Contents
Introduction 2- Evaluation of Risk associated with Internationalization for SMEs 2
- Exporting as an Internationalization Strategy 3
- Benefit of Internet in Exporting Marketing Strategy 5
- Payment Methods 7
- Cash-in-advance 7
- Letter of credit 7
- Open Account 8
- Documentary collection 8
- Systematic approach to exporting and managing import-export transaction 9
- Conclusion 10
- References 12
Description
This report is based on the following task -
Although most companies expand abroad gradually, some smaller firms internationalise at or near the firm’s founding. The so-called born global firms represent a revolution in international business; their emergence suggests that companies can participate actively in foreign markets from an early stage.
Assume you are an International Business Consultant, and you have been approached by the Managing Director of Global Furniture Ltd., a young firm that manufactures office furniture. During your first meeting with the Managing Director he outlined his strong desire to generate more sales, and he believes this can be achieved only by expanding abroad, primarily through exporting. However, he is wary of internationalisation as he has no previous experience of marketing in foreign markets. He has asked you to prepare a report that:
• Evaluates the risk associated with internationalisation, particularly for small firms such as Global Furniture Ltd.;
• Examines whether exporting is the right internationalisation strategy for the firm compared to other options;
• Assesses whether the firm can benefit from using the internet in its export marketing strategy, and suggesting how;
• Compares the various payment methods and recommends the one(s) appropriate for the firm; and finally
• Recommends a systematic approach to exporting and managing export-import transactions for the firm.
