Friday, January 3, 2020
International Business Marketing - 1967 Words
1. Summary This paper analyzes why and how companies set their international business strategies with the host nations and the benefits that they have reaped through the years with their decision. The discussion handles foreign manufacturing strategies with direct investment and without direct investment, its advantages and disadvantages and how companies have profited by their decisions in each of the cases. At the end of the discussion it would be clear that how such business decisions play a vital role in the growth of the companies both in home and host countries . 2. Background For the analysis, the focus is on two companies, Tesco and Yoplait who have chosen two different business strategies for their global business expansion. Tesco, one of the worldââ¬â¢s largest retailer, UK based supermarket chain expanded its global operations in Asia. It joined hands with Samsung, a well established Korean retailer, and started its Korean operations under the well known Homeplus brand. In 1999 it went ahead with its foreign direct investment and opened business centers in Korea. They were able to sustain and grow in the Korean market (Klimes, 2014). On the other hand, Yoplait is a France based Yoghurt. It franchised its operation in US and later throughout Europe with US based consortium, General Mills. It is jointly owned by General Mills and Sodiaal, a French cooperative diary unit (Bloomberg Businessweek, 2014). 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