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International Business Practices - Essay Example

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The organization of a business has huge implications on significant business decisions. When entering a new market, the organizational structure of a company matters in order to employ an appropriate market entry strategy. This paper will look at three different global companies and their respective international market entry strategy…
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International Business Practices

Download file to see previous pages... The penetration of the company into the global market is facilitated by its market entry strategy which is licensing. When deciding to expand its market, Coca-cola sells a domestic firm the right to use the company's manufacturing process, trademark patent, trade secret, and other item of value for a fee or royalty.
The organizational structure of Coca-cola is highly decentralized. The company does this by "cutting half of the staff at its Atlanta headquarters and moving the regional chieftains closer to their local market" (Organizational Structure 2003). This management structure is observed throughout the firm's international operation. In India, the managers have been given the authority to implement decision within their scope of responsibility. This type of organizational structure supports the primary market entry strategy of Coca-cola as discussed above. Since licensing involves little contact and interference with the licensee, the decentralized organizational structure is very conducive to Coca-cola.
Dell, Inc. is one of the largest personal computer manufacturers in the world. The company was able establish in the global IT industry because of its very efficient market entry strategy. In capturing foreign markets, Dell directly invest in a country by developing foreign-based assembly or manufacturing facility. ...Download file to see next pagesRead More
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