Transcript Введение в международный менеджмент

INTERNATIONAL BUSINESS STRATEGIES
Andrey G. Medvedev,
Professor
CEMS MIM Programme
September 21, 2009
6. FOREIGN OPERATIONS METHODS:
NON-INVESTMENT MODES
1. FOREIGN ENTRY: A MODEL FOR ANALYSIS
2. COMMERCIAL OPERATIONS (FOREIGN TRADE)
3. EXPORTING SERVICES
4. LICENSING
5. FRANCHISING
6. CONTRACT MANUFACTURING
© Andrey Medvedev
FOREIGN OPERATIONS METHODS
Responsibilities of International Manager:
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Evaluate opportunities and risks
of entering foreign economy
Define a degree of local responsiveness
Select a foreign operations method
Search for strategic partners and target companies
abroad
© Andrey Medvedev
FOREIGN ENTRY: A MODEL FOR ANALYSIS
Competences,
values, overall
strategy & OD
Industry (SBA) /
product nature
(multi-domestic
vs. global)
Current performance
Reasons to internationalise
PEST-factors of
opportunities
and threats
Goals of internationalisation
entry mode; entry-mix; entry stages
Implementation
Development (real option)
© Andrey Medvedev
FOREIGN MARKET AND/OR INDUSTRY ENTRY:
BASIC DECISIONS
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WHICH MARKET / INDUSTRY?
COUNTRY SELECTION
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WHAT OPPORTUNITIES? ENTRY GOALS
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WHEN TO ENTER?
TIMING OF ENTRY
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IN WHICH FORM? ENTRY MODE
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ON WHAT SCALE?
DEGREE OF INTERNATIONALISATION
© Andrey Medvedev
FOREIGN OPERATION METHODS (FOM): HOW?
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FOREIGN OPERATION METHOD (MODE) =
PARTICIPATIVE STRATEGY
– ANY TYPE OF BUSINESS ACTIVITY
THAT CROSSES NATIONAL BORDERS
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INTERNATIONAL COMMERCIAL OPERATIONS
INTERNATIONAL CONTRACTUAL OPERATIONS
FOREIGN DIRECT INVESTMENT MODES
© Andrey Medvedev
HOW? NON-INVESTMENT MARKET ENTRY –
COMMERCIAL MODES
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COMMERCIAL OPERATIONS IN PHYSICAL GOODS
– INDIRECT AND DIRECT EXPORTING
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EXPORTING R & D, KNOWLEDGE, KNOW-HOW
– SELLING R & D PROJECTS, ETC.
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PROVISION OF SERVICES
– PROVIDING CONSULTING AND ENGINEERING SERVICES
© Andrey Medvedev
NON-INVESTMENT MARKET ENTRY –
RECENT TRENDS IN RUSSIA
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PROMISING OPPORTUNITIES IN SOME SECTORS:
– HIGH DEMAND
– GROWING PURCHASING POWER
– INDUSTRIAL DEVELOPMENT
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CONTROL: MOVING TO DIRECT EXPORTATION
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MARKET EXPANSION: MOVING TO DISTRIBUTION
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“A HOME MARKET ABROAD”
© Andrey Medvedev
EXPORT OPERATIONS
© Andrey Medvedev
EXPORT STRATEGIES
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INDIRECT EXPORTING
– A FIRM DELEGATES EXPORTING FUNCTIONS TO OUTSIDERS
(AGENTS OR DISTRIBUTORS)
– THEY USUALLY HAVE A KNOWLEDGE OF LOCAL METHODS
OF CONDUCTING BUSINESS
AND THE ABILITY TO ACHIEVE A MARKET SHARE MORE RAPIDLY
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DIRECT EXPORTING
– A COMPANY CARRIES OUT EXPORT TASKS DIRECTLY BY ITSELF
(MARKET RESEARCH, INTERNATIONAL INSURANCE, PRICING,
FINANCING, ACCOUNTING, SHIPPING AND PREPARING EXPORT
DOCUMENTATION)
© Andrey Medvedev
FOREIGN TRADE AGENCY EFFICIENCY
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TRADING WITHIN A NARROW WELL-EXAMINED SEGMENT
OF THE MARKET
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REDUCED DISTRIBUTION COST
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SHORTER DELIVERY TERMS
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PRE-SALES SERVICE AND POST-SALES MAINTENANCE
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PROVIDING AN EXPORTER WITH A DATA ON QUALITY LEVELS
AND COMPETITIVENESS OF GOODS IN A MARKET SEGMENT
© Andrey Medvedev
FROM INDIRECT
TO DIRECT EXPORTATION: VALIO
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Valio Group comprises the parent company, Valio Ltd,
and its subsidiaries in Finland, Sweden, Belgium, Estonia,
Latvia, Lithuania, Russia, and the US.
Production facilities are located in Estonia and Belgium.
In 2005, Valio Group net turnover was EUR 1.6 billion.
International operations account for one-third of net turnover.
Russia attracts about 10 percent of the Group turnover.
ZAO Valio St. Petersburg, Valio Ltd’s subsidiary
was founded in 1994 to support exports.
Since 2002, ZAO Valio SPb is the only importer
of Valio products in Russia.
Local marketing is designed especially for Russia.
© Andrey Medvedev
PURE MARKET ENTRY: HONDA
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Japan’s Honda Motor Co. said in April 2004 it had set up
a wholly owned sales and after-service unit in Moscow
to boost demand for its cars in the Russian market.
The Russian auto market has grown
from around 0.9 million units in 2000
to 1.2 million in 2003, and is set
to expand even more.
Honda imports the Civic compact,
Accord sedan and CR-V sport utility
vehicle, among others,
from its British and Japanese
factories for the Russian market.
© Andrey Medvedev
TRADE IN SERVICES
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ENGINEERING
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BUSINESS CONSULTING
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TRANSPORTATION & COMMUNICATION
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CONSTRUCTION
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TOURISM
© Andrey Medvedev
INTERNATIONAL ENGINEERING
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ENGINEERING
– PROVIDES A FOREIGN CUSTOMER
WITH A PACKAGE OF SERVICES TO SUPPORT
AND ENSURE A PRODUCTION PROCESS,
MAINTAIN THE CONSTRUCTION
AND OPERATION OF INDUSTRIAL PROJECTS
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ENGINEERING INCLUDES
–
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PRE-PROJECT SERVICES
PROJECT SERVICES
POST-PROJECT SERVICES
RECOMMENDATIONS AND INSTRUCTIONS
© Andrey Medvedev
EXPORTS OF INDUSTRIAL PROJECTS
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INDUSTRIAL PROJECT: A CONCEPT
–
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DESIGN
FULL EQUIPMENT (COMPLETE DELIVERIES)
TURNKEY OPERATIONS
TRAINING
POST-PROJECT SERVICES
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PROJECT MANAGEMENT
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FINANCING INTERNATIONAL PROJECTS
– PROJECT IMPLEMENTATION BY A JOINT VENTURE
– PROJECT FINANCING
– COMPENSATION (BUY-BACK) AGREEMENT
• TRADE IN EQUIPMENT (A SELLER OF EQUIPMENT RECEIVES PAYMENT
AS GOODS PRODUCED AT THIS EQUIPMENT)
– PRODUCTION SHARING AGREEMENT
© Andrey Medvedev
HOW? NON-FDI MARKET ENTRY –
CONTRACTUAL MODES
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LICENSING
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FRANCHISING
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MANAGEMENT CONTRACTS
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CONTRACT MANUFACTURING
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OEM-AGREEMENT
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LOW INVESTMENT RISK
LEARNING LOCAL CONDITIONS
SUIT WELL IN MULTI-DOMESTIC SECTORS
IF BUSINESS OPPORTUNITIES ARE LOW (OR RISKS HIGH)
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© Andrey Medvedev
LICENSING: HOLSTEN BRAUEREI
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In 2002, Holsten Brauerei AG has signed a long-term contract
with Kaluga brewery in Russia for the latter to produce
Holsten Premium and Holsten Festbier under license for 15 years.
The long-term deal caps a pilot partnership that has been running
for two years, when Holsten sales in Russia grew by almost
50 percent. Holsten has over 16 percent of the booming licensed beer
market in Russia.
All raw materials, from malt to bottles, are supplied by Holsten
Brauerei. SAB is responsible for manufacturing, promotion and sales.
Producing Holsten in Kaluga is 30 percent cheaper than in Hamburg.
Kaluga Brewing Company was acquired by South
African Breweries (SAB) in 1999. It produces
its own beer brand “Zolotaya Bochka“ and about
16 percent of all licensed beer production in Russia.
© Andrey Medvedev
LICENSING: CHRYSLER
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GAZ, the country’s second-largest automotive firm, invested $150
million in two new cars, based on older-generation Chrysler models.
The company, which is best known for its Volga sedan, will buy
licenses and equipment to produce Chrysler Sebring and Dodge
Stratus sedans under its own brand in Russia. Chrysler is now
working on new versions of both the Sebring and Stratus models.
Under the deal, GAZ transfered older manufacturing equipment
from Chrysler’s Sterling Heights, Michigan, plant to Nizhny Novgorod,
where the Volga is made. GAZ also plans to buy engines
from Chrysler’s engine plant in Saltillo, Mexico.
The models were restyled and adapted to Russian roads.
The first cars based on the Chrysler technology are expected
to roll off the production line in 2008. GAZ plans to initially produce
65,000 cars per year. Output could be increased if necessary.
© Andrey Medvedev
INTERNATIONAL FRANCHISING
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AN ACTIVITY WHEN A FRANCHISER FROM ONE COUNTRY
TRANSFERS TO A FRANCHISEE IN ANOTHER COUNTRY
THE RIGHT TO USE ITS TRADEMARK AND OTHER RIGHTS AS
WELL AS THE RESOURCES REQUIRED FOR DOING BUSINESS
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SELLING A BUSINESS IDEA AS THE WHOLE
RATHER THAN A PARTICULAR PRODUCTION PROCESS
© Andrey Medvedev
FRANCHISING
AS A FOREIGN MARKET ENTRY MODE
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«TRADE» FRANCHISING
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FRANCHISING PLUS A «LICENSE» FOR MANUFACTURING
– SOFT-DRINK MANUFACTURING
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BUSINESS FRANCHISING
– FAST-FOOD RESTAURANTS
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SERVICE FRANCHISING
– CAR REPARING
© Andrey Medvedev
FRANCHISING:
KOTIPIZZA
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Finnish home delivery pizza
restaurant chain, Kotipizza Oyj,
was founded in 1987. With
€53 million turnover, today it is
the second largest in Europe.
It has over 220 restaurants
in 100 locations all over Finland.
Kotipizza is a 90 percent
franchise chain.
Kotipizza Oyj is planning
to open about 60 restaurants
in St. Petersburg.
© Andrey Medvedev
MANAGEMENT CONTRACT:
ORIENT-EXPRESS HOTELS
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In February 2005, British hospitality chain Orient-Express
Hotels acquired a 93.5 percent stake in St. Petersburg’s
historic Grand Hotel Europe from Germany’s Kempinsky
Hotels & Resorts.
Orient-Express owns and manages 48 properties,
including hotels, restaurants, tourist trains and river cruises
in 28 countries. The company doesn’t usually build its hotels,
preferring instead to buy historical or original properties.
The managers plan to bring
in an Orient-Express designer
to create a more traditionally
Russian interior with a local artist.
© Andrey Medvedev
MANAGEMENT CONTRACT:
TELEFONICA
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An Argentine subsidiary of Telefonica, a Spanish-based
telecommunication corporation, has to pay 4.6 percent of
its revenue to Telefonica for management services
provided by the parent company.
© Andrey Medvedev
CONTRACT MANUFACTURING
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CONTRACT MANUFACTURING
– THE EMPLOYMENT BY ONE FIRM OF AN ESSENTIALLY UNRELATED
FIRM TO MANUFACTURE SPECIFIED PRODUCTS FOR DELIVERY
BACK TO ITSELF
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MAY SERVE AS A FOREIGN ENTRY MODE
OR AS FOREIGN SOURCING
© Andrey Medvedev
CONTRACT MANUFACTURING
AS A FOREIGN MARKET ENTRY MODE
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TELECOMMUNICATION EQUIPMENT
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COSMETICS
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CONFECTIONERY
© Andrey Medvedev
CONTRACT MANUFACTURING:
ALFRED RITTER GmbH & Co. KG
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In 2002, Russia's Odintsovo Confectionery Factory in Moscow region
(the A. Korkunov brand) and German chocolate company Alfred
Ritter GmbH Co. have signed a $20 million deal on joint production
of chocolate. The two companies each invested $10 million
in the project. With the new line, the factory increased capacity
to produce 25,000 tonnes of confectionery products per year. About
a fifth of this was allocated for chocolate under the Ritter Sport brand.
The remainder will be produced under the A. Korkunov brand.
During only five years, Ritter Sport occupied
5.3 percent of the Russian market (it is now
number 7 chocolate-bar producer in Russia).
In 2007, a new chocolate factory wholly-owned
by Alfred Ritter will start its production
in Moscow Region.
© Andrey Medvedev
CONTRACT MANUFACTURING
MARKET
OFFICE
CONTRACTOR
© Andrey Medvedev