Going Global A Practical Guide

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Going Global A Practical Guide by Mind Map: Going Global  A Practical Guide

1. The Going Global Environment

1.1. Why firms go International

1.1.1. Initiation of Internationalization Internationalisation motives Reactive motives Proactive motives

1.1.2. Triggers of Export Initiation Internal Triggers Perceptive Managers Internal Change events Inward/Outward Internationalization External Triggers Market demand Competiting Firms Role of Trade Associations Role of Experts/Consultants

1.2. Theories of Internationalisation

1.2.1. Uppasala Internationalization model

1.2.2. Transaction Cost Theory

1.2.3. Network model

1.2.4. Internationalization of SMEs

1.2.5. The concept of Born Globals

1.2.6. Internationalization of services

1.2.7. Traditional Marketing Approach

1.2.8. Life cycle Concept

1.2.9. Dunning's eclectic approach Ownership Advantages Locational Advantages Internationalization Advantages

1.3. The Environment of International Trade

1.3.1. Theories of economic development Import Substitution model Export Led Growth

1.3.2. The International Trade system

1.3.3. Multilateral Institutions Role of the WTO

1.3.4. Protectionism Old Protectionism Import Duty Import Ban Quotas New Protectionism Negotiations Bilateral Trade Restrictions VERs Anti-Dumping Legislation

1.3.5. Regional Trade Areas FTAs Customs Union Common Markets Economic Union

1.4. Internationalization Barriers

1.4.1. Insufficient financial resources

1.4.2. Insufficient Knowledge

1.4.3. Lack of Foreign Market contacts

1.4.4. Lack of Productive capacity for Foreign Markets

1.4.5. Lack of Foreign Channels of Distribution

1.4.6. Management Emphasis on Domestic Markets

1.4.7. Cost due to Higher export manufacturing costs/Distribution costs/Finance costs

2. Understanding your company

2.1. Understanding the Strategic position of the company

2.1.1. Organization’s Background and Profile

2.1.2. Analysis of the internal strategic capability

2.1.3. Analysis of the External Environment

2.1.4. Industry Profiling Industry Analysis Checklist

2.1.5. Global Readiness Suitability of products/Services for Internationalization

2.2. Company resources and Capabilities

2.2.1. Characteristics of the International firm Goals & objectives Size of the firm Location Technology and Innovation Products and services Access to resources

2.2.2. Management of the International firm Attitudes to Company Growth Style of Managers Aspirations, commitment and expectations of Managers

2.2.3. Company resources in the Business System Ability to earn profits Successful CA over Rivals Sources of CA Attractiveness of the Industry

3. The Search for New Markets

3.1. The Search for new markets

3.1.1. Identify high potential country markets Gradual Elimination Indexing and Ranking Use of Variables to estimate market potential Selection of criteria/variables to rank the countries

3.1.2. Selection of criteria/variables to rank the countries

3.1.3. Market evaluation

3.1.4. Indicators of Globalisation How good are the Country Fundamentals? How open is it to Foreign Trade Globalization Index KOF index of Globalization How is it doing in terms of International Trade? Main suppliers Main customers Features of Globalization Reduction of Trade Barriers Integration of Financial Markets Role of MNEs Simultaneous competition in markets Interdependence of all dimensions of Globalization Compression of Time and Distance Multiplication of Free Trade agreements FDI Linkages between Trade and Direct Investment

3.2. Global Market Opportunity Assessment

3.2.1. Estimating demand in emerging markets

3.2.2. Process for Assessing global markets Organizational Readiness to Internationalize What do we gain from going Global? Is going Global consistent with other company goals, now or in future? What demands will this place on firm? What is the Basis of the firm's CA? Suitability of Firm Products and services for Foreign Markets Do we sell well in Domestic Markets? Cater to Universal Needs Address a specific need? Address an emergent need Product Potential Market potential Analysis Size of the Industry Trends in the Industry Tariffs and Non Tariff Barriers Standards and Regulation Availabilty of Distribution Channels Industry Specific Market potential Indicators

3.2.3. Country Screening Process Sourcing potential Competitive Environment Intensity of Competition Cost of doing Business Growth Prospects Country Risk Government Incentives

3.2.4. Industry/Market Potential Assessment Practical Market potential Analysis Trend Analysis Monitoring Industry specific Indicators Monitoring Key Competitors Following Key Customers into Markets Tapping Into Supplier Networks

3.2.5. Choosing overseas Partners Choose Foreign Partners

3.2.6. Estimate firm's Company Sales Potential

3.3. Market Analysis

3.3.1. Market segmentation

3.3.2. Target Market Selection

3.3.3. Trends and Drivers

3.3.4. Buyer Behaviour

3.3.5. Competitor Analysis

3.3.6. Estimate of Annual Sales

3.4. Perform an in-Depth Market Analysis of the two best markets

3.4.1. Contacts in markets

3.4.2. Market and Company Sales Potential

3.4.3. Competitive Analysis

3.4.4. Country Entry Conditions Import Regulations Foreign Direct Investment (FDI) Regulations

3.4.5. Financial and Market Entry Conditions

3.4.6. Determining the best Target Market Country

3.4.7. Market Segmentation Untitled Selection of Target Market Target Market Size and Trends Buyer Behaviour

3.4.8. Competitive Analysis Identification of Direct Competitors Identification of Indirect Competitors Identification of Future Competitors

4. Creating an Entry Strategy

4.1. Entry modes

4.1.1. Strategies to Choose entry modes Transaction cost Approach Factors influencing choice of entry modes Internal Factors External Factors Entry Mode Desirable Characteristics Transaction Specific Behaviour

4.1.2. Market entry by Alliances Nature of alliances Marketing Partnership agreements Selecting an alliance partner Evaluation of Alliances Licensing as an entry mode Franchising Joint Ventures

4.1.3. Market Entry by Acquisition & Direct Investment Acquisition Foreign Direct Investment Motives for FDI Evaluation of FDI and Acquisition

4.2. Product Market Strategy

4.3. Target market

4.4. Pricing Strategy and Plan

4.5. Promotional Strategy and Plan

4.5.1. Global Marketing Budget

4.6. Distribution Strategy and Plan

4.6.1. Distribution decisions

4.6.2. External determinants of Channel decisions

4.6.3. Structure of Channel

4.6.4. Managing Logistics

4.6.5. Implications of the Internet for Distribution

4.6.6. International retailing

4.7. The financial strategy

4.8. Organization of Global Marketing Functions

4.8.1. Creating the Functional Structure International Divisional Structure Product Divisional Structure Geographic Structure Matrix Structure Global Account Management Organization

4.8.2. Design of a control System

5. The Global Marketing Management System

5.1. Module 1 Company Situation Analysis

5.1.1. Company Analysis ) Company Background b) Company Mission Statement c) Sales and profit for the last three years d) Company’s corporate-level strategies Briefly describe the company's scope, diversification of products and the markets for those products and global involvement strategies: e) Product line/service or strategic business unit If the company chosen has more than one product line/service or more than one strategic business unit, select one of them, and briefly describe it: f) Company’s business-level strategies What is your company's business level strategy (Cost Leadership- low price, product/service differentiation , focused differentiation- niche, other? Explain

5.1.2. International Involvement a) Is the company involved internationally? YES! If you answered "YES", identify the methods of international involvement for your company and its competitors. NO! If you answered "NO", identify the methods of international involvement of your company’s competitors only. Method(s) of international involvement Find all that apply to your competitiors and your company InDirect Exporting Direct Exporting Overseas Sales Subsidiary Overseas Marketing Subsidiary Joint Venture (Manufacturing) Joint Venture (Marketing) Wholly-owned Manufacturing Subsidiary Contract Manufacturing Management Contract Licensing Franchising Company Owned Retail Store E-Commerce Importing (Final product) Importing (Importing component parts) Offshore Call Centers Foreign Retailer Acquisitions Currently Not Involved Internationally Competitors List the details of three competitors

5.1.3. How is the international function organized Within Sales/Marketing Team International Division Separate Import/Export Department International Logistics Team Global Structure by - Product Global Structure by - Area Global Structure by - Function No current international function

5.1.4. International experience No Experience 5 or more years of International Experience Less than 5 years of International Experience

5.1.5. 1.3 Industry Analysis To analyze the competiveness of the industry, use Porter’s five forces framework. Mention the impact each force has on competition, profit potential, and demand for the product/service. Be brief and to the point Threat of new entrants 2. Threat of substitutes 3. Determinants of supplier power 4. Determinants of buyer power 5. Determinants of competitive rivalry 1.3 b) What were the industry’s sales and growth rates in the last two year

5.1.6. 1.4 Target Market Profile Describe the end user of the product/service Include gender, age, income, education, life style, etc. How often does the end user purchase the product (daily, weekly, monthly, other)? Explain Is the end user of the product in the foreign market the same as in the domestic market? Explain

5.1.7. 1.5 Product Profile Is the product/service a consumer or industrial good/service? What are the key advantages and disadvantages of the product/service? What is the selling price of the company’s product/service? How does your company’s product compare to competition in terms of quality and price? High/Medium/Low What is the technology level of your company’s product/service? What stage of the product life cycle is the company currently in? Product Life Cycle International Cycle

5.1.8. Global Readiness

5.2. Module 2 Selecting country markets

5.3. Module 3 Indepth Analysis of Top Markets

5.4. Module 4 Create an Entry Strategy

6. Documents for International Trade

6.1. The Harmonized System

6.2. Incoterms

6.3. Documents for Foreign Trade

6.4. Methods of International payment

6.5. Export Insurance

6.6. Checklist for Export operation

7. Useful resources and databases

7.1. Databases in International Business

7.2. Glossary of Terms

7.3. Case Studies