A Restaurant in Australia

W. Chan Kim and R.A. Mauborgne in Journal of Business Strategy suggest that multi-national companies must recognize and address six major barriers to market entry. The barriers are: the need for product differentiation, economies of scale enjoyed by existing local competitors, switching costs for customers as well as a reluctance to switch, local capital requirements, access to local distribution channels, and cost disadvantages to the multi-national company that are independent of the scale of the operation. Even a decision to acquire an existing company through a stock purchase may result in a backlash among local customers. American companies must always be cautious of anti-American sentiment or strong feelings of nationalism or bias on the basis of national origin (Kim, Mauborgne 33).

Brenda Sunoo in Workforce (1998) sugg

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pect more time off from work than American workers. Family life and family time with friends are considered a high priority, possibly higher than the work itself, for most Australians (Campbell, 2002, 91). Warren Keegan writes in Multinational Marketing Management when a company decides to go international, it has several options. One involves exporting, which requires a limited investment. Another involves licensing, which also requires a relatively low level of investment. Another option would involve the creation of joint ventures which, as the name suggests, involves sharing risks in foreign markets between a local company and a foreign investor. The most extensive form of participation in international markets involves total ownership of a foreign investment (Keegan, 244). According to Peter Meyer, the costs that any company considering entering a foreign market must evaluate are: The cost of entry in the market The opportunity cost associated with other investment options, and The risk of losing most or all of the initial investment through some form of mistake, miscalculation, or misunderstanding The possibility that additional and unbudgeted costs will appear which would, in turn, raise the required initial investment
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Some common words found in the essay are:
Groenewold Tcha, Americans Australians, Labour Industry, Marketing Management, Peter Meyer, Business Strategy, Cleveland Business, Business Review, Takeovers Act, Population Research, direct investment, foreign direct investment, foreign direct, american managers, australian government, marketing management, doing business, australian employees, american investors, 2000 26, crain's cleveland, journal population research, keegan global marketing, kim ra mauborgne, cleveland business 2000,
Approximate Word count = 1987
Approximate Pages = 8 (250 words per page)

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