Discussion:
Every day we see more and more impact locally from international business decisions. In your community, how do you see one or more of the international business strategies of franchising, management contracts, and e-business changing how local businesses conduct business? Discuss the advantages and disadvantages of each of those entities in your local business community.
PLEASE EXPLAIN WHETHER YOU AGREE WITH MY CLASSMATE RESPONSE TO THE ABOVE QUESTION AND WHY? (A MININUM OF 150 WORDS)
CLASSMATE'S POST:
International business strategy refers to planned guidelines under which commercial transactions take place among separate legal entities in different countries. Also, it can refer to plans and actions of private companies to increase profit margin without involving government regulations. Some of the strategies used by most companies to maneuver local market include franchising and e-business. The methods have a significant impact on how local firms and business conduct themselves as they try to take advantage of the merit or shield from adverse effects of international decisions.
Merits concerning local enterprise that results now franchising approach are done via worldwide business includes Rapid growth concerning income markets, the amplify in income quantity yet the territorial growth regarding the business. Accordingly, to Cao (2017) a lower level regarding personal capital investment, Lift the honor over the company or its trademark, recognition beyond the customers, elevated confidence of the attribute and measure concerning merchandise an alone company (Shenkar et al. 2014). However, franchising can consequence to lose popularity concerning certain regarding the franchises into quality monitoring perform influence the reputation of the native firms.
E-business brings global presence: The major capabilities of attractive enterprise online, in imitation of hold appearance national and worldwide. Cost Effective Marketing or Promotions: the usage of internet in imitation of need merchandise is an at all reputed technique who ensures the international reach. Some website has online function to help the customer according to good a service (Crane and Matten 2016). In addition, orders perform be placed online by means of processing repayments safely above the web, yet merchandise can be shipped in imitation of the customer.
In summary, some of the disadvantages consist of sartorial limitation: the predominant disadvantage about e-Business is need about growth into some sectors such as food. Costly maintenance, more resource is required after setup on-line enterprise that requires computer upgrade, rank training and internet site upgrade (Cao et al. 2017). The security worries also lead in conformity with the privacy issue. There are many examples regarding contact lists and other personal detail that can be hacked due to weak E-business security systems.
References:
Cao, L., Navare, J., & Jin, Z. (2017) Business model innovation: How the international retailers rebuild their core business logic in a new host country. International Business Review
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press
Shankar, O., Luo, Y., & Chi, T. (2014) International business Routledge