...International franchising is often regarded as a low-risk foreign market entry strategy. Does this view fully reflect the attraction of international franchising as a market entry mode? International trade is booming and the world is shrinking rapidly due to faster communication, transportation, and financial flows. Today’s business environment is undergoing fundermental transformation as a result of globalization (Kotler & Armstrong, 2001). According to Hodgetts and Luthans (2003), “globalization is the production and distribution of products and services of a homogenous type and quality on a worldwide basis”. According to Root(1994, P.2) the new global economy has created business environment that require companies to look past the traditional thinking of the domestic market, and start looking at business from an international perspective. The main challenge of global companies is to develop managers that are capable of working across cultures and who are competent in international business (Brake, et al. 1995, p. 2). According to Elashmawi (2000), companies that want to react effectively to changes in its global marketplace, has to have a flexible and adoptable corporate culture. Want (2003) explain corporate culture as the collective belief system that people within a company has about their ability to compete in the marketplace. According to Hoffman and Preble (2004), franchising is a well working theory that helps companies adapt to different cultures and business...
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...developed but basic tourism infrastructure. The available accommodation was spartan but sufficient for both the visitors as well as the settler community in Kenya. However soon after independence, the Kenya Government realized the enormous potential of the tourism industry and hence undertook to upgrade the existing infrastructure as well as investing in additional facilities. To achieve its goal, the Government encouraged local and foreign entrepreneurs to invest in the tourism and hospitality industries thus paving the way for the future development of the sector. In spite of increased competition from other destinations, Kenya remains one of the most popular tourist destinations in Africa. Tourism in Kenya is mainly based on natural attractions, which include wildlife in its natural habitats as well as beautiful beaches amongst other physical features. Approximately 10% of the country has been set aside for conservation of wildlife and biodiversity. Game viewing is a very popular pursuit since most tourists are predominantly interested in seeing "the big five" namely the Elephant, Rhino, Lion, Buffalo, and the Leopard, not to mention other lesser and unique game the Africa's savanna and forests offer. The Western...
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...NAME: Meghna Shrivastava STUDENT ID: c7080738 COURSE: B.A (HONS) International Business MODULE: Management of International Business MODULE TUTOR: Mr. Ashish Tripathi EXECUTIVE SUMMARY Club Mahindra holiday is a consumers service industry which is part of Mahindra group having infrastructure of US $ 14.4 million. Under Club Mahindra flagship Mahindra Holiday and Resorts India Ltd (MHRIL) was started in 1996 as a realty sector of Mahindra group brought up for bring values, reliabilities and trust and customer satisfaction. Club Mahindra has got an affiliation with RCI which consist of 60% of the service industry market share, which make Mahindra holiday timeshares largest holiday ownership brand in India. Apart from being a customer centric company club Mahindra performs various Corporate Social Responsibilities for the well fare of people, employees, its customers and environment. According to CESD, 2007 Tourism is becoming one of the largest business sector in the world showing 2005 receipt of international tourism reaching $6.82 trillion. Club Mahindra performs in service industry where revenue produced in 2008 by service industry was $4,028.6 billion showing CAGE OF 6.3% from 2004-08. (Datamonitor, 2009) Furthermore, club Mahindra perform or exist in environment where customers has the power to control the market. Whereas, large number of suppliers weakens them from leading, new entrants in service industry is very easy but the threat of substitutes and...
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...Selection of Market Entry Mode Naveed Hussain Malik (naveed.hm@gmail.com) 770325-3059 Masood Hussain Chudary(zindagi03@hotmail.com) 801014-5855 Supervisor: Eva Wittbom Masters Degree Thesis in Business Administration School of Management Sciences Date of submission Abstract Development in infrastructure limits the communication gap, speedy travel and low cost tariff barriers as well other drivers of globalization have made overseas markets easier to get small firms and gave more opportunities to SME´s internationalize. The market entry mode choice or selections have strong effect the success or failure of the company. For instance an insufficient or wrong entry mode selection can decrease opportunities and limit important choice for the firm and could lead to high financial loss as well as lose control on overseas market. The purpose of research study is to provide a deep and better understanding of the factors those effecting SME´s selection of market entry mode. Research question how can the influence of internal and external factors on the selection of market entry mode. A frame of reference led to the building of summary which in turn became the basis for data collection. Two qualitative case studies for Pakistani SME´s namely socks knitter Pakistan and RK International were undertaken. The main findings shows the clear link between the theories claim to be internal and external factors influencing market entry mode choice between...
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...This paper seeks to look at Vietnam’s economy, financial sector, and political sector in respect to the textile industry. In an attempt to evaluate the feasibility of entering a foreign market, we focus our paper on a mid-sized company called Augusta Textile Company. This paper seeks to evaluate Vietnam’s potential for investment, particularly in the textile industry. While the company seeks to increase revenues and keep costs of production low, the company must look to expand to growing markets. However, various risks must be taken into consideration, as they can be great barriers to entry. The company looks to expand with the least financial risk, but greatest potential output and revenue. In evaluating the textile industry in Vietnam, as well as potential modes of entry, we may conclude a recommendation for Augusta Textile Industry’s future potential expansion. Introduction Country Basics Vietnam is formally known as the Socialist Republic of Vietnam and is located in the South China Sea. It is the thirteenth most highly populated country in the world (Hossain, 2010). The current population of Vietnam is estimated at about 90.4 million (The Heritage Foundation, n.d.). There are 54 officially recognized ethnic groups in Vietnam, but the majority are Viet (also known as “Kinh”), comprising of about 86% of the total population. Other significant ethnic groups are the Tay, Thai, Muong, Khome, and Hoa. The vast majority of the Vietnamese population speaks the Vietnamese...
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...the global necessity for profitability and brand recognition across international boundaries. The case sheds light on the important roles of culture, legal, economic and practical management strategic decision-making in the success of Multi National Companies. Disney’s strategic mode of entry into the Hong Kong market and the marketing mix and strategies employed for operations are analyzed against the cultural, economic and competitive conditions prevailing on the Hong Kong leisure landscape. Alternative strategies have been suggested taking into consideration the nature of the brand, competition and the society in which it has to operating. Analysis The two major issues and management problems Strategy/mode of entry: Disney’s major challenges for entering the Hong Kong market centers on its strategic mode of entry into the Hong Kong leisure market and failure to device appropriate marketing systems that will make it acceptable and profitable. According to Daniels, Radebaugh, & Sullivan (2013) strategy is “management’s idea on how to best attract customers, operate efficiently, compete effectively, and create value that builds and sustains a company’s position within its industry (p. 809). Globalization and the need to broaden product and market coverage for increased profit and brand recognition are some of the reasons why companies expand overseas. However, the mode of entering a specific market must be examined particularly where the cultural and management systems...
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...profile of International Business Thesis Advisor: Professor Svein Ulset 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...
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...Summary Global Marketing A market-responsive approach Svend Hollensen Second Edition 2001 ISBN 0-273-64644-3 -1- PART 1 Chapter 1 THE DECISION WHETHER TO INTERNATIONALIZE Global marketing in the firm SME: small medium sized enterprises LSE: large scale enterprises Companies wit little international experience and a weak position in their home market have little reason to try to perform on global markets. Instead they should try to establish a stronger position on their home market. A firm that finds itself as a dwarf on the global market may seek ways to increase their net worth by seeking partners, suited for a buy-out on longterm. If a firm already has international competences, it can overcome some of it’s competitive disadvantages by going into alliances with companies representing complementary competences. If you are ready for global marketing or not is bases on two things: 1. The industry of your business (how global is / can it be) 2. The preparedness for internationalisation 1 can be divided into mature; adolescent; immature 2 can be divided in local; potentially global; global Given the character of a company in both segments, one of the nine possible strategies can be chosen. You can find these in figure 1.1 on page 4 of Global Marketing. Difference between management styles of LSE and SME: Many LSE have begun downsizing their companies operations, so in reality, many LSE act like a lot of small differ operations. It can be...
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...| |2014 | | | | | |Submitted to: | | |TAKRIMA SAYEDA | | |Lecturer | | | | | |University Of Dhaka | | | | | | | | |Course: THM 325 | |[BANGLADESH RAILWAYS – THE LIFE LINE OF THE COUNTRY] | | | | | |Prepared By: GROUP – ‘Knockout Knights’ | | | Group name : `Knockout Knights` Course code : THM - 325 Member’ |Name ...
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...MSc International 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...
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...ABSTRACT Why and how firms take advantage of foreign opportunities, especially via foreign direct investment (FDI) has been much documented. China, as a major emerging market, has attracted significant flows of FDI, to become the second largest receipt. This paper briefly examines the literature on FDI and focuses on likely determinants of FDI in China. It then analyses responses from 22 firms operating in China on what they see as the important motivations for them to undertake FDI. Results show that market size is a major factor for FDI especially for US firms. For local, export-orientated, Asian firms, low labor costs are the main factor. The paper concludes with managerial implications for businesses wish to exploit opportunities in China. INTRODUCTION The past few years has seen a tremendous growth of foreign direct investment (FDI) that has exceeded both world output and world trade. China is by far the largest recipient, and in 2004 surpassed the USA as host destination. It has consequently attracted an increasing attention from multinational businesses. Since China adopted the reform and opening-up policy in the late 1970s, foreign investment has played an increasingly important role in its economic growth. According to the World Investment Report for 2004 by the United Nations Conference on Trade and Development, China absorbed a total of US$53.5 billion worth of foreign direct investment (FDI) in 2003. The Xinhua News Agency, quoting The National Development ...
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...MSc International 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...
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...ZEN HOTEL INC. SOM 354 Ting Gu, Liyan Jin, Shuyi Chen, Jiawei Cheng, Yuchen Wu Table of Contents Executive Summary Introduction/Overview of Zen Hotel Inc. (Liyan Jin) The Culture of Our Target Market (Liyan Jin) Motives of entering the Chinese markets (Shuyi Chen) The method of the Entry The Timing of the Entry The Scope of the Entry The Marketing Mix (Ting Gu) Human Resource strategy (Ting Gu) Executive Summary Introduction/Overview of Zen Hotel Inc. Our company Zen hotel Inc. offers exclusive boutique hotel experience to consumers who expect a luxurious service at an affordable price point. Our hotel is currently located at the East Village, in New York City. Like other boutique hotels, our company is an intimate size hotel that contains approximately 100 rooms. We offer hotel rooms with trendy décor installation, personalized service, mini bars, friendly ambience and many more. The trend of boutique hotels are getting more upscale, and high tech to meet the demands of modern travelers who are food-oriented and style-conscious. According to Brown, who is the founder of Boutique Hotel News, these are the top 10 features of what’s going to be hot in 2013 for Boutique hotels. (Brown, 2013) Among our services, predictive personalization is one of the most important one. Hoteliers are increasingly able...
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...INDIAN LOGISTICS INDUSTRY 2009 PROJECT REPORT ON INDIAN LOGISTICS INDUSTRY FOR PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT SUBMITTED TO: Ms. Gunjeet Kaur Lect. of SVSM SUBMITTED BY: Rajnish Kumar Roll No. SVPG/07/05 PGDM – 6th Trimester SWAMI VIVEKANAND SCHOOL OF MANAGEMENT Ramnagar (near Banur), Patiala 1 | Page SVSM RAJNISH THAKUR (PGDM) INTERNATIONAL BUSINESS & MARKETING INDIAN LOGISTICS INDUSTRY 2009 Punjab LOGISTICS MANAGEMENT - INTRODUCTION Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective, forward and backward (reverse) flow and storage of goods, services and information between the point of origin and the point of consumption in order to meet customers' requirements rather to the customers’ delight. A professional working in the field of logistics management is called a logistician. Logistics, as a business concept, evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one's business with materials, and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and to the right target customers (consumer); and it is the science of process having its presence in all sectors of the industry. The goal of logistics work is to manage...
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...Contents |Lo 1. History And Structure Of The Travel And Tourism Sector |3 | |Lo1.1 Key Historical Developments In The Travel And Tourism Sector |3 | |1.2 Early Travel |3 | |1.3 The Egyptians |3 | |1.4 The Persians |3 | |1.5 The Greeks |3 | |1.6 The Romans |4 | |1.7 Renaissance And Grand Tour (Ad 1763-1773) |4 | |1.8 Milestone |4 | |1.9 Earliest Tourism |4 | |2.0 Social Change In Victorian Society |4 | |2.1 Steamships ...
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