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    K60 Vương Túy Hiền
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    This document discusses factors to consider when evaluating countries for international business operations. It covers scanning countries to gather information on opportunities and risks. Major opportunities include sales expansion based on demographic and economic factors or acquiring resources to reduce costs. Risks involve factors like political stability, currency risks, and trade policies. Companies must also consider the shortcomings of comparative country data and alternative strategies for international expansion such as gradual commitments, diversification, concentration and reinvesting. Location choices are important and companies may also make non-comparative go-no-go decisions based on interdependence with other regions.

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    Country selection

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    This document discusses factors to consider when evaluating countries for international business operations. It covers scanning countries to gather information on opportunities and risks. Major opportunities include sales expansion based on demographic and economic factors or acquiring resources to reduce costs. Risks involve factors like political stability, currency risks, and trade policies. Companies must also consider the shortcomings of comparative country data and alternative strategies for international expansion such as gradual commitments, diversification, concentration and reinvesting. Location choices are important and companies may also make non-comparative go-no-go decisions based on interdependence with other regions.

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    4 views14 pages

    Country Selection

    Uploaded by

    K60 Vương Túy Hiền
    This document discusses factors to consider when evaluating countries for international business operations. It covers scanning countries to gather information on opportunities and risks. Major opportunities include sales expansion based on demographic and economic factors or acquiring resources to reduce costs. Risks involve factors like political stability, currency risks, and trade policies. Companies must also consider the shortcomings of comparative country data and alternative strategies for international expansion such as gradual commitments, diversification, concentration and reinvesting. Location choices are important and companies may also make non-comparative go-no-go decisions based on interdependence with other regions.

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    of 14

    International Business

    Chapter 6
    Evaluation of Countries
    for Operations

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Learning Objectives (1 of 2)

    13-1 Elaborate on the significance of location in IB


    operations
    13-2 Illustrate why comparing countries through
    scanning is important and how it connects to
    final location choices
    13-3 Discern major opportunity and risk variables
    and how to prioritize and relate them when
    deciding whether and where to expand
    abroad

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Learning Objectives (2 of 2)

    13-4 Summarize the sources and shortcomings of


    comparative country information
    13-5 Explain alternative considerations and means

    for companies to allocate resources among


    countries
    13-6 Recognize why companies make non-
    comparative decisions when choosing where
    to operate abroad

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Location Choices
    Objective 13-1
    • Why be concerned with location choices?
    • Decisions related to location choices

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    The Scanning Process

    Objective 13-2
    • Why use scanning?
    • Insert figure 13.2

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Scanning and Detailed Analysis
    Objective 13-2

    • Scanning first
    – Types of information gathered
    • Detailed Analysis

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Opportunities: Sales Expansion
    Objective 13-3
    • Sales expansion
    – Demographic and economic factors to consider

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Opportunities: Resource Acquisition
    Objective 13-3
    • Securing Resources
    – Cost considerations

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Factors to Analyze Regarding Risk
    Objective 13-3
    • Factors to consider with risk
    • Types of Risks

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Example on How to Analyze Risk
    Objective 13-3
    Table 13.1 Simplified Country Comparison Grid Figure 13.1 Regional Emphasis of Burger King

    Based on data from 2015 Burger King 10K Report. The


    sales figures are for 2013, and the restaurant figures are
    for 2014.

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Shortcomings of Comparative Country Information

    Objective 13-4
    • Inaccuracy
    • Non-Comparability

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Strategies for International Expansion: Alternative
    Gradual Commitments

    Objective 13-5
    • Alternative Gradual Commitments
    • Insert figure 13.4

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Strategies for International Expansion: Diversification,
    Concentration, Reinvesting

    Objective 13-5
    • Diversification Strategy
    • Concentration strategy
    • Reinvesting and Harvesting

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.


    Non-Comparative Decisions
    Objective 13-6
    • Decision Making Process
    • Go-no-go decisions
    • Interdependence

    Copyright © 2018 Pearson Education Limited. All Rights Reserved.

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