Scarb Eesbm6e Ppt 15

Chapter 1:The Foundations of EntrepreneurshipGlobal Aspects of
CHAPTER 15
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Why “Go Global?”
Increase sales and profits
Extend products’ life cycles
Ch. 15: The Global Aspects of Entrepreneurship
Nine Strategies for Going Global
Creating a Web Site
Relying on Trade Intermediaries
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Strategies For “Going Global”
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Asia
41.2%
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The Web’s Global Reach
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.
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Create a presence on the Web
Rely on trade intermediaries
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Trade Intermediaries
Domestic agencies that serve as distributors in foreign countries for companies of all sizes.
Types of intermediaries:
Export merchants
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Joint Ventures
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:
learning process.
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International Franchising
To expand internationally, franchisers should:
Identify the country or countries that are best suited to the franchiser’s business concept.
Generate leads for potential franchisees.
Select quality candidates.
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Exporting
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!
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Recognize that even the tiniest companies and least experienced entrepreneurs have the potential to export.
Analyze your product or service.
Analyze your commitment to developing export markets.
Research potential markets and pick your target.
Steps to Successful Exporting
FIGURE 15.4 Small Business Exports:
Number of Countries to Which Small Companies Export
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Steps to Successful Exporting
6. Find your customer.
U.S. Department of Commerce
8. Ship your goods.
9. Collect your money.
FIGURE 15.5 How a Letter of Credit Works
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Steps to Successful
Importing or Outsourcing
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.
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Steps to Successful
Importing or Outsourcing
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.
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Barriers To International Trade
Lack of information about
how to get started.
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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.
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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.
(continued)
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Business barriers – Different cost structures and business practices.
Cultural barriers - Differing languages, philosophies, traditions,
and accepted practices.
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International Trade Agreements
Dominican Republic - Central America Free Trade Agreement (CAFTA-DR)
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Guidelines For Success 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.
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“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.
Guidelines For Success In
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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
Conclusion
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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Scarb Eesbm6e Ppt 15