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Company Background ABC Company Pvt. Ltd. (Malaysia)

   

Added on  2021-06-17

6 Pages1216 Words357 Views
INTERNATIONAL BUSINESS ENVIRONMENT –727703

Table of ContentsIntroduction.......................................................................................................................3Company background..................................................................................................................3Choosing the right option.............................................................................................................3Critique – Reason for choosing the first option...................................................................3Conclusion.........................................................................................................................5Bibliography.......................................................................................................................6

IntroductionCompany backgroundABC Company Pvt. Ltd. is a Malaysian based company that operates in the bio-technologysector and produces medical products. Recently, the company has developed a new medicalproduct which is a lot of value to the entire world. The company is planning to expand itsoperations in the American market and sell its new product to the American customers. Thecost of manufacturing the new product will not be an issue for the company but there are anumber of operational models that the company needs to choose from. To achieve itsobjective, the management is planning to keep the manufacturing operations limited to itshome country while it plans to hire sales agents who would handle the American market toboost up the sale of its product. Choosing the right optionThe company can enter the American market using three different entry modes, which are:-Manufacture the products at its home facilities and hand over the marketingoperations to American sales agents-Manufacture the new product in Malaysia itself and open up a new subsidiary in theAmerican market to handle all the marketing operations-Enter into an alliance with a famous Mexican firm in a 50/50 joint venture where theproducts would be manufactured in Mexico and experienced American salesexecutives would take up the marketing operations. This report is aimed at gaining a deeper insight into the entry modes that a firm can use toenter into a foreign market. Therefore, a thorough analysis of one of the best options iscarried out in this report using theoretical and empirical arguments. Critique – Reason for choosing the first option The present day business world is tough and highly competitive where entering a foreignmarket can be highly beneficial for a company but at the same time, the overall process canbe a huge challenge to the management of a business organisation. Selecting the right entrymode to enter a foreign market depends on a number of internal and external environmentfactors and can have a great impact on the overall success of a foreign venture.

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