Global Business Plan
Comprehensive Analysis of Global Entry
Turnkey project
This is a type of project whereby the object has to be constructed so that it can become ready for selling. The buyer purchases the completed product since it is always as per his specifications. The item can be sold to the buyer who would later complete it into a useful product. Turnkey is made to mean the items which are ready for the consumer use. This is generally applied during the sales and the supply of both goods and services to the customers. When the buyer purchases the item, the ignition key must be turned for the item to be operated without challenges.
Licensing
This is a situation in which an authorized company gives another company a permission to make its business operations made to produce or supply good for the buyers to consume. The license secures the company from government interferences by legalizing its activities and hence enabling the buyer to realize that the items supplied are of a good quality and acceptable by the government. The business entity has to pay for a license so as to be able to use a certain logo, graphic design, slogan, signatures, character and trademark for the benefit of attracting the potential buyers into the business.
Corporation
This is a legal entity with which the owners of a given business are separated and distinct from it. A corporation has some rights and responsibilities which enable him to enter into loans, seek contracts and borrow money from different financial institutions. He is again able to sue and to be sued and again own assets which he can transform into money for business purposes. Corporations can either be large or small depending on the amount of money invested in it. For a corporation to retain his identity, some legal formalities ought to be followed and hence enabling him to retain his status.
Franchising
This is a business condition which allows the enterprise owner to use a certain business model and a brand of an item for a given duration of time. The owner of a give product or services gets the products distribution from dealer who is regarded as Franchisees. The franchisee pays the initial fee to the owner of the product for security purposes. This enables the franchisee to use different trademarks and hence acquiring a support from the franchisor who is the product’s owner. The use of a well known brand of a product adds an advantage to the franchisor.
Joint venture
This is a business enterprise which shares ownership from two or more people who share the returns, risks and the governance. The joint ventures are incorporated although they do not form a corporation entity. A venture is characterized by a number of elements like the number of parties involved, the products and their technologies, the party’s contributions, the structure’s form, the amount of the initial contribution, the economic arrangement, the governance control, the human resource model, the input or output services and the exit and the evolution provisions by the company.
Pros of Turnkey
The contractor is always given a fixed price
It is used to eliminate the extra expenses incurred
It brings out a contractual relationship with a single person.
Cons of Turnkey
A high price is incurred
Its control is difficult due to challenges
The customers are not associated with the entire project.
Pros of Licensing
It requires very little capital
It provide business people an access to different markets
It enables new products to be introduced to the market.
Cons of licensing
It is always hard to make enough control of the items or products entering the market
Restriction given by the government might hinder its efficiency
It brings out limited returns to a business.
Pros of corporation
They are able to raise additional funds hence making them easy to operate
They sometimes deduct the cost benefits of the employees.
Their shareholders are not liable of any debts.
Cons of corporation
They require a lot of time to form
Due to governmental monitoring, additional paperwork is resulted
Their profits are interfered with by the high taxes paid.
Pros of franchising
They offer independence to small businesses
They have a higher success rates
It is easy to secure money through it.
Cons of franchising
It needs a formal agreement which might be time consuming
Bad performance of one party may lead to the failure of another party
It may result to sharing of the profit made.
Pros of joint venture
It is not a permanent arrangement
Gives different companies opportunities to acquire expertise
The parties involved share the risks incurred
Cons of joint venture
Objectives which are not clear can be set
Poor communication is faced
It is hard for member to exit the partnership due to the contract signing.
Licensing is the mode of entry for the country of Asia because it only needs a legal permission from the government for a person to run a business.
References
Coughlin, J. H., & Thomas, A. R. (2002). The rise of women entrepreneurs: People, processes, and global trends. Westport, Conn: Quorum Books.
Czinkota, M. R., Donath, B., & Ronkainen, I. A. (2004). Mastering global markets: Strategies for today's trade globalist. Mason, OH: Thomson/Southwestern.
Bates, C. G., & Ciment, J. (2015). Global social issues: An encyclopedia.
Hill, C.W., & Hult, G.T. (2017). International Business Competing in the Global Marketplace
(11th ed.). Retrieved from
https://phoenix.vitalsource.com/#/books/126019051X/cfi/6/4!/4@0:0.
