Global Strategy and Multinationals Entry Mode of Choice - Article Example

Articles’ summary International Business Operations Table of Contents Article Global Strategy and MultinationalsEntry Mode of Choice……………………………. Article 2 Global Sourcing Strategy and Performance of Knowledge-Intensive Business Services: A Two-Stage Strategic Fit Model………………………………………………………….............. Article 3 Managing Technology; Cloud Computing: What Exactly Is It, Anyway? Everybodys talking about it. Heres what you need to know. .…………………………………………............. References………………………………………………………………………………………… Article 1 Title: Global Strategy and Multinationals Entry Mode of Choice URL: Author(s): Kim Wc and Hwang P Source: Journal Of International Business Studies 23 (1): 29-53 1992. The purpose of this article: To present a case for entry mode of choice for multinationals seeking to enter the foreign markets based on environmental and transaction specific factors. The case study: Selected Article in international business administration. Research question: What are the factors that lead to the entry of multinationals into foreign markets and the specific entry strategies that these multinationals adopt when entering these markets? In my opinion, the research question is so important because it helps one to have deeper understanding of foreign markets and the specific entry strategies that these multinationals adopt when entering these markets. Hypothesizes: P1: environmental and specific entry strategies influence multinationals’ decision making and market entry. P2: decision making and market entry is different in foreign markets. Introduction: Article 1, ‘Global Strategy and Multinationals Entry Mode of Choice’ presents a case for entry mode of choice for multinationals seeking to enter the foreign markets based on environmental and transaction specific factors. Besides, it provides ample examples on emphasis given to the strategy of multinationals in enhancing the profits of the company. Analysis: In the introductory section, the article provides a bird’s eye view on multinational companies, its decision making process, factors that influence the decision making process and foreign markets. In the first part, the article deals with the various factors that influence decision making process of multinational companies which seek entry into foreign markets. In addition, the article tests the validity of the framework used in decision making by undertaking firm level research by an empirical method that focuses on the micro as well as the macro factors. Results: 1. Entry to a foreign market is a difficult task for the multinational companies. 2. But specific entry strategies that these multinationals adopt when entering these markets are helpful to overcome those initial troubles. Conclusion: Summing up, the learning from the article is about how multinationals often make choices that are driven by top-down approaches rather than bottom-up approaches. The article is definitely useful for anyone seeking to understand the rationale behind why multinationals choose to enter specific markets and why they ignore some other markets. In conclusion, the article is definitely worth reading and adds to the literature that is available on the entry modes of multinationals and particularly to those in the third world countries. Summary: The article makes very relevant points about the nuts and bolts of decision making when it comes to entry into foreign markets. The article is an important contribution to the existing literature on how multinationals base their decisions on which markets to enter and the factors that go into this decision making process. For instance, the entry strategy of multinationals into a specific market might be dictated by considerations of geography and to counter completion from its international rivals. This is the strategy that the cola majors, Coke and Pepsi use to enter specific markets and the entry mode is often dictated by factors that include the rival’s business strategy and the geographical advantage of operating in a specific market. The article tests the validity of the framework used in decision making by undertaking firm level research by an empirical method that focuses on the micro as well as the macro factors. Strengths: The Article helps one have clearer understanding of the various factors that influence decision making process of multinational companies. The examples are helpful to understand the approaches that are adopted by multinational companies to enter foreign markets. Weaknesses: I think the main weakness is that the entry mode of choice is sometimes dictated by the relative openness of the target country’s economy and this is not part of the discussion in the article. Lesson Learned: One can see that entry to a foreign market is often dictated by factors that include the rival’s business strategy and the geographical advantage of operating in a specific market. Final judgment on Article’s value: This article is most helpful to understand various factors that influence decision making process of multinational companies. The explanation/study of the topic selected, with the help of a number of examples is helpful to have easier understanding of the same. Article 2 Title: Global Sourcing Strategy and Performance of Knowledge-Intensive Business Services: A Two-Stage Strategic Fit Model. URL: Author (s): Murray, Janet Y, Kotabe, Masaaki and Westjohn, Stanford Source: Journal of International Marketing; 2009, Vol. 17 Issue 4, p90-105, 16p. The purpose of this article: To unearth the secrets of Knowledge-Intensive Business Services. The case study: Selected article in Knowledge Intensive Business services Research question: What are the factors that can explain the range of solutions that are needed to service increasingly demanding customers in Knowledge-Intensive Business Services? In my opinion, the research question is helpful to brood over different problems and solutions in Knowledge-Intensive Business Services sector. Hypothesizes: P1: The role of KIBS or the Knowledge Intensive Business services model for sourcing in outsourcing business scenario is vital, and; P2: But the KIBS need to integrate their internal and external processes if they are to deliver solutions that take the complexity of the solutions that are demanded by their customers. Introduction: The article talks about the outsourcing strategies of knowledge based companies and the KIBS or the Knowledge Intensive Business services model for sourcing. The contention of the authors is that the KIBS need to integrate their internal and external processes if they are to deliver solutions that take the complexity of the solutions that are demanded by their customers. The article argues that single causal factors are not enough to explain the range of solutions that are needed to service increasingly demanding customers. Analysis: In the first part of the Article, the authors deal with the outsourcing strategies of knowledge based companies and the KIBS or the Knowledge Intensive Business services model for sourcing. The authors further goes on to explain the range of solutions that are needed to service increasingly demanding customers. Besides, the article provides a vivid picture of outsourcing strategies, especially, the KIBS. Results: 1. Outsourcing strategies of knowledge based companies face certain problems 2. The KIBS or the Knowledge Intensive Business services model for sourcing can explain the range of solutions in outsourcing business. Conclusion: Summing up, the article makes the point that each of the KIBS needs a different sourcing strategy based on the needs of their customers and the complexities of the sourcing strategy must take into account the attributes involved in the process. The article is relevant and timely in these times when the Knowledge based companies are on the ascendant. I have found the article useful and reading and analyzing it was a learning experience. Summary: The article makes the case for an integrated two-stage strategic fit model that takes into account the imperatives under which a firm’s KIBS systems integrator influences performance. Hence, the contention of the authors’ that sourcing strategy be aligned with a specific attribute can guarantee success. There are different facets to a sourcing strategy and it is left to each individual KIBS to decide the appropriate strategy that best fits their business model. Rather, the attributes have been strewn over the article in a haphazard manner. Strengths: The main strength of the article lies in its ability to explain complexity and the need for integrated solutions in an easy and accessible manner. Weaknesses: I think the main limitation of the article is that though the others make the case for integration, they have not defined the attributes of integration in a structured manner. Lesson Learned: One can see that the use of the KIBS terminology with reference to the sourcing strategies is important in outsourcing business scenario. Final judgment on Article’s value: This article is most helpful to understand the inner layers of outsourcing business and the importance of KIBS terminology. Besides, the unique needs of customers and complexities of the sourcing strategy forces the outsourcing business scenario to inculcate innovation to the system. Article 3 Title: Managing Technology; Cloud Computing: What Exactly Is It, Anyway? Everybodys talking about it. Heres what you need to know. URL: Author(s): Roger Cheng Source: Wall Street Journal (Online) 8 Feb. 2010.16 Feb. 2010. The purpose of this article: To unveil the latest trend in computing and its scope in business world. The case study: Selected Article in computing. Research question: How businesses can rely on downtime in hardware of other businesses and “share” the server power during this time? In my opinion, the research question is so important because it helps one to have deeper understanding of the latest trend in computing, ‘Cloud computing’. Hypothesizes: P1: The business world needs innovative techniques to face new threats related to cost savings, and; P2: The Cloud computing is helpful to overcome these problems. Introduction: The article ‘Managing Technology; Cloud Computing: What Exactly Is It, Anyway? Everybodys talking about it. Heres what you need to know’ is about the latest trend in computing and how it can add value to your business. The trend that is covered here is the concept of “Cloud Computing” that has caught the imagination of the businesses, particularly those that are small but have high turnover during a specific time period. Hence, the article is about how businesses can rely on downtime in hardware of other businesses and “share” the server power during this time. The article also talks about service providers in this area. Analysis: In the first part, the author deals with the latest trend in computing and its scope in business scenario. The authors further goes on to describe the benefits of cloud computing. The article points out the necessity to adopt this technology in business field and its benefits. John Rittinghouse (2009), in the work ‘Cloud Computing: Implementation, Management, and Security’ makes clear that the concept of cloud computing is closely related to the concept of Service oriented Architecture or SOA (P.72). Results: 1. The latest trend in computing, i.e. Cloud Computing can add value to business scenario. 2. The Cloud computing technique is beneficial to the customers. 3. It is important to inculcate innovation to the field of business and the inculcation of Cloud Computing is the best example for innovation. Conclusion: Summing up, one can see that the emerging concept of Cloud Computing and its utility to small businesses is important. Besides, the article does a good job of explaining the intricacies of cloud computing though the article could have highlighted the risks involved as well. In conclusion, it is my view that cloud computing is going to emerge in a big way in the near future. Summary: The model of cloud computing works on the principle of “renting out” of server power and making it available to businesses that cannot afford expensive new hardware but have a need for the server power during times when there is a spike in the volume of transactions that these businesses process. The article makes use of publicly available information to drive home the advantages of cloud computing and the author conducts interviews with some industry experts as well. The article makes a strong case for adoption of this technology and the details the benefits that accrue to businesses when they use this to lessen the load on their servers at times of peak carrying capacity. One of the most useful points of the article is the author’s contention regarding the cost savings and as outlined above, this technology is particularly beneficial to businesses that see seasonal spikes in activity as opposed to businesses that do steady business throughout the year. The point here is that the article does a good job explaining the benefits of this approach to prospective customers and outlining the pitfalls of the approach as well. Strengths: The article’s strengths lie in its ability to provide information about the concept of cloud computing and answer the questions about cost savings that are uppermost on businesses agenda, particularly in these recessionary times. The article does a good job of explaining the intricacies of cloud computing. Weaknesses: I think the main weakness is that the authors give less importance to explain the risks involved in Cloud Computing. Lesson Learned: One can see that the business world is undergoing rapid change. So it is important to inculcate innovative concepts like cloud computing which are particularly beneficial to businesses ventures. Final judgment on Article’s value: This article is most helpful to understand more about Cloud Computing and its scope in business world. One can see that cost savings is one of the important factors which leads to success in business, large scale or small scale. So, the scope of Cloud Computing is unlimited in business world. References Rittinghouse, J. (2009). Cloud Computing: Implementation, Management, and Security. United States of America: CRC Press. Read More