国际企业管理 ch7 国际企业管理国际企业管理 77 朱吉庆博士讲师...

国际企业管理国际企业管理 ch7ch7

国际

企业

管理

国际

企业

管理

国际

企业

管理

国际

企业

管理

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朱吉庆博士讲师 [email protected]朱吉庆博士讲师 [email protected]

Small Business as Multinational

Companies: Overcoming Barriers and Finding

Opportunities作为跨国公司的小企业：克服障碍与寻找机遇作为跨国公司的小企业：克服障碍与寻找机遇

Small Business as Multinational Companies: Overcoming Barriers and Finding Opportunities 7–2

Learning Objectives

• Understand the basic definitions of small business and entrepreneurship

• Explain how small businesses can begin as global start-ups or follow the stages of internationalization

• Understand how small businesses can overcome barriers to internationalization


Learning Objectives

• Identify when a small business or entrepreneurs should consider going international

• Understand how small businesses or entrepreneurs can find customers, partners, or distributors aboard

• Understand how new venture wedge strategies can be used in foreign markets

• Understand factors driving entrepreneurship at an international level


What Is a Small Business?

• “Small” business – many definitionsUN: less than 500 employeesThe popular press: less than 100 employeesU.S. small business administration has more

complex definitions - Definition varies by industry, sales revenue, and the

number of people


What Is a Small Business?

• “Small” businesses- Over 98% businesses in Europe, N. America,

and Japan- Employ more than 50% of local populations- Produce nearly 50% of the countries’ GNPs- Create more than 2/3 of new jobs


Internationalization and the Small Business

• Two models- Small business stage model: process of

following incremental stages of internationalization

- Global start-up or Born-global firm: company that begins as a multinational company


Small Business Stage Model: Six Stages

• Stage 1: Passive exporting- Company fills international orders but does not seek

export business

• Stage 2: Export management- Specifically seeking exports—usually rely on indirect

exporting

• Stage 3. Export department- Significant resources dedicated to seek increased sales

from exports•


Small Business Stage Model

• Stage 4: Sales branches- High demand justifies setting up local sales

office

• Stage 5: Production abroad- Use licensing, joint ventures of direct

investment- Difficult stage because of the risk of failure

• Stage 6: The transnational- Develop global integrated network


Small Business Global Start-up or Born-Global Firms

• Key elements favoring global start-ups- Dispersed human resources- International sources of venture capital- The existence of a global demand- The lack of a geographically protected market- The necessity of worldwide sales to support the

venture- The potential to avoid later resistance to

internationalization


Exhibit 7.1: Major Differences on Key Aspects of The Traditional Internationalization Stages

between Born-Global Firms


Small Business E-Commerce

• Web sites offer a rapid way to go international

• Web site configured for e-commerce is low cost

• Quick way to sell across national borders


Advantages of Small-Business E-Commerce

• Ability of small firms to compete with other companies

• Creates the possibility and opportunity for more diverse people to start a business

• Convenient and easy way of doing business

• Low cost to compete

• Makes domestic products available in other countries

• Utilize the Internet have higher revenues


Challenges of Small-Business E-Commerce

• Managing upgrades

• Language barriers

• Shipping and returns

• Assuring security for a Web site

• Fraudulent activities online

• Receiving international payments

• Costs required to maintain the site

• Finding and retraining qualified employees


Overcoming Small-Business Barriers to Internationalization

• Liabilities of newness: a large percentage of new businesses fail within a year

• Liabilities of size: lack of scale to produce goods or services as efficiently as larger companies


Overcoming Small-Business Barriers to Internationalization

• Managers’ limited international experience

• Managers’ negative attitudes- Belief that venture too risky and not profitable- Competition seen as domestic- Ignoring of international opportunities


Developing a Small-Business Global Culture

• Global culture: managerial and worker values that view strategic opportunities as global and not just domestic

• Framework to understand international operations


Small-Business Global Culture

• Characteristics of decision makers affecting development of a global culture- Perceived psychic distance to foreign markets- International experience- Risk aversion- Overall attitudes toward international strategies


Developing a Small-Business Global Culture

• Changing attitudes of key decision makers- Being close in culture and geography- Overcome skepticism regarding the

international markets- Positive attitudes more necessary for global

start-ups


Exhibit 7.2: Attitudinal Differences Concerning Internationalization


Duties and the Personal Life of the Small-Business CEO

• For small firm, opening new markets is CEO’s responsibility.

• CEO must bear social and business costs- Increased travel and stress from undertaking a

new venture- Can adversely affect family life- Takes away from the daily management


Exhibit 7.3: Training and Knowledge Needs of Small Firm CEOs Entering

Internationalization


Size and Small Business Internationalization

• Size barrier to internationalization- Larger firms have more resources to support

international operations

• Size is an issue only in the internationalization decision, however.

• Eventually, international sales intensity of small firms exceed that of big firms.- International sales intensity: amount of

international sales divided by total sales of the company


Small Business Advantage

• Speed becomes the small business advantage- Faster innovation- Can change products and internal operations

faster- Speed can overcome size disadvantages- Larger firms must often overcome bureaucratic

procedures


The Future: Falling Barriers for Small Businesses

• Barriers are becoming easier to overcome

• Government support programs for small businesses are increasing

• Trade agreements are making trade easier

• Increase in small businesses engaged in international operations also makes it easier


When Should a Small Business Go International?

• If the following questions are answered positively, small business is ready.- Do we have a global product or service?- Do we have the managerial, organizational, and

financial resources to internationalize?- Is there willingness to commit resources to face

the risks of internationalization?- Is there a country in which the company feels

comfortable doing business?


When Should a Small Business Go International? (cont.)

- Is there a profitable market for product or service?

- Which country should be entered?- Do we have a unique product/service that is not

easily copied by multinationals or local entrepreneurs?

- Do location advantages exist upstream in the value chain?

- Can we afford not to be a multinational?


Exhibit 7.4: Questions to Consider in the Small Business Decision to Go

International


Exhibit 7.5 Steps in Picking a Foreign Market


Getting Connected to the International Market

• Participation strategies- Same participation options as larger firms- Exporting, licensing, joint ventures, and foreign

direct investment- Most small businesses often emphasize

exporting


Finding Customers and Partners: Customer Contact Techniques

• Trade shows

• Catalog expositions

• International advertising agencies and consulting firms

• Government-sponsored trade missions

• Direct contact


Exhibit 7.6: Selected U.S. Government Programs for Making

International Contacts


Exhibit 7.7: International Trade Leads: A Web Sampler


Ready to Go and Connected: A Synopsis

• Finding the right overseas partner: the most important step

• Find a good wedge to break into a new market


New-Venture Strategies for Small Multinational Companies

• Entry wedge: company’s competitive advantages for breaking into the established pattern of commercial activity


New Product or Service and First-Mover Advantage

• Being the first to introduce a product or service- Must be innovative- Must be comprehensive

Must meet customer expectations in areas such as warranty and expected components

• Technological leadership—most common source

- Being first to use or introduce a new technology



• Have firsts access to natural and social resources

- Can choose the best locations

• Can have the best access to social relationships- Lead to the personal contacts to build effective

channels of distribution- Lead to trust and commitment from business

partners and customers



• Switching costs: occur when customers face some loss in turning to a competitor’s products- because of brand loyalty, many customers may

not want to face the discomfort of switching to another brand of a product or service


Copycat Business

• Copycat Business- The “me too” strategy- Adopt existing products or services- Find a niche or slight innovation to attract

customers


Successful Copycat Moves

• Be the first to a new standard

• Go after the toughest customers

• Play to different customer needs

• Transfer the location

• Become a dedicated supplier or distributor

• Seek abandoned or ignored markets

• Acquire existing business


International Entrepreneurship

• Entrepreneur: person who creates new ventures that seek profit and growth- Faces risks and uncertainty of new and

untested business

• New ventures: entering a new market- Offer a new product or services- Introduce a new method technology or

innovative use of raw materials


International Entrepreneurship

• International Entrepreneurship: refers to the “discovery, evaluation and exploitation of market opportunities.”


Why is International Entrepreneurship important?

• Most experts consider entrepreneurship the driving force of all small businesses

• If we want to get a complete understanding of small businesses in any nation, we need to examine the level of entrepreneurship in that country

• Entrepreneurship is also seen as the driver of innovation and economic development for any nation

• Entrepreneurship not only creates new job but also generates new wealth and growth


International Entrepreneurship and Small Businesses

• Many multinational firms rely on entrepreneurs and small businesses to do business when entering a new country

• Small businesses can play an important role in assisting existing multinational companies in developing or offering new products that can improve productivity


Exhibit 7.8: Entrepreneurial Activity Ratings by Country


Conclusion

• Small businesses are important aspects of economies of all nations

• Small businesses provide jobs, economic growth and innovation

• Chapter provides crucial background information on small businesses

• Chapter also discusses international entrepreneurship

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Transcript of 国际企业管理 ch7 国际企业管理国际企业管理 77 朱吉庆 博士 讲师...

国际企业管理 ch7 国际企业管理国际企业管理 77 朱吉庆博士讲师...

Transcript of 国际企业管理 ch7 国际企业管理国际企业管理 77 朱吉庆博士讲师...