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    SIR A ENTREPfema)

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    Lhiereen Alimato
    Here are three reasons why most entrepreneurs become successful when they put up businesses abroad: 1. Access to new markets. Expanding business operations internationally provides access to larger consumer markets abroad. This significantly increases business opportunities and potential for greater sales, profits, and growth. Foreign markets may have higher demand for certain goods and services. 2. Lower production costs. Some countries offer lower costs of labor, materials, land, and other overheads of doing business. This improves profit margins. Setting up production facilities in such countries allows entrepreneurs to produce the same goods and services at lower costs. The cost savings can be passed on to consumers or used to gain competitive advantage. 3. Diversification of risks. Having business interests across multiple

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    SIR A ENTREPfema)

    Uploaded by

    Lhiereen Alimato
    23 views22 pages
    Here are three reasons why most entrepreneurs become successful when they put up businesses abroad: 1. Access to new markets. Expanding business operations internationally provides access to larger consumer markets abroad. This significantly increases business opportunities and potential for greater sales, profits, and growth. Foreign markets may have higher demand for certain goods and services. 2. Lower production costs. Some countries offer lower costs of labor, materials, land, and other overheads of doing business. This improves profit margins. Setting up production facilities in such countries allows entrepreneurs to produce the same goods and services at lower costs. The cost savings can be passed on to consumers or used to gain competitive advantage. 3. Diversification of risks. Having business interests across multiple

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    Here are three reasons why most entrepreneurs become successful when they put up businesses abroad: 1. Access to new markets. Expanding business operations internationally provides access to larger consumer markets abroad. This significantly increases business opportunities and potential for greater sales, profits, and growth. Foreign markets may have higher demand for certain goods and services. 2. Lower production costs. Some countries offer lower costs of labor, materials, land, and other overheads of doing business. This improves profit margins. Setting up production facilities in such countries allows entrepreneurs to produce the same goods and services at lower costs. The cost savings can be passed on to consumers or used to gain competitive advantage. 3. Diversification of risks. Having business interests across multiple

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    23 views22 pages

    SIR A ENTREPfema)

    Uploaded by

    Lhiereen Alimato
    Here are three reasons why most entrepreneurs become successful when they put up businesses abroad: 1. Access to new markets. Expanding business operations internationally provides access to larger consumer markets abroad. This significantly increases business opportunities and potential for greater sales, profits, and growth. Foreign markets may have higher demand for certain goods and services. 2. Lower production costs. Some countries offer lower costs of labor, materials, land, and other overheads of doing business. This improves profit margins. Setting up production facilities in such countries allows entrepreneurs to produce the same goods and services at lower costs. The cost savings can be passed on to consumers or used to gain competitive advantage. 3. Diversification of risks. Having business interests across multiple

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    Lesson 3:

    GLOBAL OPPORTUNITIES

    “Hindi ka dapat malungkot pag ikaw ay


    tinawag na kuripot,
    Tandaan na pinapahalagahan mo lang ang
    pera mo dahil hindi mo ito pinupulot”
    ECONOMICS INDIRECT EXPORTING

    GLOBAL ENTREPRENEURSHIP CULTURAL ENVIRONMENT

    INTERNATIONAL ENTREPRENEURSHIP DIRECT EXPORTING

    TECHNOLOGICAL ENVIRONMENT EXPORTING

    1. is the term used for the entrepreneurs who operate


    on global level and businesses worldwide.
    2. is the process of an entrepreneur conducting
    business activities across national boundaries.
    3. Creating a business strategy for multiple countries
    means dealing with different levels of economic
    development and different distribution systems.
     
    4. Involves a foreign purchaser in the local market or using an export management
    firm. For certain commodities, foreign buyers seek out sources of supply.

    5. An independent foreign distributor directly contacts foreign customers and takes


    care of all technicalities. Entrepreneurs who do not wish to give up control over
    marketing can open overseas sales offices and hire their own salespeople.
    Global entrepreneurship may have many
    challenges and opportunities that are
    discussed in this paper along with the ways to
    face those challenges. It is essential for the
    entrepreneurs to understand the global
    nature of the business and the environment
    they are operating in, in order to be
    successful. Global entrepreneurship is
    advantageous as it can also be taken by the
    corporate know-how and expertise which is
    available in other countries.
    Entrepreneurship is a common word
    nowadays but with the rise of globalization,
    global entrepreneurship has also become a
    well-known word. Global entrepreneurship is
    the term used for the entrepreneurs who
    operate on global level and businesses
    worldwide. Global entrepreneurship plays a
    key role in businesses today as many
    entrepreneurs look for multinational
    corporations to assess their leadership skills.
    THE IMPORTANCE OF INTERNATIONAL BUSINESS TO
    THE FIRM

    International business has become increasingly


    important to firms of all sizes. The successful
    entrepreneur will be someone who understands
    how international business differs from domestic
    business and is able to act accordingly.
    THE NATURE OF INTERNATIONAL ENTREPRENEURSHIP

    As more countries become market oriented and


    developed, the distinction between foreign and domestic
    markets is becoming less pronounced. International
    entrepreneurship is the process of an entrepreneur
    conducting business activities across national boundaries.
    It is exporting, licensing, or opening a sales office in
    another country. When an entrepreneur executes his or
    her business in more than one country, international
    entrepreneurship occurs.
    INTERNATIONAL VERSUS DOMESTIC
    ENTREPRENEURSHIP

    Whether international or domestic, an


    entrepreneur is concerned about the same
    basic issues-sales, costs, and profits. What
    varies is the relative importance of the factors
    being considered. International
    entrepreneurial decisions are more complex
    due to uncontrollable factors such as the
    following.
     

    ECONOMICS

    A domestic business strategy is designed


    under a single economic system. Creating
    a business strategy for multiple countries
    means dealing with different levels of
    economic development and different
    distribution systems.
    BALANCE OF PAYMENTS

    A country's balance of payments


    affects the valuation of its currency.
    This economic variable will affect how
    companies do business in other
    countries.
    POLITICAL-LEGAL ENVIRONMENT
    MULTIPLE

    Political and legal environments create different


    business problems. Each element of the
    international business strategy can potentially be
    affected by multiple legal environments. Laws
    governing business arrangements also vary greatly
    in the 150 different legal systems and sets of
    national laws.
    CULTURAL ENVIRONMENT

    The impact of culture on


    entrepreneurs and strategies is
    significant. Understanding the local
    culture is necessary when developing
    worldwide plans.
    TECHNOLOGICAL ENVIRONMENT

    Technology varies significantly across countries. New


    products in a country are created based on the
    conditions and infrastructure of that country. The first
    step in identifying markets is to analyze data in the
    following areas:

    1. Market characteristics.
    2. Marketing institutions.
    3. Industry conditions
    .4. Legal environment.
    5. Resources.
    6. Political environment.
    ENTREPRENEURIAL ENTRY INTO INTERNATIONAL BUSINESS

    The choice of entry method depends


    on the goals of the entrepreneur and
    the company's strengths and
    weaknesses.
    EXPORTING

    As a general rule, an entrepreneur starts


    doing international business through
    exporting.
    INDERECT EXPORTING

    Involves a foreign purchaser in the local


    market or using an export management
    firm. For certain commodities, foreign
    buyers seek out sources of supply. Export
    management firms, another indirect
    method, are located in many commercial
    centers.
     

    DIRECT EXPORTING

    Through independent distributors or through


    one's own overseas sales office is another entry
    method. An independent foreign distributor
    directly contacts foreign customers and takes care
    of all technicalities. Entrepreneurs who do not
    wish to give up control over marketing can open
    overseas sales offices and hire their own
    salespeople.
    ENTERPRISE DEVELOPMENT AND COMPETITIVENESS

    Enterprise development in the context of


    competitiveness not only entails the ability to
    produce products that can be accepted globally
    but also the level of support given to enterprises
    to help them produce, innovate, and gain market
    access.While relatively mature and free,
    enterprise development in the Philippines is beset
    with critical challenges.
    These challenges are found within the context of
    pillars identified by the United Nations Development
    Programme in its report Unleashing
    Entrepreneurship:
    rule of law, physical and social infrastructure,
    domestic macro environment, and global macro
    environment; a level playing field, access to
    financing, and access to skill development and
    knowledge. If the challenges remain unresolved,
    gaps in enterprise development have the potential to
    thwart the country’s competitiveness and ability to
    effectively function within global product.
     
    Identifying Business Opportunities in the Environment and Global
    Opportunities
    Modified True or False: Write True if the statement is true and if other
    change the underline words to make it correct.

    ____1. Serves as the fuel that keeps the business operating is


    called skills.
    ____2. Common examples of service based businesses are
    consultancy, barber shop, repair shops, beauty parlor, care giving,
    and designing works.
    ____3. Political and legal environments create different business
    problems.
    ____4. Global entrepreneurship is the process of an entrepreneur
    conducting business activities across national boundaries. It is
    exporting, licensing, or opening a sales office in another country
    ____ 5.The productive resources in the rural sector are sleeping
    business potentials.
    _____6. In selecting a business, option should not be
    based on luck and immature thinking.
    ____7. Business market of individuals should match
    business opportunities. For example, if one is a good
    cook, he could venture in the food business.
    ____8. These are tools for evaluating the strengths,
    weaknesses, opportunities, and technology associated
    with a particular product or service.
    ____9. Trading Or product-based business is a buy-and-
    sell transaction that can happen in your storehouse,
    showroom, or any other structure less environment
    ____10. National entrepreneurship is the term used for
    the entrepreneurs who operate on global level and
    businesses worldwide.
    ASSIGNMENT:

    Cite three (3) reasons why most of the


    entrepreneurs became successful when
    they put up businesses abroad?
    Explain comprehensively.

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