M Marketing
6th Edition
ISBN: 9781259924033
Author: Levy Grewal
Publisher: Mcgraw-Hill
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Question
Chapter 8.3, Problem 1PC
Summary Introduction
To determine: Least risky entry strategy and the reason to consider it least risky.
Introduction: The approaches used by a firm to enter into a market for doing business are known as the entry strategy of the firms.
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Order the modes of entry in terms of associated costs and risks from smallest to largest:
Costs:
Risks:
List and briefly describe the three political and economic risks encountered when entering a foreign country.
Give typing answer with explanation and conclusion
Mr. Chen approached your consulting firm for advice regarding international expansion. His hotels and resorts company, Saujana Permai Holdings, has been operating in Malaysia for more than 10 years and now seeks opportunities outside the country. However, Mr. Chen related to you that his firm lacks the experience in international business operations and has a limited budget in terms of financing; therefore he is looking at small to medium scale entry modes.
As a consultant, propose two types of entry methods which may be used by his company. Justify to Mr. Chen also why the entry methods are suitable for his business organization
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