Lesson correlates with National Business Education Association National Standards for Business Education, 1995, Reston, Virginia.
· · Standard IX. Organizational Structure of International Business... Achievement Standard:  Identify forms of business ownership and entrepreneurial opportunities available in international business.
              A. Forms of Business Ownership
· Level 3 (Secondary) - Performance Expectations: Suggest an appropriate form of business ownership for different international business situations.
Developing an Organizational Strategy for International Business

 

TIME REQUIRED:
50-60 minutes
 
RECOMMENDED GRADE:
Grades: 9-12


 

INSTRUCTIONAL OBJECTIVES:
1. Distinguish among three types of strategies for  businesses that engage in global transactions
2. Determine an appropriate strategy for different international business situations
 
 
MATERIALS:
     Information on the three business strategies for doing business in another country.  (suggested handout attached)
    Case problems (attached)
     
     
RATIONALE:
:Once a company has determined to enter a foreign market, it must determine the best way to enter that market.  Students need to realize that many choices for business ownership are available.  Students will realize that some choices involve more commitment and risk, but will result in more control and potential for profit.  
 
PROCEDURE:
 1. Discuss the various business ownership options for doing business in another country.  Examine advantages and disadvantages of each.
2. In teams or individually students will determine the best strategy for each of the case problems.
 
 
EVALUATION: Students will prepare a written explanation for their decision in each of the case problems.
Once a company has decided to do business in another country, it must determine the best strategy for operating in the country.  The three basic choices are exporting, joint venturing, and direct investment.
 
 
AUTHOR:
Dr. Lila Waldman, Murray State University, Murray, KY
EDITORS:
Les Dlabay, Lake Forrest College, Wildwood, IL.
Robert Ristau, Eastern Michigan University (ret.), Ypsilanti, MI.

 
 
 
 
 

Click here to download Microsoft Word version of the plan including handouts.