Teco PLC Company Closing Markets in Japan and United States

Stages of company Internationalization (Uppsala Model) 1. International Marketing – Ethnocentric Orientation 2. Multinational Marketing – Poly centric Orientation 3. Global marketing – Geocentric Orientation 4. Transnational Marketing – Glocal

Globalisation is the internationalization of trade and often forces businesses to adopt new strategies for operations to suit different cultures and economies. The often easily saturated domestic market has triggered many large

In times of fast progress, in terms of economic development and globalisation, many multinational companies are extending their business overseas. One of those many firms is Tesco. This report will elaborate more about how Tesco failed in America when it encountered cultural and economic differences.

Hill, C. (2011). International business, competing in the global marketplace. (8 ed.). New York, NY: McGraw-Hill Irwin.

In times of fast progress, in terms of economic development and globalisation, many multinational companies are extending their business overseas. One of those many firms is Tesco. This report will elaborate more about how Tesco failed in America when it encountered cultural and economic differences.

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)

This paper examines the expansion of General Motors overseas in its various phases, as well as triggers for internationalization and the problems faced during the process. The paper also considers what benefits have been achieved through international growth, and how the company can be classified with regards to Bartlett and Ghosal’s 4 typologies. Finally, the paper discusses the concept of a “world car,” meeting the demands of customers across the globe.

Over the last few decades there has been a substantial amount of attention being diverted towards born global firms who unlike ordinary firms, have defied the traditional stage wise process of internationalization. These firms have long puzzled researchers and challenged the basic perception of internationalization. As a result it has given way to a new field of research and aroused global interest in the emergence and success of these firms. This essay will go on explain why born global firms emerge, the factors that influence them and examples of born global firms in the real world. Uppsala’s theory of internationalization (Johanson & Vahlne, 1977 ) and Stephen Hymer’s Three Determinants theory are used to further analyze this essay.

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

The traditional internationalization models regard that firms’ capabilities (internal factors) lead firms to make internationalizing activities. On the contrary, OC paradigm refers to internationalization as a process that internal and external factors interact so that firms obtain a competitive advantage in the global level (Mathews & Zander, 2007). According to this innovative model, firms achieve superior performance by adapting and integrating in view of a varying environment (Pisano et al, 2007). Considering that BGs try to survive, operating under uncertain conditions that change all the time, OC constitutes the most suitable way for studying them.

However, while the OLI paradigm centers around a single expansion decision, the Uppsala model views internationalisation as a gradual process with an incremental increase of knowledge of the target region and subsequent commitments in that region. Hence, internationalisation occurs faster in the OLI paradigm. Another difference between the two models is their respective focuses. The OLI paradigm focuses more inward, on the attributes of the expanding company, comprising ownership, location, and internalisation advantages and argues that companies need to combine these to minimise risk and succeed with FDI. On the other hand, the Uppsala model concentrates on the actual process of internationalisation, stating that companies should begin with low risk commitments - such as exports - to acquire knowledge of the target country and then increase their commitment based on the gathered knowledge. With higher commitment, more knowledge can be gained to be used for further commitment (Peng & Meyer

There are two contrasting pressures that put opposing demands on an organization’s international strategy: global integration and local responsiveness. High pressure for global integration implies an increased need to concentrate and coordinate operations globally. This kind of approach cannot be applied to a food retailer for logical reasons.

Rugman, A.M. & Verbeke, A. (2004). "A perspective on regional and global strategies of multinational enterprises", Journal of International Business Studies, 35 (1): 3-18.

• In relation to the Eclectic paradigm, companies that have low levels of ownership advantages either do not enter foreign markets. If the company and its products are equipped with ownership advantage and internalization advantage, they enter through low-risk modes such as exporting.

The high level of competition as well as low profitability within the global domestic markets has seen several companies adopt an international expansion strategy so as to experience growth, development as well as increased levels of profitability. In this paper, we present an elaborate and well crafted internationalization strategy for ABI Construction Management Consultancy, a Singaporean firm seeking to expand its operations into the Indian city of Delhi. The paper presents a detailed analysis of ABI Construction Management Consultancy's internalization strategy. The company wishes to expand its operations from its current base in Singapore to India