13 May WHAT WILL BE THE IMPACT OF CERTAIN COUNTRY LAWS ON THIS TYPE OF BUSINESS ENTITY?
Develop an entry strategy for Gustavo of about 6–7 pages in length. The strategy you develop should incorporate the components described here and in Step 3.
As you begin to develop an entry strategy, first perform the following assessments:
• Analyze your site as both a market for your products and as a site for certain value-chain activities.
• Short-list and profile potential partner company candidates.
• Determine what company you will select for partnership or alliance. Evaluate the benefits this partnership would bring to your organization’s market position or profits.
• Detail the pros and cons of three market-entry modes. Which entry mode would you recommend and why? How does your chosen mode fit your organization’s goals and objectives? For help in answering these questions, review Modes of Entry.
Estimate the financial investment required for the selected entry strategy.
When you have begun your entry strategy and chosen a local alliance partner, continue to the next step, where you will determine your organization’s degree of fit with the selected country.
Step 3
The next step in developing your entry strategy is to determine your organization’s degree of fit with the selected country. Answer the following questions in your entry strategy:
• How would you make the strategic alliance work? Regulations and laws governing different types of business entities vary considerably from one country to another. What kind of legal business entity do you recommend for your organization in the country of operation? What will be the impact of certain country laws on this type of business entity?
• What are the operational roles and activities of the partners? Design an organizational chart for operations in the country. Explain why you have chosen this organizational structure.
• What will be the likely impact of the country’s culture and geography on your organization, the value-chain activities that are being relocated to the country, and the growth in sales of your organization’s products in the country? Review Globalizing the Management Model for depth of understanding.
You may submit your entry strategy (Steps 2–3) in the box below for feedback. In the next step, you will begin your marketing strategy.
Use the following filename protocol: lastname_firstname_Project4_EntryStrategy
Before you submit your assignment, review the competencies below, which your instructor will use to evaluate your work. A good practice would be to use each competency as a self-check to confirm you have incorporated all of them in your work.
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