Strategy, Structure and Infrastructure in Global Business

The theme of the conference

Evaluating the various strategies that mark Spenser can use in entering the global market specifically in Chile

Before evaluating this strategy there is a need to understand why firms enter into global market . This reason are divided into two parts

strategic imperative

environmental changes

Strategic imperative

Firms have been compelled to enter the global market due to

leverage core competence

Globalization offers an opportunity to leverage core competence that the firm has developed in its own market

b to acquire resources and supplies

p c . to seek new market

d . to better compete with rivals

Environmental causes

changes in political environment

technological changes

market or social cultural forces economic forces

competition

Strategy marks Spencer can use in entering the Chile market

There are various strategies which can be used for entry into foreign market . The various options available includes : exporting franchising use of agent , licensing , foreign direct investment , joint ventures contract manufacturing and management contracts . Historically international business activity took the form of exporting and importing , however in today 's complex world of international commerce various forms of international business activities are taking place (Mazzarol Soutar2001

exporting

This refers to the sales of good abroad of product produced domestically . Mark and Spenser can either adopt passive or active exporting . Passive exporting occurs where we receive s for goods without having canvassed them . Where active exporting is adopted the firm makes strategic decision to establish proper system for organizing the export function and for procuring foreign sales...