International Business Strategy Economic Theories

Question: Discuss about the International Business Strategy for Economic Theories. Answer: Introduction There are different types of the principles as well as the events which need to be considered for framing an international business model. In order to get the desired positive advantage within the international market segments, it is very crucial to understand the desired requirements of the business processes of the firm and moreover, the risks, as well as the mitigations of the country, needs to be analyzed properly as this will provide the desired elevation in the growth of the firm (Alred, Brusaw, Oliu, 2012). This research paper will help in explaining the desired principles as well as the events required for framing the desired perfect business model which will help a particular business to enter into the international market segments. It is very crucial to understand the different key economic theories as well as the events as this will help in the development of the desired business process model into a particular country. The definition of the business model critically eval uates the desired fact that a perfect model for the business consists of value propositions, finance value, value architecture and the value network. The economic consideration is of great importance as it helps in formulating the desired model for respective businesses of the concerned firm (Austrade, 2016). There are four of the vital business models such as the distributors, manufacturers, retailers and the franchises which help an entrepreneur to enhance the profitability of the concerned business process. Main context Global perspectives in strategic proposal A perfect framework for the desired business model plays the most significant role in developing the desired growth of the concerned firm. On the other hand, the value propositions need to be understood properly as these are considered to be the most significant factor in entering of a firm within the new country or in international market segments. The foreign direct investments have provided the desired platform for most of the global companies to enter the new business market segments and increase their overall profitability into different countries. The franchise business model helps in executing the business process of any of the firm being a manufacturer, retailer as well as the distributor in different countries throughout the world (Bento, Esteves, Agarwal, 2013). The CAGE framework for the development of the business model is crucial and it includes cultural distance, administrative distance, geographical distance and the Economic. It has been seen that the economic integra tion and the international system of monetary are of immense importance in relation to the global business perspectives. Moreover, the framework for the business model should be to provide desired competitive advantage within the international market segments. Key modern economic theories and key events in international business The business model needs to include the value proposition, value configurations, core capabilities, distribution channels, targeted customer segments, cost structure, revenue model, partner network and the desired relationship with the customers. Figure: General framework for business model The diagram presents the desired framework for the execution of the business process within the concerned global market segments. The international economics explains the desired pattern, transactions, and interactions among the different inhabitants of the different countries concerned. Economic integrations are considered to be the most significant factors in developing the business process throughout the desired market segments (Craig, R. 2013. The classical economic theory represents the international trade as the rational consequence which rises from inter-regional differences. The local retailers, as well as the distributors, will help in gaining the desired advantage over the other risks concerned with the implementation of the business process of the firm. The different technique of the neo-classical theory provides the desired competitive advantage throughout the pattern trade of the particular companies entering into the larger business market segments. The factors-price eq ualization generates the desired amount of impact on the international trade (Dale, B., Wiele, A., Iwaarden, J. 2013). The international trades product mainly resides into three of the broader categories such as the low-technology, high-technology and the common or average goods. On the other hand, it is very crucial to understand the desired risks and the mitigation while entering the different market segments of the particular country with the choice of a particular business process. Identifying and analyzing of the strategic issues Strategic gap analysis is considered to be vital in understanding the different strategic issues coming between the developments of the perfect business model. It helps in identifying the desired changes required for the execution of the concerned business process successfully. Moreover, the company needs to enhance the desired quality of all its products as per the satisfaction of the concerned customers within the targeted market segments (Greeff, G. Ghoshal, R. 2004). The gap reflects the subtraction of the current performance of the firm with that of the desired performance of that particular firm (Hall, D., Kirkpatrick, I., Mitchell, M. 2005). This analysis helps in reflecting the currents of the particular market segments and the consumers within that market segments. The variance among the current, as well as the desired performance, indicates the desired gap for the execution of the business process of the concerned firm. Strengths and weaknesses of the proposed business model and strategies for improvements The franchise business model has been used by many of the well-known firms such as McDonald Corporation, KFC, Vodafone and many other firms. It has certain strength as well as the few weaknesses. The strongest point of this business model is that company can enter into different countries and can enhance their profitability with the help of the other retailer or the local distributors residing within that particular firm (Hung, P. 2009). The brand name of the firm can be easily established and it will help in generating a large amount of the revenue which will provide the desired economic stability to the firm. Moreover, the local retailers, as well as the distributors, will help in gaining the desired advantage over the other risks involved with the execution of the business process of the firm. There is one of the crucial weakness that if there is the lack of the support from the employees to the concerned customers then it may hamper the entire business process which can result in fall down of the entire firm and it sometimes affects the brand name of the firm. Characteristics of the country including risks and mitigations as required by business model Entering into the market segments of Australia regarding the execution of the fast food business would be a better one as the demands for the fast food are increasing in quite large numbers. There are certain risks for establishing the business processes and the running it within the different market segments of Australia (Job, A. 2016). There are different risks which may be involved such as the political risks, legal risks, corruption risks, quarantine compliance risk, exchange rate risks, non-payment risks and managing the import risks (Kendrick, R. 2010). These risks are considered to be of great importance as these generate a large amount of impact on the entire business model framework. There is a crucial need for the formation of the risk management matrix which will help in reducing these risks while entering into the different market segments of Australia. The payments related to the export and the importing of the goods many create the desired risk for the concerned firm th e exchange rates, therefore, needs to be handed over on top priority. Ethical and the social considerations for the strategic issues In order to understand the desired strategic issues as well as to reduce these risks, the ethical and the social considerations are of immense importance. Moreover, there is a crucial need to understand the ethical, as well as the moral positions as this, will help in gaining the desired competitive advantage over the other firms concerned in that particular country (Khachidze, V. 2012). The leaders need to present their well-defined viewpoint based on the perfect moral-ethics. Impact of global competition on business model The globalization has created the desired impact on the execution of the business process within the international market segments. The franchise business model is considered to be beneficial for many of the well-known companies as it helps in expansion of the business process throughout different countries (Lee, G. 2010). There are well-known firms which have increased the competition significantly by delivering the high-quality value to all of the customers concerned. The global competition somehow affects this franchise business model and on the other hand, it presents the desired competitive for many o the firms functioning globally (Lester, A. Lester, A. 2007). Formation of the risk management matrix which will help in reducing these risks while entering into the different market segments of Australia. The organizational and the corporate plan helps in identifying the desired requirements of the customers and this will help in increasing the profitability as well as the product ivity of the concerned firm (M.E. Porter, M. 2015). The change in the desired trends has made it very crucial for the different firms to execute their business process as per the desired demands and the needs of the customers within the targeted market segments. Strategic development and the vision setting There is a crucial need to set the desired vision and mission as per the framework of the business model is concerned. Economic theories, as well as the principles of the business model, helps in enhancing the overall growth of the firm (Musik, N. 2014). The risks, as well as the mitigations, need to overcome for increasing the performance of the organization entering into the new market segments. furthermore, the limitations, as well as the implications related to the business process of the firm, needed to be researched on properly, as this will help in evaluating the desired growth of the concerned firm. Evaluation of the strategic position and the strategic options Positioning is another important thing which needs to be understood properly as this creates the desired impact on the minds of the customers. The business model needed to be developed as per the desired requirements of the concerned market segments as this will help in evaluating the desired growth of the concerned firm (Oakland, J. Oakland, J. 2004). The principles, as well as the events such as the value propositions and the value network along with the distribution channels, helps in increasing the profitability of the respective firm within the international market segments (Papp, J. 2011). Franchise business model provides the desired competitive position to the concerned firm in executing their business processes within the international market segments (Rugman, A. 2009). The management team of any of the concerned organization needs to plan the entire entry strategies with the help of the strategic choice as this provides the desired elevation in the establishment and the ex ecution of the business methods of the concerned firm (Van Hecke, M. 2010). Conclusion Global competition generates the desired impact on the different models by various methods. This research paper critically describes the general framework for the business model and it also reflects the principles and the events required for framing of the desired business model. The classical economic theory represents the international trade as the rational consequence which rises from inter-regional differences. A perfect model for the business consists of value propositions, finance value, value architecture and the value network. The foreign direct investments have provided the desired platform for most of the global companies to enter the new business market segments and increase their overall profitability into different countries. There are different risks which may be involved such as the political risks, legal risks, corruption risks, quarantine compliance risk, exchange rate risks, non-payment risks and managing the import risks. The desired risks and the mitigation while entering the different market segments of the particular country with the choice of a particular business process, needs to summarize properly. Management matrix helps in reducing these risks while entering into the different market segments of Australia. References Alred, G., Brusaw, C., Oliu, W. (2012).The business writer's handbook. Boston: Bedford/St. Martins. Austrade, a. (2016).Risk management - Austrade.Austrade.gov.au. Retrieved 3 July 2016, from https://www.austrade.gov.au/Australian/Export/Guide-to-exporting/Risk-management Bento, F., Esteves, S., Agarwal, A. (2013).Quality management in ART clinics. New York: Springer. Craig, R. (2013).The Everything guide to starting an online business. Avon, MA: Adams Media. Dale, B., Wiele, A., Iwaarden, J. (2013).Managing quality. Hoboken, NJ: Blackwell Publishing. Greeff, G. Ghoshal, R. (2004).Practical E-manufacturing and supply chain management. Oxford: Newnes. 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