BUSN2019 Lecture 3: International Business Context - Lecture 3
27 Nov 2018
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Learning objectives: lo1 identify the three types of participants in international business, lo2 explain the foreign-market-entry strategies of focal firms, lo3 analyse the distribution channel intermediaries in international business, lo4 describe the facilitators in international business. The focal firms, intermediaries and facilitators are all involved in one or more critical value-adding activity, such as procurement, manufacturing, marketing, transportation, distribution and support, configured across several countries. The value chain can be thought of as the complete business system of the focal firm. It comprises all of the activities that the focal firm performs. In international business, the focal firm may retain core activities such as production and marketing within its own organisation and delegate distribution and customer service responsibilities to independent contractors, such as foreign-market-based distributors. Therefore, the resulting business system is subject to internationalisation; that is, individual value- adding activities can be configured in multiple countries.
