Chapter 1
Before we describe and discuss the internationalization theories we need to have a general idea of which are the motives that leads a company to make the decision to expand to foreign markets.The four main motives that companies use nowadays are the ones that ( Dunning 1993)is referring below:
• Market-seeking, i.e. companies that venture abroad to find customers.
• Efficiency-seeking, i.e. companies that venture abroad to lower their costs of performing economic activities, and/or that aim at rationalizing their already existing operations in various locations.
• Resource-seeking, i.e. companies that venture abroad to access resources that are not readily available at home or that can be obtained at a lower cost …show more content…
“Mekoprint was founded in 1954 by Erland Kold when he acquired Aalborg Kliché and Metalskilte factory3, which was renamed Mekoprint in 1960 (Annex, 1954). When acquired, only 3-4 people were employed, but under his management this number increased to 35 employees at the time his son, Esben Kold, assumed the position as CEO of Mekoprint in 1973 (Annex, 1973; February 2002).
In 1992, Mekoprint had seen their customers internationalise their production and relocate their facilities to Asia.” It took Mekoprint almost 30 years to start having internalisation interested, and more than 45 years to establish another production facility outside their home. “In the financial year of 2004/05, Mekoprint established a wholly owned production subsidiary in Poland.” Mekoprint first gain experience from the domestic market, then started gaining knowledge by doing business with the less far away countries. Right now, they are on the decision commitment process if they will expand their business further like USA or China, even though their network relationship with Asia started since 1992 it remains strong but only through partner- production without any thinking of establishing a production facility there, even “About 35 % of the components in Mekoprint’s Electronics division are produced through partner-production in Asia” and the main reason to why not, is their “cultural …show more content…
[They] are composed of cultural-cognitive, normative, and regulative elementsthat, together with associated activities and resources, provide stability and meaning to social life.”(lecture slides).
Basically this is a theory that all the firms which are considered to expand their business in the foreign market keep it in mind because for a firmly is the main problem of how the institutions in the country that they want to invest work. For that most of the companies when they start expanding their business they start by working with neighborhood countries which their regulative, normative and cognitive situations are similar to their home country for example many Danish companies work very close with firms in
Before we describe and discuss the internationalization theories we need to have a general idea of which are the motives that leads a company to make the decision to expand to foreign markets.The four main motives that companies use nowadays are the ones that ( Dunning 1993)is referring below:
• Market-seeking, i.e. companies that venture abroad to find customers.
• Efficiency-seeking, i.e. companies that venture abroad to lower their costs of performing economic activities, and/or that aim at rationalizing their already existing operations in various locations.
• Resource-seeking, i.e. companies that venture abroad to access resources that are not readily available at home or that can be obtained at a lower cost …show more content…
“Mekoprint was founded in 1954 by Erland Kold when he acquired Aalborg Kliché and Metalskilte factory3, which was renamed Mekoprint in 1960 (Annex, 1954). When acquired, only 3-4 people were employed, but under his management this number increased to 35 employees at the time his son, Esben Kold, assumed the position as CEO of Mekoprint in 1973 (Annex, 1973; February 2002).
In 1992, Mekoprint had seen their customers internationalise their production and relocate their facilities to Asia.” It took Mekoprint almost 30 years to start having internalisation interested, and more than 45 years to establish another production facility outside their home. “In the financial year of 2004/05, Mekoprint established a wholly owned production subsidiary in Poland.” Mekoprint first gain experience from the domestic market, then started gaining knowledge by doing business with the less far away countries. Right now, they are on the decision commitment process if they will expand their business further like USA or China, even though their network relationship with Asia started since 1992 it remains strong but only through partner- production without any thinking of establishing a production facility there, even “About 35 % of the components in Mekoprint’s Electronics division are produced through partner-production in Asia” and the main reason to why not, is their “cultural …show more content…
[They] are composed of cultural-cognitive, normative, and regulative elementsthat, together with associated activities and resources, provide stability and meaning to social life.”(lecture slides).
Basically this is a theory that all the firms which are considered to expand their business in the foreign market keep it in mind because for a firmly is the main problem of how the institutions in the country that they want to invest work. For that most of the companies when they start expanding their business they start by working with neighborhood countries which their regulative, normative and cognitive situations are similar to their home country for example many Danish companies work very close with firms in