Chapter 15 Whats makes aleader 2-8-2024.ppt
- 1. Copyright © 2011 Pearson Education Global Aspects of Entrepreneurship CHAPTER 15
- 2. Why “Go Global?” Ch. 15: The Global Aspects of Entrepreneurship 15 - 2 Offset sales declines in the domestic market Increase sales and profits Extend products’ life cycles Lower manufacturing costs Lower product cost Improve competitive position Raise quality levels Become more customer-oriented
- 3. Nine Strategies for Going Global Ch. 15: The Global Aspects of Entrepreneurship Creating a Web Site Relying on Trade Intermediaries Creating Joint Ventures Foreign Licensing International Franchising Countertrading & Bartering Exporting Establishing International Locations Importing & Outsourcing 15 - 3 FIGURE 15.1
- 4. Strategies For “Going Global” Ch. 15: The Global Aspects of Entrepreneurship 15 - 4 Create a presence on the Web
- 5. The Web’s Global Reach Ch. 15: The Global Aspects of Entrepreneurship 15 - 5 Available 24 hours a day to anyone anywhere in the world. 1.60 billion Web users worldwide 220 million in U.S. Nearly 1.4 billion in other countries Customers who live outside the U.S. account for more than 50% of all online sales by U.S. companies 54% of eBay transactions take place outside the U.S.
- 6. Trade Intermediaries Ch. 15: The Global Aspects of Entrepreneurship 15 - 6 Domestic agencies that serve as distributors in foreign countries for companies of all sizes. Types of intermediaries: Export Management Companies (EMCs) Export Trading Companies (ETCs) Manufacturer’s Export Agents (MEAs) Export merchants Resident buying offices Foreign distributors
- 7. Joint Ventures 15 - 7 Domestic joint venture – two or more U.S. companies form an alliance for the purpose of exporting their goods and services abroad. Foreign joint venture – a domestic firm forms an alliance with a company in the target nation. Most important ingredient: Choosing the right partner. Use the joint venture as a learning process.
- 8. International Franchising Ch. 15: The Global Aspects of Entrepreneurship 15 - 8 To expand internationally, franchisers should: 1. Identify the country or countries that are best suited to the franchiser’s business concept. 2. Generate leads for potential franchisees. 3. Select quality candidates. 4. Structure the franchise deal. Direct franchising Area development Master franchising
- 9. 1 - 9 Ch. 6: Franchising and the Entrepreneur 15 - 9
- 10. Countertrade: A transaction in which a company selling goods in a foreign country agrees to promote investment and trade in that country. Barter: The exchange of goods and services for other goods and services. 15 - 10 Countertrade and Barter Copyright © 2016 Pearson Education Ltd
- 11. Exporting Ch. 15: The Global Aspects of Entrepreneurship 15 - 11 Small business accounts for 90.7% of all companies involved in exporting, but they generate just 21% of the dollar value of the nation’s exports. Significant impact: Small companies generate $1.1 billion each day in export sales!
- 12. Ch. 15: The Global Aspects of Entrepreneurship 15 - 12 1. Recognize that even the tiniest companies and least experienced entrepreneurs have the potential to export. 2. Analyze your product or service. 3. Analyze your commitment to developing export markets. 4. Research potential markets and pick your target. Steps to Successful Exporting
- 13. 1 - 13 Ch. 15: The Global Aspects of Entrepreneurship FIGURE 15.4 Small Business Exports: Number of Countries to Which Small Companies Export 15 - 13
- 14. Steps to Successful Exporting Ch. 15: The Global Aspects of Entrepreneurship 15 - 14 5. Develop a distribution strategy. 6. Find your customer. U.S. Department of Commerce International Trade Administration 7. Find financing for export sales. 8. Ship your goods. 9. Collect your money. (continued)
- 15. Check Ch. 15: The Global Aspects of Entrepreneurship 15 - 15 لشركات المصرية الصادرات دعم برنامجIT http://www.itfedcoc.org/c2625/%D8%A8%D8%B1%D9%86%D8%A7%D9%85%D8%A C-%D8%AF%D8%B9%D9%85- %D8%A7%D9%84%D8%B5%D8%A7%D8%AF%D8%B1%D8%A7%D8%AA- %D8%A7%D9%84%D9%85%D8%B5%D8%B1%D9%8A%D8%A9- %D9%84%D8%B4%D8%B1%D9%83%D8%A7%D8%AA-IT- لعام المصرية الصادرات دعم برنامج 2017 التصديرية المساندة لصرف المنظمة والقواعد http://www.cci-egy.com/index.php?option=com_content&view=article&id=376%3A- egyptian-exports-support-program-rules-2017&catid=1%3Alatest- news&Itemid=50&lang=ar (continued)
- 16. FIGURE 15.5 How a Letter of Credit Works
- 17. Steps to Successful Importing or Outsourcing Ch. 15: The Global Aspects of Entrepreneurship 15 - 17 Make sure that importing or outsourcing is right for your business. Establish a target cost for your product. Do your research before you leave home. Be sensitive to cultural differences. Do your groundwork.
- 18. Steps to Successful Importing or Outsourcing Ch. 15: The Global Aspects of Entrepreneurship 15 - 18 Protect your company’s intellectual property. Select a manufacturer. Provide an exact model of the product you want manufactured. Stay in constant contact with the manufacturer and try to build a long-term relationship. (continued)
- 19. Barriers To International Trade Ch. 15: The Global Aspects of Entrepreneurship 15 - 19 Domestic Barriers Government imposed barriers. Attitude: “My company is too small to export.” Lack of information about how to get started.
- 20. 15 - 20 International Barriers Tariff – A tax a government imposes on goods and services imported into that country. Nontariff barriers – Governments that protect domestic industries Quotas - Limits on the amount of a product imported into a country. Currency ??? Import or Export Problems Barriers To International Trade
- 21. Barriers To International Trade Ch. 15: The Global Aspects of Entrepreneurship 15 - 21 International Barriers Embargo - Total ban on imports of certain products. Dumping - Selling large quantities of a product in a foreign country below cost to gain market share. Smuggling ???? (continued)
- 22. Barriers To International Trade Ch. 15: The Global Aspects of Entrepreneurship 15 - 22 International Barriers Political barriers - Rules, regulations and political risks. Business barriers – Different cost structures and business practices. Cultural barriers - Differing languages, philosophies, traditions, and accepted practices. (continued)
- 23. International Trade Agreements Ch. 15: The Global Aspects of Entrepreneurship 15 - 23 Major Agreements: World Trade Organization (WTO) North American Free Trade Agreement (NAFTA) Central America Free Trade Agreement (CAFTA-DR)
- 24. Guidelines For Success In International Markets Ch. 15: The Global Aspects of Entrepreneurship 15 - 24 Take time to learn before jumping in. Seek out assistance from professionals. Make yourself at home in all three of the world’s key markets - North America, Europe, and Asia. Appeal to the similarities in the various regions and recognize the differences in local cultures. Develop new products for the world market. Learn foreign customs and languages.
- 25. Guidelines For Success In International Markets Ch. 15: The Global Aspects of Entrepreneurship 15 - 25 “Glocalize” - make global decisions about products, markets, and management and allow local employees to make tactical decisions. Recruit and retain multicultural workers. Train employees to think globally. Hire local managers to staff foreign offices and branches. Do whatever seems best wherever it seems best. Consider using partners and joint ventures to break into foreign markets. (continued)
- 26. 1 - 26 15 - 26 Ch. 15: The Global Aspects of Entrepreneurship Global effectiveness requires entrepreneurs to: Learn about the global market Seek the assistance of professionals Recruit and train employees to think globally Consider using partners and joint ventures Determine which opportunities best fit your company Conclusion