GMS 200 Chapter Notes - Chapter 3: Ikea, Local Food, Franchising

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Sui Sui

Document Summary

The world : a business view (map) adjusted by countries gdp. The world : a forward-looking business view adjusted by future business potential (population) Why business want to go global: profits, customers, suppliers, capital, labour. Kfc opened in hong kong in 1973 but all 11 restaurants closed in two years. Implemented a supplier rating system to find supplier that perform best: self developed logistics and distribution system, local food r&d team and a test kitchen, focusing on ownership rather than franchising. Refer figure 3. 2 common forms of international business from market entry to direct investments. Types of market entry strategies: global sourcing. The process of purchasing materials or services around the world for local use: exporting & importing, licensing agreement. One firm pays fee for rights to make or sell another company"s products (ex. A fee is paid for rights to use another firms name and operating methods (ex. kfc)