Expanding abroad 1
-
Upload
gwen-noteborn -
Category
Documents
-
view
1.734 -
download
0
description
Transcript of Expanding abroad 1
![Page 1: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/1.jpg)
EXPANDING ABROADMotivations, Means,
and Mentalities
![Page 2: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/2.jpg)
Multinational Enterprise (MNE)
What is it?
An enterprise that has a substantial direct investment and active management of entities in a foreign country.
![Page 3: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/3.jpg)
Scope In 1984, the UN’s definition of MNE changed.
An MNE is an enterprise:
Comprising entities in two or more countries
Operates under a system of decision making permitting coherent policies and a common strategy through one or more decision-making centers
The entities are linked in a way that allows one or more to exercise significant influence over the activities of the others
![Page 4: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/4.jpg)
Influence
70%
30%
World Trade
Top 500 MNEs
Other
MNEs produce __% of the world’s automobiles, __% of computers, __% of toothpaste, and __% of soft drinks.
Top 500 MNE’s account for:
85
70 35
65
![Page 5: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/5.jpg)
The Motivations: Pushes and Pulls to
Internationalize
![Page 6: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/6.jpg)
Traditional Vs. Emerging
TRADITIONAL EMERGING
Need to secure key supplies
Market-seeking behavior
Access to low-cost factors of production
Increasing scale economies, ballooning R&D investments, and shortening product life cycles
Global scanning and learning capability
Competitive positioning
![Page 7: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/7.jpg)
Going International Prerequisites
Motivation
Strategic Competencies
Organizational Capabilities
![Page 8: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/8.jpg)
Uppsala Learning Model of Internationaliztion
![Page 9: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/9.jpg)
Approaches to Foreign Market Entry
![Page 10: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/10.jpg)
Evolving Mentalities
International Mentality
Multinational Mentality
Global Mentality
Transnational Mentality
![Page 11: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/11.jpg)
International Mentality
Overseas portions are distant outposts whose role is to support the parent company
Products are developed for the domestic market and are only subsequently sold abroad
![Page 12: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/12.jpg)
Multinational Mentality
Growing sales convince managers that the foreign branches have more than marginal significance
The parent company will modify its main products to fit the needs of foreign markets
![Page 13: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/13.jpg)
Global Mentality
Provide standardized products at low costs
Provides the company with more central coordination and control
![Page 14: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/14.jpg)
Transnational Mentality
Companies are more responsive to local needs and pressures to develop global scale competitive efficiency
Resources and activities are dispersed but specialized to for efficiency and flexibility
![Page 15: Expanding abroad 1](https://reader035.fdocuments.net/reader035/viewer/2022080209/54bea7064a795911588b45d2/html5/thumbnails/15.jpg)
QUESTIONS?