Human resources management barriers empowerment

Assessing readiness to Internationalise Through:

1.Analyse organizational readiness to Internationalise: examine business strengths & weaknesses relative to International business by evaluating the key factors such as: appropriate financial And tangible resources, relevant skills and competencies, commitment by senior management to Inter. Expansion.

2. Assess the suitability of the firms products And services for foreign markets: systematic assessment of the suitability to Evaluate the degree of fit between the product or service and foreign customer Needs.

Bargaining power perspective high-control entry Mode is likely to be selected when: the host government strongly desires to Attract FDI, the MNE has little need for a local resources, the MNE’s resource Commitment is low risks are high, the MNE perceives its need to enter the Foreign market as low. Capability building: the compability between the Requirements of the operational context, the cost of developing. In general, High control modes are preferable in domains when the firm has strong Knowledge.

Exporting: ADVANTAGES: lower cost of entry, minimize risk and maximize flexibility, leverage the capabilities of foreign Distributors, stabilize fluctuations in sales associated with economic cycles. DISADVANTAGES: management have fewer opportunities to learn about costumers, High transport & tariffs and non tariff-barriers, shifting exchange rates Of foreign currencies= costly, learning about foreign currencies.

Licesing: ADVANTAGES: not require capital Investment or presence of the licensor, ability to generate royalty income from Existing intellectual property, appropriate for countries that pose substantial Country risk, useful when trade barriers reduce the viability of exporting, Useful for testing a foreign market. DISADVANTAGES: difficult to maintain Control, risk of losing control, the licensee may infringe and become a Competitor, does not guarantee a basis for future expansion in market, not Ideal for product services or knowledge, may not produce satisfactory results.

Franchisor: ADVANTAGES: entry into foreign Countries quickly and cost effectively, no need to invest capital, established Brand name encourage sales potential abroad, develop local markets. DISADVANTAGES: maintaining control may be difficult, conflicts with Franchisors, preserving franchisor’s image in the foreign market may be Challenging, franchisees may take advantage and become competitors in the Future.

JOINT VENTURE: form of collaboration to create A jointly owned enterprise. Can help to share and lower costs of high risk, to Gain economies of scale and scope in value-adding activities, to secure access To a partners. Succes factors: take time to access the partner, learn from Partners, establish specific rules, give managers sufficient autonomy.

WHOLLY OWNED SUBSIDIARY: a foreign direct Investment in which the investor fully own the foreign markets. ADV: protection Of technology, ability to engage in global strategic coordination, ability to realize Location. DISAD: high cost and high risk.