Download or read book An evaluation of joint venture as a mode of entry The example of Volkswagen written by Lars Steilmann and published by GRIN Verlag. This book was released on 2017-10-31 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2014 in the subject Business economics - Business Management, Corporate Governance, grade: 2,0, University of Applied Sciences Essen, language: English, abstract: In the last years the globalisation has increased the competition amongst the companies and forced them to enter foreign markets. The development of a market entry strategy is very complex and has long-term concerns for a company. Therefore choosing an adequate market entry strategy is of great significance. This term paper is concerned with the evaluation of joint venture as a mode of entry for the German car manufacturer Volkswagen entering the Chinese market. Therefore I will give a theoretical introduc-tion into international market entry strategies and clarify advantages and disadvantages in chapter two. In the next chapter the emergence of possible market entry strategy for the Chinese market is checked. Therefore, the importance of the Chinese market will be shown at the beginning. Then the when and where will be explained. The fourth chapter shows Volkswagen ́s way for entering the Chinese market.

Download or read book Evaluation of Joint Ventures as a Mode of Entry into the Chinese Market written by and published by GRIN Verlag. This book was released on 2016-04-22 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2015 in the subject Business economics - Business Management, Corporate Governance, grade: 2,3, University of Applied Sciences Essen, language: English, abstract: This term paper will first of all give an overview of existing foreign market entry modes. Secondly there will be a description of joint ventures in general by analyzing typical motives and risks for using a specific mode of entry to internationalize. At the end of the second part, the situation on the Chinese market is discussed to introduce the reader to the concrete business case of Volkswagen and SAIC Motors, which will be discussed in the third part. Finally, this paper will provide an evaluation of the success of this joint venture on the Chinese market. Globalization, in recent times, has generated a lot of interest in the business world. More companies are now seeking to escape their comfort zones (home markets) and enter into international markets to expand their businesses. Internationalization has seen several factors as its driving force. More countries have opened their markets to foreign entrants through liberalization and deregulation of previous trade-inhibiting laws. Consumers, in most parts of the world, have also exhibited a homogenous behavior that encourages internationalization. Products that sell well in one part of the world have shown the likelihood to perform the same in other areas, which has motivated more companies to explore international markets. Other external driving factors are an improvement in technology and logistics. It is now possible for companies to communicate and track the activities of each of its subsidiaries or branches in the world. Technology has offered a business with an appropriate infrastructure that ensures smooth running of their affairs worldwide. Some products also exhibit shorter life cycles; thus, limiting the amount a company can produce. Internationalization offers such company's ability to produce more by expanding their reach beyond local/home markets. Expansion into international markets by a company is motivated by several factors. One of the major factors is to spur growth and increase profitability. Many companies are seeking to enter into foreign markets to expand their influence and increase their sales and revenue. Internationalization for such companies means an access to a wider customer base, which implies more product sales and more revenues. Expanding the size and scope helps achieve the economies of scale.

Download or read book Analysis and Evaluation of Chosen Resources of Volkswagen in Germany and in Respect of the Indian Minicar Market and the Role of Suzuki as a Joint Venture Prospect written by Jan Kubik and published by GRIN Verlag. This book was released on 2011-03 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: Scholarly Research Paper from the year 2010 in the subject Business economics - Operations Research, grade: 1,0, Munich University of Applied Sciences, language: English, abstract: Volkswagen Group is based in Wolfsburg, Germany, ranks among the world's leading automobile manufacturer and is the largest carmaker in Europe. Therefore the Group posses 11.3 percent share of the world passenger car market and holds 20.9 percent of the European automobile market. The Volkswagen Group with its nine brands (Audi, SEAT, Skoda, Volkswagen, Volkswagen Commercial Vehicles, Bentley, Bugatti, Lamborghini and Scania) offers a broad product range from low-consumption small cars to luxury class vehicles. For simplicity reasons the Volkswagen Aktiengesellschaft (as parent company of the Volkswagen group) is referred to as Volkswagen or VW where as the whole Volkswagen Group is either referred to as Volkswagen (VW) Group or Group within this paper. Despite the Group's international alignment it is currently only slightly represented in India. As it has entered the Indian passenger car market ten years ago, significantly later than its Japanese and American competitors, its current market share amounts only to two percent. Because potential customers are increasing, the automotive industry is getting more dynamical and international and government's politics are focusing on economic growth, India could become the future key market to the automotive industry. Due to the eminently strong growth of the Indian main street and the proceeding social change, as the younger generation wants to go for a distinguished career, especially the Indian minicar market's (IMM) potential is higher than ever before. As Volkswagen Group is alive to the importance of this market but lacking in appropriate knowledge how to produce cheapest cars in large-scale production, it considers strengthening the cooperation with Suzuki Motor Corporation and Volkswagen by building a Joint Venture (JV). Thus, the alrea

Download or read book Joint Ventures The benefits and perils why some are successful and others fail written by Thilo Trost and published by GRIN Verlag. This book was released on 2011-09-26 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2011 in the subject Business economics - Business Management, Corporate Governance, grade: 1.3, Zeppelin University Friedrichshafen, language: English, abstract: The concept of the joint venture was developed in the United States. First, we need to make a distinction between purely contractual, non-equity joint ventures, on the one hand, and equity or corporate joint ventures, on the other. The regular form of joint venture is a company that is founded out of equity provided from two other entities. This venture is similar to a business partnership but limited to a specific project or purpose. The equity joint venture manifests the founding firms‟ willingness to cooperate by providing each a certain percentage of the common capital stock as illustrated in the graphic below (in this case with each partner providing half of the capital stock).There are countless ways to build up an equity joint venture with each partner providing only a certain percentage of the common capital stock (e.g. 70/30%, 90/10%, 51/49% and so forth). The firms gain control over the founded joint venture and share revenues, expenses and assets in equal proportion to their respective contributions to the venture‟s registered capital. Differing arrangements are possible. Over the last decade, we were able to witness rapidly growing companies, some of them seeking for partnerships to take advantage of positive synergy effects to gain in size or to enter new foreign markets. The topic of this essay should be why firms seek to venture, what the benefits of venturing are and why some firms fail after the venture, what are the downsides of this concept?

Download or read book The Impact of International Joint Venture Entry Mode on the Development of the Automotive Industry in China written by Andrijana Bogdanovska Djurovic and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The scope of the article is the automotive industry in China, while its aim is to explore whether joint ventures as the only allowed entry mode in the industry was the best choice of a model when it came to maximizing industry's performance. In the concerned case, as the research question is exploring the impact of the entry mode on the industry as a whole, the performance is measured through the survival rate of companies, duration of their operations until termination and company's stability i.e. whether the original partners left or new joined the entity. The findings indicate that the identified external and internal factors which shape and have shaped the context of the Chinese automotive industry had limited impact on its performance. The international joint ventures have shown stability due to the strong commitment of foreign partners to succeed at the Chinese market, not due to the reflection of the climate in which the JVCs were forced to operate. When it comes to the impact of the external factors on the performance of the industry, findings emphasize that the Chinese policy which restricted the entry of foreign investors with joint venture mode has positively affected the growth in the sector. This is especially significant if one has in mind that the alignment of the strategic goals of the JV partners, and the use of a wise production strategy and marketing channels, had an impact on the production growth, accompanied with the introduction of free technological zones, favorable FDI policy and reduction of political risks throughout the research period.

Download or read book Market Entry and Expansion Through International Joint Ventures written by and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: International joint ventures (IJVs) are important modes for entering foreign markets. Yet, research shows that IJVs are volatile, difficult to manage, and often fail, especially when the joint venture is located in a developing country. Many studies look at a range of different factors behind IJV success or failure, and a few longitudinal studies have shed light on some of the complex management processes within IJVs. Many researchers have concluded that the high rate of IJV failure is due to internal tensions that are inherent to IJVs, but viable solutions for practitioners are rare. In the absence of a model that adequately explains the longitudinal aspects and determinants of IJV performance, we see firms electing to stay in underperforming IJVs, even though more profitable modes of entry into foreign markets exist. In this thesis I analyze market entry and expansion through IJVs using a multi-causal analysis of IJV performance. I begin with a critical evaluation of the IJV literature. I then develop a process-oriented model that may explain why firms persist with failing IJVs. Finally, I draw several important conclusions that have valuable implications for practitioners and for future research.

Download or read book Strategic International Management written by Dirk Morschett and published by Springer Science & Business Media. This book was released on 2011-01-19 with total page 467 pages. Available in PDF, EPUB and Kindle. Book excerpt: “Strategic International Management” takes a global perspective and covers the major aspects of international business strategies, the coordination of international companies and the particularities of international value chain activities and management functions. The book provides a thorough understanding of how Production & Sourcing, Research & Development, Marketing, Human Resource Management and Controlling have to be designed in an international company and what models are available to understand those activities in an international context. The book offers 20 lessons that provide a comprehensive overview of all key issues. Each lesson is accompanied by a case study from an international company to facilitate the understanding of all important factors involved in strategic international management.

Download or read book The Use of Joint Ventures as a Strategic Tool for Multinational Companies written by Volker Küpper and published by GRIN Verlag. This book was released on 2009-06 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2008 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, Edinburgh Napier University (Edinburgh Napier University), language: English, abstract: The dissertation covers the field of competitive collaboration by focusing on Joint Ventures. It identifies the strategic usefulness for multinational companies by evaluating critical success factors and pre-conditions. Due to increasing pressure from the business environment the trend of competitive collaboration has accelerated. In this context, Joint Ventures were identified as a potential field of investigation. The apparent contradiction of cooperating with a competitor evoked the discussion of potential risks. It was questionable whether companies do so loose some of its sovereignty. This question created the incentive to identify essential requirements when forming a Joint Venture. By analysing the available literature, Joint Ventures were identified as a strategic tool for multinational companies to achieve competitive advantage. It was outlined that the risks that come along with competitive collaboration can be minimized if the preconditions of Joint Venture creation are considered adequately. Moreover, the analysis clarified the need for explicit responsibilities for each sub-process when forming a Joint Venture. The analysis of a specific case highlighted the essential learning potential from past cooperations in order to succeed over the long term. Finally, the analysis showed that well structured and re-arranged measures leverage the benefits of competitive collaboration. It was identified, that a loss of sovereignty only occurs if the alliance is managed poorly. It was recommended that a three stage model, including the sub-processes "alliance planning", "partner selection" and "alliance structure and management", should be implemented to generalise the process of alliance management. Moreover, setting a focus on strategic and cultural comp

Download or read book Global Marketing Global Edition written by Warren J. Keegan and published by Pearson Higher Ed. This book was released on 2015-04-30 with total page 611 pages. Available in PDF, EPUB and Kindle. Book excerpt: For undergraduate and graduate courses in global marketing The excitement, challenges, and controversies of global marketing. Global Marketing reflects current issues and events while offering conceptual and analytical tools that will help students apply the 4Ps to global marketing. MyMarketingLab for Global Marketing is a total learning package. MyMarketingLab is an online homework, tutorial, and assessment program that truly engages students in learning. It helps students better prepare for class, quizzes, and exams–resulting in better performance in the course–and provides educators a dynamic set of tools for gauging individual and class progress.

Download or read book Fundamentals of Global Strategy written by Cornelis A. de Kluyver and published by Business Expert Press. This book was released on 2010-08-20 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: The globalization of the competitive landscape has forced companies to fundamentally rethink their strategies. Whereas once only a few industries such as oil could be labeled truly global, today many-from pharmaceuticals to aircraft to computers-have become global in scale and scope. As a consequence, creating a global competitive advantage has become a key strategic issue for many companies. Crafting a global strategy requires making decisions about which strategy elements can and should be globalized and to what extent.

Download or read book Patterns of Internationalization for Developing Country Enterprises written by United Nations Industrial Development Organization and published by UN. This book was released on 2008 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: The present training package is addressed to entrepreneurs and policymakers of developing countries. Part One of the training package presents the international development scenario, the competitive environment and the drivers for global expansion of enterprises. It highlights the patterns of multinational expansion, the various types of inter-firm collaboration agreement, the global manufacturing strategies of multinational enterprises and the related challenges and opportunities for developing countries. Attention is also given to the role of the governments of developing countries in creating suitable locational conditions for multinational enterprises and in providing critical support to domestic enterprises in their path for technological capability building and internationalization. Part Two will follow shortly.

Download or read book Foreign Market Entry and Culture written by Thomas Wagner and published by GRIN Verlag. This book was released on 2009 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2008 in the subject Business economics - Miscellaneous, grade: 1,3, University of Aarhus, course: Culture and International Business, language: English, abstract: Going abroad is nowadays much more easy due to the continuous globalization process with lower transportation costs and immediate information exchange. Especially during the last decades firms have increasingly committed themselves to global markets in order to exploit cost advantages through lower labour costs or in order to follow the demand for their products (Barkema et al. 1996:164). A firm seeking to perform in a foreign market by establishing a business function (e.g. production management, distribution) has to choose the best mode of entry which is very relevant for the success of foreign operations and therefor an important issue. But foreign market entry does not come along without any costs especialy in cultural distant countries. The impact of differences in national culture, measured as cultural distance between the home country of Multinational Enterprises (MNEs) and the country of operation is a very important issue and therefor worth to examine. The main questions the paper tries to answer is: In which ways does culture matter in the internationalization process of a firm? How does culture affect the choice of market entry and which problems arise due to cultural differneces? Which impediments regarding culture have firms to deal with when going to China?

Download or read book Developing International Strategies written by Rudolf Grünig and published by Springer. This book was released on 2016-09-09 with total page 223 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the development of strategies for the successful internationalization of large and medium-sized companies. Becoming international offers important opportunities for companies of all sizes, but in an increasingly complex environment, the strategic planning involved is also a challenge. The book addresses this, putting forward suggestions that allow large and medium-sized companies to profit from internationalization. After a comprehensive introduction to internationalization and strategic planning, the authors make clear recommendations, suggesting detailed processes for developing international strategies. The book distinguishes between going global for new markets and internationalizing production and sourcing. For both, the book proposes procedures for performing meaningful strategic analyses and for developing successful international strategies. Lastly, it highlights the challenges faced by international companies and discusses useful decision processes. The book offers valuable insights for company executives, participants in Executive MBA programs, and master’s students.

Download or read book Foreign Direct Investment FDI Necessary Considerations of a Transnational Company written by Nicolas Breitfeld and published by GRIN Verlag. This book was released on 2010-02-25 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2009 in the subject Business economics - Investment and Finance, grade: 1,7, Berlin School of Economics and Law (Institute of Management), course: International Finance, language: English, abstract: Geneva, 24 June 2009 -- Global foreign direct investment (FDI) inflows and cross-border mergers and acquisitions (M&As) - the main mode of FDI - drastically declined in the last quarter of 2008, and the fall has continued into 2009, UNCTAD data reveal. FDI inflows dropped by 54% and M&As by 77% during the first quarter of 2009 as compared to the same period last year. Prospects for FDI will remain gloomy for the rest of the year, UNCTAD economists say (UNCTAD, 2009). Foreign Direct Investment (FDI) is defined by the IMF as an international investment of one company with the intention of lasting relationship. This investment has to exceed 10% of equity of the target company. Also an ambition of the management for influence should be visible. This makes the difference to a portfolio investment (IMF, 1993). The following list summarizes major requirements: · Transfer of capital · Control investment · A source of funds for foreign operations · A balance of payments flow Before the financial crisis hit the world economy, FDI was one of the major drivers of globalization and continuously increasing with high growth rates. FDI flows over a long period of time even increased faster than world GDP growth. But as reported from the UNCTAD World Investment Report 2009 85% of Transnational Corporations (TNC)3 worldwide are negatively affected by the financial crisis with respective negative impacts on their investment decisions. This shortfall has also consequences to the landscape of FDI. The USA are still number one in FDI flows but a lot of emerging countries have risen in the list of top FDI inflows. This is another hint for the changes in the world. The emerging markets will more and more take over a leading position in world economics and also a stabilizing function. They will also head the recovery in FDI flow which is expected to take place in 2010. This paper will primarily deal with the TNC and their decision for FDI. Starting with the motivations, the following process and evaluation criteria, also associated risks have to be taken into account. For a complete picture including the environment a short look at the host country and the effects of FDI will be done at the end (the decision of the TNC is always connected with espective influences from outside). Finally, all major considerations of a TNC in combination with FDI should be described.

Download or read book World Development Report 2020 written by World Bank and published by World Bank Publications. This book was released on 2019-11-19 with total page 511 pages. Available in PDF, EPUB and Kindle. Book excerpt: Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.

Download or read book Competitive Advantage written by Michael E. Porter and published by Simon and Schuster. This book was released on 2008-06-30 with total page 592 pages. Available in PDF, EPUB and Kindle. Book excerpt: Now beyond its eleventh printing and translated into twelve languages, Michael Porter’s The Competitive Advantage of Nations has changed completely our conception of how prosperity is created and sustained in the modern global economy. Porter’s groundbreaking study of international competitiveness has shaped national policy in countries around the world. It has also transformed thinking and action in states, cities, companies, and even entire regions such as Central America. Based on research in ten leading trading nations, The Competitive Advantage of Nations offers the first theory of competitiveness based on the causes of the productivity with which companies compete. Porter shows how traditional comparative advantages such as natural resources and pools of labor have been superseded as sources of prosperity, and how broad macroeconomic accounts of competitiveness are insufficient. The book introduces Porter’s “diamond,” a whole new way to understand the competitive position of a nation (or other locations) in global competition that is now an integral part of international business thinking. Porter's concept of “clusters,” or groups of interconnected firms, suppliers, related industries, and institutions that arise in particular locations, has become a new way for companies and governments to think about economies, assess the competitive advantage of locations, and set public policy. Even before publication of the book, Porter’s theory had guided national reassessments in New Zealand and elsewhere. His ideas and personal involvement have shaped strategy in countries as diverse as the Netherlands, Portugal, Taiwan, Costa Rica, and India, and regions such as Massachusetts, California, and the Basque country. Hundreds of cluster initiatives have flourished throughout the world. In an era of intensifying global competition, this pathbreaking book on the new wealth of nations has become the standard by which all future work must be measured.

Download or read book The Internationalisation of Football Clubs Analysis of RasenBallsport Leipzig s Marketing Possibilities in Southeast Asia and Recommendations written by David Mariot and published by GRIN Verlag. This book was released on 2019-10-09 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2017 in the subject Health - Sport - Sport Economics, Sport Management, grade: 2,0, Pforzheim University, language: English, abstract: The competition between professional football clubs is increasing both on a national as well as on an international level. Clubs do not only experience pressure for sporting success but also for economic profitability. As sporting success can hardly be planned, the club’s financial well-being needs to be ensured independently from results on the pitch. The rationale seems obvious, a club’s higher popularity among fans leads to higher revenues. Football is the most popular sport in the world and almost half of the world’s population is interested in the sport. With this in mind, it seems naive or even negligent that the majority of professional German football clubs keep on serving the national market only. Sounding like a repeated appeal, Karl-Heinz Rummenigge, CEO of the most internationalised German football club FC Bayern Munich, describes internationalisation as “without any alternative“. He continues by explaining “without growth on the international markets, you risk the sporting competitiveness“. With a population of over 600 Million people and a high enthusiasm for football, Southeast Asia invites football clubs to start their internationalisation in the region. Hence only a structured approach and a thoughtful strategy are required to finally and successfully enter these promising markets.