International Business Analysis

Topics: India, Reliance Industries, IKEA Pages: 29 (10694 words) Published: December 12, 2012

Foreign Market Entry Modes

The decision of how to enter a foreign market can have a significant impact on the results. Expansion into foreign markets can be achieved via the following modes: * Exporting (Direct/ Indirect Exporting)

* Licensing/ Franchising
* Contract Manufacturing
* Management contract
* Assembly Operation
* Fully Owned Manufacturing Facility
* Joint Venture
* Mergers & Acquisitions
* Strategic Alliance
* Third Country Location
* Counter Trade
* Direct investments

Heading : Mahindras Take a Giant Leap with Insurance Arm Deal By : Satish John, Mumbai.
Date : 21st Septermber 2012
News Paper : Economic Times
Us-based LeapFrog’s purchase of 15% in a key Mahindra & Mahindra Group subsidiary hasgiven the auto to tourism group several fold returns on its original investment and the third such high return investment for its investors in less than a decade. LeapFrog, the world’s largest insurance investor for low-income customers on Thursday said ti would buy a 15% stake in Mahindra Insurance Brokers for Rs. 80.41 Crore. This firm which is subsidiary of the much bigger and better know M&M Financial services was started in 2004 for a measly Rs. 50 Lakh.The LeapFrong purchase values the firm at Rs. 520 crore. LeapFrog specfialises in investing in companies that cater to rural markets.”We feel very proud that we invested Rs. 50 Lakh and today it is values at RS. 520 crore”Said M&M Chairman&MD Anand Mahindra, in an interaction with ET. The investment marks the third such multi-bagger or high retun investement for the group in the part eight years after M&M Financial and Tech Mahindra, the group listed technology arm.

Heading : Walmart hopes to open first India store within 18 months By : PRESS TRUST OF INDIA
Date : 22nd September 2012
News Paper : Business Standard

Walmart expects to open its stores in India within the next 12 to 18 months and is reaching out to the states that are ready to allow foreign direct investment (FDI) in multi-brand retail. Walmart Stores President and CEO for Asia Scott Price said in an interview to The Wall Street Journal that “the company is capable of opening stores within 12 to 18 months and would be seeking permission to do so from the states that have already indicated their willingness” to have the US retailer set up shop. “Two years would be a reasonable time frame in total,” he added.Showing a resolve for reforms, the government yesterday notified its decision to allow global retail giants like Walmart to open stores in India amid opposition even from its own allies. With this notification, multinational retailers can invest up to 51 per cent to open stores in 10 states and UTs that, till date, have agreed to implement the decision. These are Andhra Pradesh, Assam, Delhi, Haryana, Jammu & Kashmir, Maharashtra, Manipur, Rajasthan, Uttarakhand, Daman & Diu and Dadra and Nagar Haveli. Price, however, said the company had not yet decided where or how many stores it would like to have in India. But he added that his company expected to continue in retail its current partnership with Bharti Enterprises in a chain of 17 cash and carry stores. Walmart Stores Inc is not in discussion with any other company for a potential retail partnership at present, Price was quoted as saying in the WSJ report. Price said he was confident that the reform would be permanent and that the company was committed to India’s long-term future.

Heading : AirAsia has no immediate plans to enter India: CEO By : Reuters
Date : 23rd September 2012
News Paper : Business Standard
A plan to buy 100 Airbus aircraft will be submitted to the board of Asia's largest budget carrier, AirAsia, in about two weeks, the airline's chief executive officer, Tony Fernandes, said yesterday, in a deal that could be worth $9 billion. He also said he had no immediate plans to enter the Indian market because he...
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