Beruflich Dokumente
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the firm exists and where it is trying to lead. the vision provides the point of reference on the horizon a
beacon of light.
Profit
Growth
Power
Joy of creation
Service to society
GlobalEx
pansion ofBusiness
Importing
Exporting
Wholly- owned for. Subsidiary
Low
High Level of Foreign involvement and investment needed by a global organization
Global business Strategy
Formulation
Exporting: selling abroad, either directly to target customers or indirectly by retaining foreign sales
agents and distributors
Importing: selling other countries products in the home country, either directly to target customers
or indirectly
Adv: quick and relatively inexpensive test the waters and learn about customers
Disadvantages: high transportation costs tariffs and quotas danger of poor intermediary selection
Licensing: an arrangement where a firm (licensor) grants a foreign firm the right to use intangible
(intellectual) property such as patents, copyrights, manufacturing processes, or trade names for
specified period of time, usually in return for a percentage of the earnings, called royalty .
Adv: small or insignificant investment
Disadv: loss of control.
Franchising: an arrangement where a parent company (franchisor) grant s a foreign firm
(Franchisee) the right to do business in a prescribed manner. Usually involves a longer time commitment
by both parties than required under licensing agreements
Adv: small or insignificant investment
Disadv: loss of quality control
Foreign Direct Investment
Strategic Alliance:
± a cooperative agreement between potential or actual competitors
± an agreement between firms that is of strategic importance to one or both firms; competitive viability
Joint Venture:
± the participation of two or more companies jointly in an enterprise in which each party contributes
assets, owns the entity to some degree, and shares risk
Wholly Owned Foreign Subsidiaries
± provide for tightest controls by foreign firms
± very costly but can yield high returns