This product gives them an advantage over other fast food chains. Facing intense competition and limited growth opportunities domestically, Burger King hopes strengthen their competitive stance through international expansion. By mid 2009, Burger King was not in any of the following countries: France, India, Nigeria, Pakistan and South Africa. Compare these countries as possible future locations for Burger King. In looking for new countries to enter, Burger King needs to identify countries that fit its ideal demographic profile. Ideally Burger King would expand in areas that fit its ideal demographic profile. They need to find countries with higher populations (preferably youth) and concentrations of urban activity. Local diets consisting of high consumption of beef would be encouraging as their signature products are made of beef. Additionally, areas which are safe, maintain politically stable...
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...| International Business Strategy Report | Mac’s in South Africa | | 4/2/2012 | | Introduction Mac’s Convenience Store Inc. is the largest operator in all of Canada. They offer popular food products and are operated by Couche-Tard. After dominating the Canadian market, Couche-Tard decided to further their market expansion into the United States market and became the second largest convenience chain in North America. Mac’s is such a successful operator simply because they are able to tailor their products and services to the local tastes and needs of the market. Also, Mac’s strong financial position and ability to create value for its shareholders, has increased its feasibility of expanding into the global market. International expansion into South Africa is a promising opportunity for Mac’s. However, South Africa has encountered numerous political barriers from the development of the Apartheid System in 1948 to1994, where non-white inhabitants were stripped of their rights. This unstable environment inhibited their ability to remain competitive and attractive on a global scale. A revolution occurred, as South Africans currently reside in a democracy, and business affairs are expanding through the current development of the Grand Free Trade Area (seeking to improve trade relations). International business can be conducted in a similar manner to Canadian business exchanges due to the newly established legal system, minimized corruption, and strictly regulated...
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...Walmart’s Expansion in Africa: A New Exploration Strategy Introduction/Objectives: Follow the footsteps of several large enterprises, WAL-MART is trying to expand into the African market. The Walmart was founded by Sam Walton. And the most famous point for company is the “ Every Day Low Prices ” This world's largest retailer proposed $23 billion acquisition of South Africa Massmart holding share company. The Massmart is the third largest retailer enterprise on the Johannesburg stock exchange. Africa, owns many popular brands, such as Game, Makro (Makro), Dion wired, Jumbo and Builders Warehouse and so on. Massmart annual income in Africa area was up to $60 billion. It operates in 13 countries, and for Africa operates 290 stores. Massmart provides access to Africa market as the perfect springboard for WAL-MART for America retail giant through taking control of the company, so as to WAL-MART ranks among the three major retailers Africa is easy. WAL-MART have a great influence in the enterprise. The company annual sales is more than $4000 billion a year, almost is the two times of the South African’s GDP ( $2270 billion). As the world's largest retail enterprise, WAL-MART can make very simple global retail price plan. It is extremely successful business model is based on low price strategy, although the price prospects for consumers may be very attractive, but from the general direction,suppliers, retail labor and groups will lose. Critical Issues/challenges...
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...INTERNATIONAL SCHOOL OF MANAGEMENT Ph.D. Professional Assessment Evaluation I Standard Bank´s expansion strategy in Latin America Andrea Valenzuela Rivas Abstract After the 2008 crisis, Standard Bank needed a strategy to continue with its grow being truthful to their emerging market presence vision. This paper analyzes the opportunity for the bank in a developing region, Latin America; considering the opportunities and challenges its countries face. Emerging markets have institutional voids that need to be filled, Latin America is no exception; it needs expert companies to provide value added services that bring customers and suppliers closer. For Standard Bank is crucial to identify itself as an aggregator and distributor, and provide innovative distribution and product development to improve its chances of success in Latin America. I. ‐ Introduction The 150 years history of Standard Bank has proven its vision to be a major competitive financial organization in emerging markets throughout the world. The bank is based in Johannesburg, South Africa and it has representation in 17 Sub Saharan countries and also in 16 countries that have an emerging market view (Standard Bank, 2009). Barriers for trade and investment have been coming down in the last 25 year and the volume for exports and investments have grown, forming a single, interdependent and global economic system. Countries around ...
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...International Expansion Report Tesla Motors, Inc. November 21, 2011 Rio Consulting Group Michael Dawes James Hadel Daniel Ma Simon Qin International Expansion Report | Tesla Motors, Incorporated | Rio Consulting Group Executive Summary Founded in 2003, Tesla strives to design, develop, manufacture and sell high-performance fully electric vehicles and advanced electric vehicle powertrain components. Currently, Tesla’s presence internationally is limited to dealerships in Europe and a minor production plant in Britain. In order to be best positioned moving forward, we recommend expanding into Latin America and Asia Pacific to better fulfill CEO Elon Musk’s primary goal to commercialize electric vehicles all the way to mass market. As we predict slow growth for the standard auto industry, we believe the electric vehicle industry is extremely attractive for several reasons, including high oil prices, less greenhouse gas emissions and government incentives. Our best estimates suggest the electric vehicle industry will have average growth rates of 35 – 40% over the next 10 years. International expansion, if done correctly, can help improve upon Tesla’s current strategic position in order to become the global leader in electric vehicles. We have determined that the optimal points of entry for the market are in Brazil and Singapore. In addition to gained access to the two fastest growing regions in the segment, the two locations are attractive for many political, economic,...
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...Bolivian government’s changes to Petrobras’s gas exploration and development contracts with that country. Another group advocated that, as a public company, Petrobras should act accordingly and seek compensation through international arbitration, perhaps at the International Center for Settlement of Investment Disputes (“ICSID”). (See Exhibit 2 for ICSID’s member States.) Petrobras When founded in 1953, Petrobras, Brazil's state-controlled oil company, was a vital symbol of national pride. "The oil is ours" was an oft-repeated slogan. The company was incorporated as a mixed-capital company1 with a government-granted monopoly for all crude oil and gas production, refining and distribution in Brazil. In 1997, Brazil enacted the so-called “Petroleum Law” to end the oil monopoly and open the oil and gas markets in Brazil to foreign investment. Restrictions on ownership by non-governmental entities of shares in Petrobras were lifted and foreign ownership of shares was permitted. In response to these changes, in August 2000, Petrobras was partially privatized through a listing of its shares (ADRs*) on the NYSE. As part of the company’s new strategy, it also sought additional opportunities to expand abroad. Petrobras’ International Expansion Petrobras’ goals of diversification and international expansion were shared by many companies in the oil industry, but Petrobras’ need to diversify and expand was particularly acute because 95% of its upstream revenues** were exposed to the risks...
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