Professional Documents
Culture Documents
Professor:
Ricardo Abelardo Meja Peralta
April - 2015
Resume Session 05
Types of Globalization.
Globalization's drivers.
Global Industry. World market.
Economies of scale and scope.
Global market characteristics &
strategy. Indicators of its
effectiveness.
Multi-domestic strategy.
Drivers of nature or extent to a
potential globalization of industry.
Entrance dilemma 1
So, if there are:
High entrance barriers.
Good local name and intangible assets.
Good customer base.
Foreign market to a near saturation point.
Entrance dilemma 2
So, if there are:
Green field to investment.
Not a suitable target company.
Government-related benefits for FDI.
Mature own market.
Risk of cannibalizing the local existing
business.
Building matters
Costs, equipment costs, tax costs,
inventory costs, changes to accounts
receivables.
Additional support staff.
Acquisition matters
Outside help, such as lawyers, attorneys,
and other intermediaries. Bounty of fees.
More complex, the larger those fees will
grow.
IT and accounting systems.
Economies of scale. Insurances, spaces,
bonuses, promotions, etc.
Be prepare. Potentially costly surprises.
In resume
If the managing people, infrastructure and industry
have all to support the expansion strategy cost
effectively.
Making an acquisition is likely the way to go.
To the methodical type that likes to put their stamp
on every aspects and not handle well the fear of
the unknown.
Build-out strategy is the best course of action