Exam 3 Study Guide - Multinational Business
Exam 3 Study Guide - Multinational Business MAN3600
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This 23 page Study Guide was uploaded by Salma Lawrence on Wednesday November 4, 2015. The Study Guide belongs to MAN3600 at Florida State University taught by Dr. Ruby Lee in Fall 2015. Since its upload, it has received 313 views. For similar materials see Multinational Business Operations in Business, management at Florida State University.
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Date Created: 11/04/15
CHAPTER 12: Strategy and Organization in the International Firm Key Dimensions of Successful Firms - Strategy - Visionary Leadership - Organizational Culture - Organizational Processes - Organizational Structure What is Strategy? - A planned set of actions that managers take to make best use of the firm’s resources and core competences to gain a competitive advantage. Examine firm’s strengths and weaknesses, and the opportunities and challenges facing the firm. Figure out which customers to target, what products to offer, how to compete, coordinate activities around the world. International Strategy - Strategy that is carried out in two or more countries. - Managers develop IS to: Allocate scarce resources and configure value-adding activities globally. Participate in major markets Implement valuable partnerships abroad Engage in competitive moves in response to foreign rivals Global and Sustainable Competitive Advantage - Managers should strive in global efficiency, multinational flexibility, and ability to develop innovations and leverage knowledge on a worldwide scale. - Firms should aspire three objectives: Efficiency: Lower firm’s operations and global activity costs Flexibility: Manage country risks and opportunities by tapping resources in individual countries and local opportunities. Learning: Develop firm’s products, technologies, capabilities and skills by internalizing knowledge gained from international ventures ** Successful firms usually only excel at one or two of these strategies Visionary Leadership - A quality of senior management that provides superior strategic guidance for managing efficiency, flexibility and learning. - Qualities and Traits: International Mindset and Cosmopolitan values: Openness to and awareness of diversity across all cultures. Willingness to Commit Resources: Financial, human, and other resources. Strategic Vision: Articulating what the firm wants to be in the future and how it will get there. Willingness to Invest in Human Assets: Emphasizing the use of foreign nationals, promoting multi-country careers, and training to develop international “supermanagers”. - Example: Ratan Tata, Chairman of the Tata Group in India, oversees a $63 Billion family conglomerate that markets a wide range of products from cars to watches. His group has made numerous international acquisitions, changing the vision from local to global. Developed a $2,500 car, the Nano, targeted at emerging markets worldwide. Organizational Culture - The pattern of shared values, behavioral norms, systems, policies and procedures that employees learn and adopt. Employees acquire and adapt to the culture as the correct way of perceiving and behaving to problems and opportunities that confronts the firm Derives from influence of the founders and visionary leaders Management should build global organizational culture - Firms with OC: Value and promote global perspective in all major initiatives Value international competence and cross cultural skills among employees Adopt a single corporate language for business communication Promote interdependency between HQ and subsidiaries Subscribe to appropriate ethical standards Organizational Processes - Managerial routines, behaviors and mechanisms that allow the firm to function as intended. Includes mechanisms for collecting information, ensuring quality control in manufacturing and maintaining effective payment systems. Example: GE digitalized all important documents and uses intranet and internet to automate activities and cut costs. Global Teams: Internationally distributed groups of employees charged with specific problem solving mandates that affect the entire firm. Global Information Systems: Global IT infrastructure, together with electronic tools, provide virtual interconnectedness within the international firm. Multidomestic Industry - An industry in which competition takes place on a country by country basis. Firms must adapt to language, culture, laws and income levels. Such industries include processed food, consumer products, fashion, and publishing. Examples: Coca-Cola offers various brands and flavors such as “Inca Cola” in Peru, “Georgia Coffee” in Japan and “Burn” energy drink in France. Global Industry - An industry in which competition is on a regional or worldwide scale. Such industries include cars, computers, chemicals and industrial equipment. Examples: American standard sells similar bathroom fixtures worldwide. Three Levels of Competition - Global: Cadillac, Chevy - International: DaeWoo (Latin America, Korea and Europe), GMC (North America, Middle East) - Local: Vauxhall (UK), Holden (Australia) Global Integration - Coordination of the firm’s value-chain activities across multiple countries to achieve worldwide efficiency, synergy, and cross fertilization in order to take advantage of similarities between countries. - Firms that emphasize GI: Make and sell standardized products and services Compete on regional or worldwide scale Minimize operating costs by centralizing and scaling economies - Pressures of GI Seek cost reduction through economies of scale Capitalize on converging consumer trends and universal needs Provide uniform service to global customers Conduct global sourcing of raw materials and energy Monitor and respond to global competitors Take advantage of global media Local Responsiveness - Meeting the specific needs of buyers in individual countries Requires the firm to adapt to customer’s needs and to the competition. Local managers are free to adjust offerings, marketing and practices to suit individual markets. - Pressures for LR Leverage natural resources and endowments available for the firm Cater to local customer needs Accommodate differences in distribution channel Respond to local competition Adjust to cultural differences Meet host government requirements and regulations ** When operating internationally, firms try to spark the right balance between global and local Integration-Responsiveness Framework - Summarize the balance that firms seek to achieve between two basic strategic needs: Integrate value-chain activities globally Creating products and practices responsive to local market needs - Main goal for firms that emphasize GI is to maximize the efficiency to their value chain activities - Main goal for firms that emphasize LR is to maximize sales and market share by being highly responsive to local needs Four Emerging From the Integration-Responsiveness Framework - Home Replication Strategy Firm views International business as separate and secondary to domestic business Expansion abroad is an opportunity to boost sales for domestic products Products created mainly for domestic customers and then internationally to extend the life of the product lines Management holds little interest for foreign markets - Multidomestic Strategy Firm develops subsidiaries in its foreign markets and hires local managers to operate independently Products/services are adapted to suit needs/wants of buyers in each country HQ acknowledges differences among national markets and subsidiaries are allowed to vary products by country Managers are often nationals of the host country and generally don’t share knowledge with other manager in other countries More responsive but acquire more costs to operate - Global Strategy HQ seeks substantial control over all country operations in order to minimize redundancy and achieve maximum efficiency Products, marketing and practices are relatively standardized Activities tend to be concentrated at HQ, central control and coordination Management views world as ONE marketplace - Transnational Strategy Firm strives to be more responsive to local needs WHILE retaining sufficient central control of operations Firm seeks to combine major advantages of multidomestic and global strategies while minimizing disadvantages Flexible: standardize where feasible, adapt where appropriate Can be challenging to most firms (idiosyncrasies in some countries) Examples: Lenovo has HQ in China and US but manufactures in Mexico, Poland and China to meet certain standards. IKEA has 90% standardized products across the world but modifies some furniture to suit tastes in individual countries. Exploit economies by sourcing from a reduced set of global suppliers and concentrating production to a few locations. Organize activities on a global scale Optimize local responsiveness and flexibility Deal with competitors on a global, integrated basis Organizational Structure - The reporting relationships inside the firm, specifies linkages among people and functions that carry out firm’s operations For MNE’s linkages are extensive and include subsidiaries, affiliates and suppliers worldwide How much decision making should firm retain at HQ? How much should it delegate to subsidiaries? Centralization vs. Decentralization - Most experienced global firms : Encourage local managers to identify broad objectives Visit subsidiaries to instill corporate values Rotate employees within corporate network to promote development and global perspective Encourage country managers to interact and share experiences Provide incentives and penalties to promote compliance with HQ goals Alternative Organizational Arrangements - Export Department Unit within the firm charged with managing the firm’s export operations Similar to Home Replication Strategy Firm’s resource commitment is small and export activities are unified under one department HQ has minimal control over foreign operations, relies on intermediaries and few opportunities for foreign markets - International Division All international activities are centralized under one division , separate from domestic units Increased focus on international business Concentrates international expertise, coordination and management of international operations Can result in competition between domestic and international units Can result in little coordination between this division and other divisions - Geographic Area Structure Management and control are decentralized to individual geographic regions, whose managers are responsible for operations within their region Used by firms who standardize their products Results in greater responsiveness to customer needs and wants Management orientation can be more regional than global which can affect development and management of products - Product Structure Management of international operations is organized by major product line Each product division is responsible for producing and marketing a specific group of products worldwide Firm develops expertise with specific products on a global basis Potential excessive focus on the products and not enough for developing firm’s markets - Functional Structure Management of international operations is organized by functional activity Example: Oil companies tend to organize their worldwide operations along two major Functional lines: production and marketing of petroleum products Small central staff, strong central control and coordination in global strategies May not respond well to buyer’s wants/needs if coordination is skewed with many product lines - Global Matrix Structure Blends the geographic area, product and functional structures to leverage the benefits of a purely global strategy while the firm remains responsive to global AND local needs Share knowledge among firm’s units worldwide Can result to contradictory instructions from multiple managers to employees Managing subsidiaries, operations and products in foreign markets is complex Chapter 13: Global Market Opportunity Assessment Global Market Opportunity - A favorable combination of circumstances, locations, and timing that offers prospects for exporting, investing, sourcing or partnering in foreign markets - Opportunities include: Marketing products and services Est. factories for competency and cost-effectiveness Procuring raw materials or components Obtaining services of lower cost or superior quality Entering collaborative arrangements with foreign partners The Six Tasks for GMOA - Organizational Readiness Analyze organizational readiness to provide an objective assessment of the firm’s preparedness to engage in international business Examine firm’s strengths and weaknesses by evaluating key factors such as financial and tangible resources, relevant skills and competencies, management’s commitment to internationalize - Product Suitability Assess suitability of the firm’s products and services for foreign markets For each possible target market: Identify factors that may hinder market potential Determine how products may need to be adapted for each market Assess products with respect to foreign laws, channel intermediary requirements, and nature of competitors Address areas that well suit that foreign market and create products that fit those areas - Country Screening Screen countries to identify target market: Reduce number of countries that warrant in- depth investigation Identify five or six countries that best assess each country Size and growth rate Customer buying power Middle class growth rate Country’s receptivity to imports Country risk and economic freedom Infrastructure for doing business Considerations: Cultural similarity with target market Nature of Information varies with product and industry Targeting a region i.e. EU or Latin America Screening for Country Markets: 1. Gradual Elimination: firm starts with numerous prospective target countries and narrows the choices based on specifications 2. Indexing and Ranking: the firm assigns scores to countries based on market attractiveness Screening or Foreign Direct Investment (FDI): 1. Long term prospects for growth and returns 2. Cost of doing business (infrastructure, taxes, wages, etc) 3. Country risk and competitive environment 4. Government incentives (tax holidays, grants, etc) Screening for Global Sourcing 1. The practice of procuring finished products, intermediate goods and services from suppliers abroad 2. Cost and quality of inputs 3. Stability in exchange rates 4. Reliability of suppliers 5. Presence of a workplace with superior skills - Assess Industry Market Potential Estimating the share of sales in each target country, including market entry barriers by developing a 3-5 year forecast Assess market potential by: Size and growth of market trends Tariff and nontariff trade barriers Standards/regulations that affect market trends Availability and complexity of distribution Customer requirements Industry specific market indicators 1. An estimate of the sales that can be generated by all firms in a particular industry during a specific time period 2. Different from Company Sales Potential, which refers to the sales the firm itself expects during a time period 3. Most companies forecast at least three years into the future for both market potential AND company sales potential 4. Examples: Cameras for climate related factors, lab equipment for expenditures on health care, and cooling equipment for hotels and restaurants 5. Methods for Estimating Industry Market Potential a. Simple trend analysis: examines aggregate production for the industry b. Monitoring key indicators: examines unique industry drivers of market demand c. Monitoring key competitors: estimating sales levels that can provide an estimate of market potential d. Following key customers around the world: provide sales estimates in an industry that the firm supplies e. Tapping into supplier network: valuable info for assessing sales and competitor activity f. Attending International Trade Fairs: facilitates learning about market characteristics and sales potential - Choose Foreign Business Partners The firm decides on the type of foreign business partner, partner qualifications, and then crafts an appropriate market strategy Firms determines what value-adding activities must be performed by foreign partners and seeks the appropriate partner Firm assesses and selects partners based on criteria such as industry expertise, commitment to the venture, access to distribution channels, financial strength, staff and facilities Types of Foreign Partners: Licensing Partners: independent businesses that apply intellectual property to produce products in their own country Franchising Partners: independent businesses abroad that acquire rights and skills from focal firm to local operations called Franchisees. International Collaborative Venture: Include joint venture and strategic alliance partners Qualifications for Foreign Distributors Financially resourceful Competent Management Qualified staff Willing able to invest to grow the business Strong industry knowledge Well-connected with local government Committed and loyal - Estimate Company Sales Potential Estimates of the industry sales that the company can achieve over a time for EACH target market Firms develop 3-5 year forecast in each target market based on certain criteria Firm determines factors that will influence company sales potential Factors that determine company sales potential: Intensity of the competitive environment: competitors may react strongly against entrants Pricing and Financing of Sales: Attractiveness of pricing and financing to buyers and channel members Human and Financial Resources: major factor in the proficiency and speed of company success Partner Capabilities: partner skills and resources determine speed and effectiveness of entry Access to Distribution Channels: ability to use intermediaries and channel infrastructure Market Penetration Timetable: fastness and slowness with advantages and disadvantages Risk Tolerance of Senior Managers: depends on the level of resources management is willing to commit Special Links and Contacts of the Firm: firm’s network in the market Reputation: Success may be faster if the customers are already familiar with the brands and reputations Methods for Estimating Company Sales Potential Survey end users and intermediaries: sample of customers and distributors to determine level of potential sales Trade Audits: Assess competitors’ offerings and strength and reveal opportunities for new products Competitor Assessment: benchmarks against firm’s main competitor and estimate level of sales the firm can attract away from them Obtaining Estimates from Local Partners: collaborators (distributors and franchisees) who are familiar with the market and provide estimates Trials through Limited Marketing Efforts: helps gauge long term sales potential and provide better understanding of the market Analogy: drawing on known statistics from one country to gain insights into the same phenomenon in a similar country Proxy Indicators: Using known information about one product category to infer potential for another category **Analogy and Proxy are often used for developing and emerging economies where information is scarce. Chapter 14: Exporting and Countertrade Foreign Market Entry Strategy - Importing (global sourcing): procurement of products and services from foreign sources - Exporting: Producing products or services in one country (often home country) and selling and distributing them to consumers in other countries - Countertrade: International transaction in which all or partial payments are made trading a product for another product instead of cash - Foreign Direct Investment (FDI): Establishing presence in the foreign market by investing capital and securing ownership of a factory, subsidiary, or other facilities there - Collaborative Venture: joint ventures in which the firm makes similar equity investments abroad but in partnership with another company - Licensing: the firm allows a foreign partner to use its intellectual property in return for compensation - Franchising: a firm opens their own store or facility in the country, which is then operated by local interests (McDonalds, Subway, Dunkin Donuts use this to internationalize worldwide) Factors to Consider When Choosing a Foreign Market Entry Strategy - Goals and Objectives of the firm: desired profitability, market share, or competitive positioning - Control: degree to regarding decisions, operations and assets involved in a venture - Resources and Capabilities: Firm’s financial, organizational and technological - Risk: to which is implied in each foreign venture - Conditions in Target Country: legal, cultural, and economic circumstances, as well as distribution and transportation systems - Competition: Nature and extent from existing rivals and from that may enter the market later - Partners: the availability and capabilities in the market - Value Adding Activities: The activities the firm is willing to perform in the market and what to delegate to local partners - Strategic Importance: Long term importance of the market - Characteristics of the Product/Service: Does the firm’s products matches the needs of the new market? Characteristics of Company Internationalization - Push and Pull Factors: A combo of triggers, inside and outside the firm, responsible for initial international expansion - Initial Internationalization may be accidental: Expansions into foreign markets is unplanned or the result of chance - Risk and Return must be balanced: Managers weigh potential returns of internationalize against the initial costs (money, time, etc). International ventures take more time to reach profitability than domestic ones - Ongoing Learning Experience: The firm’s internationalization can be over many years and involve many national settings, offering opportunities to adapt how to do business abroad - Firms May Evolve in Stages: Most firms opt for a gradual approach, due to limited resources and lack of initial knowledge (global firms are just now taking less time than before) Overview of Exporting - Usually the first entry strategy - Low cost, low risk, flexible - Popular among SME’s - Includes trade deficits, surpluses, etc. - Most exporting involves merchandise - Export channels include independent distributor or agent and/or firm’s own marketing subsidiary abroad - Services are also exported: Ex: education, banking, entertainment, etc. “Pure” services cannot be exported Retailers establish services abroad through stores and FDI Most services enter a foreign market through other strategies than exporting - Advantages include: Increase sales volume Increase economies of scale Diversify customer base Minimize cost of foreign market entry, use to test new markets first Minimize risk and maximize flexibility - Disadvantages include: Sensitive to tariffs and other barriers Exchange rate fluctuations Firm has fewer opportunities to learn about customers, competitors and the marketplace Export Intermediation Options - Indirect Exporting: Contracting with an intermediary, often an export management company or a trading company, in the firm’s home country to perform all export functions - Direct Exporting: Contracting with intermediaries, such as distributors or agents, in the foreign market to perform export functions - Company Owned Foreign Subsidiary: Similar to direct exporting, except the exporter owns the foreign intermediation operation Export Documentation - The official forms required to transport exported goods and clear customs - Quotation or Pro Forma Invoice: Issued on request to advise a potential buyer about the price and description of the exporter’s product or service - Commercial Invoice: Actual demand for payment issued by the exporter when a sale is concluded - Bill of Lading: Basic contract between exporter and shipper; authorizes the shipping company to transport the goods to the buyer’s destination - Shipper’s Export Declaration: Lists the contact information of the exporter and buyer, full description, declared value, and destination of the products being shipped (used by government for statistics) - Certificate of Origin: The "birth certificate" of the goods, showing country where the product originated - Insurance Certificate: Protects the exported goods against damage, loss, and delay Incoterms (International Commerce Terms) - A system of universal, standard terms of sale and delivery - Commonly used in international sales contracts and to specify how the buyer and the seller share the cost of freight and insurance, and at which point the buyer takes title to the goods Methods of Payment METHOD ADVANTAGES DISADVANTAGES Cash in Advance Best for the seller Risky from the buyer’s standpoint, and thus unpopular; tends to discourage sales Open Account Easy for the exporter, who Risky unless there is strong simply bills the buyer, who is established relationship between expected to pay at some future exporter and buyer time as agreed. Letter of Credit A contract between the banks of Requires following a strict protocol, the buyer and the seller. Largely specified in the contract; can risk-free, it helps establish involve much paperwork instant trust. Sources of Export Financing - Commercial banks - Distribution channel intermediaries - Buyers - Suppliers - Government assistance programs Sources of Information to Identify Potential Intermediaries - Business directories Country and regional such as the Foreign Yellow Pages - Trade associations such as the National Furniture Manufacturers Association or the National Association of Automotive Parts Manufacturers - Government ministries and agencies such as Austrade in Australia, and the U.S. Department of Commerce - Commercial attachés embassies and consulates abroad - Branch offices of government agencies located in exporter’s country, such as the Japan External Trade Organization Working with Foreign Intermediaries - The exporter relies on intermediaries for much of the marketing, physical distribution, and customer service activities in the export market - When an exporter is demonstrating commitment and building trust are essential for a good relationship - Intermediaries prefer handling good, profitable products, and desire various types of support - Organizational Strengths, Product Factors, Marketing Skills, Commitment are some criteria for evaluating intermediaries Common Dispute Among Intermediaries - Compensation arrangements - Pricing practices - Advertising and promotion practices and the extent of advertising support - After-sales service - Return policies - Adequate inventory levels - Incentives for promoting new products - Adapting the product for local customers Countertrade - Similar to bartering - Used when conventional means of payment are difficult, costly, or nonexistent - Accounts for between 10% and 33% of all world trade - Risky May involve inferior or hard-to-price goods May lead to price padding Can be complex, and time consuming - Types of countertrade: Barter: Goods are directly exchanged without the transfer of any money Compensation Deal: Payment in goods and cash Counterpurchase: Entails two contracts Seller sets price of goods and receives cash from buyer Seller agrees to purchase goods from buyer Buy-Back Agreement: Seller agrees to supply technology or equipment to construct a facility and receives payment in the form of goods it produces Example: Boeing traded aircraft for oil in Saudi Arabia; Coca-Cola received tomato paste from Turkey, oranges from Egypt, and beer from Poland in exchange for Coke Chapter 15: Foreign Direct Investment and Collaborative Ventures FDI and Collaborative Ventures - Foreign Direct Investment (FDI): the firm establishes a physical presence abroad by acquiring productive assets (Capital, technology, land, etc) - International Collaborative Venture: A cross-border business alliance in which partnering firms pool their resources and share costs and risks of a venture - Joint Venture: A form of collaboration between two or more firms to create a jointly-owned enterprise Examples of FDI - Vodafone, a British firm, acquired the Czech telecom Oskar Mobil - eBay, a U.S. firm, acquired Luxembourg’s Skype Technologies, a prepackaged software company Nature of FDI - The most advanced, expensive, complex, and risky entry strategy - Involves the establishment of manufacturing plants, marketing subsidiaries, or other facilities abroad - Undertaken by firms from both advanced economies and emerging markets - Raises patriotic sentiments among citizens - Motives: Market Seeking Motives Gain access to new markets or opportunities: The existence of a large market motivates many firms to produce goods at or near customer locations Follow key customers: Firms often follow their key customers abroad to preempt other vendors from servicing them Compete with key rivals in their own markets: Purpose is to weaken and force the rival to expend resources defending its own market Resource or Asset Seeking Motives Access raw materials: materials needed in extractive and agricultural industries Gain access to knowledge or other assets: access a well-known brand name and distribution network for knowledge on the market Access technological and managerial know-how available in a key market: The firm may benefit by establishing a presence in a key industrial cluster Efficiency Seeking Motives Reduce sourcing and production costs: accessing inexpensive labor and other cheap inputs to the production process Locate production near customers: Industries that need to be sensitive to customer needs, managers often locate factories or assembly operations near important customers Take advantage of government incentives: Governments frequently offer subsidies and tax concessions to foreign firms to encourage them to invest locally Avoid trade barriers: By establishing a physical presence within a country, the investor obtains the same advantages as local firms Features of FDI - Represents substantial resource commitment - Implies local presence and operations - Firms invest in countries that provide specific comparative advantages - Entails substantial risk and uncertainty - Direct investors deal more intensively with specific social and cultural variables in the host market Service Multinationals - Services: Must offer them when and where they are consumed Service firms establish either a permanent presence via FDI or a temporary relocation of personnel - Support Services: Best provided at the customer’s location Leading Destinations for FDI - Advanced economies in Europe, Japan, and North America are popular FDI destinations, mainly as attractive markets - Emerging markets and developing economies have gained appeal as FDI destinations (China, Mexico, Eastern Europe) - Some factors while choosing FDI locations include: Market Political and legal Infrastructure Economic Human Resource Profit Retention Types of FDI - Greenfield investment vs. mergers and acquisitions (M&A) Greenfield: Firm invests to build a new manufacturing, marketing, or administrative facility, as opposed to acquiring existing facilities Merger: Special type of acquisition in which two firms join to form a new, larger company Acquisition: Direct investment in or purchase of an existing company or facility - Nature of ownership: Equity participation: Acquisition of partial ownership in an existing firm Wholly owned direct investment: Investor fully owns the foreign assets Equity joint venture: Partnership in which a separate firm is created through the investment of assets by two or more parent firms that gain joint ownership of a new legal entity - Level of integration: Vertical integration: Firm owns, or seeks to own, multiple stages of a value chain for producing, selling, and delivering a product Horizontal integration: Arrangement whereby the firm owns, or seeks to own, the activities involved in a single stage of its value chain International Collaborative Venture - A partnership between two or more firms - Includes equity joint ventures and non-equity, project-based ventures - Sometimes called partnerships or strategic alliances - Helps overcome the often substantial risk and high costs of international business - Makes possible the achievement of projects that exceed the capabilities of the individual firm Equity vs. Project Based Joint Ventures - Equity Joint Ventures: normally formed when no one party has all the assets needed to exploit an opportunity - Project-based joint venture: limited timetable and no new legal entity is created. Typically, partners collaborate on joint development of new technologies, products, or share other expertise with each other Other Types of Collaborative Ventures - Consortium: Project-based, usually non-equity venture with multiple partners fulfilling a large- scale project - Cross-licensing agreement: Type of project-based, non-equity venture where each partner agrees to access licensed technology developed by the other on preferential terms Success Factors in Collaborative Ventures - Half of all global collaborative ventures fail in the first 5 years of operations due to unresolved disagreements, confusion, and frustration - Tips: Be aware of cultural differences Pursue common goals Pay attention to planning and management of the venture Adjust to shifting environmental circumstance Barriers to Retailers Abroad - Culture and language barriers - Consumer loyalty to native retailers - Legal and regulatory barriers - Developing local sources of supply - Examples of Retailers Abroad: Dept. Stores, Specialty stores, Supermarkets, etc. Success Factors for Retailers - Advance research and planning - Establish logistics and purchasing networks in each market - Assume entrepreneurial, creative approach - Adjust business model to suit local conditions
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