8: International Expansion and Global Market Opportunity Assessment
- Page ID
- 16700
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 8.0: Chapter Introduction
- This page explores Otto Group's global expansion strategies, emphasizing the complexities of internationalization and using frameworks like PESTEL and CAGE. It details the company's reentry into the U.S. market with the Field & Stream brand, highlighting its focus on innovation, customer service, and growth potential in markets like Russia and China. Additionally, it raises questions about the planning and strategies for entering non-German markets and contrasts the new U.S.
- 8.1: Global Strategic Choices
- This page discusses the importance of thorough research and due diligence for companies seeking international expansion, particularly when entering new markets. It highlights the need to understand local consumer preferences, political stability, and legal factors. Notable examples include the decline of U.S. company headquarters and the contrasting approaches of Chinese and Western firms in Africa.
- 8.2: PESTEL, Globalization, and Importing
- This page discusses the PESTEL analysis, an essential strategic tool for assessing the external environment of firms, especially in foreign markets. It emphasizes the importance of understanding political, economic, sociocultural, technological, environmental, and legal factors to identify opportunities and threats. The impact of globalization on industries, characterized by increased competition and shifts in market dynamics, is also highlighted.
- 8.3: International-Expansion Entry Modes
- This page discusses five primary modes of international expansion: exporting, licensing, partnering, acquisitions, and greenfield ventures. Each mode presents unique benefits and drawbacks, such as varying costs, risks, and control levels. Factors like firm size, financial strength, and local market conditions significantly influence the choice of entry strategy. Smaller firms might prefer exporting, whereas larger ones may favor acquisitions for quicker market access.
- 8.4: CAGE Analysis
- This page emphasizes the necessity of specialized intermediaries to strengthen local auditing practices and highlight the importance of improving financial reporting and auditing standards for market development. It discusses the CAGE framework for analyzing cultural, administrative, geographic, and economic distances that influence global business strategies.
- 8.5: Scenario Planning and Analysis
- This page emphasizes the significance of scenario planning in managing uncertainties within the biotechnology and credit union sectors. It highlights the need to distinguish between trends and unpredictable factors that can influence outcomes.
- 8.6: End-of-Chapter Questions and Exercises
- This page details exercises designed to align international business knowledge with AACSB standards, focusing on evaluating local companies for global expansion and analyzing new markets. It addresses ethical dilemmas, particularly in cases of bribery and relationship building, and underscores the significance of ethical reasoning, multiculturalism, and reflective thinking.