1 / 36

International Business (8)

International Business (8). Huang Huiping Economic School. Whut. 8. Entering Foreign Market (chpt.12). Learning Objective

myrrh
Download Presentation

International Business (8)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. International Business (8) Huang Huiping Economic School. Whut

  2. 8. Entering Foreign Market (chpt.12) Learning Objective 1. Explore the three basic decisions that a firm contemplating foreign expansion must make:which markets to enter, whento enter those markets, and on whatscale. 2. Review the different modes that firms use to enter a foreign market. 3. Understand the advantages and disadvantages of each entry mode. 4. Appreciate the relationship between strategy and a firm's choice of entry mode.

  3. Opening Case Study:International Expansion at ING Group • Why did the ING managers choose America? What issues did managers concern during the market- and-site-screening process? • Do you think ING has chosen proper time to entering the American market? Why, or why not? Was ING the first-mover entering this market? • By entering the U.S. financial market on a large scale, what were the effects on ING ? Give your comments. • ING chose to enter the U.S. market via acquisitions rather than green-field ventures, What do you think the advantages to ING of doing this? What might the drawbacks be? Does this strategy make sense? Why?

  4. Opening Case Study • 1991年，ING集团形成于荷兰第三大银行与该国最大保险公司的合并中。正因为这样，公司飞速发展，成为全世界头10个金融服务企业之一，业务遍及65个国家、产品范围宽广、遍及银行业、保险业和资产管理。ING的战略已经被迅速扩展过边境，主要是通过一系列谨慎的并购。 • 其模式是：选定一个有优秀管理人员及在当地有较强实力的目标公司，在该公司取得少量股权，赢得管理人员的信任，然后提出接管计划。所收购公司的管理人员和产品都基本保持原样，但是ING公司要求他们在销售自己产品的同时销售ING的产品。lNG的主要攻势是推动保险、银行业和投资产品的销售，自从1991年最初的合并之后，它在荷兰一直在做的就是这些事情(在荷兰大约有20％ING的保险产品是通过银行售出的)。

  5. 制度环境的两个变化有助于ING实施这一战略. • 其一是取消从前使金融服务业分离成不同部门的制度障碍的趋势。例如在美国，被称为格拉斯·斯蒂高尔法案(Glass Steagall Act)的萧条时期法律禁止保险公司、银行以及诸如共同基金公司这样的资产管理机构销售彼此的产品。美国国会于1999年废除了这一法案，为美国金融服务业的合并打开了方便之门。20世纪90年代，许多其他的国家也有类似的法案被废除。lNG本土的荷兰就是首先废除金融服务业不同领域间障碍的国家之一。ING利用了这个有利条件，成为欧洲银行业和保险业结合的一个先行者。 • 另一个明显的制度变化发生在1997年，当时世界贸易组织在其成员国之间达成一项协议，有效地清除了金融服务业跨境投资的障碍。这就使诸如ING这样的公司更容易建立起全球金融服务业务。

  6. ING的扩张最初集中于欧洲，它在那里最大的并购包括德国和比利时的一些银行。但是，近几年来，ING战略的中心点积极向美国转移。尽管自20世纪70年代之后，ING在荷兰的保险公司前身——荷兰国家保险已拥有一些小的地区性的美国保险公司，大举向美国推进始自于]997年对衣阿华公平人寿保险公司(Equitable Life Insurance Company of Iowa) 并购。 • 接下来是对一家纽约投资银行福尔曼·塞兹(Furman Selz)的收购，它的业务活动补充了巴林银行的业务，而后者是一家ING在1995年收购的英国投资银行，在美国有大量业务。2000年，ING收购了瑞利亚星金融服务公司(ReliaStar Financial Services)和艾特那(Aetna)金融服务公司的非健康类保险单位。所有这些收购活动使得lNG成为美国头10位的金融服务公司之一。

  7. ING被吸引到美国有几个原因。到目前为止，美国是世界上最大的金融服务市场，所以任何一家有志于全球经营的公司都必须在那里建立强大势力。解除控制使ING公司跨国销售金融服务产品的战略在美国切实可行；尽管一些州有自己的保险规定，但ING认为在美国做生意还是比在欧盟更容易，在欧洲语言和文化的混杂使得用单一身份很难建立泛欧经营。ING被吸引到美国有几个原因。到目前为止，美国是世界上最大的金融服务市场，所以任何一家有志于全球经营的公司都必须在那里建立强大势力。解除控制使ING公司跨国销售金融服务产品的战略在美国切实可行；尽管一些州有自己的保险规定，但ING认为在美国做生意还是比在欧盟更容易，在欧洲语言和文化的混杂使得用单一身份很难建立泛欧经营。 • 另一个诱惑是：随着越来越多的美国人用401k计划，而不是传统的退休金方式．自己负责安排退休，个人投资生意在美国开始兴旺起来，这更增加了ING公司对美国金融服务企业的兴趣。相反，在欧洲退休金仍然主要是由国家政府来管理。而且，在近几年来美国保险公司已在相对较低的价格——收益比率上经营，与他们在更高的价位上进行经营的欧洲同行们相比，这使他们显得似乎价廉物美。在美国建立强大的势力也会带来地理多样化的利益，它使得ING公司能够用其在世界其他地区的盈利来弥补某一地区收入与利润的不足。

  8. 最后，ING发现在美国搞并购要比在欧洲更容易一些，欧洲虽然成立了欧盟，但国家的自尊使ING很难收购到地区公司。1992年，ING最初收购一家比利时银行的尝试被拒绝了，主要是因为国家主义的关系，这使ING直到1997年才完成这项收购。类似地，1999年收购一家主要的法国银行——法国商业信用银行(Credit Commercial de France)的尝试也被回绝了，它本在这家银行已占有19％的股权。据新闻报道，法国当局曾经对这项可说是法国银行的第一次外国收购表示过关注，而法国商业信用银行(CCF)的董事会认为收购不应该在没有当局允许的情况下进行。

  9. 在美国建立了主要的势力之后，现在ING集团的战略是抓紧进行其各种保险、银行和资产管理产品的销售。在2000年中期，公司宣布建立ING直通车(direct)——公司在加拿大、澳大利亚、西班牙和法国引入的一种在线银行概念，并在这些国家运行得很好。在线银行具有储蓄账户的特点，支付利息3倍于传统意义的银行，但与其他虚拟银行相一致，这使其具有低得多的成本结构。尽管ING直通车并不提供支票账户，这对传统的银行来说是赔钱买卖，但ING可以将其账户与顾客在另外一家银行开设的支票账户建立电子联系，使客户容易地转账钱款。除了储蓄账户之外，ING直通车也为客户提供贷款、抵押、人寿保险和共同基金。公司不是建立银行的分支机构，而是正在广泛建立电子咖啡室(cyber-cafes)，在那里客户可以随时进去、买一杯咖啡和一个松饼，浏览网站和访问他们的在线账户。在美国建立了主要的势力之后，现在ING集团的战略是抓紧进行其各种保险、银行和资产管理产品的销售。在2000年中期，公司宣布建立ING直通车(direct)——公司在加拿大、澳大利亚、西班牙和法国引入的一种在线银行概念，并在这些国家运行得很好。在线银行具有储蓄账户的特点，支付利息3倍于传统意义的银行，但与其他虚拟银行相一致，这使其具有低得多的成本结构。尽管ING直通车并不提供支票账户，这对传统的银行来说是赔钱买卖，但ING可以将其账户与顾客在另外一家银行开设的支票账户建立电子联系，使客户容易地转账钱款。除了储蓄账户之外，ING直通车也为客户提供贷款、抵押、人寿保险和共同基金。公司不是建立银行的分支机构，而是正在广泛建立电子咖啡室(cyber-cafes)，在那里客户可以随时进去、买一杯咖啡和一个松饼，浏览网站和访问他们的在线账户。

  10. Opening Case Study • Why did the ING managers choose America? What issues did managers concern during the market- and-site-screening process? • Do you think ING has chosen proper time to entering the American market? Why, or why not? Was ING the first-mover entering this market? • By entering the U.S. financial market on a large scale, what were the effects on ING ? Give your comments. • ING chose to enter the U.S. market via acquisitions rather than green-field ventures, What do you think the advantages to ING of doing this? What might the drawbacks be? Does this strategy make sense? Why?

  11. 8.1 Basic Entry Strategy Four basic decisions: • Which foreign market? • When to enter? • On what scale? • By which entry mode?

  12. Which foreign market? Some important issues concerned managers during the market- and-site-screening process: • (1) The attractiveness of a potential market for an international business depends on the balancing of the benefits, costs,and the risks; (the conclusion in chpt 2) • (2) Value create in foreign markets: check the adaptation of the product and the competition in this market . (the conclusion in chpt 11) • (3) following the steps: a) Identify basic appeal b) Assess the national business environment c) Measure market or site potential d) Select the market or site,

  13. When to enter ? • Entry is early : when a firm enters a foreign market before others. - first-mover advantage : • By brand name; • Experience curve & cost advantage; • Creating switching cost. - first-mover disadvantage : pioneering cost • Learning costs; • Failure costs; • Promotion and establishing a product offering • Regulations change in a way

  14. On What Scale ? • On a large scale • Strategic Commitment: A decision that has a long-term impact and is difficult to reverse. • The effects: • First mover advantage: Easier to attract customs and distributors;+ • Give other competitors’ entry pause; + • Limit the company’s flexibility － • On a small scale - gather information; - lower the risks, lower the benefits

  15. 8.2 Entry modes • Trade entry mode - exporting & importing - countertrade • Contractual Entry mode - licensing - franchising - turnkey projects - management contracts • Investment entry modes - wholly owned subsidiaries - joint ventures - strategic alliance

  16. 8.2 Entry Mode • Exporting • Turnkey project • Licensing • Franchising • Joint Venture • Wholly Owned Subsidiaries

  17. 8.2.1 Exporting Advantages • Ability to realize location and experience curve effects • It avoids the often-substantial costs of establishing manufacturing operation in host countries. Disadvantages: • Maybe there are lower-cost location for producing the products abroad. • High transportation cost • Trade barriers • Foreign agent problems

  18. 8.2.2 Turnkey project 交钥匙工程 • Turnkey project: A project in which a firm agrees to set up an operating plant for a foreign client and hand over the “key” when the plant is fully operational. • 交钥匙工程:出口加工技术地一种方式.承包商同意为外国客户处理一切细节,包括培训人员，合同完成后，客户拿到一切就绪地工厂钥匙。

  19. 8.2.2 Turnkey project 交钥匙工程 Advantages • Earn great return from the assets: Know-how required to assemble and technologically complex process • Earn great return in where FDI is limited • Less risk than FDI Disadvantages: • Lack long-term interest in foreign country • Create a competitor , Loss a firm’s advantages to potential/ actual competitor

  20. 8.2.3 Licensing 许可证 • Licensing Agreement: Agreement in which a licensor grants the right to intangible property to the licensee for a specified period and receives a royalty fee in return. • 许可证协议：许可方将一定期限内地无形资产授权给另一实体（被许可方）的协议。

  21. 8.2.3 Licensing 许可证 Advantages • Lower costs and risks • Overcome trade and investment barriers • When a firm does not want to develop the applications of its own intangible assets. Disadvantages: • Lack of tight control over technology, production, and marketing ,which is required for realizing experience curve and location economies • Difficult to coordinate strategic moves across counties. May loss know-how

  22. Two ways of lowering risks: • cross-license agreement 交叉许可协议 • set up joint-venture

  23. 8.2.4 Franchising特许经营 Franchising: • A specialized form of licensing in which the franchisor sells intangible property to the franchisee and insists on rules to conduct the business. • 特许经营：许可证的特殊形式。特许授予者不仅向特许经营人出售无形资产（商标），而且坚持要特许经营人严格遵守规定的方式。

  24. 8.2.4 Franchising特许经营 Advantages • Lower costs and risks Disadvantages • Lack of tight control over quality management • Difficult to coordinate strategic moves across counties. Way of lowering risks: • Set up subsidiary

  25. 8.2.5 Joint Venture 合资公司 • Joint Venture: A cooperative undertaking between two or more firms. • 合资公司：两个或者更多的独立企业共同拥有的企业。

  26. 8.2.5 Joint Venture 合资公司 Advantages • Benefit from a local partner’s knowledge of the host country • Gain by sharing developing cost and risks • Political considerations Disadvantages • Giving control of its technology to the local partner • Difficult to coordinate strategic moves across counties. • Unable to realize location and experience curve effects

  27. 8.2.6 Wholly Owned Subsidiaries 独资子公司 • Wholly Owned Subsidiaries: A subsidiary in which the firm owns 100% percent of the stock. • 独资子公司：一方拥有100％股权的公司。

  28. 8.2.6 Wholly Owned Subsidiaries 独资子公司 Advantages • Protect the core competence • Tight control • Coordinate strategic moves across counties. • Realize location and experience curve effects Disadvantages • High risks and costs • Good Management Capability required

  29. 8.3 Selection of Entry Mode Considerations : • The Pros and Cons for each mode • The company’s condition and environment

  30. 8.3 Selecting an Entry Mode • Core competence and entry mode Wholly Owned Subsidiary Tech. Know-how Export Franchising Management Know-how Subsidiary

  31. 8.3 Selecting an Entry Mode • Pressures for cost reductions and entry mode - The greater the pressures for cost reductions are, the more likely a firm will want to pursue some combination of exporting and wholly owned subsidiaries. - Firm pursuing global or transnational strategy tend to prefer establishing wholly owned subsidiaries

  32. 8.4 Establishing a wholly owned subsidiary: Green-field venture or Acquisition? Acquisitions • Pros : - quicker to execute ; - preempt the competitors; - less risky • Cons-----Why fail? • overpay : hubris hypothesis • Cultural conflict • Roadblocks in the integrating the operations of acquired and acquiring entities. • Inadequate pre-acquisition screening

  33. 8.4 Establishing a wholly owned subsidiary: Green-field venture or Acquisition? Green-field venture • Pros - to build the kind of company that a firm really wants! - to transfer products,skills, know-how, competency and culture! • Cons - slower - risky • Strategies

  34. Assignments • P399(E)/293(C), Q4

More Related