P6
explain the business strategies used by a business operating internationally
In this P I will explain the businesses strategies used by a business operating internationally.
I will do this by explaining 3 different businesses strategies that businesses that operate
internationally can use to succeed. These 3 strategies are:
Co-production
Joint venture
License
Co-production
Co-production refers to a way of working where two companies work together and
manufacture their products simultaneously. Companies can do this because of different
reasons, for example, Not having the resource or skill themselves, cost efficient, licensed
products. A company that is a good example for this is The Coca-Cola Company, Coca-Cola
is a company that sells soda. This means that packaging will be necessary, since the
company isn’t specialized in manufacturing packages they use a third for this.
One of the third parties that work together with Coca-Cola is Ardagh Group S.A. Ardagh is a
manufacturer of Glass and metal products. Ardagh is one of the manufacturers of the glass
bottles that Coca-Cola uses to sell their soda in. Together they will sell a product that we as
consumers know as the glass bottle with Coca-Cola.
Joint venture
When companies do a lot of business together for a long time, it can be interesting to look to
further business opportunities, this can be a fusion, a business takeover or a joint venture.
With a joint venture two or more companies work together, creating an new company. All of
the participating companies are all owners and share profits together. In a lot of cases a joint
venture is being started to infiltrate new markets, but it can also have different strategical
purposes.
A Joint venture seems similar to a merger. But where with a merger different companies
merge into one existing company, the participating companies keep their own businesses but
start a new one together. Another big difference is that all of the companies that agree to the
joint venture all have equal shares, this so that they will be equal to each other.
A good example of a great joint venture is the Air
France-KLM, delta air and virgin atlantic joint
venture. Together the companies had a 23% share
in the trans-Atlantic aviation market. This venture will
mean that customer can choose between 341
oversea flights a-day. This join venture will also
generate around 13 Billion dollars for the
participating companies.
explain the business strategies used by a business operating internationally
In this P I will explain the businesses strategies used by a business operating internationally.
I will do this by explaining 3 different businesses strategies that businesses that operate
internationally can use to succeed. These 3 strategies are:
Co-production
Joint venture
License
Co-production
Co-production refers to a way of working where two companies work together and
manufacture their products simultaneously. Companies can do this because of different
reasons, for example, Not having the resource or skill themselves, cost efficient, licensed
products. A company that is a good example for this is The Coca-Cola Company, Coca-Cola
is a company that sells soda. This means that packaging will be necessary, since the
company isn’t specialized in manufacturing packages they use a third for this.
One of the third parties that work together with Coca-Cola is Ardagh Group S.A. Ardagh is a
manufacturer of Glass and metal products. Ardagh is one of the manufacturers of the glass
bottles that Coca-Cola uses to sell their soda in. Together they will sell a product that we as
consumers know as the glass bottle with Coca-Cola.
Joint venture
When companies do a lot of business together for a long time, it can be interesting to look to
further business opportunities, this can be a fusion, a business takeover or a joint venture.
With a joint venture two or more companies work together, creating an new company. All of
the participating companies are all owners and share profits together. In a lot of cases a joint
venture is being started to infiltrate new markets, but it can also have different strategical
purposes.
A Joint venture seems similar to a merger. But where with a merger different companies
merge into one existing company, the participating companies keep their own businesses but
start a new one together. Another big difference is that all of the companies that agree to the
joint venture all have equal shares, this so that they will be equal to each other.
A good example of a great joint venture is the Air
France-KLM, delta air and virgin atlantic joint
venture. Together the companies had a 23% share
in the trans-Atlantic aviation market. This venture will
mean that customer can choose between 341
oversea flights a-day. This join venture will also
generate around 13 Billion dollars for the
participating companies.
