P‌‍‍‍‌‍‍‌‌‍‍‍‌‍‍‍‍‌‍‍roject 4 Homework Instructions As you prepare to choose a n

P‌‍‍‍‌‍‍‌‌‍‍‍‌‍‍‍‍‌‍‍roject 4 Homework Instructions As you prepare to choose a new strategy—a global strategy—to direct your client’s business decisions, it will be useful to think critically about international strategies, modes of entry, and globalizing the management model. • The titles of your main postings should indicate the discussion topic number (e.g., #1, #2). • Respond to a minimum of two postings from your classmates (The two posts are provided below). • 1 page Response posting to classmate Eugene Block (Discussion topic 1), provided below. • 1 page Response posting to classmate Wade Cobar (Discussion topic 2), provided below. • In your discussions, cite examples when you describe theories from your reading and research. You may use examples from your organization or industry, current or recent newsmakers, or other reliable sources. Eugene Block 1 page Response posting minimum of 3 references for response Discussion Topic 1: What are the factors that influence an organization’s choice of entry mode in a country? Discuss how the chosen mode fits with an organization’s goals and objectives. It seems, as the learning topic alludes to, that choosing how and when to enter another country with your business involves a bit of a learning curve. A company’ confidence (with customs, languages and local laws) or financial backing may affect where on that learning curve they choose to make their first step. In general, though, most companies choose to begin with exporting, which is manufacturing here and then shipping, marketing and selling somewhere else. A company may also choose to create a partnership and licensing which will have a business in the desired distant end manage the sales and other local obstacles. If the partnering company is trustworthy, this can make the effort much easier for a business to sell their product. However, inevitably the exporting company will lose some control and a portion of the profits all of which must be agreed upon prior to any transactions. Ultimately though, a company will want to have their own presence, whether it is office or a manufacturing plant in major countries they are doing business in so that they can have more control with the overall process. The example given in the reading was of Starbucks who varied their decision of entry mode based on the location. They were confident in the UK so they opened operations there, but in Japan they had a partner to manage local affairs (Modes, 2021). Sometimes political pressure can make the decision for companies or simply changes in company goals. In 2017 Ford, for example under political pressure was forced to abandon a production plant in Mexico, but the Washington Post dug for more specifics and found that the Ford wanted to invest billion dollars in electric vehicles and that the Mexico plant was one of the items chopped to produce the investment dollars. So international business decisions can come from a number of influencers (Paquette, 2017). If you have travelled to other countries, you do not have to go far to see some familiar golden arches. McDonalds opened their first burger stand in 1948 but didn’t move outside of the US until it had over 1,000 stores. In its 20th year, 1967, McDonald’s opened in British Columbia and then Costa Rica. Following their success in those two locations, they quickly spread to three other continents opening stores in Australia, the Netherlands and Japan. Their first store in Africa was in Morocco, though that didn’t happen until 1992. So despite “serving billions” it took over 40 years for a massive company to hit each continent. An example of some of the decision influencers was their move to Moscow. It took the 14 years of discussions with the Kremlin to finally have a single store. Wade Cobar 1 page Response posting minimum of 3 references for response Discussion Topic 2: What are the country factors that influence an organization’s decision to enter that country? What is the impact of the culture and geography on the organization’s value-chain activities being relocated to the country? In genera‌‍‍‍‌‍‍‌‌‍‍‍‌‍‍‍‍‌‍‍l, businesses go worldwide to grow or expand their activities. Generating more revenue, competing for new sales, investment opportunities, diversifying, cutting expenses, and hiring fresh talent are all advantages of entering overseas markets. Why do they decide to go to another country to do business and not simply produce locally and export their goods? Cost Doing business in a foreign nation encompasses a wide range of factors, including the direct costs of space and staff and indirect expenditures that impact the bottom line and productivity. The degree of corporate and individual taxation, government incentives, employer overhead in the form of societal costs, local labor regulations governing the number of hours that employees work, and the general motivation, reliability, and dedication of the local workforce are all factors to consider (Bangser, 2015). Host Government Before a corporation commits resources, it is critical to understand the host country’s government’s and people’s attitudes. The track record of a company and its stated attitude toward foreign investments and assets should be taken into account. Before a corporation commits resources, it is critical to understand the host country’s government’s and people’s attitudes. The track record of a company and its stated attitude toward foreign investments and assets should be taken into account. Streamlined procedures, the absence of bureaucratic stumbling blocks, subsidies, and incentives are all good signs of a government’s willingness to invite foreign partners to help them grow their countries. Political stability and attitudes toward foreign investment are other important factors in persuading multinational firms to participate. The continuation of policies is indicated by political stability. Changes in government policies could jeopardize the firm’s profitability prospects (Chand, 2014). Market The attractiveness of a market can be determined by assessing market potential in terms of revenue, market access in terms of the host country’s willingness to welcome multinational enterprises, and probable competition and industry dynamics in the projected market. A large market with a high growth rate might be very appealing, and a large upfront venture can be justified in such a market. The market’s attractiveness is enhanced by the absence of established competitors and consistency in the kind and quantity of competitors (Chand, 2014). Cultural Impacts Companies going into different regions must understand the cultural differences; for example, Most decisions in the United States are made with the intention of making money. Companies in the United States employ the fewest number of employees possible to do a task. However, in some places of China, the mentality persists in keeping as many people employed as possible, regardless of their occupation. Companies establishing operations in China must assess production capacity and worker quality to guarantee that an efficient, skilled labor force has been established and that everyone has meaningful employment. Each country’s contracting conditions are unique. Flexibility must be built into agreements as a necessity for success in Brazil due to continually changing tariffs, customs, and labor circumstances. Because the Dutch are as combative as the Americans in Holland, expect ‘push back’ during talks (2). Contracts are less relevant in areas of Asia than personal relationships between persons because they are only a generic promise to do business together. Workers in Central America may refuse to return to work until an exorcism in a warehouse they believe is haunted has been performed. When firms collaborate abroad, language and different units of measurement aren’t the only issues they encounter. Miscommunication between worldwide partners can cause supply chain interruptions to be severe. Patience is necessary for success. Global decisions will be improved by working in multi-cultural teams. When operating in a global context, culture must be acknowledged and accepted in order to avoid “cultural difficulties that can throw even the best-managed global supply chains an unanticipated curveball‌‍‍‍‌‍‍‌‌‍‍‍‌‍‍‍‍‌‍‍” (NC State University, 2005).