Paper Topic:

international market entry

Introduction

Global business can be defined as the interaction of people from different cultures , societies , and various backgrounds in undertaking various business activities with the aim of achieving their goals for example earning profits from their investments . As Hill (2005 ) explains because of invention of advanced technology the world has increasingly become a village and as a result global business is the modern form of business in this 21st century . Because of globalisation there have been great ignorance to national bs , governments have lower hand in controlling the flow of their

economies and companies are now not restricted to only one particular country as it was before

Owing to modernization and advancement in technology , many businesses are beginning to explore international markets for better profits and opportunities . Lee and Carter (2005 ) noted that , in the recent past trading has increasingly become global in one way or another . The beverage and food industry has become one of the industries that have grown tremendously over time . Thus it is possible to have the products from one company to sell quite easily in oversees market . This study thus has selected the beverage and food industry to critically analyse what factors encourage organisations in this industry to internationalise and to discuss some main methods for gaining market entry , evaluating the relative merits and drawbacks of each method selected

As Lee and Carter (2005 ) clearly explains , international Business practice is the greatest concept that must be understood clearly by all managers and business leaders of companies before going global . It is the process of applying management concepts and techniques in multinational environment so that firms can become and remain international in scope . This process is influenced by new technologies improved communication and transportation systems . It involves identifying the suitable approaches to going global and understanding all the advantages and disadvantages of each approach before going global in any business undertaking

Factors encouraging organisations to internationalise

In the later part of last century , a lot of barriers blocking international business were removed and a number of companies started to purse global strategies , in to achieve competitive advantage over their competitors . theless , some companies benefits highly from globalisation as opposed to others , while countries have a better advantages in comparison to other . In to formulate a successful international strategy , organisations have to first understand the way global companies work and the forceful of international competition

Globalisation

Lee and Carter (2005 ) notes that globalisation has lead to many companies to be able to spread out their markets and do business in different parts of the world . There is sufficient evidence that globalisation is making the traditional ways of transacting business mainly irrelevant . As a consequence there is a growing need for companies to develop into global businesses that have a global position As business environment is being transformed from local to global business managers are more and more facing challenges of re-evaluating their business strategies and realigning their organisation to match the complexity created by...

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