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Organizational Participants that make International Business happen

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Bianca Gula

on 27 October 2014

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Transcript of Organizational Participants that make International Business happen

4 types of participants

focal firms
distribution channel
Market entry
Suppliers of the Components for the Apple iPhone
Distribution Channel Intermediaries
Deliver products and services in the home-country and abroad
Undertake advertising, sales, customer service for the focal firms
Offer warehousing, customer support and other logistical services for the focal firm
3 categories of intermediaries
based in foreign market
Organizational Participants that make International Business happen
Turnkey Contractors
business arrangement
project is delivered in completed state
financial motivation for the developer
lack of control for the owner
based in the home country
online intermediaries
• a foreign distributor
• an agent
• a manufacturer's representative
• a trading company
• export management company (EMC)
Facilitators in international business
Assist focal firms
Immense growth of facilitators
Provide services
International Entry Strategies of Focal Firms
right to use a certain intellectual property
allows to internationalize rapidly
Anheuser-Busch and Kirin

SCM facilitators
Freight forwarders/custom brokers
International trade lawyers
What is an MNE?
Multinational enterprise
Asia, Europe, North America
1970 → about 7500 MNEs
today → about 80 000 MNEs
Rise of the emerging market MNEs
What is an SME?
- small and medium-sized enterprises
- US & Canada: < 500 employees
- EU & other countries: < 250 employees
- More flexible, less bureaucratic
What are born globals?
new type of international SME
internationalize within three years
export to more than 20 countries
produce over 25 % of their sales abroad
Governments in international business
Different levels
Make and enforce laws and regulations
Regulate market
Investing in other countries

entire business system
McDonald's, Burger King, KFC, Fressnapf
easy and fast market entry
little influence and high investment

On what does the type of entry mode depend?
nature of the business
products and goals
Location of activities
where do major activities take place
exporters / MNEs
off shoring / outsourcing
Joint venture partner
Partners create a new enterprise together
Share costs and risks
Lenovo and NEC Corporation
none-quity venture partners
Do NOT create a new entity
Cisco Systems
Full transcript