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Global Business Prespective - Coursework Example

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Various strategies can be implemented by an organization while starting its business in another nation. These strategies include the global standardization strategy in which an organization tends to sell a product without customizing it according to the conditions of a…
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Global Business Prespective
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"Global Business Prespective"

Download file to see previous pages Companies that follow the international strategy tend to sell locally produced goods and services in foreign market while making certain amendments to their offerings in compliance with foreign market needs.
2. Product shaping is one of the diversification strategies that can be implemented by an organization through strategic management. Organizations that adopt this strategy tend to indulge in the development of a new product for a market that already exists (Hitt, 2009). For example: In India there was a strong existing market for carbonated drinks that was being served by Pepsi Corporation. Later Coca-Cola Company even started offering carbonated drinks in India. This strategy may not always be successful because the current market may already be loyal to another organization that is satisfying their needs and may be reluctant in changing from the already present provider.
3. The term franchising is used to refer to the license that one company operating in a particular nation offers to another company an individual which allows them to operate a similar company in their local regions with the same name (Hitt, 2009). Franchisors can earn revenue from franchisees by obtaining fee revenue which is an upfront payment that a franchisee pays to the franchisor for opening up a franchise with the same name. Franchisors even earn through royalties which is a certain percentage of the total revenue that has been earned by the franchisee.
4. Micro loan is a term used to refer to the money that is lent by a financial institution or the government in order to decrease poverty in their nation (Hitt, 2009). The purpose of microloan is to provide money to the poor and needy people who cannot obtain loans from commercial banks as commercial banks charge higher interests and have a very stringent repayment solution. Micro loans ...Download file to see next pagesRead More
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