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International Environment of Business

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Line Ellefsen

on 20 April 2010

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Transcript of International Environment of Business

doing business in Norway Agenda
Company Introduction
Motives for overseas expansion
Weaknesses and threats
Opportunities
Stakeholders interest
Market entry modes
Conclusion
Well established competitors
Price sensitive customers
Vulnerable for gas prices
New technology
Pressures to increase the level of taxation and regulatory charges
Older aircraft models which produce emissions
Low profit margins

OLI -Paradigm Weaknesses Company Introduction



Joint Venture
SAS -easyJet
win- win situation
increasing experience on how to manage a budget airline
increased customer base
access to new routes
offer better service
improve customer satisfaction


win - win situation
easy access to the norwegian market
Oslo - Trondheim: 4th most profitable route in Europe
increased customer base
access to new routes
offer better service
improve customer satisfaction
Major Product
Airline flights

Major services
Online reservations
Hotels, apartments,villas
Car rental
Airport parking
Travel insurance

British Airline Company
Established in 1995
Headquartered in Luton London Airport.
Short-haul and medium-haul routes
Primary market: Europe
Carries more passengers than any other UK Airline
43 million passengers
27 countries
400 routes



Motives for overseas expansion Political
Stable and developed democracy
Ranked as the most stable in the political instability index
Low risk of corruption



Location advantages of Norway Economical
Stable GDP growth of 2.3% to 2013








5th highest PPP in the world with $58,600
EEA – European economic area member
Uncertain business climate Social
Increasing trend of sickness and disabilities among workers
Low cultural distance








Technological
Ranked 12 world wide in intellectual property rights
78% of Norways population has a internet connection






Stakeholders Entry modes Using the marketplace
Merger & Acquistions
Strategic Alliances
Two companies go together
Win/Win situation
Create value
Greater market penetration possibilities.
Reduce competition
Gain access to resources
Take advantage of opportunities
Build strategic flexibility and innovate.
Develop trust
Actively solving problems
Reduce the uncertainty
Strategic alliances The search for more market power
The search for lower operating costs

Efficiency-seeking
Include efficiency gains through joint resource utilization,
sharing airport facilities

Provides access to resources to strengthen their position.
Reasons for airlines building alliance Joint Venture Sharing:
raw materials
shipping facilities
management activities
production facilities
profits
Conclusion Bibliography Employees
overseas opportunites
safer workenvironment
career opportunites

Customers
more routes to chose from Shareholders
increasing revenue and profit
return on investment

UK Airlines Industry Segmentation Importance of international markets
FDI in Norway
Joint Venture with SAS
Increased access to the Nordic market and profitable routes
Extended products and services
YIP's motivation drivers Hitt, Ireland and Hoskisson (2009) Strategic Management Concepts: Competitiveness and Globalization. 8th Ed Published by South-Western, a part of Cengage Learning.
Kleymann, Bi and Seristö, H (2004) Managing Strategic Airline Alliances Published by Ashgate Publishing Company.
Dlabay,Burrow and Kleindl (2009) Intro to Business 7th Ed. Published by Cengage Learning,Inc.
Marketline (2009) SAS company profile; Marketline (2009) easyJet company profile Dunning, J. H, Lundan, S. M. Multinational (2008) Enterprises and the Global Economy, 2nd edition, Great Britain; Edward Elgar Publishing.
Dunning, J.H. « The Eclectic (OLI) Paradigm of International Production : Past, Present and Future », dans International Journal of the Economics of Business, Vol. 8, No. 2, 2001, pp. 173-190. Yip, George S. (1989) Global Strategy… In a World of Nations? Sloan Management Review. 31 (1) pp. 29-41.
easyJet (2009) Annual report and accounts [internet] available from: <http://2009annualreport.easyjet.com/index.html>. Accessed: 01.04.2010.
easyJet (2009) Annual report and accounts [internet] available from: <http://2009annualreport.easyjet.com/index.html>. Accessed: 01.04.2010. Dunning, J. H, Lundan, S. M. Multinational (2008) Enterprises and the Global Economy, 2nd ed. Great Britain; Edward Elgar Publishing.
easyJet (2009) Annual report and accounts [internet] available from: <http://2009annualreport.easyjet.com/index.html>. Accessed: 01.04.2010.
Marketline (2009) Company Profile: easyJet easyJet (2009) Annual report and accounts [internet] available from: <http://2009annualreport.easyjet.com/index.html>. Accessed: 01.04.2010. easyJet (2009) Annual report and accounts [internet] available from: <http://2009annualreport.easyjet.com/index.html>. Accessed: 01.04.2010. Porter, M. Competition in Global Industries: A conceptual Framework. Reprinted in Transnational Management, Bartlett et al.
Porter, M. (2008) The Five Competitive Forces that Shape an industry. Journal of Harward Business Review. 86 (1), pp. 78-93.
CIA, (2009), "Norway" [Online] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/no.html [Accessed: 19.04.10] CIA, (2009), "Norway" [Online] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/no.html [Accessed: 19.04.10] Hofstede, G. (2003) Culture‘s consequences: Comparing Values, Behaviours, Institutions and Organizations Across Nations, 2nd Ed., London: Sage.
Marketline (2009)Norway, country – In-depth PESTLE Insights. Marketline (2009)Norway, country – In-depth PESTLE Insights.
Viewsvire (2010) Sosial unrest. Available from: http://viewswire.eiu.com/site_info.asp?info_name=social_unrest_table&page=noads. Accessed:12.04. 2010.
Transparency International (2009) Corruption Perceptions Index 2009. Avaialble at: http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table. Accessed 12.04.2010
Cantwell, J Narula R (2003). International business and the eclectic paradigm: developing the OLI framework. Routledge publishing company.
CIA (2010). Norway. [internet] Available from: https://www.cia.gov/library/publications/the-world-factbook/geos/no.html. [Accessed: 12.04.10]
Datamonitor (2009) Airlines in the United Kingdom
Datamonotor (2009) Global airlines
Dlabay,Burrow and Kleindl (2009) Intro to Business 7th Ed. Published by Cengage Learning,Inc.
Dunning, J. H, Lundan, S. M. Multinational (2008) Enterprises and the Global Economy, 2nd edition, Great Britain; Edward Elgar Publishing.
Dunning, J.H. « The Eclectic (OLI) Paradigm of International Production : Past, Present and Future », dans International Journal of the Economics of Business, Vol. 8, No. 2, 2001, pp. 173-190.
easyJet (2009) Annual report and accounts [internet] available from: <http://2009annualreport.easyjet.com/index.html>. [Accessed: 01.04.2010]
Hamilton, L., Webster, L. (2009). The International Business Environment. Great Britain; Oxford Press. 2010/4/20
Hitt, Ireland and Hoskisson (2009) Strategic Management Concepts: Competitiveness and Globalization. 8th Ed Published by South-Western, a part of Cengage Learning.
Hofstede, G. (2003) Culture‘s consequences: Comparing Values, Behaviours, Institutions and Organizations Across Nations, 2nd Ed., London: Sage.
Kleymann, Bi and Seristö, H (2004) Managing Strategic Airline Alliances Published by Ashgate Publishing Company.
Marketline (2009) Company Profile: easyJet
Marketline (2009) Norway, country – In-depth PESTLE Insights
Norwegian (2008). Norwegian annual report 2009. [internet] Available from: http://http://www.norwegian.no/om-norwegian/investor-relations/reports--presentations/annual-reports/ [Accessed 19.04.10]
Porter, M. Competition in Global Industries: A conceptual Framework. Reprinted in Transnational Management, Bartlett et al.
Porter, M. (2008) The Five Competitive Forces that Shape an industry. Journal of Harward Business Review. 86 (1), pp. 78-93.
RyanAir (2009) Ryanair annual report 2009 [internet] Available from: http://http://www.ryanair.com/en/investor/presentations. [Accessed 19.04.10]
SAS (2009) The SAS group annual report 2009 [internet] Available from: http://www.sasgroup.net/SASGroup/default.asp [Accessed 19.04.10]
Transparency International, (2009) “Corruption Perceptions Index 2009” [internet] Available from: http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table [Accessed 12.04.10.]
Viewsvire (2010) Sosial unrest. [Internet] Available from: http://viewswire.eiu.com/site_info.asp?info_name=social_unrest_table&page=noads. [accessed 12.04 2010]
Yip, George S. (1989) Global Strategy.. In a World of Nations? Sloan Management Review. 31 (1) pp. 29-41.
Threats People make the difference
Customer-focused
Better represent the easyJet brand
Customer satisfaction. Thank you!
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