Lp4 Assignment: Entry Strategies And Organizational Structures

Name Tutors Name 02/02/2017 Corporations can use one or a combination of several strategies to enter into international markets. The most widely recognized strategies include licensing agreement, franchising, export and import, mergers and acquisitions,wholly owned subsidiary and joint ventures. Volkswagen uses strategic alliances and joint venture arrangement to coordinate their worldwide operations. VW enters into a joint venture with local companies in the market they operate in to found a new company. The new company is responsible for operations of the business in the host country. VW contributes technologies while the local company contributes sales networks and local logistics(Muller, 2013). Ford motors uses acquisition strategy, Ford acquires a stake in established business in the host countries. The company uses the local skills and market knowledge of the local business to manage their operations. For example Ford Motor operations in Brazil are operated through Autolatina where it owns 49. In japan the business is operated under Mazda of Japan which is 34 owned(Hodgetts, Luthans, Doh, 2006). Operating overseas business through controlled entity is a traditional method of coordinating worldwide business. This method retains a significant amount of control for the head office and does not allow the local management enough room