International Business Entry Strategy: Examining Choice of Entry and Risk Management

Justification of Research Topic

The purpose of this research is to examine the international expansion, choice of entry, risk of entry and how international entry mode can be controlled. Entry mode is critically addressed in the international marketing context. The research answers questions suitable for the emerging situation of internationalisation and its phenomenon.

This research work examines a range of entry strategies which including the collaboration of the elements of export and exporting in the International business strategies.

The research work clarifies what strategies companies may adopt in entry modes to operate effectively in the International business.

In this research, the researcher tends to understand why and how companies operate in the foreign direct investments.

The research work considers the major motives that guide foreign investment and managers when choosing a collaborative arrangement for international business management.

The researcher tends to examine what companies that what to consider when entering arrangements with other companies and managing diverse collaborative arrangements for successful international business.

Arnold, et al. (2003) argued on the mirage of global market and globalising companies can succeed. According to (Collinson, et al, 2017) discussed about how international investors can successfully choose their mode of entry. Also, Arnold 2000 suggested seven rules of international distribution. Data, et al. 2002, cchoice of foreign market entry modes and critical review for critical review and future directions on international mode of entry.

The research work aims to answer: What is the mode of international business entry suitable for a company to adopt?

How can foreign investors prevent competitors from gaining access to proprietary information of their companies?

How can foreign investor choose the best international mode of entry for a successful international business?

“Companies generally want controlling interests in their foreign operations for three reasons:

• internalisationobjectives

-More profitable to control operations internally (transaction cost theory)

-Strategically preferable to control operations internally        

• appropriabilityobjectives

-Foreign investment is favored as a way to prevent potential competitors from gaining access to proprietary information (intellectual property and managerial know-how)     

• globalisation objectives
• -Foreign investment provides the freedom to pursue global or transnational objectives by optimizing corporate strategies`External influences upon a firm’s decision to handle its international operations itself or to collaborate with other companies include:
  • physical factors
  • societal factors
  • the competitive environment
• Internally, the mode of entry decision is influenced by a firm’s own objectives and strategies.
• The truly experienced multi-national enterprise selects modes of entry according to the its capabilities, specific product characteristics, and foreign operating characteristics”.   

Please provide a brief summary of the methods and data you intend to use in order to carry out your research project

This research work uses qualitative and quantitative materials from legitimate sites, diary articles and RGU database, industry reports, academic journals, journal articles, industry reports, books and textbooks, media publications. The theoretical aspects of the research rely on previous existing information methodology of internationalisation of the past

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Date: 28/02/2021