International Strategy

Question 1

why would you want to begin trade internationally?

Answer 1

Assessing a countrys attractiveness for international market entry
Behaviours changes
Wider customer basis
Saturation in the market

Question 2

what is a franchise model?

Answer 2

McDonalds - not all stores are owned by the company - they take a share of the profit - but the locations are owned by individuals

Question 3

why would a business franchise?

Answer 3

reduces risk and responsibility
reduces the reliance of capital (building and employing the people), easy business model

Question 4

motives for internationalising

Answer 4

Seeking new markets
Efficiency seeking
Employing costs
Some parts of the world are specialised in certain things - uk good at IT good infrastructure
Seek resources - power is cheaper in other parts of the world
Exploiting differences between countries - arbitrage - wider reach of that product
Global learning - where is the good talent for design and talent innovation etc
Response to competition

Question 5

countries characteristics - investigating the elements of PESTLE

Answer 5

Political - assessing the countries politics
Economic : indicators of economic development and growth
Economic system - command vs market system
Socio -cultural - an example of a social factor
Cultural differences impact customer preferences and ways of doing business
Legal - rules that regulate behaviour along with the processes by which laws are passed