Copyright © 2011 Pearson Education, Inc.. publishing as Prentice Hall 14-2 Chapter 14 Direct Investment and Collaborative Strategies... • To understand the major motives that guide mana
Trang 1International Business Environments and Operations, 13/
e
Part 5 Global Strategy, Structure, and
Implementation
Trang 2Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall
14-2
Chapter 14
Direct Investment
and Collaborative Strategies
Trang 3• To understand the major motives that guide managers when
choosing a collaborative arrangement for international business
• To define the major types of collaborative arrangements
• To describe what companies should consider when entering into international arrangements with other companies
• To grasp why collaborative arrangements succeed or fail
Trang 4Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall
14-4
Exporting May Not Be Feasible
• When production abroad is cheaper than at home
• When transportation costs to move goods or services internationally are too expensive
• When companies lack domestic capacity
• When products and services need to be altered
substantially to gain sufficient consumer demand
Trang 5Factors Affecting Operating Modes
in International Business
Trang 6Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall
14-6
Foreign Expansion: Alternative
Operating Modes
Trang 7Non-collaborative Foreign Equity
Arrangements
• Taking Control: Foreign Direct Investment
– Internalization
– Appropriability
– Freedom to Pursue a Global Strategy
• How to make FDI
– Buying
– Greenfield Investments
Trang 8Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall
Trang 9International Motives for Collaborative Arrangements
• To Gain Location Specific Assets
• To Overcome Governmental Constraints
• To Diversify Geographically
• To Minimize Exposure to Risky Environments
Trang 10Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall
Trang 12Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall
14-12
Franchising
• A specialized form of licensing
– includes providing an intangible asset and
continually infusing necessary assets
• Franchise Organization
• Operational Modifications
Trang 13Management Contracts
Foreign management contracts are used primarily when the foreign company can manage better than the owners.
Trang 14Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall
14-14
Turnkey Operations
Turnkey operations are:
• Most commonly performed by
industrial-equipment, construction, and consulting
companies
• Often performed for a governmental agency
Trang 16Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall
14-16
Joint Ventures
• More than one organization owns a company
– Consortium: more than two organizations participate
– May have various combinations of
ownership
Trang 17Equity Alliances
A collaborative arrangement in which at
least one of the collaborating companies takes an ownership position
Trang 18Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall
Trang 19Managing International
Collaborations
• Dynamics of Collaborative Arrangements
• Finding Compatible Partners
• Negotiating the Arrangement
• Drawing Up the Contract
• Improving Performance
Trang 20Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall
14-20
Future: Why Innovation Breeds
Collaboration
Collaborative arrangements will bring both
opportunities and problems as companies movesimultaneously to new countries and to
contractual arrangements with new companies
Trang 21All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher Printed in the
United States of America.