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ASSESSING THE ENTREPRENEURSHIP ENVIRONMENT (Available Distribution System,…
ASSESSING THE ENTREPRENEURSHIP ENVIRONMENT
Entrepreneurial Entry Strategies
Direct Foreign Investment
Joint ventures
Joining of two firms in order to form a third company in which the equity is shared
Majority interest
Purchase of over 50 percent of the equity in a foreign busines
Minority interests
Investing entrepreneur holds a minority ownership position in the foreign ventures
Mergers
Obtaining 100 percent ownership to ensure complete control
Horizontal merger
Vertical merger
Product extension merger
Project extension merger
Diversified activity merger
Non-equity Arrangement
Obtaining sales and profits without direct equity investment in the foreign market
Management Contracts
Contracting management techniques and skills to a purchasing company
Turn-key Projects
Supplying the manufacturing technology or infrastructure for a business and then turning it over to local owners
Licensing
In return of payment of royalty, giving a foreign manufacturer the right to use a:
Patent
Trademark
Technology
Production process
Product
Exporting
involves the sale and shipping of products manufactured in one country to a customer located in another country
Direct
Indirect
Opportunity Recognition and the Opportunity Assessment Plan
Second section
Any research market data available to describe this market need
The size, trends, and characteristic of the domestic and/or international market
The growth rate of the market
Third section
How does the product/service idea fit into your background and experience?
What business skills do you have?
What business skills are needed?
First section
A description of the product or service
The market need for the product or service
The competitive products available filling this need and their feature
Fourth Section
Determining the sequence of activities and putting these critical steps into some sequential order
Determining the total amount of time and money needed
Identifying the source of this needed money
Information Sources
-Assistance
-General information
-Industry and Market Information
-Competitive Company and Product Information
-Government Sources
-Search Engines
-Trade Associations
-Trade Publications
International Versus Domestic Entrepreneurship
Stage of Economic Development
Economics
Current Account
Type of Economic System
Political-legal Environment
Language
Culture
Economics and economic philosophy
Education
Political Philosophy
Religion
Manners and customs
Language
Social structure
Available Distribution System
Overall sales potential
Cost of the product
Amount and type of competition
Geographical size and density
Investment policies
Exchange rates and controls
Level of political risk
Overall marketing plan
Foreign Market Selection
Develop appropriate indicators
Collect data and convert into comparable indicators
3.Establish an appropriate weight for each indicator
4.Analyze the data
5.Select the appropriate market from the market rankings