Documente Academic
Documente Profesional
Documente Cultură
12-1
Learning Objectives
To grasp company strategies for sequencing the penetration of countries To see how scanning techniques can help managers both limit geographic alternatives and consider otherwise overlooked areas To discern the major opportunity and risk variables a company should consider when deciding whether and where to expand abroad To know the methods and problems of collecting and comparing international information To understand some simplifying tools for helping decide where to operate To consider how companies allocate emphasis among the countries where they operate To comprehend why location decisions do not necessarily compare different countries possibilities
12-2
Introduction
Where to locate sales, production, and administrative and auxiliary services The sequence for entering different countries The portion of resources and efforts to allocate to each country where they operate
12-3
Introduction
The Location Decision Process
12-4
Introduction
Location Decisions Affecting International Operations
12-5
Introduction
Learning Objective 1: To grasp company strategies for sequencing the penetration of countries
12-6
12-7
Scanning comparing country information that is readily available, inexpensive, and fairly comparable
Onsite visits
12-8
Step 2:
12-9
Opportunities
Sales expansion obsolescence and leapfrogging of products, prices, income elasticity, substitution, complimentary products, income equality, cultural factors and taste, existence of a niche or trading bloc Resource Acquisition Cost consideration
labor, infrastructure- industrial, business and Social, governmental incentives and disincentives
12-10
Risks Political risk analyzing past patterns, analyzing opinions, examining social and economic conditions Foreign exchange risk exchange rate changes, mobility of funds Competitive risk making operations compatible, spreading risk, following competitors of customers, heading off competition
12-11
12-12
12-13
Problems with data Inaccurate information Non-compatibility Limited resources Misleading data Reliance on legally reported market activities Poor research methodology
12-14
Where can companies collect data? Sources of information External government agencies, specialized services, and trade associations Internal
12-15
12-16
Matrices
decide
on indicators and weight them evaluate each country on the weighted indicators
12-17
12-18
12-19