Can you please explain thoroughly the reasoning behind this chart AutoSave off c
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Can you please explain thoroughly the reasoning behind this chart
AutoSave off chapter9 Saved to this PC Anthony Gosselin- File Home Insert Draw Design Transitions Animations Slide Show Review View Help Tell me what you want to do Shape Fill Shape OutlineReplace - l Text Direction Layout Reset Cut Find ???, llt D Align Text Convert to Smartnt Aage Quick E Copy Paste New Format Painter Slide tylShape EffectsSelect , Section- Blu Convert to SmartArt Clipboard Slides Font Paragraph Drawing Editing 13 14 15 16 17 E 18 19 ? International Organization Structure and International Market Entry Strate Entry Strategy Organizational Structure Global Strategy Domestic with Foreign Exports International Strategy Department Contractual Arrangements International Division International Strategy 21? Joint Ventures & Strategic Alliances Global Network Structure 23 24 25 26 27 28 29 Global Product Structure Green-field Global Strategy orld wide Acquisition Geographic Structure mi omesie Click to add notes slide 25 of 29 Q2 English (United States) Notes +63% 1:01 PM O Type here to search 4/15/2018 2Explanation / Answer
Read this chart like this:
1. Exports: To enter foreign markets, one market entry strategy is to go for Exports. For exports, the organization structure that should be followed is to have a domestic company with a foreign department. The foreign department of the company will handle the exports from the domestic company, since there are different laws and regulations for handling exports. Hence, it is required to have a separate dedicated department which handles only exports. This is a part of International Strategy.
2. Contractual Agreements: There can also be contractual agreements to enter foreign markets, which also form a part of International Strategy. Such agreements should to be handled by the international division/department of the company.
3. Joint Ventures & Strategic Alliances: This is one of the widely used strategies for market entry to foreign countries. Here, the organization structure should cater to handling the Joint Ventures and Strategic Alliances as a part of the Global Organization Structure of the company, in a way, meaning Global Network Structure needs to be formed with JVs & SAs as part of the global organisation. This forms a part of Transnational Strategy, when the firms don't want to just sell internationally, but also want to be present and known in across nations, learning from them and building its global presence.
4. Green-field: Green-field, by definition, means acquisition from scratch or some work done which doesn't have a prior work done in that region/area/field. It means organic growth rather than growing inorganically by acquiring someone else's asset. It forms a part of Global Strategy and the organisation structure to be followed is Global Product Structure, where products are customised locally as per the nation's/country's customers' tastes. That's why the name Global Product Structure, where you might have the same product sold in different countries, but it is customised to the country's customers tastes and choices. Same product might have different brand names in different countries.
5. Acquisition: This is one more strategy for market entry, where you buy an asset which belongs to someone else. For example, Tata Motors buying JLR from Ford Motors to grow its business in multiple countries. This is a part of Multi-Domestic Strategy, where companies want to grow in multiple nations, with headquarters also in multiple nations respectively, to be able to let the customers feel that its a local brand, having international presence.