GMS 520 Chapter Notes - Chapter 2: Mexican Peso, Retail, Intranet
10 May 2016
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In class worksheet: swot analysis: method of competitive analysis. Evaluated strengths, weaknesses, opportunities and threats of a venture or business idea. Evaluates a firms capabilities in relationship to others, identifies sources of comparative advantage and a firms distinctive competencies. After making the decision to enter foreign markets, managers will often draw up a competitive position matrix for each potential location. Line managers = most imp: strategic pest profiles are created to assess risks in countries in which they have (or will have) operations. Political risks - governmental action or politically motivated event that could negatively affect the firm"s long- run profitability or value: middle east, china nationalizing in sept. 2011. Forced sale of a mnc"s assets to local buyers. Nationalist impulses in unstable areas were common after 2008 downturn: expropriation: local government seizes a mnc"s assets without adequate compensation. Common in countries with frequent upheaval and violence.
