David Paez
Analyse the effectiveness of the strategies and
resources used by a selected international
business
Every business is required to develop efficient strategies for the operations of their
business activities, having said this, it is worth mentioning that it is key for
international business to embrace a number of different strategies essential for the
running of the business for different international environments. Strategies need to
be intended for each operational factor of the business as well as it needs to be
made especially for each market.
Within the strategies mentioned previously, I am going to explain 6 strategies that
may be used by Amazon in order to run the business more effectively, including:
● Subsidiary business
● Joint ventures
● Partnerships
● Agencies to change
● Licensing to business
● Franchising
Subsidiary business
A subsidiary business is a type of business where the parent company has got a
holding in its shares of 50% or even more; It is controlled by the parent company but
can operate in another country. With subsidiary business, the subsidiary has to
follow the laws of the country in which they are operating as well as pay relevant
taxes and other business expenses when needed.
There are 2 main ways to build a subsidiary business of a parent company:
1. A business can be set up in the new country as a subsidiary of an existing
company.
2. An existing business can be taken over
In terms of legal responsibilities, subsidiary businesses operate in their own right,
which means they have their own legal liabilities. There are benefits to buying and,
therefore, owning a subsidiary for international operations.
Analyse the effectiveness of the strategies and
resources used by a selected international
business
Every business is required to develop efficient strategies for the operations of their
business activities, having said this, it is worth mentioning that it is key for
international business to embrace a number of different strategies essential for the
running of the business for different international environments. Strategies need to
be intended for each operational factor of the business as well as it needs to be
made especially for each market.
Within the strategies mentioned previously, I am going to explain 6 strategies that
may be used by Amazon in order to run the business more effectively, including:
● Subsidiary business
● Joint ventures
● Partnerships
● Agencies to change
● Licensing to business
● Franchising
Subsidiary business
A subsidiary business is a type of business where the parent company has got a
holding in its shares of 50% or even more; It is controlled by the parent company but
can operate in another country. With subsidiary business, the subsidiary has to
follow the laws of the country in which they are operating as well as pay relevant
taxes and other business expenses when needed.
There are 2 main ways to build a subsidiary business of a parent company:
1. A business can be set up in the new country as a subsidiary of an existing
company.
2. An existing business can be taken over
In terms of legal responsibilities, subsidiary businesses operate in their own right,
which means they have their own legal liabilities. There are benefits to buying and,
therefore, owning a subsidiary for international operations.
