⭐⭐⭐⭐⭐ 1. Modes of Entry into International Markets When a company wants to sell products in another country, it chooses an entry mode . (A) Exporting Selling products made in the home country to foreign countries. Example: An Indian tea company exports tea to the UK. Advantages Low investment Less risk Easy to start Disadvantages Transportation cost Import duties Less control over foreign market Keyword: “Make at home, sell abroad.” ⸻ (B) Licensing A company allows another company to use its technology, patent, or brand in return for royalty. Example: A pharmaceutical company gives permission to another country’s firm to manufacture its medicine. Pros Low cost Fast expansion Cons Loss of control Risk of copying technology Keyword: Permission + Royalty. ⸻ (C) Franchising A business model where the franchisee uses the brand name and business system. Example: McDonald’s gives franchise rights to local owners. Advantages Rapid growth L...
MMPC 017 RAPID REVISION NOTES COVERING ALL IMPORTANT QUESTION FORM MMPC 017 FOR LAST MINUTE REVISION
MMPC 017 RAPID REVISION NOTES COVERING ALL IMPORTANT QUESTION FORM MMPC 017 FOR LAST MINUTE REVISION Advance Strategic Management (Last-Minute Revision Notes) Think of a company like a person planning their future career. Corporate Planning = Making a future plan. Corporate Strategy = Deciding how to achieve goals. Corporate Policy = Rules to follow while working. Diversification = Starting a new business/product. Scenario Planning = Preparing for different future situations. 1. Corporate Planning Meaning Corporate Planning is deciding where the company wants to go in the future and how it will reach there. Simple Example A student wants to become an MBA graduate. Plan: Complete degree Prepare for exams Gain experience Similarly, companies make plans to achieve goals. Process of Corporate Planning Step 1: Analyze Current Situation Where are we now? Example: Sales are low. Step 2: Set Objectives Where do we want to ...