MAN 4602 Lecture Notes - Lecture 8: Goal Setting, Collectivism, Equity Theory
Document Summary
Best entry strategies for developed markets mergers and acquisitions. Best entry strategy for emerging markets joint ventures. Advantages of exporting very little risk, instant foreign market knowledge, no major resources. Disadvantages of exporting no control of product, product and company image may be damaged. Advantages of licensing profitable, gains access to markets. Disadvantages of licensing build future competitor, concern over trademark protection. Advantages of franchising use winning business formula, limited political risk. Disadvantages of franchising lack of control and upfront fee. Advantages of alliances/joint ventures efficient, gain knowledge/skills, popular in emerging markets. Disadvantages of alliances/jvs difficult to find the right partner. A nonequity venture is characterized by one group"s merely providing a service for another. An equity joint venture involves a financial investment by the mnc partners involved. Disadvantages of wholly owned subsidiaries very risky - host country may feel that the mnc is trying to drive out local enterprise.
