Business Management - Chapter 2 & 3 Review

Strategy for Reaching Global Market

Exporting

Honda ships their product to the US from the manufacturing plants in China to be sold at dealerships throughout the US

Licensing

Vera Bradley sells the right to use their name on shirts to a Brazilian company that will produce and sell the shirts in Brazil

Contract Manufacturing

Nike uses a foreign company to produce their goods in other countries to sell all over the world, they are off shoring/outsourcing manufacturing

Franchising

Two business people in Canada have a contractual agreement which gives them the rights to duplicate Wimpy’s restaurants in Canada, by opening two restaurants in Toronto, but they have to pay the company in the US a fee to do so

Foreign Direct Investment

Starbucks (US) invest money to purchase store fronts to open company owned subsidiaries in Italy

Joint Venture

Singapore Airlines (Malaysia) and Swiss International Airlines (Switzerland) have started working together to form one airline business that has a competitive advantage when selling transportation between Asia and Europe