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1 nternational Entrepreneur$hip STARTING, DEVELOPING, AND MANAGING A GLOBAL VENTURE Robert D. Hisrich Thunderbird School of Global Management (DSAGE Los Angeles London New Delhi Singapore Washington DC
2 Contents Preface Acknowledgments xi xiii PART 1. International Entrepreneurship and Entrepreneurship Opportunities 1. Importance of International Entrepreneurship 3 Profile: Ping Fu 3 Chapter Objectives 6 Introduction 7 International Versus Domestic Entrepreneurship 10 Motivations to Go Global 14 Traits of an International Entrepreneur 16 The Importance of Global Business Globalization and the International Environment 25 Profile: D. K. Matai 25 Chapter Objectives 26 Introduction 26 Strategic Effects of Going Global 27 Strategic Issues 28 Opportunities and Barriers to International Trade 29 Important Considerations 32 36
3 Cultures and International Entrepreneurship 41 Profile: Jack Ma 41 Chapter Objectives 43 Introduction 44 Nature of Culture 44 Seven Cultural Determinants 46 Cultural Dimensions and Leadership Developing the Global Business Plan 58 Profile: Fion Lin and C. A. Lin 58 Chapter Objectives 59 Introduction 60 Purpose of a Global Business Plan 60 Opportunity Analysis Plan 61 Aspects of a Global Business Plan 64 Dos and Don'ts of the Global Business Plan 73 Sample Global Business Plan Cases Motrada Ltd. 79 Parsek LLC 94 Beijing Sammies 109 TRIMO 127
4 PART 2. Entering the Global Market 5. Selecting International Business Opportunities Profile: Karan Bilimoria Chapter Objectives Introduction Foreign Market Selection Model Developing Foreign Market Indicators Primary Versus Secondary Foreign Market Data Sources of Country Market Data Competitive Positioning International Competitive Information International Legal Concerns Profile: Dr. Fred Moll Chapter Objectives Introduction Political Activity Political Risk Legal Considerations Intellectual Property Patents Trademarks Copyright Trade Secrets Licensing Contracts Business Ethics in a Global Setting
5 7. Alternative Entry Strategies 192 Profile: Tetsuhiro Shikiyama 192 Chapter Objectives 194 Introduction 194 Formulating the Global Strategy 194 Timing of Market Entry 196 Scale of Entry 197 Foreign Market Entry Modes 198 Entrepreneurial Partnering Cases Fitz-Ritter Wine Estate 213 Mamma Mia! 239 Federal Express 254 UniMed and EduMed 261 PART 3. Managing the Global Entrepreneurial Enterprise 8. The Global Monetary System 281 Profile: Charles Lewis Tiffany 281 Chapter Objectives 282 Introduction 283 Functions and Nature of Foreign Exchange 283 Exchange Rate Fluctuations 286 Aspects of the Foreign Exchange Market 287 The Global Capital Market 288 Balance of Payments 288 Role of the International Monetary Fund and World Bank 290 Trade Financing
6 9. Global Marketing and R&D 301 Profile: Derek and Geoffrey Handley 301 Chapter Objectives 302 Introduction 302 Technological Environment 303 Product Policy and Total Quality 305 International Research and Development 311 Developing the Global Marketing Mix Global Human Resource Management 334 Profile: Ho Kwon Ping (KP Ho) 334 Chapter Objectives 336 Introduction 336 Motivation Across Cultures 337 Sources and Types of Human Capital 338 Selection Criteria 340 The Global Mindset 341 Selection Procedures 343 Compensation Issues 345 The Hiring Process Implementing and Managing a Global Entrepreneurial Strategy 352 Profile: Reinhold Wurth 352 Chapter Objectives 355 Introduction 355 Global Strategic Planning 355 Global Organizational Structure 360 Overall Organizational Structure 360
7 Authority and Global Decisions Controlling the Global Venture Managing Chaos Global Family Business Profile: Marfa Luisa Ferre, Grupo Ferre Rangel Chapter Objectives Introduction What Constitutes a Family Business? Succession and Continuity in Family Companies Lessons From the Journey So Far Cases Logisys Sedo.com Fasteners for Retail The Vega Food Company Reliance Industries Maktabi Sample Global Business Plan 471 Index 607 About the Author 623
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