465 review - Chapter 1 Cultural geography-how people live...

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Chapter 1 Cultural geography-how people live their lives in different regions of the country or world---------Economic Geography-relates to distribution of industrialization or wealth---- Standardization-some products are global products, meaning they can be sold in foreign markets with virtually no adaptation.------Adaptation-need some changes in the product or promotion strategy >Entry Level -Export-shipping a product to a foreign country -License-allows another company to product a product under that company name; risky b/ c company has little control over what the licensee does with the name -Wholly Owned Subsidiaries-the manufacturers own company, in a foreign market -Franchising-franchisor gives imitators the right to use the retailers name and the retailer gives the franchisee the training need to run the business >Reasons for Internationalizing- 1) Desire to reach beyond a mature home market with Low growth potential 2) A need to diversify their investment 3) A situation in which expansion at home is blocked by legislation 4) the possession of a unique market format 5) intense competition at home 6 economic downturn at home 7) the desire to secure first- mover advantages >Need to Diversify Investment-Over-Stored- a country has to much retail space per consumer Chapter 2 >Types of Retail Internationalization -Acquisition-purchasing an existing well-managed company and allowing management to continue operations (Dormant type of management) Companies using investment strategy are looking for: 1) higher than domestic return on investment 2) a safe foreign international investment environment or 3) access to retail know-how -Pure franchisors- use franchising exclusively in their international expansion (dormant) ----Master franchisors-enter random counties rather than stages type of expansion (enter similar counties sequentially) and given to an individual who is then given the right to develop a particular state, country or region----Franchisor- right the operate a business under a comps name ---Franchisee the buying right----Direct Franchise- given an individual store owner---Constrained Fran- limited international management capabilities and little capacity for learning -----Integrating Fran-have limited international franchising capabilities but considerable capacity for learning from experience and intergrading experiences into operations---- Conventional Fran- some of the capabilities needed for international expansion but do not have a great ability to develop what is needed to succeed in a broader global settings---Worldwide Fran- generally larger retailers with a great amount of experience and greater capabilities in both administrative efficiency and how country risk management International Franchising- cautious growth, multiple forms of franchising, proactive evaluations, constrained franchisors, locally in international, limited international, reactive evaluating, focus on global markets, use multiple forms of franchising, proactive and reactive, conventional franchisors, focus of several foreign markets, use few forms
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465 review - Chapter 1 Cultural geography-how people live...

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