Define The International Businesss
Define The International Businesss
Define The International Businesss
International business aims to expand market reach, diversify risk, access new resources,
and capitalize on global opportunities.
Understanding these economic forces helps businesses make strategic decisions in global
markets.
These factors influence how businesses must adapt their strategies to remain competitive
in each country.
Licensing and franchising are methods for expanding business operations internationally
but differ in their structure and level of control:
1. Licensing:
o Definition: Allows a company (licensee) to use another company's
(licensor) intellectual property, such as trademarks, patents, or technology,
under agreed terms.
o Control: Limited control over the licensee’s operations and quality.
o Revenue: Licensee pays royalties or fees for using the IP.
o Benefits: Lower risk and investment for the licensor; facilitates rapid
market entry.
2. Franchising:
o Definition: Grants a company (franchisee) the right to operate a business
using the franchisor’s brand, business model, and support systems.
o Control: Higher control over franchisee operations, including adherence to
brand standards and operational procedures.
o Revenue: Franchisee pays initial fees and ongoing royalties.
o Benefits: Expansion with lower capital investment from the franchisor;
franchisee manages daily operations.
Both methods offer ways to enter new markets with varying degrees of control and
investment.
6. discuss the global manufacturing and supply chain management ?
Global Manufacturing and Supply Chain Management are crucial for optimizing
international business operations:
1. Global Manufacturing:
o Definition: Involves producing goods in multiple countries to leverage
advantages such as lower labor costs, access to resources, and market
proximity.
o Benefits: Reduces production costs, enhances market access, and improves
flexibility.
o Challenges: Requires coordination across different locations, quality
control, and compliance with diverse regulations.
2. Supply Chain Management (SCM):
o Definition: Oversees the end-to-end process of sourcing, production, and
distribution to ensure efficient and cost-effective delivery of products.
o Key Functions: Includes procurement, production management, logistics,
inventory control, and demand planning.
o Benefits: Enhances efficiency, reduces costs, and improves customer
satisfaction.
o Challenges: Managing complexity, mitigating risks, and ensuring timely
delivery across global networks.