Small Business International Strategy
Instruction
Access the “Portfolio Projects” section of your textbook which can be found on page 217. For case “Develop an International Strategy for Your Own Small Business: Achieving the Right Global Mode of Entry”, identify a country where you would like to conduct business and determine the right entry mode strategy into that foreign market. Provide full responses to each question and be sure to provide examples to support your writing. You are expected to answer each question and failure to do so will result in a loss of points.
Your assignment should be prepared in a 4 to 5-page Microsoft Word document, to include a coverpage and references. Be sure to either include the question above your response, or within your response.
Develop an International Strategy for Your Own Small Business: Achieving the Right Global Mode of EntryNow that you have identified the target regional economic zone (Chapter 3) and country where you would like to conduct business, your next step will be to determine the mode of entry into that foreign market. The following questions will assist you in identifying the right strategy:
1) First, determine how much risk you are willing to take in international business (i.e., How much capital can you afford to lose based on a worst case scenario?). As you know, the least risky method of entry overseas will be through export and import business. Exhibit 8.1 will help.
2) If your ambition is to generate high returns through international business, you will need to (a) determine what your company’s competitive advantage is, and (b) identify why you would want to have an overseas operation. To maximize revenue? To minimize cost? Both? Or to diversify risk?
3) Now that you have a good idea of how much risk you are willing to take, and also why you would want to invest in an overseas operation, it is relatively easier for you to determine the entry mode into the international marketplace. Use Exhibit 8.1 to determine your mode of entry abroad.
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