Research problem
A firm has a competitive advantage when it can profitably create value in the eyes of the customer in ways that competitors have difficulty copying. A firm’s strategy is defined by its search for advantages, and transfer of those advantages into new geography is requisite for international expansion. Advantages are central to international expansion because a foreign firm is automatically at a disadvantage when it enters a new country (Jones 2005). Compared with local firms, the foreign company has no local know-how, no reputation, and no local relationships. International expansion is all about transferring advantages from the home or existing geography to a new geography where those advantages are not available to local firms. In order to be best prepared for international expansion, a firm should first understand its own sources of competitive advantage. To facilitate this understanding, the firm should analyze whether its product-or service-type advantages are transferable. It should also analyze its resource advantages, which create the product or service superiority: Are these firm-specific or location-specific? These are important issues for organizing the start-up phase following the FDIs. Internationalization is the process of changing levels of international development, usually to higher levels of development. Through this process a national company is converted into an international company, enters new markets, and creates value-adding activities in geographies outside the home country. A firm will be more internationally developed when a higher proportion of its assets are outside the home country and more of its employees, managers, and officers are non-nationals (Galbraith 2000). This paper is a proposal to create a research study on the alternative tools or strategies for expanding internationally.
Aims and objectives
Literature Review
International expansion happens in incremental stages, in an experiential learning and development process. The company must learn how to transfer its competitive advantages to other countries, modify those advantages, and build a local business around them. It is sometimes believed that the internationalization process can be accelerated by using acquisition as the entry strategy. Indeed, acquisitions accelerate the creation of assets and employees abroad. If home-country advantages are easily transferable to the acquired company, the process will accelerate; if they are not, then the learning process will occur, with the learning taking place after the assets are created. This learn-by-doing process does not accelerate easily, inspiring some authors to search for a faster or easier path for international expansion (Contractor 2001). If a firm has set a strategy of international expansion, it will probably need four of the international organizational capabilities that include cross-border product development, brand management, transfer and modification of competitive advantages, and cross-border coordination and integration. A new form of organization thought to be on the rise is the global consortium. Whereas a multinational enterprise owns and controls all the subsidiaries, the global consortium is an alliance of local subsidiaries; each subsidiary is a local enterprise with local ownership. This model avoids ownership of local subsidiaries by foreigners, and local ownership and identity are the strengths of the model. The question is whether this form is able to coordinate across borders; in order to be both global and local; it must achieve the global integration of an independently owned collection of companies. The global consortia will probably constitute a new level of development if they survive. They represent extensive distribution of power and can clearly be local (Ghauri & Prasad 2004).
Methodology
Sample collection
To determine the number of respondents that will be asked to participate and give information regarding the study convenience sampling will be used. Convenience sampling means to collect or interview individuals who actually experience the phenomenon. Convenience sampling will focus on individuals that experienced diabetes mellitus or has someone in the family that experienced such disease.
Methodology/Data Collection
Primary and secondary sources of data would be used for the study. Surveys will the primary method of data collection. Internet surveys would be the primary source of data. Internet surveys have been both hyped for their capabilities and criticized for the security issues it brings. Internet surveys would also require less time for the researchers and the respondents. Secondary source of data would involve the use of books and journals.
Data Analysis
In analyzing the collected data, the paper will be divided into the demographic profiles of the respondents and the ideas of respondents. The data that will be acquired will be put into graphs and tables.
References
Contractor, FJ (ed.) 2001, Valuation of intangible assets in
global operations, Quorum Books, Westport, CT.
Galbraith, JR 2000, Designing the global corporation, Jossey-
Bass, San Francisco.
Ghauri, PN & Prasad, S (eds.) 2004, Global firms and emerging
markets in an age of anxiety, Praeger, Westport, CT.
Jones, G 2005, Multinationals and global capitalism: From the
nineteenth to the twenty-first century, Oxford University Press,
Oxford.
Credit:ivythesis.typepad.com
0 comments:
Post a Comment