International Business Expansion of Monash University in the Philippines

RUNNING HEAD: International Business 0
Monash university
International Business

International Business 1
Contents
Introduction...........................................................................................................................................2
Role of the entry mode choices..............................................................................................................2
Strategic issues to succeed in the international business........................................................................5
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8

International Business 2
Introduction
The international business includes all the commercial activities which take place in order to
promote the transfer of goods, services, people, resources, ideas, people and technologies
through boundaries. This report includes the international business expansion of the Monash
University which is a public research university based in the Melbourne, Australia. The
university has decided to make its expansion in the Philippines. The report comprises the role
of entry mode choices. It is also accompanied by strategic issues in order to succeed in the
international business. Monash University is the largest university in Australia and was
established in 1958. The quality of teaching and exceptional facilities makes university to
rank in the top 100 universities of the world. The university offers students a memorable
university experience. It provides a friendly environment no matter which campus is attended
by the students. The university always aims to empower people to make a positive impact on
the world.
Role of the entry mode choices
Monash University has a great sense of purpose, a global outlook, skills, and confidence to
make a positive change to the lives of the people around. The university can enter into the
Philippines by the following entry modes:
Franchising: The franchising is an international market entry strategy. In this strategy, a
semi-independent business owner pays fees and royalties to the franchiser to use the
university’s trademark and sell its products and services. The terms and conditions depend on
the contract made between franchiser. It comprises operations, management, staff training
along with the location approval. The franchising is considered an effective method of
foreign market entry. It is an important advantage of the franchising that it capitalizes on an
already successful strategy. The franchise has also local knowledge and this method is
considered less risky. The university can also save itself from the risk exposures associated
with the foreign market (Ravelomanana, Yan, Mahazomanana & Miarisoa, 2015).
There are two different types of franchising relationships. The business format franchising is
the most identifiable to an average person. In this agreement, the franchisor offers the entire
system for operating the business than just the products and services. On the other side,
traditional franchising is larger than the total sales. In the traditional franchise, the focus is