Joe To Go

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

We found innovation, cost reduction and market conditions as key elements supporting a successful internal strategy and strategic alliance and diversification to be among the most widely applied strategies for a foreign market penetration and development, while fusions and licenses were the least preferred.

Globalization has shrunk the world. People can now have access to any market or any product they want very easily. We can buy Japan made camera without actually going to Japan, we can eat Iranian food in our university campus in Kuala Lumpur, can find coke and Mc D at any corner of the world, China can sell its products at very cheap price to consumers all over the world, Paris can get consumer for their fashion trend even outside their country.

For many firms, seeking for new countries’ markets is the mainly attempt to spread their products or services into the foreign markets, and the firms will retain and construct their participation in present markets to increase their worldwide competitive force (Doole and Lowe, 2012, 218; Hollensen, 2007, 5).About market , there is no perfect market entry plan and different market entry methods might be adopted by different firms entering the same market and/or by the same firm in different markets (Bukley, 1985).

The first important factor to business is Going Global (pg 110), or to expand overseas markets. The benefit being that profits and marketing opportunities can be increased. Going Global also reduces the percent of the firm in any given location, thus reducing risk. Choosing of the market in which to enter requires very extensive research, focusing on local demand for what the firm produces and availability of the required resources for production such as labor and natural resources. In the article it is said that , “To be effective in an organization, a person values must be compatible with the organizations”. This statement shows the need for unity within a company. If a new part of the company is in a

Depending on (other factors), there are other strategies that could have been chosen when entering the global market. Exporting merchandise can be conducted directly to other nations as well as indirectly; this option is more suitable for companies that have established business contacts within that foreign area to have a better chance of producing international sales and turn a profit. Like indirect exportation, a firm has a relatively low amount of risk involved and financial investment as there is no development of any new plants necessary to enter the new market.

Foreign firms deciding to entrer a host country face numerous options of entry modes, which include equity joint ventures, wholly foreign owned enterprises, acquiring existing firms, franchising and licensing, contractual joint ventures, representative offices, build-operate-transfer and so forth. However, the most important process a foreign company should do before deciding an entry modes is to make sure it know the targeted market very well by considering the production factor, the market factor, and environment factor in host country.

As discussed in Chapter 21 of our text book, any company that is looking to expand globally must make five key decisions. A firm must decide if: a) they really want to expand to the international market; b) they

purchasing power and may not do as well in emerging countries. Starbucks has been able to be very

The success of Friend-Z 's, a regional based coffee house in the United States, is in its tenth year of business. The small business venture, which began as a cooperative college project, has grown into one of the best coffee houses on the college scene. Friend-Z 's success has sparked the interest of its partners to take their small business to the next level by expanding into the global market. Competing globally would allow Friend-Z 's Coffee House to take advantage of a larger customer base, opportunity to be a stronger competitor, and thrive in diverse environments. Friend-Z 's international business will increase their client base with every new opening. They are not restricted by location or tied a region with failing economics. Therefore, opening Friend-Z 's to the option of an online market. Friend-Z 's will be able to rise as a stronger competitor in the coffee market, especially in countries with fewer competitors. The presentation of the coffee house will be crucial for becoming comparable or communicating its uniqueness. Friend-Z 's existence in the global market opens up their business worldwide. This business move releases dependency on the local or regional market in the United States, reduces growth restraints, and allows movement from potential economic unrest. The advantages of Friend-Z 's beginning a global business are promising, but it would be wise to consider the possible negative factors before going global.

Some of the advantages of franchising in India and some of the reasons behind all these foreign brands wanting in aside from India’s huge market and growing demand in the 3 sectors of economy are, first of all the lo capital requirements due to the fact that some of the Indian franchisees can finance the businesses on their own and that way the franchisors will grow their brands without putting a lot of money on the line. In second the diversity of India that plays a huge role as well as the size and geography of India. We can’t not mention the fact that Indian businessman like to have control over what they own and pass it on to their heirs which is why it is safe to assume that the business will stay running and in the family for a lot of coming generations. Finally one of the factors of attraction is that Indians use English on a daily basis and we can say that it is their second language and that means that the relationship between the franchisor

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

Global companies like P&G, J&J, IBM, GE, Pfizer, Cisco, Tata & Sons, Mahindra & Mahindra, Haier, Lenovo, HSBC among others, have all adopted M&A strategy. Some authors say that organizations rely on three mechanisms to achieve growth: organic growth, alliances, and mergers and acquisitions (Rosinski, 2011). Other authors have proposed five ways of international expansion, in increasing order of cultural risk: (1) the greenfield start, (2) the international strategic alliance, (3) the joint venture with a foreign partner, (4) the foreign acquisition, and (5) the cross-national merger (Hofstede et al., 2010).

For companies that has reached its potential in the local market, they would have to expand globally in order to boost their profits and stay competitive. Thus, understanding the available foreign modes of entry can help their business to enter into foreign markets more easily.

Starbucks’ retail entry model in the United States does not have the same strategy as their international model. In the states Starbucks holds great control as a corporation, but in international territory, country partnerships, cultural, government laws and politics play a very important role in Starbucks’ entry strategy. Starbucks has set it sights globally since the coffee market has come close to saturation in the U.S. which will give them the opportunity to continue to expand without fierce competition. Starbucks has looked to countries like India and other emerging markets with great growth potential to set down new roots. Starbucks recognizes India as a great choice to expand business internationally but also recognizes the complexity in the same market after several attempts to enter without success.