Project 4 Discussion questions

Im working on a business discussion question and need guidance to help me learn. Hi there! I only need responses to my classmates answers to the 2 discussion topics right below about 1-2 paragraphs per topic each with their own sources cited if used. However everything else posted is just for reference and context. 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 organizations goals and objectives. -Answer 1:There are many factors that influence companies to enter a foreign market. Some of these factors include the growth rates of the foreign markets compared to the domestic market increasing overall market share tax benefits competitive pressure saturated domestic markets excessive capacity closer proximity to foreign consumers and to be considered local to those in foreign markets (Zegiri & Angelova 2011). Companies have choices when it comes to taking their business into a new country. Each entry mode comes with its own set of advantages and disadvantages. Exporting is one of the most common forms of entry. Exporting can be defined as the marketing and direct sale of goods produced in one country and sold in another. An advantage of this method is that it does not require an investment in the foreign country to produce the goods. Other advantages are quick entry into the foreign market with little risk. Disadvantages include substantial costs with limited control of the marketing and distribution of the products. Organizations can also be hit with high tariffs distributor services and high transportation fees. Exporting also limits a company’s ability to customize their products or services to the local preferences (Stegman 2021). A licensing arrangement is when a licensee pays a fee in exchange for the rights to use the intangible properties of another. This type of agreement allows the licensee to use the Patents trademarks or copyright designs of another company by paying that company fees. Advantages to both companies include low initial investments avoidance of trade barriers utilization of local economies access to local data and/or resources and overall improved access to the local markets. Some of the disadvantages to licensing to the licensor is a lack of control over operations and difficulties with the transferring of tacit knowledge (Zegiri & Angelova 2011). Franchising is similar to licensing with the payment of royalty fees the franchisee will receive the know-how of the business and operate it in an independent fashion. The franchise fees typically cover the intangible properties such as the patents and trademarks and the franchisee will be required to follow the rules set forth by the franchiser (Zegiri & Angelova 2011). A Joint venture is an agreement between two parties to work together on a project this can include operating in a particular market. The two entities will share the risk and reward and maintain control of the product and/or services. Concerns with this type of agreement include potential conflicts with the two parties and neither party has full control (Zegiri & Angelova 2011). Foreign Direct Investment (FDI) is the direct ownership of facilities in the foreign country. This entry mode involves capital technology and personnel. The FDI can be done though an acquisition or by establishing a new enterprise. Advantages to the FDI include control of the operations and the ability to have direct access to the consumers. The main disadvantage is the high level of resources required to establish the new business. An acquisition is the action of a company purchasing the whole or part of another company. This is advantageous due to the previous establishment of the business in the foreign market. The acquired company will have local knowledge and the established customer base and the acquiring company remains in control of their product and/or services. A concern for the parent company would be difficulty in absorbing the assets of the company and uncertainty about its overall value (Zegiri & Angelova 2011). Green field entry is defined as a form of foreign direct investment where the parent company starts a new venture in a foreign country by constructing new a facility from the ground up. This allows the parent company to maintain control of their goods and/or services. This mode requires knowledge of foreign management (Zegiri & Angelova 2011). References: Zegiri J. & Angelova B. (2011). Factors that Influence Entry Mode Choice in Foreign Markets. European Journal of Social Sciences. https://www.researchgate.net/publication/266284373_Factors_that_Influence_Entry_Mode_Choice_in_Foreign_Markets Stegman J. (2021) MBA 670 Strategic Decision Making. Project 4: Stimulation as a Tool for Strategic Decision Making – Part 2. UMGC. https://learn.umgc.edu/content/enforced/546663-027… 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? -Answer 2: There are several factors an organization must consider before entering a new market. Companies should consider all factors before deciding to enter a new market because not all markets are equally attractive and offer the same benefits. The first factor that company should consider is the economic factor Economic factors pertain to the affordability of a product and the country’s standard of living (Chand n.d.). It is possible that a country cannot afford the products that the company is looking to bring to this market. In to access a potential new markets economic factors the company should take a deep dive into the data about the people who can afford to its products (Chand n.d.). Social and cultural factors will also influence a company’s decision to enter a new market. These factors deal with the differences in languages and customs (Chand n.d.). Most countries differ in the ways they communicate practice religion and even consume food and these differences should all be taken into consideration by marketers when looking into a new market. Companies may find more success if they enter a new market that closely aligns with their current markets. But even this will not guarantee success and companies should remain vigilant to any cultural differences. Political and legal factors are strong influences in an organizations decision to enter a new market. These factors pertain to the attitude of the government (Chand n.d.). It will be important to understand the general attitude of the government as well as its historical record and its attitude towards foreign investments (Chand n.d.). An understanding of the potential host country’s tax structure and legal systems will be necessary before deciding to enter that market. Market attractiveness will also be a contributing factor in this decision. This factor is essentially a country’s market potential. This can be assessed by looking into the revenue that can be generated access to the market and potential competition (Chand n.d.). The last factor to consider is the capability of the company. An organization should not move into a new market if they are not prepared to. The company should perform an audit on their own organization to ensure they have the correct resources and capabilities (Chand n.d.). Both culture and geography can become barriers to an effective value chain. A company could be setting themselves up for disaster if they were to enter a new market without fully understanding the culture and traditions of its host country. Entering a new market would also force a company to make changes to its value chain to be able to deliver more value to the customers. References Chand S. (n.d.). 5 factors you must consider while your company is entering to a new market. Yourarticlelibrary.com https://www.yourarticlelibrary.com/business/5-fact… 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. Before you and your teammates settle on a strategy Jillian Best has asked you to meet and discuss the various factors that influence an entry strategy. Based on your reading research and analysis respond to the two discussion questions below: 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 organizations goals and objectives. 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? Review the MBA Discussion Guidelines for instructions on participation in discussions. Also abide by the following guidelines: After the discussion proceed to the next step where your team will select a global strategy to guide your business recommendations for your client. All tutors provide: high quality help quick responsive communication original explanations and answers with any outside resources cited. ATTACHMENTS globalizing_the_management_model.pdf modes_of_entry.pdf types_of_international_strategies.pdf international_strategy.pdf Requirements: 3-4 paragraphs | .doc file 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 before the end of Week 7. 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.