MGT448 Business Mode of Entry Purpose of Assignment Perhaps one of the first key decisions a prospective business owner makes is the mode of entry in the

MGT448 Business Mode of Entry Purpose of Assignment

Perhaps one of the first key decisions a prospective business owner makes is the mode of entry in the chosen country. Making the correct choice will ensure the integrity of the business not only legally, but financially as well. Accordingly, a detailed understanding of the various modes of entry will provide students with the knowledge needed to properly select the appropriate organization. PLEASE NOTE YOU WILL NEED TO PREPARE A MODE OF ENTRY STRATEGY FOR THE SAME COMPANY AND COUNTRY CHOSEN IN ATTACHED FILES.

Assignment Steps

Resources: Suggested but not required: Shamah, Shani. (2011). A Foreign Exchange Primer. New York, NY: John Wiley & Sons.

Search the Internet for vendors who sell this book or inquire about it with a local library.

Compose a minimum 700-word analysis of the following modes of entry:

Turnkey Project
Licensing
Corporation
Franchising
Joint Venture

Address the following in the analysis:

Discuss and describe the various modes of entry.
Evaluate the pros and cons associated with each mode of entry.

Consider the mode of entry for the country described in attached files.

follow APA guidelines and add 2 peer reviewed references as well as in-text citation. Global Business Plan
LocalNet is an internet service provider company which was founded in 1994. It provides
services like, long distance communications, web hosting, domain services, email
hosting, providing access to the internet and web accelerator services. It has its
headquarters offices in Williamsville, New York. The company’s target country is United
Arab Emirates (UAE) which is located in western Asia.
Reference.
https://www.localnet.com/
Running Head: LOCALNET GLOBAL ANALYSIS VENTURE.
LocalNet global analysis venture.
Name of the course:
Name of the institution:
Name of the student:
1
LOCALNET GLOBAL ANALYSIS VENTURE.
LocalNet global analysis venture.
1.
Regional analysis.
Regional alliances and economic integration.
Most of the countries in west Asia are not well integrated and face trade barriers. The
interregional trade has been affected by barriers that block free flow of goods and
services in the region. Due to lack of unity in the region, the countries have been unable
to unite and exploit the large volumes of oil which is available in the region.
Physical environment and its effect on trade.
The region lies in an arid and semi-arid area which is vulnerable to climatic changes
(Miao, Ye, He, Chen, & Cui, 2015). This has affected farming due to the high
temperatures experienced in the region throughout the year which affects the water
sources hence making the region economically unstable. The reason as to why many
people in the region depend on small scale farming is because of the political instability
that has made them not to settle permanently. This has led to poverty among the people
and has affected most of the country’s gross domestic product. Drought has led to
economic instability within the region hence affecting free flow of trade.
2
LOCALNET GLOBAL ANALYSIS VENTURE.
3
Political stability.
The region has experienced political instability for a long period of time (Korotayev,
Zinkina, Kobzeva, Bozhevolnov, Khaltourina, Malkov, & Malkov, 2011). The Arab
spring affected most of the countries in the region as people demanded for political
reforms. The situation intensified and created more complicated conditions with some of
the countries experiencing constant war which has affected the economy of the region.
Many people have also lost their lives, education system has been destabilized and
children have been subjected to unfavorable conditions hence affecting the future
prosperity of the region.
Economic conditions.
The region is rich in oil which can elevate the countries financial conditions if only
political stability is attained. Most of the countries have remained poor despite having
many natural resources which can boost their economy.
Finance options available.
The major source of finance in the region is oil which can elevate the region’s economic
stability if the countries unite and introduce trade tariffs to enable the free flow of trade in
the region.
Social, health, and environmental conditions.
With most of the countries in the region being prone to terrorist groups, social, health and
environmental conditions have been widely affected. In the region, women have no rights
LOCALNET GLOBAL ANALYSIS VENTURE.
4
and do not publicly interact with men. Men are believed to be superior and the leaders of
the family.
Terrorism threats.
The region is composed of some of the worst terrorist groups which have been constantly
fighting with some of the countries sitting governments hence affecting peace in the
whole region at large.
2.
Country risk analysis.
Political and legal stability
United Arab Emirates (UAE) is one of the safest countries in Asia (Byman, & Green,
1999). It has a stable government which protects its citizen’s interests hence offering
LocalNet a big investment opportunity in the country. Also, the history of the country
shows that the effects of the terror war in the neighboring countries hardly affects its
economy (Byman, & Green, 1999). UAE offers several type of business entities
establishment for foreigners which include; free trade zones, civil companies,
establishment of branch offices and joint venture/licensing. LocalNet will be
implemented in the free trade zones to avoid the 51% requirement which the United Arab
Emirates government imposes to any foreign company which wants to partner with a
local company.
Economic conditions
LOCALNET GLOBAL ANALYSIS VENTURE.
5
The country is very rich in oil and it’s one of the major leading oil producers in the
world. This has improved the people’s living standards hence making them to be
potential customers of LocalNet services. The country has experienced major economic
growth due to the people’s population compared to the available resources. Despite its
size, the country has the second largest economy after Saudi Arabia in the Persian Gulf.
The government has been able to create enough job opportunities for the people within
the country which has made it possible to achieve its goals.
Finance options available.
The major source of finance in the country is oil. Due to the availability of a strong and
stable government, United Arab Emirates has been able to fully exploit oil mining which
has elevated the country to be among the countries with the fastest growing economies.
Physical environment and distribution channels.
LocalNet will install repeaters at different locations within the country to ensure fast,
efficient and reliable provision of internet services. The distribution channels will be
through product lines whereby each service will be grouped in different category. For
example, customers for internet services and those web hosting will be placed in different
categories
Social, health, and environmental conditions
LOCALNET GLOBAL ANALYSIS VENTURE.
6
With the country being economically stable, most of the health issue arise from
environmental factors such pollution. Other factors that pose health issues to the citizens
include; water contamination and sea food contamination
Cultural and ethical considerations
. Emiratis spend most of their time on social sites such as Facebook. The country has a
large number of non-Emiratis who has large number of friends outside the country and
depend on the internet to connect with their friends. This offers LocalNet with a good
number of potential customers. Cultural influence plays a key role in determination of
business success within a country. United Arab Emirates is one of the countries where
multiple cultures have generally been adopted and people co-exist peacefully. In the
country, men and women are not allowed to freely interact in the public because it’s
against the country laws and norms (Behery, & Paton, 2008). This shows that the Emirati
do not embrace the factors of gender equality. The men are believed to be superior and
should rule over the women. United Arab Emirates ethics is taught in schools, homes,
and in social groups. It’s something which is leaned through observation of how people
interact with each another. Ethics in business helps people to live peacefully together.
Also, Ethics in business increases its chances of growth hence increasing the probability
of increased profits
3.
Organization and Product or Service Analysis
Description of your organization
LOCALNET GLOBAL ANALYSIS VENTURE.
7
LocalNet is an internet service provider company which was founded in 1994. It provides
services like, long distance communications, web hosting, domain services, email
hosting, providing access to the internet and web accelerator services. It targets
individuals, companies and institutions in offering its services. The major interest being
in the organizations because of the large volume of services required and the profitability
ratio that it gets from the organizations.
Legal structure of organization
LocalNet is a partnership company made by individuals who share common interests. It
started as a web hosting company and later expanded to offering internet services which
gave it a breakthrough in the market. All the partners in the company are entitled to share
profits equally.
Market analysis
Target market. LocalNet will consider all internet service users in the country. In UAE
most of the people who access the internet are the youths so the company will mainly
emphasize on the group. With the country being economically stable, the youths will be
capable of paying for the internet and long distance communications services.
Lead time. The customers will be able to access LocalNet services on a pay basis
depending on the quantity of services needed by the user. LocalNet systems are
programmed to initiate services instantly after customer payment.
LOCALNET GLOBAL ANALYSIS VENTURE.
8
Competitors. Some of the competitors which LocalNet will face includes Etisalat, Du,
Oger Telom and precedence. To ensure the company overtakes its competitors, it will
offer promotion services for every data service purchased. The quality of network
connectivity will be reliable, efficient and affordable to all users regardless of their living
standards. Also a subsidized price on request plan will be introduced for the heavy
internet users. Every organization that prefers to use LocalNet internet services will also
be offered with free and secure backup storage for its information.
Description of product to meet the need
To meet the customers’ needs LocalNet will ensure customer satisfaction is achieved
through offering fast internet speed, reliable web hosting services, large storage email
hosting services, and ease access to different websites by offering the customers with web
accelerator services. Data analytics will be used to ensure informed decisions are made
which considers customer requests and demands.
LOCALNET GLOBAL ANALYSIS VENTURE.
9
References.
Behery, M. H., & Paton, R. A. (2008). Performance appraisal-cultural fit: organizational
outcomes within the UAE. Education, Business and Society: Contemporary Middle
Eastern Issues, 1(1), 34-49.
Byman, D. L., & Green, J. D. (1999). The enigma of political stability in the Persian Gulf
monarchies. Middle East Review of International Affairs, 3(3), 20-37.
Korotayev, A., Zinkina, J., Kobzeva, S., Bozhevolnov, J., Khaltourina, D., Malkov, A., &
Malkov, S. (2011). A trap at the escape from the trap? Demographic-structural factors of
political instability in modern Africa and West Asia. Cliodynamics, 2(2).
Miao, L., Ye, P., He, B., Chen, L., & Cui, X. (2015). Future climate impact on the desertification
in the dry land Asia using AVHRR GIMMS NDVI3g data. Remote Sensing, 7(4), 38633877.

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