Management & Multinational Enterprise (MNC)
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Which of the various modes of entry for a multinational enterprise (MNC) is best when expanding sales and operations in Brazil, Argentina, and Chile? Why?
What are the developing/growing economic powers in Africa? What are their strengths? What's holding other countries back in Africa?
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Solution Summary
This solution discusses the various modes of entry for a multinational enterprise (MNC) when expanding sales and operations in Brazil, Argentina, and Chile. It also explores the developing or growing economic powers in Africa, including their strengths and factors holding other countries back in Africa.
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1. Which of the various modes of entry for a multinational enterprise (MNC) is best when expanding sales and operations in Brazil, Argentina, and Chile? Why?
Example 1: Recent Entry Strategies for MNC
1.Efficiency seeking: To reduce cost in global production process through access to cheaper labor and proximity to destination markets, such as United States.
2. Growth Seeking: To grow and to acquire new markets. They are by nature more dependent on the macroeconomic conditions in local markets for their success in expanding sales.
3. Resources seeking: mining firms enter Latin America in search of mineral s, metals, and hydrocarbons.
See more detail at http://ged.insead.edu/fichiersti/inseadwp2004/2004-08.pdf
Specific Example 2: Recommendations for Regional and Global Network Providers (Excerpt)
• Define roles and responsibilities between partners to minimize ambiguity and inconsistency. With more and more parties (both external and internal) involved in the supply chain, the principal provider must facilitate the process of functioning and management by designating where and from whom the primary provider would get support. This designation should be made explicit to the designee and appear as part of the operation process.
• Be predictive rather than reactive. ...
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