International Business

International Business
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Executive summary- This report will include the concept of international business. It was
analysis that after the globalisation the international trade will increase. It was analysis that there
are various motivational factors which will encourage organisation to use international strategic
alliances in airlines at the time of international market expansion of business. Other than this an
organisation will require to adopt an effective process of selection of new partner as it will assist
them in effectively launching their business in other countries. These partners will be the local
competitors or other person. Strategic alliances will play an essential role in the growth of
international business but they will also create barriers for an organisation. It was analysis that an
organisation will require to select an appropriate strategic alliances option for expansion of their
business in an international market.
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Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Literature Review.............................................................................................................................4
Explain the motivation behind the formation of international strategic alliances in the airlines
foreign market expansion.......................................................................................................4
Analysis the criteria which is utilized by the company in the partner selection process.......5
Describe the suitability of international strategic alliances in airline global expansion........7
Analysis and discussion...................................................................................................................7
Define the criteria of decision making which will determine the suitability of the use of
international strategic alliances..............................................................................................7
Explain various benefits and challenges occur because of use of strategic alliance at the time
of enter into foreign market....................................................................................................9
Explain the concept and theory at workplace experience....................................................10
Define international strategic alliances as an option to foreign market expansion..............10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Main objective of this report is to better understand the concept of international business. It
is related to the trade of goods, services, technology, and capital, knowledge across national
borders & at a global scale (Allred, and et. al. 2017). It will involve the cross boarder transaction
of goods and services between two or more countries. There are various organisation who
operate their business in different countries for expanding their business and generating more
profit. For successfully operating an international business an organisation will require to have
effective knowledge related to the local custom law, impact of macro environment and various
other legislation. For this report Star Alliance Company are taking into consideration. Star
alliance is the world largest global airline alliance. It was founded in 1997 by the airliners of the
five founding members. Which are united airline, Scandinavian Airlines, Thai Airways, Air
Canada and Lufthansa. It’s headquarter is in Frankfurt am Main, Germany. This report will
include an analysis and strategic framework will be displayed related to the selected industry.
This report will highlight different operational activities of organisation which are conducted the
market.
MAIN BODY
Literature Review
Explain the motivation behind the formation of international strategic alliances in the airlines
foreign market expansion.
As per Bachelor Thesis, 2008 main motive of an organisation to effectively adopt the
strategic alliances. Although the reason and motivation of companies to undertake strategic
alliances which may evolve & change through years. It was analysis that most of the organisation
were use alliances when they will face specific circumstances. There are various reason behind
strategic alliances should be initiated and established. In context of Star Alliance, various
motivational factors are discussed below:
Entering into new international market- It was analysis that for past companies wholly
owned subsidiaries, joint venture are the best way to enter into the new market but after sky that
they will utilize strategic alliances. Effective cooperation with the local companies in a target
market which is familiar to the political & economic environment of a country will provide
complementary skills & resources which are important for the success of organisation. It will
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