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market of the host country gradually. The company
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 the domestic manufacturer
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technology, work methods, patents, copy rights, brand
names, trademarks etc. to a manufacturer in a foreign
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specifying the duration of the contract.


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ola syrup and

weineken adds carbonated water to produce beverage

(iii) Úepsi can grant license to other companies in

Netherlands to produce other products of Úepsi like
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 amount of royalty.

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 licensee would be unwilling to
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royalty payment to the licensor.


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specifically indicates the rights, privileges etc.,  


 
 


 
 



 
 




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International franchising is growing at a fast rate.

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the franchisee operates the business under the name of
another company called the franchisor.

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franchisor.

    

   


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Úroduct reputations

ontinuous support systems like advertising, employee

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programs.





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in the home country before going for international
franchising.

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reporting, operating procedures, customer service etc.

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manufacturing facilities, services facilities, provides
expertise, advertising, corporate image etc.

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preferences. 2$ restaurants in Germany sell
beer also and 2$  restaurants in France sell
wine also.

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companies like 2$ $ 
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wotels like wilton and arriott, rental cars like wertz
and ‘vis also have international franchisees.

wotels like wilton and arriott, rental cars like wertz

and ‘vis also have international franchisees.
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ontract manufacturing

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production and concentrate on marketing operations.
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outsourcing.

Nike has contracted with a number of factories in

south-east ‘sia to produce its athletic foot ware and it
concentrates on marketing.

Bata also concentrated with a number of cobblers in
India to produce its foot ware and concentrate on
marketing.

ega Toys Ȃ a àos ‘ngeles based company contracts

with
hinese plants to produce toys and ega toys
concentrated on arketing.
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employees worldwide.

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 its ability to free corporate executives from some of
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Scope: ‘ booming IT industry, with IT strengths

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after the US‘.

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speaking, tech-savvy personnel, cost -effective
manpower, Technical support ( more than 100,000
engineers are graduating each year).

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recognized the potential of IT-enabled services and has
taken positive steps by providing numerous incentives.

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which have the advantage of raw materials, human
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spread in different countries.

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Foreign Universities helped II s, IITs and Indian
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and expertise and organize international marketing
tasks more effectively.

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Some companies establish subsidiary companies with
the main objective of developing export markets and
doing export business in a big way.

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confined (restrict)to sales alone tend to establish an
international division to manage the international
business.

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creating an international division may generate
internal problems.

oordinating activities may prove difficult because

domestic activities are organized on a product line
basis, while international side is organized on an area
basis, i.e., non-domestic.

   
 

 
 
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Global product structure

The product division structure is popular with large

conglomerates with multiple, unrelated business.

Under this structure different subsidiaries pertaining

(relate) to different products within the same foreign
country report to the head of different product groups
at the headquarters.

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between different areas for any one product line.

Global geographic structure

Under the global geographic divisional structure, the

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Naturally, this pattern tends to improve coordination

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Global functional structure

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Global
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If the global customer groups are so diverse requiring

distinctive approaches, the organizational structure
may be based on the diversity of the customer groups.



 


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Global matrix structure

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 planning organizing staffing 
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at the cost of the health of the host country customers,
natural resources and environment of the host
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between strategies/plans and operations, absence of
perfect co-ordination between the headquarters and
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The
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strategies, implementing, evaluating and correcting
the performance in order to ensure that the
organization achieves its objectives.


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Diversity: Diversity in different aspects like culture,
market structure, product, labor cost, currency, etc.,
makes the control in international business more
difficult.

Uncontrollable: Various stakeholders of the

international business in the host country like
government, supplies of inputs, politicians and market
intermediaries are uncontrollable.

Degree of certainty: It would be very difficult for the
N
s to evaluate and predict the political and cultural
environment and the market reactions to the
strategies, close to reality.

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Information regarding environment factors, plans,
objectives, strategies, goals etc., should flow freely
from the subsidiary to the headquarters and vice-versa.

In addition, information regarding input variables,

sources, prices, quality should flow from the
environment to the company.

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:  N
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in all its subsidiaries and headquarters promoting
closer contact among managers of different
subsidiaries in various countries.


  
  

 


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Building teams with managers from different subsidiaries.

Develop multi-thinking and analyzing skills of the

corporate staff.

Introduce job rotation for the staff between the

corporation/subsidiaries.

Develop proximity and closeness among corporate and

subsidiary staff.

Develop liaison (communication or cooperation) among

staff of the subsidiaries of the same country in product
development and other combined actions.

Úlacing the foreign personnel on boards and top

management teams.

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information systems play a vital role in controlling
process.  ^
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for planning and controlling the operations of the
subsidiaries.   
  
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oca cola and nestle shared the ownership in a joint

venture for the production and sales of canned coffee and
tea drinks.

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stipulations, side agreements, spreading the ownership,
etc.

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Subsidiary companies which are not 100 percent owned

by the parent company are legally separate from its
parent company.

àegal authorities in each country normally limit the

legal liability to the assets of the subsidiary company.

If an N
establishes a branch in a foreign country

instead of subsidiary, the claims of legal suits would be
settled by the N
at the headquarters.

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