Question

Here is a list of various modes of entry into global markets
1. Direct Export
2. Licensing (manufacturing)
3. Licensing (franchising)
4. Management contract
5. Joint venture
6. Direct Foreign Investment: 100% share
7. Strategic partnership

For each mode, find an example about a company (or companies in the case of some of the models) that is using or that is planning to use the model to enter or strengthen its presence in a global market. The examples should be current e.g. since 2013.

When doing so, please report on these in the following manner:
Direct Export
1. What is a definition of this model?
2. Which company (or companies) is/ are involved?
3. In which market? When did this take place.
4. Why do you think this company (or these companies) chose this mode of entry for that market? Please be insightful here by referring to the pros and cons of the specific model concerned.
Please be sure to provide source URLs for any sources that you use.

Solution Preview

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I. Direct Export
1. Definition: the exporting of goods and services by the firm that produces them. They have 4 basic choices if they do not want to handle distribution themselves: a) manufacturer’s agents b) distributors c) retailers and d) trading companies.
2. Company: County governor Paul Chepkwony struck a deal with London based Sahara Communities Abroad (Sacoma) in order to represent local Kericho farmers in Africa with direct exporting.
3. Market and Time: The market is for organic produce (coffee, pumpkins, sweet potatoes, bananas and sorghum). Sacoma set up a sweet potato packaging plant in Koiyat Village to package organic sweet potatoes bought from local Kericho farmers. They will be labeled as ‘Produce of Kericho County’ and exported to the European Union. The deal was made last year and announced in April 2014 in Business Daily....

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