International market exit by firms: Misalignment of strategy with the foreign market risk environment

2020 ◽  
Vol 29 (6) ◽  
pp. 101741
Author(s):  
Kubilay S.L. Ozkan
Keyword(s):  
International Market ◽  
Foreign Market ◽  
Market Risk ◽  
Risk Environment ◽  
Market Exit

scholarly journals Planning a market exit strategy for manufacturers of consumer goods when entering foreign markets

2017 ◽  
Vol 1 (1) ◽  
pp. 7
Author(s):  
Maik Döring
Keyword(s):  
Market Entry ◽  
Planning Process ◽  
Foreign Market ◽  
Consumer Products ◽  
Market Penetration ◽  
Exit Strategy ◽  
Foreign Markets ◽  
Worst Case ◽  
Market Exit ◽  
Planning Processes

Aim: The internal market for manufacturers of consumer products companies is often too small in order to grant long-term success. Therefore, companies expand and enter foreign markets. This paper presents a planning process for market penetration for the selected foreign market, which will show the possibility of a withdrawal and shows also whether an exit scenario is planned by manufacturers of consumer products and when companies tend to think about a market exit.Design / Research methods: First, the literature was studied. Based on this, hypothesis were prepared. This was followed by a telephone survey of decision-makers from German manufacturers of the consumer products companies. Conclusions / findings: A planning process for market penetration was developed, which shows next to the market entry also the market exit. Additional this paper shows that manufacturers of consumer products companies can be better prepared for a market exit than companies without an exit strategy, in particular, if the manufacturer sets out relevant economic parameters for the foreign market which determine whether to remain in the market or leave.Originality / value of the article: When analysing literature on planning processes for market entry, it becomes clear that an exit strategy is not planned. This may indicate that the authors did not consider a market exit and/or anticipate this as a worst case in their market entry assumption.Implications of the research: The last market entry of the surveyed companies usually occurred recently. For market exit results to be determined, a further consultation of the companies examined should be undertaken over a longer period of time.

scholarly journals The Problems of Africa’s Industrialization Substitution Strategy and Reformation Needs

2020 ◽  
pp. 44-54
Author(s):  
Simeon Maxime Bikoue
Keyword(s):  
Regional Integration ◽  
New Technologies ◽  
International Market ◽  
Foreign Market ◽  
African Countries ◽  
Manufactured Products ◽  
New Strategy ◽  
Out Of Africa ◽  
Fierce Competition ◽  
Infant Industries

This study showed that industrialisation by substitution of imports has been a failure in Africa and has made industries in this part of the world less competitive on the foreign market. As such, a different industrialisation strategy which in the context of globalisation of economies and the fierce competition of the international market reinforces the competitiveness of African countries. This new strategy was translated amongst others by the appropriation of new technologies, protection of infant industries, cloning of manufactured products imported out of Africa, regional integration and the culture of exporting manufactured products.

scholarly journals ANALYSIS OF DIRECTIONS OF ACTIVITIES IMPLEMENTED BY REPRESENTATIVES OF THE ECONOMIC SUBJECTS OF THE RUSSIAN FEDERATION ABROAD

2019 ◽  
Vol 7 (3) ◽  
pp. 101-105
Author(s):  
Елена Никифорова ◽  
Elena Nikiforova ◽  
Дмитрий Кислов ◽  
Dmitriy Kislov
Keyword(s):  
Russian Federation ◽  
Oil And Gas ◽  
International Market ◽  
Foreign Market ◽  
Significant Shift ◽  
Main Task ◽  
Economic Entity ◽  
Company Value ◽  
The Russian Federation ◽  
Business Entities

The article raises the urgent issue of the importance of analyzing the areas of activity implemented by the representations of economic entities of the Russian Federation abroad. One of the main tasks of opening a representative office of an economic entity abroad is its access to the international market. This was also the result of problems associated with a significant shift in the political and economic systems. Today, Russian business entities set themselves the goal of not just protecting their activities, but the goals of growth in company value, capital growth, and access to the foreign market, which is a new sales market, have come to the fore. The scientific novelty of the study is due to the identification of an important task facing domestic business entities that have representative offices abroad in terms of expanding and deepening industry specialization, and the presence of Russian business representatives in various segments of the international market outside the energy sector. In the current situation, the main task of the Russian economy and the largest domestic economic entities is to increase the number of representations of Russian economic entities in market segments other than the oil and gas sector: in agriculture, manufacturing and chemical industry, engineering, financial sector, telecommunications and logistics etc.

Competitive advantages in development of agricultural enterprises’ foreign economic activity

2021 ◽  
pp. 55-60
Author(s):  
Lesya I. Halas
Keyword(s):  
Strategic Management ◽  
Economic Activity ◽  
International Market ◽  
Foreign Market ◽  
World Market ◽  
Information Support ◽  
Enterprise Management ◽  
Necessary Condition ◽  
Agricultural Enterprises

A necessary condition for a market economy is the existence of a competitive environment between economic entities, especially when agricultural enterprises enter foreign market. This problem is clear because the foreign economic activity of enterprises provides them with a competitive advantage allowing enterprises to enter a competitive market and occupy their positions in the world market of goods and services. The choice of strategies for a particular enterprise in the field of foreign economic activity is a long-term process that involves the choice of strategies from possible behaviors and coordination of actions of all structural units. Unfortunately, the loss of agricultural enterprises is one of the negative factors preventing them from performing management tasks related to the implementation of the chosen competitive strategy. In this case, the company may not focus on any strategy at all, and will not solve operational problems related to the economic efficiency of economic activity. In general, the essence of strategic management of enterprises engaged in foreign economic activity is to form a concept of benefits and prospects that can bring the international market and its actions. When implementing the company's strategic management in the international market, it is inevitable to avoid assessing short-term, medium-term and long-term risks and prospects. The competitiveness of agricultural enterprises should be based on the following aspects: improving the quality of enterprise management, development and compliance with standards of strategic competitiveness of agriculture and food; formulation of proposals for the formation of various strategies for enterprises; improvement of innovative organizations, introduction of information technology, and the presence of merchants in the commodity market provides information support; improves the organizational and technical level of support for agriculture; develops logistics and marketing systems.

scholarly journals International Market Orientation and Management Capabilities as Determinants of the New Ventures’ International Behaviour

2012 ◽  
Vol 2012 ◽  
pp. 1-14 ◽  
Author(s):  
Diego Monferrer ◽  
Andreu Blesa ◽  
María Ripollés
Keyword(s):  
Market Orientation ◽  
New Ventures ◽  
International Market ◽  
Foreign Market ◽  
International New Ventures ◽  
Entry Modes ◽  
Main Research ◽  
International Behavior ◽  
Management Capabilities ◽  
Geographical Diversification

The main research objectives of this paper are the analysis of the influence of international market orientation and the management capabilities derived from that orientation on international new ventures’ (INVs) behavior. Foreign market geographical diversification and the commitment involved in entry modes are considered to reflect this international behavior. Thus existing International Entrepreneurship literature is developed by analyzing the behavior of INVs explaining and testing how international market orientation and management capabilities affect geographical diversification and the commitment involved in entry modes. The empirical study confirms this influence.

scholarly journals Local horizontal network membership for accelerated global market reach

2019 ◽  
Vol 36 (1) ◽  
pp. 6-30 ◽  
Author(s):  
Paul Ryan ◽  
Natasha Evers ◽  
Adele Smith ◽  
Svante Andersson
Keyword(s):  
Secondary Data ◽  
International Market ◽  
Foreign Market ◽  
Global Market ◽  
Born Global ◽  
Market Knowledge ◽  
Content Type ◽  
The Rich ◽  
Horizontal Networks ◽  
Horizontal Network

Purpose The purpose of this paper is to explain how some born global firms can leverage the rich social capital in their local (home country) horizontal network for accelerated international market entry and growth. Horizontal networks warrant separate attention from their vertical counterparts, which, along with those focussed on external international contexts, dominate most network studies in the realm of born global research. Design/methodology/approach The study utilises a multi-level qualitative approach in the study of a multi-firm population of animators in Ireland that, due to the small domestic market for their product, needed to pursue global customers from inception. The case study domain was purposely selected as a critical exemplar of a local horizontal network operating in a highly globalised industry. The authors collected data through in-depth interviews with 16 company founders. This primary interview data were complemented by interviews with staff at the apposite industry association and triangulated with secondary data on the local and global industry conditions, members’ international successes and awards. Findings The results demonstrate how active membership of a local horizontal network can be leveraged for the acquisition of international market knowledge and customers for born global ventures. This arises from the sharing of collective market knowledge and communal global customer information within the network to mutual benefit. Originality/value Although limited by the specific conditions in this highly globalised, non-competitive industry context, this study is unique in that it finds that cooperative interpersonal and inter-firm relationships embedded in a local horizontal social network, and mediated in part by an institutional support actor, emerge as important levers for a born global’s accelerated acquisition of foreign market knowledge and of global customers.

scholarly journals IMPLEMENTATION OF INTERNATIONAL ENTREPRENEURIAL ACTIVITY IN THE CONTRACT OF EUROPEAN INTEGRATION

2021 ◽  
Vol 296 (4) ◽  
pp. 138-141
Author(s):  
Tetyana SHUBA ◽  
◽  
A. MIKISHA ◽  
Keyword(s):  
Economic Development ◽  
European Integration ◽  
International Business ◽  
Opportunity To Learn ◽  
International Market ◽  
Foreign Market ◽  
Entrepreneurial Activity ◽  
Main Task ◽  
Structural Funds ◽  
The Eu

The article analyzes the peculiarities of the implementation of international business activities in the context of European integration. The main ways to improve and simplify the conditions for enterprises to enter the foreign market are identified. Opportunity to learn from EU countries and set new standards, as the international market requires a high level of enterprise development and high quality services and goods. The issues concerning the formation of strategies for the development of enterprises and the urgent solution of current problems that may hinder the implementation of successful international business activities are considered. European integration is an opportunity to realize the entrepreneurial potential of the country and ensure its economic development. Therefore, the main task for modern entrepreneurs is to enter the international market, because it ensures the dynamic development of their business in the context of the spread of integration processes. Intensification of European integration processes allows to find effective ways of stimulation on the basis of studying the experience of European countries. The purpose of these processes is to establish close cooperation between the EU and Ukraine in the economic sphere. This cooperation does not provide any guarantees for the economic development of the country, but opens up opportunities for this to be realized. EU integration tools can increase the efficiency and competitiveness of enterprises, and the existing structural funds support these processes. European integration is only a complement to the implementation of international business, it can not replace domestic efforts and entrepreneurial activity in the country. Currently, the main task for Ukraine is to formalize agreements with the EU on the implementation of the principles set out in the AMB. European integration is the main goal of Ukraine – it can be an opportunity to build an economically developed state, strengthen and find new ties in the world system of international relations. European integration is a profitable way for those companies that want to realize themselves in the international market and is one of the main ways to develop and improve business.

scholarly journals On international fund construction in South Africa

1997 ◽  
Vol 28 (3) ◽  
pp. 88-96
Author(s):  
D. J. Bradfield ◽  
C. S. Ardington
Keyword(s):  
South Africa ◽  
Stock Exchange ◽  
Foreign Market ◽  
International Markets ◽  
Market Risk ◽  
Market Model ◽  
Portfolio Construction ◽  
Johannesburg Stock Exchange ◽  
International Fund ◽  
The One

This article focusses on portfolio construction in markets where legislation restricts investors from investing in international markets. An extended market model is implemented to additionally estimate a component of foreign market risk. In the first part of the article the decomposition of the risk of securities on the Johannesburg Stock Exchange (JSE) is empirically demonstrated. In the second part an automated portfolio construction methodology based on the resulting foreign risk estimates of the model is empirically tested on the JSE. The results confirm there is potential for improving the performance of existing 'international' funds on the JSE using more rigorous quantitative approaches such as the one proposed here.

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