MGX3121 Lecture Notes - Lecture 8: Professional Wrestling Throws, Real Options Valuation, Greenfield Project
26 Jul 2018
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3 choices: entry objectives (what the company is looking for in that country, timing of entry, mode of entry. Another antecedent of entry strategy choice is the desired flexibility to respond to opportunities and threats. External antecedents of entry strategies: home-country context entry strategies reflect country-of-origin. For example, us organisations favour wholly owned subsidiaries and japanese companies prefer joint ventures: host-cultural difference institutional context , riskiness determined by level of development, reputation of companies, legal protections, cultural distance, political, economic and institutional stability. The higher the perceived risk, the more likely organisations will avoid selecting wholly owned subsidiaries. However, higher risks = higher returns. industry maturity the more mature, the slower the change is. In the earlier stages, change is more frequent and in greater magnitude, emphasising learning, initiative and speed in entry strategies: entry objectives: Market development objectives: considering size and growth opportunities, key countries: countries in which a presence is needed to sustain global competitiveness.
