international entrepreneurship
LaSquadra01
6GN502IntEntpModuleSummaryL122021-22Collab1.pptxWelcome to International Entrepreneurship – 6GN502 & Developing a Global Enterprise – 6GN509 Lecture 12 – Module Summary
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What Did We Learn in the Module?
You need to structure the answer around a model, framework or theory as this provides:
Academic underpinning
A process to follow
Discussing and negotiating with others helps clarify and extend your own point of view
Your sources need to be of good quality and referenced
You need to move beyond the descriptive listing of facts and data to provide an analysis, evaluation or judgement, based on those facts
You must both critically evaluate & reflect on your actions
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Wider Context for Int. Ent’p.
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How does the cost of a 3-minute call from London to New York today compare to 90 years ago?
In 1927, cost was $75 for 3 mins
Capacity was one call at a time
(AT&T, 2004)
In 2021, cost is essentially free via Skype / Facetime
Capacity is rather more than one!
Globalization
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Globalization vs Localization
Standardization and cost reduction – Levitt (1983)
Local adaptation and responsiveness – Douglas and Wind (1987)
Arbitrage, esp at country borders – Ghemawat (2007)
(Hill, 2014)
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Global standarization
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Culture
Shared, internalised values & beliefs and common ways of thinking & behaving, which are developed and then reinforced through social pressure
https://www.hofstede-insights.com/product/compare-countries/
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Entrepreneurship
Give three skills, attributes or behaviours which an entrepreneur may have.
Creativity, conceptualisation, innovation & problem solving
Opportunity recognition, creation & evaluation
Decision making supported by critical analysis & judgement
Implementation of ideas through leadership & management
Financial & business literacy to create new ventures
Reflection & action orientation
Interpersonal skills inc. influencing, networking, negotiating
Communication & strategy skills
Self-confidence & perseverance (QAA, 2012)
NB: See also Jain (2011)
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Entrepreneurial Competences
| 1. Ideas and Opportunities | 2. Resources | 3. Into Action |
| 1.1 Spotting opportunities | 2.1 Self-awareness and self-efficacy | 3.1 Taking the initiative |
| 1.2 Creativity | 2.2 Motivation and perseverance | 3.2 Planning and management |
| 1.3 Vision | 2.3 Mobilising resources | 3.3 Coping with risk, ambiguity & uncertainty |
| 1.4 Valuing ideas | 2.4 Financial and economic literacy | 3.4 Working with others |
| 1.5 Ethical and sustainable thinking | 2.5 Mobilising others | 3.5 Learning through experience |
McCallum et al (2018)
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International Entrepreneurship
“the process of an entrepreneur conducting business activities across national boundaries”
(Hisrich, 2013)
“a combination of innovative, proactive and risk-seeking behaviour that crosses national borders and is intended to create value in organizations”
(McDougall & Oviatt, 2000)
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| Born Global (BG) | Enduring Global (EG) |
| Early Exporter (EE) | Mature Exporter (ME) |
Time
Young
Mature
Low
High
Degree of International-isation
IE Firm Typologies
(Peiris et al, 2012)
6 yrs
70% FSTS
Globalization making process faster
More customers, but more competitors
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Integrative Model of IE
(Peiris et al, 2012)
* International Opportunity Development
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International Opportunities Process
Tabares (2021)
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Barriers to Internationalisation
Lack of knowledge of potential markets
Lack of qualified export personnel
Lack of technical suitability
Degree of competition in the sector
Lack of financial assistance
Lack of qualified human resources
(Pinho & Martins, 2010)
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Idea or opportunity? The DIFA model
An opportunity has:
Demand - actual or potential customer need, ability to pay - viability
Innovation - a product, service or technology can be provided
Feasibility - technology & resources exist & can be sourced
Attraction - benefit for customer & interest for you
Is yours an idea or opportunity?
Rae (2015)
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Opportunity evaluation
Why there is a perceived opportunity; what and where it is
The market opportunity for the business; its size, value and duration
Key market segments and customer groups, their preferences and how to reach them
The industry structure, driving forces and competition
The dynamic effects of change on the industry
Who is likely to support or invest in the business
The options, resources and key factors for the business project
Rae (2015)
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International Market Selection Process
The process you will need to follow, using appropriate models, etc is:
Research products (eg features/benefits, competitors etc)
Research appropriate markets (eg size, growth, customers etc)
Research countries/regions (eg finance, culture, ease etc)
Critically analyse , synthesize and evaluate your information
Decide on and justify the target markets/segments to enter
Products
Markets
Target Market/Segment at Intersection
Countries
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Market Screening
Develop appropriate indicators – reduces risk as informed decisions
Collect data and convert into comparable indicators.
Establish an appropriate weight for each indicator.
Analyse the data
Select the appropriate market from the market rankings.
(Hisrich, 2013)
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So here is a simple five-step model for selecting a market.
Develop appropriate indicators
Collect data and convert into comparable indicators.
Establish an appropriate weight for each indicator.
Analyse the data
Select the appropriate market from the market rankings.
Hollensen (2011)
Market Screening
Alternative visualisation of market selection
Note the funnelling to remove potential markets at each stage
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Lee & Carter (2009)
Market Screening
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Market Screening
Root (1998) Johansson (1997)
From Musso & Francioni (2012), who show most important factors are market attractiveness, type of product and country attractiveness
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Country Attractiveness
Hill (2014)
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Entering a market
Some of the alternatives:
Go it alone
Direct exporting
Indirect exporting
Wholly owned subsidiaries
Turnkey contract
Partner with target country entrepreneurs?
Licensing
Franchising
Joint Ventures (Hisrich, 2013)
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TOWS Matrix for Market Entry
Weihrich
(1982)
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Mother of 3:
International Market Segmentation
Access
Safety
Vision
Mexico:
State of roads
Suspension
Sales reps:
Prestige
Fast
Comfortable
South Africa:
Car-jacking
Security
London:
Congestion charge
Electric
City Office Worker:
Small
Easy to park
Economical
Worldwide car market
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Consumer markets
Socioeconomic
Demographic
Psychographic / lifestyle
Perceptions / beliefs
Purchase occasion
Impulse
Needs / benefits
Business markets
Customer size
Industry
Geographic
Usage
Occasion / situation
Formalised process
Needs / benefits
International Market Segmentation
(Many marketing texts!)
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International Market Segmentation
Within country strategy
Morrison (2009)
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International Marketing Mix
Consider influence of globalization and culture
Terms of contract and Incoterms
Currency
Morrison (2009)
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Entrepreneurial Strategy
Online Entrepreneurial Strategy
Relationship building & simple website are key
No traffic, no business
Traditional Strategic Models
E.g. Five forces, Value chain, Ansoff, RBV, GE matrix, etc…
Sheth & Ram Drivers of Innovation (1987)
Porter’s Generic Strategies (1985)
Innovative Entrepreneurial Strategic Models
Chan Kim & Mauborgne’s Blue Ocean Strategy (2005)
Osterwalder’s Business Model Canvas (2013)
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Business Model Canvas
( Osterwalder, 2013)
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Process to Follow for Assignment
Research products (eg features/benefits, competitors etc)
Research appropriate markets (eg size, growth, customers etc)
Research countries/regions (eg finance, culture, ease etc)
Critically synthesize, analyse and evaluate your information (remember your market screening, funneling approach!)
Decide on and justify two target markets to enter
– one inside EU / one outside EU
Explain what market entry strategies you would use, why these are appropriate and how you would apply them
Demonstrate what marketing mix you would use and how you would implement these, inc any necessary product changes
Explain your reasoning & justify all decisions
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Assignment: CW1 - Process
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Critical Evaluation
Identifying and challenging assumptions, with evidence
Awareness of historical, social and cultural context
Being appropriately sceptical (Thomas, 1993)
Bourner
(2003)
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Reflection
What > So what > Now what (Driscoll, 1994)
Description > Interpretation > Future Action (Cameron, 2010)
Bourner
(2003)
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International Entrepreneurship
&
Developing a Global Enterprise
Thank You and Good Luck.
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