Global Consideration - Management Principles - Lecture Slides, Slides of Management Fundamentals

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Global Consideration

Organizing for International

Operations

5 Steps towards International Operations

• Commission Agent
• Export Manager
• Export Department
• Internal Corporation
• Multinational Corporation

Commission Agent

• A person or firm who represents businesses in foreign transactions in return for a negotiated percentage of each transaction’s value.
• Nu Skin International

Export Manager

• An employee who actively searches out foreign markets for the firm’s goods and services.
• Increase in new, ongoing costs

International Corporation

• A firm having significant business interests that cut across national boundaries, often focusing on importing and exporting goods or services, and operates production and marketing units in other countries

Multinational Corporation

• A firm that takes a worldwide approach to markets, services, and products and has a global philosophy of doing business. - Coca-Cola

Strategies

• Exporting
• Licensing
• Franchising
  • Alliances
  • Multidomestic
  • Global

Exporting Strategy

• Maintaining facilities within a home country and transferring goods and services abroad for sale in foreign markets
• Cooley and Cooley , Ltd.

Franchising Strategy

• A parent organization (franchiser) granting other companies or individuals (franchisees) the right to use its trademarked name and to produce and sell its goods or services
• McDonalds, Holiday Inn

Alliance Strategy

• Agreeing with other companies to pool physical, financial, and human resources to achieve common goals
• Chinese-foreign joint ventures

Multidomestic Strategy

• Adjusting products, services, and practices to individual countries or regions
• Frito Lays and Campbell Foods

Global Strategy

• Stressing worldwide consistency, standardization, and low relative cost
• Black and Decker subsidiary manufacture certain parts for families of products in one country

Strategies for International Operations

Resource Commitment

Complexity

Political-Legal Forces

• Political Risk.
• Assessing Political Risk.
• Political Mechanisms.