AFM333 Lecture Notes - Lecture 13: International Business, Country Risk, Swot Analysis

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Task: analyze organizationa l readiness to internationali zation. Provide objective assessment of company"s preparedness to engage in international business activity. Procedure: examine company strengths and weaknesses relative to international business (swot) by evaluating firm"s availability in: Commitment by senior management to international expansion. What do we hope to gain from international business? (eg. increasing sales or profits, following key customers who locate abroad, etc) What demands will internationalization place on firm resources (eg. management, To select only a few countries that require in depth investigation as potential markets. Characteristics of competitor"s offerings: screening methods for potential country markets: Gradual elimination: start with large number of target countries, gradually narrow choices by examining more specific information. Identify 5-6 country markets with best potential for firm by using following criteria for assessment: Market size and growth rate (cid:498)market intensity(cid:499) customers" buying (cid:498)consumption capacity(cid:499) size and growth.

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