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The internationalization strategies and activities of Bentley in China - Dissertation Example

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The Internationalization Strategies and Activities of Bentley in China [Institution] Contents Contents 2 1.INTRODUCTION 4 1.1 Research Purpose, Aims and Objectives 5 1.2 Scope and Limitations 5 2.LITERATURE REVIEW 7 2.1 Uppsala model 7 2.1.1 Drawbacks of Uppsala Model 8 2.2 Network Theory of Internationalization 9 2.2.1 Limitations of Network Theory 10 2.3 Internationalization Product Life Cycle Theory 10 2.4 The Electic OLI Framework 11 2.5 Modes of Entry 11 2.5.1 FDI as Entry Mode 14 3.CONCEPTUAL FRAMEWORK AND HYPOTHESES 16 4.METHODOLOGY 18 4.1 Research Approach 18 4.2 Research Design 18 4.3 Data Collection and Analysis 19 5.FINDINGS AND ANALYSIS 20 5.1 Internationalization T…
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COMMENDATIONS 35 7.1 Revisiting Hypotheses 35 7.2 Recommendations 36 References 38 1. INTRODUCTION International business concerns with the transactions (service to foreign markets) that take place across the national borders, they usually involve more than one country (Punnett 2011). International business differs from domestic business because in international business there are variations in commercial environment and requirements (Punnett 2011). International business is much more complex to manage and involves money conversion.

Working in international markets must be done within the limitations imposed by international trade and investment system. There are more risks involved in international business as well such as political risk, cross-cultural risk, exchange rate risk and commercial risk (Hendrix 1991). Despite these risks, firms go global because they get access to wider markets for their products, they can realize economies of scale and/or scope, and they can benefit from experiential learning (Hiriyappa 2013).

An understanding of globalization is also necessary when studying international business (Khanna, Palepu &Sinha 2005). Globalization is a greater integrated and interdependent world economy that has resulted in greater integration of goods market, production and supply and labor and capital market (Mrak 2000). Although the purpose of globalization was to improve the economy of the world and to remove trade barriers (Trade in a Globalizing World, 2008), globalization today has emerged as a big challenge for businesses.

It has become relatively difficult to identify the internationalization strategies and choose the countries to conduct business with (Hill 2005). It has been observed that most multinational firms follow the traditional internationalization strategies and thus struggle to make their presence felt in the host country. It has also been observed that multinational firms find it easier to invest in developed countries rather than emerging economies. Firms find choosing the correct internationalization tool and the appropriate mode of entry particularly difficult when entering an emerging market (Palepu, n.d.). 1.1 Research Purpose, Aims and Objectives The main aim of this research study is to explore the process of internationalization in the context of an emerging economy.

China is selected for this study and internalization strategies and activities of Bentley has been explored. The study aims to explore in detail the theories of internalization and then apply it on the case of Bentley that how Bentley has managed to excel in China so well in the face of competition and globalization. The study

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