Question 1: Modes of EntryProvide a scenario where a company would enter a foreign market using the following modes of entry. Be sure to provide one scenario for each mode:ExportingLicensingFranchisingCreating a turnkey projectEstablishing joint venturesSetting up a wholly-owned subsidiaryGive justification for your choices using the advantages or disadvantages for each mode discussed in course
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Question 1: Modes of Entry
Provide a scenario where a company would enter a foreign market using the following modes of entry. Be sure to provide one scenario for each mode:
Exporting
Licensing
Franchising
Creating a turnkey project
Establishing joint ventures
Setting up a wholly-owned subsidiary
Give justification for your choices using the advantages or disadvantages for each mode discussed in course readings.
Question 2: Modes of Entry
A vital element in a successful international market entry strategy is an appropriate fit of skills and capabilities between partners. As such, the Entrepreneur magazine and several other sources annually publish a ranking of the “Top Global Franchises.” Answer the following questions.
Provide a list of the top 10 companies that pursue franchising as a mode of international expansion.
Do you see any commonalities in the top 10?
Conduct detailed research on one of these companies and provide a description of its business model, its international expansion pattern, desirable qualifications in possible franchisees, and the support and training typically provided by the franchiser. Are there areas where improvement can be made for the company to maintain competitiveness? Provide sufficient justification for your position.
Question 3: Strategy
Your company, a manufacturer and marketer of a new line of smartphones, has decided to investigate expansion opportunities in eastern Europe. Management believes that entering countries with a high level of global connectedness will increase the chances of success. Global connectedness refers to the depth and breadth of a country’s integration with the rest of the world, as manifest by its participation in international flows of products and services, capital, information, and people.
Identify the top three eastern European countries in which your company can market its current product line.
Prepare an executive summary to support your recommendations. You may want to use
globalEDGE.msu.edu to assist you in completing this research.
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