Can anyone help write an introduction and conclusion to the report below:
When considering global expansion international managers
must decide on the best means of entering an overseas market. The five basic ways to expand oversees are
exporting, licensing, franchising, joint ventures, and wholly owned
subsidiaries. Adding a line of clothes
to Travel Wise’s products would mean evaluating new design and manufacturing
alternatives both in the U.S. and abroad.
I would recommend using a joint venture with a host country company as
an entry mode for its new line of travel clothing in the U.S. and foreign
markets. Joint ventures are formal
business agreements. A joint venture
could be beneficial to the company in the U.S. and foreign markets by allowing the
host country company’s knowledge of the markets and industry to take the business
forward profitably. A joint venture
could also be beneficial for Travel Wise to broaden it horizon in the U.S. and
foreign markets by introducing new products through an internationally known
company familiar with clothing production.
A joint venture could also be beneficial for Travel Wise because it cuts
developmental and production costs in half.
This could be a bad thing when risks are involved. A joint venture with an internationally known
company could help Travel Wise to get its new clothing line started and get it
recognized. Internationally known
companies can help people see and recognize Travel Wise’s new clothing line as
more than just travel accessories.
Disadvantages to joint ventures include loss of control over technology,
disagreements, and conflicts between partners.
Many companies who enter a joint venture have conflicts over who
controls what and eventually lose money or fail. Before Travel Wise enters a joint venture,
experienced managers should iron out technology, control, and other potential
conflicts that arise when entering new markets.
1 PART 2
Should the clothing be outsourced to suppliers overseas,
or should Travel Wise consider building its own manufacturing facility here in
the United States?
There are many factors to consider when deciding on
whether to outsource the clothing manufacturing line of business or keep it in
house. The biggest one is cost. An argument can be made to keep this in the
United States because when expanding into new products or lines of business, it
is advantageous to keep the functions close to home so that they can be closely
managed and supervised. However, the
facility in this case would be very costly.
Travel Wise is already successful in the way they conduct their current
business, outsourcing most of the goods it already sells; this particular line
of business can be performed overseas much cheaper and probably more quickly as
well. Kirsch can discuss Travel Wise’s
requirements and negotiate with existing manufacturers that already have
experience in clothing manufacturing. She
can even discuss the new ideas with her existing suppliers, maybe one of them
can manufacture and provide these products as well. This could eliminate some of the management
issues of not being readily available and close to the functions, and it could
result in some financial savings with additional products and volume. So outsourcing is the better option.
Although it sounds like Travel Wise has done its
homework, Kirsh can benefit by reviewing some key practices to establish a
strategic and balanced outsourcing relationship. Accenture is a world leader in outsource
consulting as its “experience and global capabilities make us a world leader in
application outsourcing, infrastructure outsourcing, business process
outsourcing, and bundled outsourcing” (Salvino, 2012). Travel Wise should use an end-to-end approach
of the business process, including outsourced processes, create to
collaborative governance to understand everyone’s objectives and to resolve
conflicts quickly and fairly, focus on long-term value and not just cost
reductions, and rely on and use others’ expertise and knowledge (Salvino,
2012). By keeping these things in mind,
Travel Wise should be successful in its expansion into the clothing line.
Learning Team Discussion Response
for Week 4 (QUESTION 3)
There are many different types of
relationships that Travel Wise could forge in other countries to produce
accurate, up-to-date, insightful travel guides. One of the biggest is to have a
friendly, open and honest relationship with the other countries. In order to do
this, Travel Wise must learn the different customs and cultures that other
countries follow. Some countries speak different languages compared to us,
others follow different hierarchies and customs compared to our country, and some
countries have different ways of doing business. Take for example, if Travel
Wise wanted to do business with India, they would need to realize that India
have many different languages that they speak, some of them not recognized by
their own government (India-Language, Culture, Customs and Etiquette, 2004).
India has some different and some of
the same hierarchies compared to us, which are as followed:
The influences of Hinduism and the tradition of
the caste system have created a culture that emphasizes established
Indians are always conscious of social order and
their status relative to other people, be they family, friends, or strangers.
All relationships involve hierarchies. In
schools, teachers are called gurus and are viewed as the source of all
knowledge. The patriarch, usually the father, is considered the leader of the
family. The boss is seen as the source of ultimate responsibility in business.
Every relationship has a clear- cut hierarchy that must be observed for the
social order to be maintained. (India-Language, Culture, Customs and Etiquette,
The Role of the Family is very important to
India people. The roles of India people are:
People typically define themselves by the groups
to which they belong rather than by their status as individuals.
is deemed to be affiliated to a specific state, region, city, family, career
path, religion, etc.
group orientation stems from the close personal ties Indians maintain with
their family, including the extended family.
extended family creates a myriad of interrelationships, rules, and structures
and along with these mutual obligations comes a deep-rooted trust among
relatives. (India-Language, Culture, Customs and Etiquette, 2004).
Etiquette and Customs
in India are the following:
Religion, education and social class all influence
greetings in India.
This is a hierarchical culture, so greet the
eldest or most senior person first.
When leaving a group, each person must be bid
Shaking hands is common, especially in the large
cities among the more educated who are accustomed to dealing with westerners.
Men may shake hands with other men and women may
shake hands with other women; however there are seldom handshakes between men
and women because of religious beliefs. If you are uncertain, wait for them to
extend their hand (India-Language, Culture, Customs and Etiquette, 2004).
Business Etiquette and Protocol in India
are the following:
Indians prefer to do business with those they
Relationships are built upon mutual trust and
In general, Indians prefer to have long-standing
personal relationships prior to doing business.
It may be a good idea to go through a third
party introduction. This gives you immediate credibility.
If you will be travelling to India from abroad,
it is advisable to make appointments by letter, at least one month and
preferably two months in advance.
It is a good idea to confirm your appointment as
they do get cancelled at short notice.
The best time for a meeting is late morning or
early afternoon. Reconfirm your meeting the week before and call again that
morning, since it is common for meetings to be cancelled at the last minute.
Keep your schedule flexible so that it can be
adjusted for last minute rescheduling of meetings.
You should arrive at meetings on time since
Indians are impressed with punctuality.
Meetings will start with a great deal of
getting-to- know-you talk. In fact, it is quite possible that no business will
be discussed at the first meeting.
Always send a detailed agenda in advance. Send
back-up materials and charts and other data as well. This allows everyone to
review and become comfortable with the material prior to the meeting.
Follow up a meeting with an overview of what was
discussed and the next steps (India-Language, Culture, Customs and Etiquette, 2004).
Indians are non-confrontational. It is rare for
them to overtly disagree, although this is beginning to change in the
Decisions are reached by the person with the
Decision making is a slow process.
If you lose your temper you lose face and prove
you are unworthy of respect and trust.
Delays are to be expected, especially when
dealing with the government.
Most Indians expect concessions in both price
and terms. It is acceptable to expect concessions in return for those you
Never appear overly legalistic during
negotiations. In general, Indians do not trust the legal system and someone's
word is sufficient to reach an agreement.
Do not disagree publicly with members of your
Successful negotiations are often celebrated by
a meal (India-Language, Culture, Customs and Etiquette, 2004)
Business attire is conservative.
Men should wear dark colored conservative
Women should dress conservatively in suits or
The weather often determines clothing. In the
hotter parts of the country, dress is less formal, although dressing as
suggested above for the first meeting will indicate respect (India-Language,
Culture, Customs and Etiquette, 2004).
In order for Travel Wise to form a relationship with India
to produce accurate guides, they need to have an open and honest relationship
with the country. They also must follow the customs and cultures of the India