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Stages in the Internationalisation Theory

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Introduction

Answer 1 Introduction "Internationalisation is a process by which firms increase their awareness of the direct and indirect influence of international transactions on their future, and establish and conduct transactions with other countries." (Beamish & Calof, 1990) Stages in the Internationalisation Theory It's imperative to understand and evaluate the different stages that an organisation goes through in an Internationalisation Process. Market Research: It's important for any given organisation to conduct through Market Research before entering foreign markets, conducting combinations of Primary and Secondary market research would enable the organisation to get a bigger picture of future profitability and viability scenarios. Badly conducted market research would plainly result in the organisation loosing out on valuable resources as there is little margin for errors at this point of time. (Jobber & Lancaster, 1997, Pg 216-220) Modes of Market Entry: There are various choices of foreign market entry, which ranges from exporting, licensing, franchising, strategic alliances, foreign direct investment, mergers/acquisitions. Thus, depending on experience, risk taking, commitment and resources available, firms choose between ranges of foreign market entry and make choices about whether to 'go in alone' or cooperate with other partners, agents, distributors and so on. (URL:http://www.tukkk.fi/intercrafts /2sisaltomoduuli.htm,Last Viewed: 11/04/04) Learning in Internationalisation Theory Organisational learning is the development of new knowledge or insights that have the potential to influence the given organisation in regard to future profitability and viability. The organisations that are willing and eager to learn new values in accordance to the new functioning environment would settle down much faster than those who learn through trial and error. ...read more.

Middle

3. Shipping Facilities: Sri Lank enjoys an excellent geographic location from the point of shipping; they have excellent shipping facilities with easy access to Asian, European and USA markets. Colombo, Galle and Trincomaleee have large shipment capacities and excellent facilities for incoming and outgoing cargo. This makes it easier for Ansell International to ship finished products to all major international markets at an extremely reasonable cost. (URL: http://www.is.lk/spot/worldrep/articl10.html, Last Viewed: 14/04/04.) 4. Government Policies: The Government not only wants to encourage foreign investment in their countries in regard to foreign exchange generation but at the same time are doing a lot to encourage the rubber plantation industry on a whole. They want to provide the necessary infrastructure and subsidies to those companies who want to encourage rubber plantation in Sri Lanka. This gives Ansell International an excellent opportunity to make a stead base and long time investment in this country. 5. Security Arrangements: The Government of Sri Lanka is committed to provide adequate security arrangements to those international companies who would come in and set up their manufacturing unit in the country, considering the fact that any international corporation would not compromise security for any other benefits. Analysis Right from the manufacturing prospective Alabama is going to be an extremely expensive preposition considering that fact that manpower is extremely expensive in comparison to Sri Lank. On the other hand Ansell International can derive all the other benefits of cheap labor, raw materials and shipping facilities from Sri Lanka. ...read more.

Conclusion

The company has sound cash generation and has been booking steady profits in all the markets it's operating in. The steady growth rate will not only increase the share value of the company in the future but would also attract new investments as the company moves on towards the new millennium. Products and Scope in the next Millennium Ansell International has been operating and manufacturing products in three broad market segments, Professional Healthcare products comprising of Surgeons and examination gloves, Occupational Healthcare products comprising of Industrial hand protection and Consumer Healthcare that manufactures condoms and household gloves. The present trends show that those major market segment sales come from Occupational Healthcare products reaching close to 48% of the total company sales, followed by Professional Healthcare sales reaching 35% and Consumer Health Care close to 17%. Analysis The above trends clearly show that Ansell International needs to give good amount of weight age to its products in relation to the market share they enjoy or the profitability they produce for the company. Then need to invest more of their resource in the manufacturing of Occupational Healthcare products followed by Professional Health Care products as these products constitute nearly 83% of the companies over all sales figures. They need hold these products extremely important more from the strategic point of view as any further investment in this direction would bring in substantial returns to the company. It's also important for the company to keep expanding its base and operations in new markets exploring new opportunities that cannot be missed out on. (URL:http://www.ansell.com/investor/pdfs/AnsellAR03_Final.pdf, Last Viewed: 16/04/04) Multinational Marketing Management - 1 - By Rakesh Ramnani ID - 012RDDDCF03 ...read more.

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