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International market entry strategy and modes of entry

   

Added on  2021-02-19

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Appendix 1. Research Proposal FormStudentName ......................................................................................... Studentnumber ..........................................CentreName....................................................................................................Tutor......................................................................................... Date...........................................Unit.........................................................................................Proposedtitle..................................................................................................................................................................................
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Section One: Title, objective, responsibilitiesTitle: To identify and analyse the expansion strategies available with Booths store to enter United Stateswith special reference to FDI.Aim: To identify and analyse the expansion strategies available with Booths store to enter United Stateswith special reference to FDI.Research Objectives: Identification of the various modes of entry that are available in the international markets.Advantages of Globalization for Booths grocery and wine store through FDIChallenges faced by Booths in expansionRecommendation for appropriate strategies that must be selected by the business. Research Questions: What are the various modes of entry available with local businesses to enter into internationalmarket ?What are the advantages of globalization to Booths grocery & wine store in the context of FDI ?What are the possible challenges to be faced by Booths store during its expansion into the USA ?A recommendation of appropriate strategies that Booths must use in order to establish theirbusiness successfully in USA ?Section Two: Reasons for choosing this research projectReasonsforchoosingtheproject(e.g.linkstoothersubjectsyouarestudying,personalinterest,futureplans, knowledge/skillsyouwanttoimprove,whythetopicisimportant): The researchproject will assist in identifying and analyzing various methods and selecting the best oneaccordingly.Section Three: Literature sources searchedTheme 1: Different modes of entry into international market.In the view point of Barathalakshmi and et.al.,(2018) there are different modes to enter into theinternational market like exporting, franchising, licensing and Joint Venture. The selection of modeentirely depends on the size of the business and its willingness to take risk. The author has stated that theeasiest way to enter into an international market is through joint venture as it will lead to division of riskand capital and also provide easy entry into the international market. Moreover, tin this, company willnot face any threat from the existing players and would immediately have a hold of huge market share inthe USA.However, theBooth and Anderson (2017)argued that although Joint venture is a less risky option2
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but it is not advisable to adopt this method as it would restrict the company' control on its operations, noauthority in decision-making and also reduced profits. Therefore, it is advisable to enter throughfranchising technique as it would lead to reduced burden on company and also help them in generatingmore revenue with no cost involved.Theme 2: Advantage of globalization via FDI to Booths grocery & wine store.According to Fabris (2019)the Foreign direct investment can prove to be of great benefit to firm in USAwould help the company in boosting their revenue because of the economic boom in the country. Also,the company will enjoy the infrastructural benefits, innovative technology and the skilled workers whichwill help in maximizing their overall profits.However, Measson, and Campbell-Hunt (2015) argues that FDI is an expensive and is a time-consumingprocedure. Also, with the changing trends in the business environment the profitability and growthprospects of the retails stores have affected. The attitude of consumers is changing, and they prefer topurchase online which is also a big factor that must be analysed. Therefore, the companies must useglobalization carefully as it can also contribute towards their growth and success effectively andefficiently.Theme 3: Challenges faced by Booth store during expansion.In accordance with Li, Cao and Zhou (2015) there are various challenges faced by an organization whileentering into new market like exchange rate problems and change in laws and policies. Therefore, it isimperative for the Booth store to analyse these factors and take decisions accordingly.However, the Jackson and McManus (2016) argues that USA has a stable economy and the dollarrate is also increasing therefore there are no issues related with the exchange rates but there exists aproblem related with the laws and regulations and the company must have a knowledge about it inadvance in order to avoid the legal problems.REFERENCESBooks and Journals:Barathalakshmi, J. and et.al., 2018. Measles Rubella Immunization Campaign: Challenges Faced in anUrban Area of Chennai. Indian Journal of Public Health Research & Development. 9(7).Booth, A. L. and Anderson, M., 2017. Food (in) security within a university community: the experiencesof students, staff and faculty at a sustainable institution. In Handbook of Theory and Practice ofSustainable Development in Higher Education (pp. 187-199). Springer, Cham.Booth, N., 2017. Trains: Mobile co-working spaces. Planning News. 43(1). p.21.Fabris, N., 2019. Cashless Society–The Future of Money or a Utopia?. Journal of Central BankingTheory and Practice. 8(1). pp.53-66.Guo, Y., Huy, Q. N. and Xiao, Z., 2017. How middle managers manage the political environment toachieve market goals: Insights from C hina's state‐owned enterprises. Strategic ManagementJournal. 38(3). pp.676-696.Jackson, I. and McManus, J., 2016. The importance of collaboration and competition within and outsidethe OECD.Kumar, R., 2015. Challenges faced by an organization to retain & motivate key staff. Asian Journal ofMultidimensional Research (AJMR). 4(2). pp.52-60.Li, Y., Cao, J. and Zhou, L., 2015. Challenges faced by public health research organization in the contextof translational research. Zhonghua yu fang yi xue za zhi [Chinese journal of preventivemedicine]. 49(7). pp.585-587.Measson, N. and Campbell-Hunt, C., 2015. How SMEs use trade shows to enter global value chains.Journal of Small Business and Enterprise Development. 22(1). pp.99-126.Section Four: Activities and timescales3
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