Strategic Plan: Natural History Museum's International Expansion

This report presents a strategic plan for the Natural History Museum's international expansion, focusing on a joint venture with the Museum of Cairo. It explores various market entry modes like joint ventures, exporting, licensing/franchising, and wholly-owned subsidiaries, analyzing their advantages and disadvantages. The report recommends a joint venture due to its short-term nature, shared costs, and risk. It outlines a five-year plan (2020-2025) for a joint museum exhibiting natural and human history, detailing vision, mission, and objectives, including promotion strategies and operational considerations such as ticket pricing. The conclusion emphasizes the importance of understanding the pros and cons of each international market entry method.

Strategic Management

Table of Contents
Strategic Management.................................................................................................................1
INTRODUCTION.......................................................................................................................3
MAIN BODY...............................................................................................................................3
CONCLUSION............................................................................................................................7
REFERANCES............................................................................................................................8

INTRODUCTION
This report includes strategic plan for Natural History Museum with Egyptian Museum
or museum which is also known as Museum of Cairo which is situated in Cairo, Egypt. This
report includes various modes through which Natural History Museum can expand its
operations and cab establish alliances with other organisation in international market. This will
allow organisation to become internationalized.
MAIN BODY
The museum can enter into international market through various modes of entry which
are-
Joint Venture, Export, Licensing and Franchising and Wholly owned subsidiary.
All these are forms through which firms can enter into strategic alliances with other firms.
There are various factors most importantly advantage and disadvantages of all these modes
which are required to be considered before company select one mode of entry.
Advantage and disadvantage of Joint Ventures are-
More and improved resources(Tower, Hewett and Fenik, 2019).
Temporary in nature.
Sharing of risk and cost.
Chances of Success are higher.
In international joint venture acceptance by people of other country can be easily meet.
Disadvantage of the Joint Ventures are, Flexibility of the firm can be restricted (Nippa and
Reuer, 2019). Difference of objectives.
When company consider Export as an option for strategic alliance and internationalization its
advantages and disadvantages are as follows-
Benefits of Exporting are increase in sales (Miller and Weinberg, 2017).
Increase in profit.
Decrease in cost.
Increased market for the same goods and services.
Disadvantages of Exporting are extra cost and increased price of product due to transportation
and taxation(Rosado-Serrano, Paul and Dikova, 2018).

Licensing and Franchising is also and mode of entry in international market and strategic
alliances. In this one firm can give its licence to other firm and party to operate business
activity using name and brand of other firm. Advantages of this are-
Reduced risk for both the parties,
Easy entry into international market.
Firm can develop its goodwill and image in another market without any difficulty and extra
efforts.
Disadvantages which are associated with licensing and franchising are-
competition in market gets increased, offer limited time, requires finding people who can buy
license, reputation of the company can be damaged by the other party.
Wholly owned subsidiary is also a form through which firm can enter into other market and
in this Natural History Museum have to buy a firm (Madanoglu and Castrogiovanni, 2017).
This form of strategic alliances also have some advantages and disadvantages and these are as
follows-
Access to new market in other country.
Disadvantage of owning a subsidiary are that it is very expensive as compared to other modes
of entry into international market.
On the basis of above discussion Natural History Museum can chose joint Venture
mode of entry in International market and strategic alliance with Museum of Cairo. These
have been chosen because of its advantages which are its short term nature and sharing of cost
and sharing of risk(Powell and Lim, 2018).
There are various benefits which both Museum of Cairo and Natural History Museum
can have which are-
Natural History Museum will not have to face difficulty while promoting and establishing in
the Egypt.
In this Natural History Museum can take advantage of Egypt and can attract people who come
to visit Egypt (Roy and Gagnon, 2018). Natural History Museum can add its speciality which
is natural history in the history of Egypt so that it will be mutually beneficial for both Museum
of Cairo and Natural History Museum.

As the strategic plan is for 2020 to 2025. The joint venture which Natural History Museum
can have with Museum of Cairo can be of 5 years.
Both the organisations Natural History Museum and Museum of Cairo both jointly starts a
venture through which they can jointly exhibit human history and history of animals and
nature. This will be a new experiment where two different type of history will be shows
together.
Vision of the Joint Venture
To enhance awareness of people who are interested in history.
Mission
To joint the objectives of Natural History Museum and Museum of Cairo.
Objectives
 To successfully showing the natural and human history.
 To ensure that people can have all the relevant information about the objects which are
shown to them in the museum.
Through this museum will be able to understand and know more about history and this will
also fill the gap with knowledge about history in people of Egypt.
In context with their plan from 2020 to 2025 they can jointly start their museum in 2020. This
will require them to import objects from UK to Egypt which will be exhibited in Egypt.
Before that what is required is selection of place where they can start their joint museum
(Walisch, Pepin and Braun, 2019).
In this both organisations jointly will have to make plans through which they can promote the
museum in Egypt and in UK as well. In this promotion strategy both the companies have to
ensure that they are able to highlight their joint venture instead of either Natural History
Museum or Museum of Cairo.
In relation with operation of Museum, they have to ensure that both type of objects are in
balance and one type of object does not affect the image of another type of objects. Though
pieces which have been imported from Natural History Museum can be put into highlight as
they are new and attractive but pieces and objects from Museum of Cairo should not be
belittled in front of that (Roy and Gagnon, 2018). This will be harmful in longer time.
Price of ticket can be kept a little high as Museum have something new that people can pay
high price for.

CONCLUSION
On the basis of above discussion it can be concluded that there are various modes of
entry in international market and building joint alliance with another company. This is very
important to know the benefits and drawbacks of each of the method and this report includes
advantage and disadvantage of joint venture, license and franchising and fully owning a
subsidiary.

REFERANCES
Books and Journals
Madanoglu, M. and Castrogiovanni, G. J., 2017. International franchising: influences of
environmental uncertainty and munificence on market entry timing. In Handbook of
Research on Franchising. Edward Elgar Publishing.
Miller, N. H. and Weinberg, M. C., 2017. Understanding the price effects of the MillerCoors
joint venture. Econometrica. 85(6). pp.1763-1791.
Nippa, M. and Reuer, J. J., 2019. On the future of international joint venture research. Journal
of International Business Studies. 50(4). pp.555-597.
Powell, K. S. and Lim, E., 2018. Motive meets experience: Cultural distance, motive, related
experience, and foreign subsidiary ownership structure. Journal of Business
Research. 92. pp.81-92.
Rosado-Serrano, A., Paul, J. and Dikova, D., 2018. International franchising: A literature
review and research agenda. Journal of Business Research. 85. pp.238-257.
Roy, V. and Gagnon, J. M., 2018. Natural history museum data on Canadian Arctic marine
benthos. Marine Biodiversity. 48(3). pp.1357-1367.
Tower, A.P., Hewett, K. and Fenik, A.P., 2019. The Role of Cultural Distance Across
Quantiles of International Joint Venture Longevity. Journal of International
Marketing. 27(4). pp.3-21.
Walisch, T., Pepin, C. and Braun, P., 2019. How the Luxembourg Natural History Museum
Has Established and Maintained a National Bio-and Geodiversity Data
System. Biodiversity Information Science and Standards.