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The answer to Global Organization

1. Examine of the different types of business plans of a global organization. (300 words)

2. Who would you invite to a meeting to discuss your organization's global expansion objectives? Why would you invite each participant? What would be your selection criteria? How would you setup the agenda for the meeting? (200 words)

3. What ethical factors may affect the choice of countries in which to develop your organization? How might these factors affect your mode of entry into a country? If the target country has different ethical perspectives than your own ethical perspectives, how might these perspectives affect your expansion objectives and mode of entry decisions to enter this country? (200 words)

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1. Examine of the different types of business plans of a global organization. (300 words)

A global organization can pursue different type of business plans or in other words, chose different mode of entry to conduct business in nations across the world. One of the most popular form of doing business in other countries is exporting. Global organizations exploit market opportunities in other countries across the world by directly exporting to customers across the world, without setting up any offshore subsidiaries or offices in different countries. This is one of the most simplest, safe and cost effective form of doing business in global markets.

Another popular business plan is setting up wholly owned subsidiaries in countries across the world. Global business organizations set up wholly owned subsidiaries in foreign nations either to set up manufacturing units to take advantage of low cost labor, etc. or to exploit market opportunities in that nation by setting up manufacturing or distribution office. Establishment of wholly owned subsidiaries can lead to substantial investments by the global corporation. Further, there are significant risks related to repatriation, taxes, socio-cultural and political risk associated with wholly owned subsidiaries.

Another form of business plan of global organization is setting up Joint Ventures with local partners in different countries across the world. JV allows global corporations to expand their presence by utilizing the knowledge, experience and infrastructure of local partners who have extensive presence in local markets and possess significant infrastructure, marketing and distribution presence. For example, retail companies expand their global presence by entering into JV with local retail chains.

Licensing is another strategy wherein global ...

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Examine of the different types of business plans of a global organization