...Assignment 3: Foreign Market Entry and Diversification Strayer University BUS599 Create An Argument For Diversification Of Your Business That Will Be Presented To The Board Of Directors Or Business Investors. Diversification is going to be the key to the longevity of our label. Our smallest competitors, Simply Fashion and Cato, offer shoes and accessories; while our largest competitors, Lane Bryant and Avenue have begun to offer minimal exercise wear. “…diversifying entrants pose a bigger threat in increasing rivalry and challenging incumbents’ market share…” (Klein & Lien, 2009, p. 299). Right now, Lane Bryant is the leader in diversified product lines, although our competitors offer a variety of products in plus size fashion. Our company will improve on quality in order to become a threat to the competitors. If we do not diversify, we will quickly become irrelevant in the market, like our smaller competitors. If we plan to succeed and increase longevity we must diversify and improve upon what our competitors offer. Develop A Strategy For Diversification Indicating The Products And Industries For The Diversification And How Synergies May Be Gained From The Diversified Activity. As a way to increase popularity and customer base loyalty, marketing, research and development will work with designers and distributors on a costume accessories line for plus size women. Currently plus size women are hard pressed to find bracelets for the larger wrist, rings for...
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...Foreign market Entry and Diversification Dr. Sarita Wesley BUS 599- Strategic Management November 12, 2011 Global beer market trends Over the past decade, the global beer market has undergone a lot of change. Developments and improvements in the quality and appeal of beer brands have resulted in a strong organic growth in the beer category. Brewers have responded to the declining beer consumption trends in developed markets. The decline of beer consumption in developed markets is due to high unemployment rates, high fuel prices, and reduced consumer spending. Industry consolidation has continued and the four largest brewers-Anheuser-Busch InBev, SABMiller, Heineken, and Carlsberg- produce almost half of all industry volume and generate up to 70 percent of industry profits. The beer consumption in countries like Africa, Asia, and South American continue to rise. This is primarily driven by the growth in population and incomes. Improvements in beer quality and appearance have also lead to the rise of beer consumption. Consumers have begun to shift from informal and unregulated forms of alcohol to attractively branded and safer commercial beers. Modelo’s international expansion Grupo Modelo’s international expansion began with the United States. As Modelo continued to produce beer domestically, they entered into distribution contracts with companies that possessed local knowledge of the beer market and gave them the freedom to market the product appropriately, yet maintain...
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...Assignment 3: Foreign Market Entry and Diversification Sharon Temple Dr. Joseph Kurrie BUS 599 February 12, 2011 1. Identify and discuss the trends in the global beer markets. Most companies started out on a local or regional level and changed the company’s focus to incorporate a multinational or global perspective. The global beer market has gone through a process of rapid change. In many emerging and developing markets, economic and societal developments and transformative improvements in the quality and appeal of beer brands have resulted in strong organic growth in the beer category. Developed markets have also undergone change as brewers responded to constrained or declining beer consumptions trends. There are several trends in the global beer market that accounts for the potentials seen throughout the industry. One of the trends is growth rate. Surpassing the United States in 2003, China is dominating the global beer industry. The global beer industry approximated $385.5 in 2005 and $376.7 in 2004 and were expected to increase at a steady pace. This indicates a growth rate of 2.3% during the year 2005. The consumers demand for beer has been hampered by adverse global economic conditions in which the growth of the industry is at a slow recovery. Grupo Modelo with its Corona brand is the No. 1 premium imported beer in Canada and the growth rate continues to accelerate. Another global beer markets trends is consolidation. Consolidation would be considered...
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...j This paper will identify the trends in the global beer markets. A discussion on Modelo’s international expansion and its success with strategic partnerships will be performed. A review of the next foreign market that Modelo should enter and the accompanying strategy will be conducted. Additionally, given Modelo’s competitor, InBev, the strategic responses available to Modelo will be identified along with the opportunities and threats facing the firm. Finally, the paper will address whether or not Modelo should diversify its business and if so, what business should it consider and why. Industry trends, Domestic & Global The U.S. brewing industry has experienced considerable consolidation (Baker & Bresnahan, 1985; Elzinga & Swisher, 2005; Gisser, 1999) in response to the threats which the industry has experienced. In order to mitigate eroding market share: given the growth of beer imports, competition from specialty-craft brewers, a decline in sales of the leading domestic premium brands, and competition from new products and marketing methods, the leading breweries actively acquire successful micro-breweries and add its label to their portfolio of beverages (Aaker, 1996; Arens & Bovee, 1982; Belch & Belch, 2001; Elzinga, 2004). Similarly, the industry leaders utilize extensive advertising strategies to save market share and simultaneously attempt to alter their positioning and public perception (Assmus, Farley & Lehmann, 1984; Baker &...
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...JBR Paper June 27, 1999 DIVERSIFICATION AND MARKET ENTRY CHOICES IN THE CONTEXT OF FOREIGN DIRECT INVESTMENT Ram Mudambi University of Reading and Case Western Reserve University Susan McDowell Mudambi John Carroll University Address for correspondence: Dr. Susan McDowell Mudambi Department of Management, Marketing and Logistics Boler School of Business John Carroll University University Heights OH 44118 Phone: FAX: Email: (216) 397-3094 (216) 397-1728 smudambi@jcu.edu DIVERSIFICATION AND MARKET ENTRY CHOICES IN THE CONTEXT OF FOREIGN DIRECT INVESTMENT Abstract Multinational enterprises consider many factors when making decisions in the context of foreign direct investment (FDI). In deciding what to produce, the multinational enterprise (MNE) must decide whether to diversify or to concentration on its main line of business. This paper offers insights into influences on this choice, and identifies a number of conditions under which diversification is more likely to be chosen. Factors affecting the foreign entry mode decision are also analyzed. The international business literature has generally treated these strategic choices as independent. This paper introduces a more realistic selection model, in which the diversification choice and the entry mode choice are made sequentially and are therefore related. The model is tested using a data set of FDI into the United Kingdom by MNEs in engineering and related industries. The analysis indicates a strong relationship...
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...ntry Foreign Market Entry and Diversification Question # 1-Create an argument for diversification of your business that will be presented to the board of directors or business investors. A diversified company is no longer a single-business enterprise. A diversified company is a collection of different and individual businesses. This collection of businesses, whether related or unrelated, will cause the strategy- making and decision-making tasks for these collection and/ or groups of businesses to be even more complicated, important, and crucial than ever before (Thompson, Strickland, & Gamble, 2010). There is a greater need for strategy and decision making because the diversified company is venturing out into other [outside] industries. "But in a diversified company, the strategy -making challenge involves assessing multiple industry environments and developing a set of business strategies, one for each industry arena in which the diversified company operates" (Thompson, et al., 2010, p. 239). For these reasons alone, there needs to be extensive research and knowledge done into the arenas of anticipated diversifications. Diversification is a very important and vital move for any business or company. A business must only know the need to diversify. It must also be aware of when to diversify. As stated by Arthur Thompson, A.J. Strickland, and John Gamble (2010): So long as a company has its hands full trying to capitalize on profitable growth opportunities...
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...Business and Management The Dynamics of Market Entry and Expansion Strategy in Emerging Markets: The Case of Wal-Mart in Latin America Dino Ovcina Author: Dino Ovcina Supervisor: Dr. Jeremy A Head Institution: Sheffield Business School at Sheffield Hallam University Program: MSc International Business and Management Module: Dissertation Date of Submission: 21 April, 2010 Abstract This research investigates the internationalization process and potential issues related to market entry and expansion strategies. It focuses on Wal-Mart's entry and expansion strategies into the Emerging Markets of Latin America, and discusses the different entry and expansion decisions being made by the company. Furthermore, the research critically evaluates the dynamic challenges facing developed country firms in their market entry and expansion strategies in emerging markets. Its contribution to the existing literature is its focus on the dynamics of entry modes in emerging markets. The research, based on an inductive approach, has been conducted as a case study by the use of secondary data. Wal-Mart began its internationalization by entering the two geographically nearest markets, namely Mexico and Canada. The entry into Mexico, which occurred 1991, was the first strategic move aiming at reaching the company’s overall goal of becoming the leading player in Latin America. Mexico together with Brazil are the two main emerging markets of Latin America characterized by a high growth...
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...Business and Management The Dynamics of Market Entry and Expansion Strategy in Emerging Markets: The Case of Wal-Mart in Latin America Dino Ovcina Author: Dino Ovcina Supervisor: Dr. Jeremy A Head Institution: Sheffield Business School at Sheffield Hallam University Program: MSc International Business and Management Module: Dissertation Date of Submission: 21 April, 2010 Abstract This research investigates the internationalization process and potential issues related to market entry and expansion strategies. It focuses on Wal-Mart's entry and expansion strategies into the Emerging Markets of Latin America, and discusses the different entry and expansion decisions being made by the company. Furthermore, the research critically evaluates the dynamic challenges facing developed country firms in their market entry and expansion strategies in emerging markets. Its contribution to the existing literature is its focus on the dynamics of entry modes in emerging markets. The research, based on an inductive approach, has been conducted as a case study by the use of secondary data. Wal-Mart began its internationalization by entering the two geographically nearest markets, namely Mexico and Canada. The entry into Mexico, which occurred 1991, was the first strategic move aiming at reaching the company’s overall goal of becoming the leading player in Latin America. Mexico together with Brazil are the two main emerging markets of Latin America characterized by a high growth...
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... Vertical Integration A. What is vertical integration? Vertical integration is the degree to which a firm owns its upstream suppliers and its downstream buyers. Typically a firm does not vertically integrate unless by doing so it can either cut costs or create a differentiation advantage. B. What are the pros (benefits) and cons (drawbacks) of vertical integration? Benefits of Vertical Integration: 1) Reduce transportation costs if common ownership results in closer geographic proximity. 2) Improve supply chain coordination. 3) Provide more opportunities to differentiate by means of increased control over inputs. 4) Capture upstream or downstream profit margins. 5) Increase entry barriers to potential competitors, for example, if the firm can gain sole access to a...
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...Title: International Modes of Entry 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...
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...Because of globalization in the world’s markets, a multinational financial manager is more likely than a domestic financial manager to specialize in finance to the exclusion of other fields of business. ANS: False. The multinational financial manager must be well versed in each of the business disciplines in which the MNC is involved. 3. The domestic financial manager must be knowledgeable in several areas within finance, whereas the multinational financial manager usually specializes in a single area, such as corporate finance, investments, or financial markets. ANS: False. The multinational financial manager is likely to require knowledge of several fields within finance. 4. The investment opportunity set is the set of investments available to the corporation; that is, the set from which the company must select. ANS: True. 5. Types of market efficiency used to describe the performance of financial markets are allocational, operational, and transactional efficiency. ANS: False. Three types of market efficiency are allocational, operational, and informational. 6. An informationally efficient market is one with abundant information. ANS: False. It is a market in which prices fully reflect available information. 7. Allocational efficiency refers to how efficiently a market channels capital toward its most productive uses. ANS: True. 8. Allocational efficiency refers to whether a market allocates capital to those investments deemed...
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...concern and follows practices in Australia and abroad like sustainable farming and purchasing raw material from UTZ certified companies only. Further, the paper talks about training provided to the company’s employees towards sustainability. The paper also talks about the role of international business and technological management at the company which states that the company has a one-way international business route and talks about the company’s manufacturing process using high end technology. Further, the paper talks about the entrepreneurial growth of the company since it was founded back in the year 1912. The paper concludes with presenting three recommendations which may help Haigh’s Chocolates meet the competition presented by the market. It is recommended that Haigh’s Chocolate considers the following: 1. Focus differentiation 2. Related...
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...Corporate Strategy Diversification Maryam Nasiriyar maryam.nasiriyar@esc-rennes.fr Key Strategic Choices Business level (CA) Cost Leadership (Volume) Differentiation Focused (Niche) Corporate level (CA) Expansion within the same industry versus Diversification Vertical Integration along the value chain or Outsourcing Internationalization Learning Objectives 1.Understand when and how business diversification can enhance shareholder value. 2.Gain an understanding of how related diversification strategies can produce cross-business strategic fit capable of delivering competitive advantage. 3.Become aware of the merits and risks of corporate strategies keyed to unrelated diversification. 4.Gain command of the analytical tools for evaluating a firm’s diversification strategy. ’ When to Diversity A firm should consider diversifying when: • It can expand into businesses whose technologies and products complement its present business. • Its resources and capabilities can be used as valuable competitive assets in other businesses. • Costs can be reduced by cross-business sharing or transfer of resources and capabilities. • Transferring a strong brand name to the products of other businesses helps drive up sales and profits of those businesses. Testing Whether Diversification Will Add Value The Attractiveness Test: • Are the industry’s returns on investment as good or better than present business(es)? The Cost of Entry Test: • Is the cost of overcoming entry barriers so...
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...| SKAGEN DESIGN | ASSIGMENT 4 | | Marian Nieto y Patricia Preysler | 20/03/2015 | | 1. What screening criteria should skagen designs use in a connection with its choice of new markets for its watch collection? Market screening is the process of discovering relevant information abiut a tradable asset in order to determine a fair price for the asset. Primarily is used to avoid creating an adverse transaction. Its a way of creating shortlists of opportunity list. Market screening its also a way of minimizing the size of the large data collection. Screening is divided in 6 steps. The first step is market size. In this step screening looks at the demography which concerns the market. Also tries to find out if the country is an emergent market or a developed market and finally selects potential suitable countries. The next step is the economic and financial forces. First of all discovers the purchasing power of the country. Afterwards, research the domestic consumption of watches in the country and finally in how much the currencies differ between each other. The third step is political risks and legal forces. Regulations such as quotas or agreements are identified. Political environment and the difficulty to establish subsidiaries are the other aspects searched in this step. Sociocultural forces such as cultural differences, languages or religion, and social differences like lifestyle and norms are discovered in the forth step. Competitive forces are find out...
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...Coordinator Course Code: MGT-601 Course Title: Strategic Management & Case Analysis Department of Business Administration Sylhet International University, Sylhet Submitted by: Shakhor Ranjan Dash Roll No. 11382 MBA 2-2 Submitting Date : 30.11.2012 Dell Case: Question 1 :: What are the advantages to Dell of having manufacturing sites located where they are? What are the potential disadvantages? Answer: Dell’s manufacturing sites are in Brazil, China, Malaysia, Ireland, and the U.S. Advantages of these locations are that some of them are low cost (Brazil, China, Malaysia and, relatively, Ireland), they have educated work forces that are highly productive, and they are near large regional markets. Dell Case: Question 2 :: Why does Dell purchase most of the components that go into its PC from independent suppliers, as opposed to making more itself? (Does does little more than final assembly of components into PC) Answer: Dell outsources because it enables Dell’s business model to be successful. Dell’s comparative advantage is in pricing, customization and rapid order fulfillment, all advantages gained through supply chain management and logistics. By outsourcing, Dell does not carry risks connected to inventory such as obsolescence, Dell can maintain flexibility in its manufacturing, and Dell has lower coordination costs than if it were vertically integrated, producing its own parts. Outsourcing allows Dell to focus...
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