Tavazo Case

Joint venture can help Saudi Group in diversifying its business activities. Milton R. Stewart; Ryan D. Maughn (2011) pointed out “Efficient and cost effective ways to enter foreign markets that allow companies to share risks and exploit synergies with partner companies continue to drive businesses toward international joint ventures, it can provide access to unique business opportunities and new geographic markets that may not otherwise be available, especially to smaller and medium sized businesses”. Business diversification can avoid Saudi Group depends on profit contribution from local business activities only, profit from international entry can help in expanding the local business activities. Joint venture is able to resolve both long and short-term problem and effectively deal with the weaknesses and thread of Saudi

There are various companies which try to reach and set up in the international market. Certain establishments find success while other prove unsuccessful. Some enterprises own the ability to open anywhere, nonetheless there holds circumstances in which need further discussions into their overall strategic plan. Also, lots of challenges and options generated through starting a new business abroad will present itself.

Once an organization has decided to expand into the global marketplace, it must select a method of market entry. Companies may choose from five general options: (1) exporting, (2) franchising, (3) a strategic alliance, (4) a joint venture, and (5) direct investment. Deciding which option is right for an organization is based upon the level of financial commitment, risk,

Transnational companies sell their products in multiple countries across the globe. This strategy differs, however, in the way the product is marketed in each country. A transnational product keeps its same characteristics, regardless of the country in which it is sold. The product does not change according to local customs or preferences, so that the product sold in Asia or Mexico is exactly the same as the version sold in the United States or Europe. However, in 2013, the company announced that it was closing 50 stores in Brazil and China. Nevertheless, taking a second look at their transnational strategy due to poor performance in countries. In India, they are ended their relationship with Bharti Enterprises due to difficulties in navigating regulations on foreign investment. In South Korea, they pulled out in 2006 due to their shoes-to-sausage product line did not persuade the shopping habits of many non-American shoppers. (Wall Street Journal, 2013)

Firms internationalize for couple of reasons. Philips expands their overseas market because home market is limited and Matsushita expanded as efficient operation did not guarantee growth anymore. Basic strategies adopted by these two companies evolved during their process of internationalization. As competitions become brutal, firms need to change strategies to cope with T high pressure for cost reduction and strong pressure of local responsiveness. Transnational strategy is now a feasible approach. Companies reduce cost to be competitive and the same time modify products to satisfy local customer preferences. However, firms’ structures are very different. Philips has a decentralized structure as Matsushita’s operations are highly centralized. Strategic human resources are also vital so both companies send expatriate experts to offshore subsidiaries. Philips and Matsushita also form strategic alliance relationship with each other. Companies’ strategy is highly correlated to their basic strategy and the fit between strategies is vital to company’s

what
 is
 the
 appropriate
 organizational
 structure
 to
 support
 the
 configuration
 of
 the
 MNC
 (PORTER,
 1986).
 Furthermore,
 a
 company
 has
 to
 determine,
 in
 respect
 to
 its
 industry,
 the
 optimal
 trade
 off
 between
 global
 integration
 &
 local
 responsiveness.
 The
 standardization
 vs.
 localization
 trade
 off
matrix
has
lead
to
4
international
approaches:
International
Exporter,
Global,
Transnational
 and
 Multi‐domestic
 (PRAHALAD
 &
 DOZ,
 1987
 /
 BARTLETT
 &
 GHOSHAL,
 1989).
 Two
 frameworks
can
be
useful
for
companies
in
this
case:
The
OLI
framework
identifies
the
firm’s
 motivation
 for
 becoming
 a
 MNC.
 Furthermore,
 the
 AAA
 framework
 helps
 companies
 decide
 how
to
expand
their
business
abroad.
 Where
–
Should
companies
start
operations
in
large
markets
or
the
familiar
ones?
On
which
 terms
 should
 companies
 based
 judgments
 about
 investing
 in
 foreign
 markets?
 ‐
 The
 CAGE
 framework
 helps
 companies
 in
 evaluating
 the
 proper
 opportunities
 in
 foreign
 markets,
 compared
with
the
respective
costs
and
risks
that
might
occur.
 The
focus
of
this
paper
is
to
understand
and
analyse
the
key
drivers
behind
why
eBay1
has
 experienced
failure
in
China
and
success
in
the
UK.
Our
analysis
will
be
supported
by
a
SWOT
 analysis
and
a
5
Porter’s
forces
analysis,
as
well
as
by
the
frameworks
mentioned
above.

I am an executive of XYZ, Inc., a well-known company in United States for its luxury watches, jewellery and handbags. There are 22 retail outlets in whole of United States. Achieving great success in the United States the company has decided to expand their business and open their retail outlets in different countries. To start off with the company has decided to open their first international store at Shanghai, China. Then after a year of time the company has decided to open stores even in Brazil, Russia, India and China.

countries can offset the risk of shocks in some markets. On the cost side, as a capital intensive

This extended essay aims to answer the research question “How effective has Amorepacific’s joint venture in China been as a growth strategy?” This topic answers the business strategy of their company, as well as flaws and conflicts blocking their development. Focusing on the topic, I will be looking in the context of joint venture, marketing topic within the Business Management Syllabus. How Amorepacific has successfully gain profit from China through joint ventures but also loses their large spending power due to the North Korea and South Korea Missile Conflict. With an overview of the Missile Conflict, and the history of the company within the industry to better reflect and understand the current situation of the company. Additionally, knowing the strength, weaknesses, opportunities and possible threats (SWOT), to analysis their success, profits, and suitable growth options.

In this portfolio I have broke down and clarified about global retail business and Civil Aero-engineering. In this task I have expounded on this commercial enterprises and what elements influences this organizations to create and grow up. Indeed globalization is additionally real indicate examine in this report on the grounds that for making an organization

Aliko Dangote,owner of «The Dagote Group», Yanai Tadashi; CEO of «UNIQLO» and Carlos Slim who is the richest man in the world and leader of «America Movil» all have their own unique business strategies which they use to become successful and expand their businesses. The report considers the

International market entry is important because it enables an organization to increase its output and attract new customers. By expanding the customer base and the scale of production, the business will be able to achieve economies of scale. That is, the organization can be able to reduce the average cost per unit of production when the level of output is substantially increased (Stephan and Roin 28). After international expansion, cost advantages and higher profit be obtained through bulk purchasing, enjoying high turnover rate and paying lower interest rates on loans.

Carrefour’s global presence gave the company experience in enter new markets. Carrefour store formats gave them the ability to engage in all levels of retail ranging from large Hypermarkets to small cash and carry food stores (Deresky, 2014, pc3-19). Carrefour’s size and profits, gave them the ability to enter new markets through the acquisition of firms in the target regions. Carrefour also invested in pre-entry offices and studies to determine risk factors of going into a new country. Carrefour global strategy mixture of short and medium term success also help the company gain a competitive advantage in the market by establishing the company as a top player.

The market of a company like everything else, will change with time. The maturity of a company to market share increases steadily, trying to achieve the market growth. The planning and implementation of the growth strategy for the development of new markets and the expansion of the company before the current market will not only help in company’s business to live in difficult times, it could also give a company a considerable advantage (Greene, 2007). “Growth decisions have been analyzed theoretically for several decades using Ansoff 's (1957) matrix, the construct of business development is more problematic” (Normand, T, 2015). However, using Ansoff’s matrix, especially the market development strategy, and exporting a product to another region are risky because the company will run into different environments that can affect the business. This research paper explains the concept of the environment and shows the political environment factors that can affect the marketing and export process.

In today’s business world every business houses want to expand their business globally as they want to take the advantage of