University Of Finance & Administration INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D....

University Of Finance & Administration

INTERNATIONAL BUSINESS[B_IB]

Ing. Pavla Břečková, [email protected]

2.

INTERNATIONAL BUSINESS

Full-time course = 12 sessions á 90 mins. (summer term 2011) 1-2/ What is international business (IB). IB basic indicators - balance of trade / payment. Territorial / commodity structure of IB. Comparative advantage, free trade / economy. Protectionism x Liberalism. (14.2.2011)

3-4/ Internationalization, drivers. Entry modes and business activities in IB. International market research (PEST/STEEP), and linkage to Competition analysis (Porter) and SWOT. Data collection and their selection in the international environment. (28.2.2011) 5-6/ Guest lecture prof. Eric Severin (Lille University, France)

Individual TEAM work on the MARKET STUDY. (14.3.2011)

7-8/ Culture and its role in international business. Cultural elements and multi-culture communication. Hofstede’s five dimensions of culture differences.

Emerging markets, prospective territories. TEAM work presentations: foreign market study. (28.3.2011)

9-10/ Globalization – microeconomic and macroeconomic view. Drivers of globalization, pros & cons. International trade barriers. Forms of economic integration. EXPORT - microeconomic and macroeconomic view. Export risks and their elimination / securing.

TEAM work presentations: foreign market study. (11.4.2011)

11-12/ EASTER (25.4.2011)

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / [email protected]

3.

CREDIT conditions B_IB

CONDITIONS: PRESENCE at IB lectures: 60%

TEAM PRESENTATION – (market study) preparation at home: 15 min. presentation of team work – chosen MARKET STUDY

lecture marks based on active PARTICIPATION: communication, reading and discussing topical economic issues / team knowledge COMPETITION

If unfulfilled: 1. knowledge test / 2. semester elaborated paper + test


4.

Common session STRUCTURE

IB NEWS – small talk / discussion – topical business issues

LECTURE

READING – analyzing – interpretation of an article

(team work) / Prezentation of the materials prepared at

home

Team MARKET STUDY prezentation


5.

International ENVIRONMENT


GLOBAL

MACRO

MICRO

6.

INTERNATIONALIZATION – MICRO view


7.

INTERNATIONALIZATION – MACRO view


•Basic drivers of INT:

8.

Goods traded internationally - categories

For these reasons, GOODS which are traded internationally typically tend to fall into 4 broad categories:


9.

INTERNATIONALIZATION

•- various research approaches

INT = cover for international operations


10.

Dimensions of INTERNACIONALIZATION


11.

MOTIVES for foreign expansion


12.

Entry modes & business activities in IB


13.

INT. TRADE


14.

CONTRACTUAL international business activities


15.

INVESTMENT business activities


16.

International INVESTMENTS - generally


17.

Further IB operations / countertrades


18.

Decision making – foreign market evaluation

PEST / STEEP / STEEPLE analysis

Competition analysis (Porter)

SWOT analysis

BENCHMARKING

Emerging market trends

DATA collection: Secondary data

= was collected already Primary data

= necessary to obtain it


19.

Data collection

SECONDARY / desk • analysing of secondary data

• low cost

• quick execution

PRIMARY / terrain • collection & analysis of primary d.

• relatively high cost

• time-consuming


20.

Basic business analysis


21.

ŘÍZENÍ OBCHODU [ROb] Ing. Pavla Břečková, Ph.D. / [email protected]::

INT environment & its influence on business

IB works in a certain environment, which has an influence on:

Decision making WHETHER OR NOT to enter this market (market selection)

Entry mode (the form of entry)

Choosing of mktg strategy

PEST analysis = analysis of int.envi:Political & Legal e.Economical e.Social & Cultural e.Technological e.

22.

ŘÍZENÍ OBCHODU [ROb] Ing. Pavla Břečková, Ph.D. / [email protected]::

[PEST] P – Political & Legal environment

Legal environment: possibility to control ownership possibility to buy properties (lands, buildings) possibility to repatriate the profit abroad law enforcement possibility to set up a new company & finishing

entrepreneurship

Political environment: o political system and political stabilityo influence of interest groups / stakeholderso relation to foreign companieso corruption

23.

[PEST] (P) - LEGAL environment


24.

[PEST] (P) – POLITICAL environment


25.

[PEST] E – Economic environment

economic policy of government: o IB policyo rate policy

basic macro-economic measures and their development / trend

proportion of ‘grey economy’


26.

[PEST ] S – Social & Cultural environment

• Culture: Extent of freedom of society Hierarchy Value orientation (e.g.: western pattern etc.)

• Institutions:– Family – Religious bodies– Educational institutions

• Further factors:– Language– Non-verbal communication – Way of dressing – Aesthetics– Life styles


27.

[PEST] T – Technological environment

existence & quality of basic infrastructure

quality & availability of communication infrastructure: TV,

broadcast, phones etc.

IT – possibility of data transfer abroad =>

internationalization of services, standardisation

approach to information

E-commerce / e-business

B2C, B2B, C2C (e-Bay), C2B


28.

INTERNATIONAL BUSINESS

•CONSISTS IN:


- Internationalization, drivers of internationalization

- Dimensions of internationalisation: internal x external

- Motives for foreign expansion: proactive x reactive

- Entry / opeartional modes- Exporting

- Contractual

- Investment

- FDI x Portfolio investment

- Data collection / Primary x Secondary data

- Common business analysis (PEST/STEEP/STEEPLE – Competition analysis - SWOT)

- Countertrade operations (Barter, Switch, Counter purchase, Buyback, Offset)

29.

KEY terms


30.

Thank you for your attention

Ing. Pavla Břečková, [email protected]


University Of Finance & Administration INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D....

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