MAY ANN C.

BOSI INTERNATIONAL BUSINESS AND TRADE

BSA 3A Activity No. 1

Case 1: "Market Entry Strategy"

Scenario: A small tech startup has developed a unique smartphone app that has gained popularity in
the domestic market. The company is now considering expanding internationally. Analyze the various
market entry strategies available to the company, such as exporting, licensing, franchising, or
establishing a joint venture, and recommend the most suitable approach. Consider factors like
cultural differences, legal requirements, and market potential.
International expansion enables a business to take advantage of new opportunities in other
countries that are likely to contribute to its long-term growth. To ensure that its operations are
compatible with the business environment abroad, a company takes the time to evaluate the types of
consumers in a specific market and their requirements and expectations.

Exporting can be a good place for a tech business to start, especially if it has few resources. It
gives the chance to see how the market is doing and get information before making bigger
purchases. Licensing can be a good choice if the company has a unique technology or intellectual
property that can be licensed to trusted partners in the target markets. But for a licensing agreement
to work, a company must be ready to give up control over some of its crucial internal processes.
Franchising is a suitable option if the tech startup has a proven business model and brand that can be
easily copied and adapted to different cultures and markets. Establishing a joint venture can be a
strategic choice if the startup needs a strong local partner and has the resources and capabilities to
manage the complexities involved.

To sum it up, the small tech company should choose a market entry strategy based on its
situation, available resources, and desired results. Exporting and licensing present lower initial risks
but may constrain authority. If the business model is highly duplicable, franchising is an apt choice,
while establishing a joint venture becomes strategic when a dependable local partner is required.
Thorough market analysis, legal counsel, and cultural comprehension should form the core of the
decision-making process to guarantee a prosperous international expansion.

Case 2 "Cultural Challenges in International Negotiations"

Scenario: Two companies from different cultural backgrounds are engaged in negotiations for a joint
venture. Despite the potential for a mutually beneficial partnership, cultural differences have led to
misunderstandings and communication breakdowns during the negotiation process. Analyze the
cultural challenges faced by both parties and propose strategies to improve cross-cultural
communication and negotiation outcomes.
Joint ventures must effectively navigate and manage cultural differences in order to cultivate
collaboration and reduce conflicts. Different norms, values, and communication patterns can
contribute to cultural misunderstandings. For building cross-cultural relationships and ensuring
effective communication and collaboration, a comprehension of cultural differences is essential. Joint
ventures should prioritize cultural intelligence and adaptability in order to effectively manage cultural
differences. This includes developing an understanding of cultural norms and values, being adaptable
in decision-making processes, and fostering an open dialogue to clarify any potential
misunderstandings. Building cross-cultural relationships requires establishing trust, demonstrating
empathy, and actively seeking to understand and respect diverse cultural perspectives. Regular
communication, cross-cultural training programs, and the implementation of policies that account for
cultural differences can all contribute to a harmonious and productive environment for joint ventures.