Global Entrepreneurship: Analysis of Theories, Models, and Strategies

This report provides a comprehensive overview of global entrepreneurship, examining key theories and models, particularly focusing on the development of business plans and strategies for exploiting international markets. It includes an executive summary, introduction, and a detailed analysis of factors related to business plans, such as niche value, innovation, and commitment to sustainability. The report uses a hypothetical company, "Donut Donut," as a case study to illustrate concepts like market analysis and marketing strategies, including the 7Ps of marketing. It also addresses current challenges in global entrepreneurship, such as understanding new market cultures and competition. The report concludes with a discussion on exploiting international markets, emphasizing capabilities, competitive advantages, and strategies for achieving success. References to relevant academic sources are included.

Running Head: Global entrepreneurship 1
Global Entrepreneurship

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Executive summary:
Global Entrepreneurship is referred as new creation, transaction which add value, and
transactions which can be done anywhere on the globe. The main purpose of this report is to
understand the theories and models related to global entrepreneurship. In 1999, UN Secretary
General Kofi Annan at the World Economic Forum held in Davos, Switzerland stated that global
entrepreneurship is the approach which meets the needs of the disadvantaged sector and the
general requirements of the future generations. This paper provides cognition theory of global
entrepreneurship, evaluate micro - enterprise activity through a project based study, and
reflection part.

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Contents
Structure:....................................................................................................................................................2
Executive summary:....................................................................................................................................3
Introduction:...............................................................................................................................................5
Mission:.......................................................................................................................................................5
Key to success:.............................................................................................................................................5
Factors related to business plan:.................................................................................................................5
Exploiting of international markets:............................................................................................................6
Conclusion:..................................................................................................................................................7
References:..................................................................................................................................................7

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Introduction:
For the purpose of setting up successful business at global level it is necessary to develop an
effective plan which helps the business owner to achieve their target. There are number of
unexpected opportunities along with different new challenges in this area of business. Generally,
failure of companies in this market is because of a lack of awareness (Caron, 2016). This section
of the paper discusses development of successful global business ideas, and how individual can
exploit global markets. For this purpose we take hypothetical company that is “Donut Donut”.

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Mission:
The main purpose of this company is to become global leader in the bakery market and selling
healthy and tasty donuts to its customers.
Cost of business:
Cost of establishing the bakery can be extended up to $30000, because it includes various factors
such as rent, financing cost, place, equipment’s, marketing, products, legal procedures of foreign
country, etc.
Marketing:
Marketing is the most important area which must be considered by the organization while
establishing business in the global market, and in this area through 7Ps marketers offer their
brands such as product must fulfill the purpose for which it is served to the consumers. In case of
“donut donut” it is necessary for the company to serve such gluten free donuts to their customers
which not only satisfy their cravings but also ensure safety to their health. Second P denotes
place which states that product must be available at the place where target customer can easily
purchase it. In this context “donut donut” can choose main market where other bakeries are
located. Third P denotes the Price and as per this, product must be considered as good value for
the money, and for this purpose organization must price their donuts in accurate manner and does
not overpriced it. Fourth P denotes promotion which states that the most important part of the
marketing is promotion and there are number of methods which can be choose by the
organization such as social media, advertisement, PR, sales promotion, etc. Fifth P defines
people under which human resources are considered as most important asset of the organization,
and it is necessary for organization to consider their importance. Sixth P states processes which
states that process of delivering the customer service is also an important part of the marketing
and organization must focus on it. Last P denotes physical evidence and as per this each and
every service of the consumer includes the physical element and such element must be of
acceptable quality which means donuts served must be of acceptable quality (CIM, n.d.).

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(Source: Hanlon, 2017)
Factors related to business plan:
Key to success:
There are number of factors which must be considered by manager while preparing the business
plan and these factors include niche value, innovation, commitment towards sustainability, etc.
However, external analysis is not enough, it is necessary for company to analyze their external
and internal capabilities and opportunities also. It is necessary for the companies to recognize
that success and profits in the business are related to the energy, planning, and continuous
monitoring. Following are the necessary traits which must be present for developing the business
idea in global market:
Niche value: high level of competition in the global market develops the need to focus on the
niche markets on the basis of attractive and necessary strategy. Now, niche market is considered
as domain of small companies for the purpose of competing with the large firms. No matter what
is the size of the business organization, businesses develop products and services for offering
them in the segmented global markets (Roy, 2016; Zhao & Hills, 2005). The most important
driver in this is the saturation of the Internet and e-commerce in the environment related to the
global business. The internet is considered as ultimate niche marketplace (Osterwalder &
Pigneur, 2009). It must be noted that those companies which are conducting their online business
successfully are generally those companies which define their value with complete focus. In this
context “donut and Donut” can target domestic markets and local customers for the purpose of

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ensuring attracting consumers and capture market (Osterwalder & Pigneur, 2009). This trend is
reflected in the offline global market place, where number of companies reposition their product
or service because of the high competition or their market strategy and market orientation.
Organization conduct their operations in niche markets are specialize in products and service
which at the same time might not influence the other organizations because of less or nil
demand.
Generally, strategists of niche market protect their positions with the help of patents that are their
brand loyalty and reputation. This can be understood with the help of example, actual entry of
Google Inc. in the market is considered as best example of using a niche focuses for the purpose
of capturing the attention of the global audience (Allen, 2016). “Donut Donut” can also apply for
patent before launching their innovation in the market. Internet search engine of Google was
officially launched in 1999, and this engine was launched when this company was a home based
business. At that time, other organization provided internet services such as Yahoo were made
efforts to enhance the quality of their search functions such as news updates, etc. By the year
2002, competitors of Google diluting their actual strategy, but Google mainly focus on providing
best search results, and it also manage to gain enough share of market (HSE, 2016). This trend is
reflected in the offline global market place, where number of companies reposition their product
or service because of the high competition or their market strategy and market orientation (Allen,
2016; HSE, 2016).
Commitment towards sustainability: the quality of leadership and flexible attitude towards the
change are considered as most essential elements of innovations. However, it is necessary that
global managers must view the things in more innovative manner, and consider whether these
things are competitive. Generally, sustainability in context of corporate is derived from four
concepts that are sustainable development, corporate social responsibility, stakeholder theory and
corporate accountability theory (Ton shoes, n.d.).
Current challenges:
Current challenges which are faced by the “donut donut” while establishing their business and
some of these challenges are existing environment under which it becomes difficult for the
organization to understand the present social culture of the new market and handle their

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procedures as per that market. In other words, while establishing the bakery, owner must under
the preferences of the customers and society of that country. Another big challenge is
competitors for the new startups, as they already captured large number of markets and it
becomes difficult for the organization to grab the market. Last but not the least, changes in
political factors, while establishing the business, owners must consider the political provisions
applied in the country, because any change in the political preference can disturb the operations
of the bakery (Casillas, 2007).
Exploiting of international markets:
From last few years, competition and complications in the global market become tougher. Global
economy is reshaped because of the reduction in the communication and transportation costs,
and removal of the trade barriers. There are number of industries in which new competitors are
challenging the existing business organizations. Certainly, global competitive landscape is
becoming dynamic and complex and this landscape provide new opportunities and challenges for
business organizations. It is necessary for organization to improve their global plans by mainly
focus on how to feat, renew, and transformed their traditional sources of advantage. Number of
basic strategies are used which help the organization in exploiting global markets (Virginias,
n.d.) and some of these strategies are capabilities and competitive advantage and Exploit existing
capabilities. The main task of global strategist is to raise area which is derived from present
resources, experiences and innovations of parts operating in different locations. Strategists also
relocate these capabilities whenever it is suitable for organization. After that strategist
systematically upgrade and renew these capabilities. Another strategy stated that the simplest
method through which company can gain advantage in international markets by using those
capabilities which are developed in domestic market. There are number of companies which
have potential to successfully leverage their capabilities developed in domestic market. This
helps the organization in achieving international market share and success with minimum
adjustments in the product and service (Lessard, et. al. 2013).

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Conclusion:
After considering the above facts, it can be said that international market is area which present
number of challenges and opportunities before the organization, and organization can deal with
these challenges and grab the opportunities through accurate strategies, ideas, and capabilities.
All these essential factors help the organization to establish customer base for their product and
service, and grab share in the market.
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http://fortune.com/2016/01/10/develop-successful-business-idea/. Accessed on 14th march 2018.
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Casillas, J. (2007). International Entrepreneurship in Family Businesses. Edward Elgar
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