Running head: ENTRY MODE FOR WeWork
Entry mode for WeWork
Date of submission
ENTRY MODE FOR WeWork
Businesses controlled by other companies can either be joint ventures or
wholly-owned subsidiary. The joint venture is a scenario where several companies jointly
control a company. On the other hand, a wholly-owned subsidiary is a case where one
company solely manages another business. WeWork is a real estate business that deals with
the provision of workspaces, which in most cases, are shared tech companies that are starting
up and services for other companies (Rayport, Gulick, & Preble, 2018). For a business to
open a WeWork company as a wholly-owned subsidiary or as a joint venture, several factors
are considered due to geographical distance. In this case, the CAGE distance framework is
used. Cage framework focuses on; cultural distance, administrative distance, geographic
distance, and economic distance (Kim, Kwon, Zhou, & Heo, 2019).
In the first case, we will consider the WeWork business is to be located in India.
Considering the cultural distance, there are more than 190 ethnic groups, and they speak
different languages. The communities there also have different religious practices and beliefs.
Most of the people have similar social norms in India. For administrative differences, there
are no colonial ties but political related issues and hostility. However, the government has
relatively favorable business policies, and the institutions there are substantially weak.
Exploring geographical distance, the place is far away, and the country has reasonably good
communication and transport facilities. The climate is favorable since the area is not very
cold or dry (no extreme climate). In terms of economic distance, the place seems not to be
financially stable and has high levels of poverty.
From the CAGE framework, it is clear that the c...
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