BU491 Lecture Notes - Lecture 3: Joint Venture, Greenfield Project, Franchising
Document Summary
The agents abroad will take care of your sales. Use your own employees, or hire new employees abroad, or engage foreign distributors. Difference vs. indirect exports: ie does not need me to deal with foreign operation. Permission to sell the exact products, collect loyalty fees. Have more control comparing to licensing, paying for the products and services as well as the entire business models. License the design, name, or other rights; give permission to produce goods or use brand names. Use the knowledge and expertise from both companies. When you feel more confident in the market, you can buy your partner. Buy an existing business, start up by yourself (greenfield investment) Has more control than the joint venture solely right, while joint venture you can do every decision. Increasing commitment & understanding of the market. Why talk about mentalities/attitudes: open mindedness affects the success rate, foreign activities, affect how i organize foreign activities. Your domestic market is the main market.
