Key Determinants Of Entry Mode Choice

RUNNING HEAD: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student:
Name of the University:
Author’s Note:

STRATEGIC MANAGEMENT1
Introduction:
A biscuit company exports its products in the international market. The senior executive
of the biscuit company is interested to strengthen the business in the international market. This
organisation is interested to grow substantially in the global market. However, this paper aims to
analyse various strategies, which will be suitable for this organisation, to enter a foreign market.
Discussion:
This company can utilise direct exporting method to export the goods in the international
market. To analyse this method an example cane be helpful to understand this method. For
example, Nabisco, a USA based company, can sell its product directly into the chosen foreign
market through agent and distributors. The agents and distributor of this company work closely
with the officials of Nabisco to represent the interest of this organisation in the foreign market
(Hollender, Zapkau and Schwens 2017).
This company can use licensing method to export the goods in the international market.
For example, Burton Biscuits Company does a sophisticated agreement with another firm to use
the product of Burton Biscuits Company. In this method, the buyer of the license has a relatively
large market share in the chosen overseas market (Laufs and Schwens 2014).
This company can follow Franchising strategy to export its products in the chosen
foreign market. This method is useful for rapid market expansion. The brand recognition of a
company is the key to the success of this strategy (Rosado-Serrano 2017). For example ‘Tudor’s
Biscuit world’, a USA based company uses this strategy to expand its market share. To export
the goods in the international market this company utilises this strategy.