Global Business Strategies

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Global Business Analysis Process

• International
• Regional
• Country
• Business risk analysis
• Potential conflicts and reconciliation with
  stakeholders
• Mission statement

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Global Business Analysis Process

• International
• Economics
• Politics
• Finance
• Terrorism
• Health
• Environmental (Global Warming)

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Global Business Analysis Process

• Regional
• Impact of political and economic history on
  region
• Regional alliances
• Country selection
• Market size and growth
• Barriers to entry
• Tariff
• Non-tariff restrictions
• Previous experiences in country
• Timing

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Global Business Analysis Process

• Country
• Cultural
• Political
• Economic
• Legal
• Physical Environment

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Global Business Analysis Process

• Business risk analysis
• Political, legal, and regulatory risks
• Exchange and repatriation risks
• Taxation and double taxation risks
• Market risks 4/5 Ps
• Product
• Price
• Place
• Promotion
• People
• Distribution and supply chain risks
• Social and cultural risks
• Labor availability and issues

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Global Business Analysis Process

• Potential conflicts and reconciliation with
  stakeholders
• Stockholders
• Employees
• Strategic partners
• Government
• Regulators
• NGOs
• Mission statement

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Mission Statements

• What is our business and who are we?
• Identification of stakeholders and their claims
• Labor
• Customers
• Suppliers
• Stockholders
• Management
• Community

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Deciding Which Markets to Enter

• Regional free trade zones
• The European Union
• NAFTA
• MERCOSUL
• APEC
• Evaluating potential markets
• Psychic proximity difficult to quantify, but
  very important

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Business Risk Analysis

• Country and business risk analysis
• Initial screening
• Basic need potential
• Foreign trade and investment
• Second screening
• Economic forces
• Financial forces
• Third screening
• Political and legal forces
• Fourth screening
• Social forces
• Economic forces
• Fifth screening
• Competitive forces

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Business Risk Analysis

• Country and business risk analysis
• Application of STEEP factors related to country
• Social-demographic
• Technological
• Economic
• Ecological (environmental)
• Political (legal)

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Business Risk Analysis

• Country and business risk analysis
• SWOTT analysis
• Strengths
• Weaknesses
• Opportunities
• Threats
• Trends

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Business Risk Analysis

• Country and business risk analysis
• Initial screening
• Basic need potential
• Foreign trade and investment

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Business Risk Analysis

• Country and business risk analysis
• 2nd Screening Economic and Financial forces
• Economic indicators
• Balance of payments
• Budget deficits
• Degree of inflation
• Exchange controls
• Currency convertibility
• Gross domestic product (GDP) and growth rate of
  the target country

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Business Risk Analysis

• Country and business risk analysis
• Third screening -Political and legal forces
• Entry barriers
• Profit remittance barriers
• Other possible barriers

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Business Risk Analysis

• Country and business risk analysis
• Fourth screening Sociocultural forces
• Social forces
• Economic forces
• Demographics
• Cultural
• Religious
• Educational levels of populace
• Health
• Labor and unemployment

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Business Risk Analysis

• Country and business risk analysis
• Fifth screening competitive forces
• Number, size, and financial strength
• Market share
• Marketing strategies
• Distribution and supply chains

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