The trend towards globalisation has added a new dimension into the field of strategy (De Wit & Meyer, 2005). Researchers have presented various conceptual models based on profound theories to explore the factors that may influence the process of internationalization and the choice of entry mode in foreign markets (Dunning, 1988; Porter, 1990; Anderson, 1997; Madhok, 1997; Sharma & Blomstermo, 2004; Santangelo & Meyer, 2009; Wilson & Baack, 2012; Anderson et al., 2014). Porter (1990) produced a critique on comparative advantage and proposed alternative concepts of competitive advantage - the “National Diamond”. The Diamond framework highlights not only the naturally inherited or comparative but also the advanced or competitive factors of production. Dunning (1988) explained the prerequisites of the existence of MNE by providing an eclectic theory, i.e. ownership-specific advantage, location-specific advantage and internalization-specific advantage (OLI) based on the previous MNE theories. The international strategic management studies employed or referenced the RBV has increased significantly since 1990s (Barney, 1991; Makadok, 2001). The presence of resources and capabilities could provide a firm the discretion or motivation (strategic choices) to pursue a strategy of internationalization thereby increasing its size and profitability (Knight & Kim, 2009).
Several non-governmental organizations (NGO’s) involved with labor rights issues came to Ethiopia’s defense. Of these organizations, Oxfam, an international relief and development organization, was the most prominent. Supporting Ethiopia’s strategy, Oxfam stated, “Specialty coffees in other regions of the world can get up to 45 per cent of the retail price, compared with the 5 to 10 per cent Ethiopians are currently receiving.” The EIPO also gained the support of scholar, Douglas Holt. Holt, the L’Oréal Professor of Marketing at Oxford University’s Saïd Business, School, claimed that “With a certifi cation mark, Starbucks and other Western coffee marketers would still have full control over Ethiopian coffee brands.” Contrastingly, by requiring licenses for companies wanting to use the names, trademarks would provide Ethiopian coffee producers with a commercial asset that they could control. He also warned that Starbucks risked damaging its brand and alienating its customers, stating: “In their rash attempt to shut down Ethiopia’s applications, [Starbucks] have placed the Starbucks brand in signifi cant peril. Starbucks customers will be shocked by the disconnect between their current perceptions of Starbucks’ ethics and
Why does the opening of the Chinese market create new value for foreign banks? Academic circles summar ize the studies of transnational bank operations in terms of customer follower theory, market development theory and first - mover follower theory. Customer follower theory argues that given the general trade and financial globalization, banks tend to follow customers to maintain their stable customer stock. That is to say, when major customers enter a foreign market, banks will follow these customers into the target market to avoid losing customers. Market development theory argues that a new beneficial market is the main reason for attracting banks. Differing from the previous strategy, banks will explore new customers in the new market. The first-mover follower theory argues that banks will follo w industrial leaders or major competitors into foreign markets to maintain their competitive position. This last theory has limited research significance in relation to the host country and this paper aims to establish which of the first two theories can explain the value effect of foreign banks expanding into China.
the stores who will also be able to take their next steps with the company." -Jim Donald, president, Starbucks North America in 2005 Starbucks realized early on that motivated and committed human resources were the key to the success of a business. Company takes great care in selecting the right kind of people and makes an effort to retain them. The company's human resource policies reflects its commitment to its employees.
Eight years after opening its first outlets in Shanghai in 2004, Paris Baguette became the first Korean bakery franchise to have 113 outlets in China. In addition to its several stores already in the U. S., Paris Baguette aims to increase the number of its branches there, including in Los Angeles and New York. It recently opened one outlet in Singapore and eight outlets in Vietnam. The Fair Trade Commission (FTC) took action on trading standards, banning bakeries from opening a franchise within a 500-meter radius of their stores. Following this, the Korean National Commissions for Corporate Partnership (NCCP) issued a regulation prohibiting new franchise store openings within a radius of 500 meters from a local bakery (Go, 2009). Likewise, the local franchise business faces a new environment that requires franchises to modify their expansion strategy and look toward international markets for sales.
satised by Southwest. 5
Southwest already oered its passengers access to Hawaii through a codeshare agreement with the Indianapolis based carrier ATA Airlines between 2005 and 2008. The agreement with ATA also allowed Southwest to have (codeshared) access to New York's LaGuardia (LGA) and Ronald Reagan Washington National Airport (DCA). These airports are, with John F. Kennedy International Airport (JFK) and ORD, the only airports in the U.S. which are slot restricted, which complicates new services to and from these airports. Usually, the slots are assigned by the Federal Aviation Administration during an auction process . These Southwest services ended with ATA's bankruptcy in April 2008  . Table 3 gives the airports at which Southwest has operations . While the airline claims to be a point-to-point-carrier , some centers of operations can clearly be identied. These, in terms of weekly departures, are the focus cities Las Vegas McCarran International Airport (LAS), Chicago Midway International Airport (MDW), Phoenix Sky Harbor International Airport (PHX), Baltimore (BWI), Oakland International Airport (OAK), Houston (HOU), Dallas (DAL), Los Angeles International Airport (LAX), Orlando International Airport (MCO), San Diego (SAN), Nashville International Airport (BNA) and, lastly, Denver International Airport (DEN).
Overall, we find a high level of support for the “no change” hypotheses and a more limited level of support for the “change to the way of management of the preferred mode of entry” hypotheses. This could be partly due to small sample sizes (below 50) for the “less preferred mode of entry”. However, the results do provide very interesting indications that MNCs might indeed try to change the management of their sub- sidiaries over time. There is of course one important limitation to our study in this respect. Although we have been able to show that the time the subsidiary has been under headquarters ownership is related to de- velopment of the headquarters-subsidiary relationship, our research design does not allow us to verify whether individual subsidiaries do experience this change. In order to do so, a longitudinal design would be necessary.
Starbucks opened its first international store in Tokyo, Japan in 1996. Japan remains one of the most important international markets, with 689 outlets operated under licence. The next largest is Canada with 749 and then the UK with 532 (Starbucks Corporation 2007a) As of 1 April 2007, Starbucks coffee shops had 3,914 coffee houses in 38 counties outside North America. The company sees further international expansion as key element of its future growth strategy and aims to increase to 4,200 by the end of the current financial year. As part of the company’s objective to become the most recognised and respected brand in the world, Starbucks plans to establish 15,000 stores outside the US and ultimately establish 40,000 on a global basis (Economist, 2007, Holmes, 2006). Further expansion in the Far East is seen as a key business driver and the company has already established a foothold in China (Beijing, Shanghai, Macao, Hong Kong), Taiwan, Indonesia, Thailand and Malaysia.
3. What are expected costs and difficulties we will face when transferring this distinct resource base?
4. What specific resource recombination (associated with each
alternative foreign entry and operating mode) is required to make the proposed international value-added activities successful?
The sample for this study consists of 663 design firms. These design firms have appeared in the ENR Top 200 International Design Firms ranking at some point in time since 1991. They were observed for the maximum of 21 years, beginning with the first year of their position in the ranking. The event of interest was the first entry of the company in the CEE region. Thus, even though the analysis deals with what is, in principle, a repetitive event, it is defined to be non-repetitive by considering the first entry. For example, if company entered the region in 1995 and continued to work in the region for several years, the event of interest is the year they entered the region which in this case is 1995. After 1995, this study did not monitor the entry of company in other countries in the region nor did it monitor the years of existence in the region. This is an appropriate strategy if the process of the first entry is different from the second entry or expansion strategies.
After analyzing the current politic and economic situation in four Balkan countries and current situation in waste management industries in these selected countries, it is possible to conclude that Croatia represents the best country to enter. The main criterion for selecting Croatia is secure environment for foreign investments. Considering the fact that Croatia is the only country of the selected Balkan countries, which will next year officially become an EU member. This means that Croatian laws and regulations are adjusted to EU laws and practices which provide certain security for foreign investors such as Íslenska Gámafélagið. From the perspective of Íslenska Gámafélagið stabile and secure legal and economic environment represents the most important factor for foreign market entry. In waste management industry, Croatia has reported major progress as compared to other selected countries. Croatian EU entry required Croatian government, local authorities and companies to adjust its waste management system and practices. Therefore it is possible to conclude that Croatian waste management industry is the most developed as compared to other selected Balkan countries. Furthermore, Croatian government together with EU funds offers financial supports for companies that are willing to invest in Croatian waste management projects and provides financial incentives for foreign investors who are willing to invest in Croatia. If Íslenska Gámafélagið wants to apply for financial incentives from Croatian government it needs to invest at least 300 000 euro. It is possible to conclude that waste management in Croatia is still undeveloped compared to EU countries and local companies need foreign assistance in order to improve their technology and waste management practices. One of the conclusions based on the interviews with local Croatian managers and experts is that most of Croatian waste management companies are interested in acquiring assistance and forming possible partnership with foreign partners. That opens the possibility for Íslenska Gámafélagið to enter the Croatian waste management industry and establish potential partnership with local companies.
Promotional weapons of high-tech marketers are advertising in trade magazines, trade shows, web-based advertising, technical seminars/ presentations and use of sales promotional materials including direct mail advertising. Danish businessmen frequently use trade shows and seminars to promote their product or service. Companies have found that it is becoming more and more difficult to maintain a competitive edge through technological advantage alone. Even in high-technical fields, the presentation of the message tends to separate firms from their competition and marketing efforts are as important than the reliance of the new technology. Key purchases will be made for technology that is more closely related to their business strategy than to their technology strategy. The buying objective is revenue enhanced rather than cost containment. In this industry a breakdown of a boiler has significant financial affects and being flexible and quickly respond to these uncertain events is crucial for a company.
The main axes of differentiation are location, quality, products, atmosphere, and taste. Locating away from Starbucks is central to the rural entrystrategy. On quality, we are emulating the quality of Starbucks because of Starbucks’s success, though our franchised structure may result in slightly worse quality control. We will offer more food products than Starbucks, because we expect the eat-in-the-store market to be a larger proportion of business in rural areas. The “grab-and-go” market of people who stop in on the way to office jobs will be much less important than it is in urban areas. We will have minor style and taste differentiation from Starbucks, the exact nature of which can be decided by specialists in those areas. Although we will initially be mostly in markets without Starbucks, later expansion into contested markets will require differentiated style and taste to win over some of Starbucks’s customers.
In the next ten years, the coffee products and coffee shows are said to be continuously shaped and developed by dynamic financial and social attribution. Accordingly, the conventional focus of Starbucks and other coffee industries has been upstream research in the value of innovative coffee products in the value chain, which leads to the discovery of new coffee cultures and lifestyles. Nonetheless, such occurrence is the start to change the coffee industries in various ways. First, an increasing value of products is moving through the pipeline to the approval of regulators and sale in the market environment. As this maturing occurs, many developing coffee industries must be able to shift beyond the core research capabilities intro downstream operations which include manufacturing, product development and sales and marketing. If not, most industries will continue to expand their business portfolio to become vertically-integrated coffee industries or become an acquisition targets for industries looking to bolster their product development like what Starbucks is actually doing. There are various environmental trends that may affect pharmaceutical products in the next ten years, these include developing products in coffee industries, emerging personalised coffee products for each consumer, the emergence of more attractive and convenience coffee restaurants, product diversification and the emergence of a more high technology restaurants to target internet and broadband users (Thompson, Strickland and Gamble, 2005).
The rivalry among the competing firms is the most powerful of the 5 competitive forces. Starbucks primary competitors were restaurants, specialty coffee shops, doughnut shop, supermarket and all other stores selling hot and cold coffees. In 2003, there was 14000 specialty coffee outlets in U.S itself. Starbucks also faced competition from nationwide coffee manufactures that distributed their coffee through supermarkets pricing them cheaper compared with Starbucks. Anyway, Starbucks feels that their excellence services and the high quality of their coffee is the biggest strength of them. Other than this Starbucks may lower their prices or add more features in their stores and may also increase their advertising all around the world.
Ultimately firms have to decide on a mode of entry to use. Three main schools of thought have tried to explain the reasons behind these choices. The first school views internationalisation as a gradual process where the firm will increase its market commitment (from a non-equity entry mode to an equity-based one) once knowledge about a particular foreign market increases and justifies it. This is the so-called “staged process of internationalisation”, or Uppsala Model (Johanson and Vahlne, 1977). The second school of thought stems from work on Transaction Cost Economics (TCE). The idea behind TCE is that firms will internationalise those activities in which they have a cost advantage over the market and will subcontract those in which they have a cost disadvantage (Williamson 1981; Teece 1986). Finally, the third school of thought is the one pioneered by Dunning (1995), which stresses the importance of location advantages in addition to ownership and internalisation factors as decisive elements in mode of entry decisions and is something of a “one-size-fits-all” approach. This last school of thought is only included in Appendix I due to its overlapping with the rest of internationalisation theories. In addition to these schools of thought, the Resource-Based View, Institutional Theory and Cultural Distance Theory are also provided given their unique perspective on the topic of internationalisation that at times are in direct contrast with other major theories, yet offering the only plausible solutions to the Disney paradox (the need to be American and local at the same time).
“Few would argue that consumers form impressions of brands, and that these impressions later exert a major influence on store choice decisions and shopping behaviours. Favourable images of brands positively influence patronage decisions and purchase behaviours, while unfavourable images adversely influence such decisions and behaviours.... Consequently, brand image and retail image are inextricably linked to one another.” (Porter & Claycomb 1997) Brand loyalty is the product of the company’s ability to position its product and retail offer successfully in the mind of the target segment. Starbucks has established itself by associating itself with the targets segment attitudes. Examples of this are it’s efforts to ensure that the quality of the product is always first class, that the store provides not only good product but an experience for the customer by the provision of music, reading material, and other products and benefits that adds value to the overall Starbuck product. To maintain this advantage a company needs to continually invest in the brand. Starbucks is continuing to do this. A recent initiative is to provide a WiFi link in its stores so that customers can connect to the Internet while in the store. This may not be related to coffee but is a good example of the company focusing on the total product that it provides to its customer.