Question 1

International Business

Question1

Asan American retail clothing store company that tries to enter intothe French market, there is a possibility of success of the businessin the French Market if strategic decisions are made during the entryprocess. However, the idea is good because the French market iscomposed of people who have high demand for American clothingmaterials and their cultural alienation is not far from theAmericans. This will enable them adapt to the American clothing soldby the company, thus improving its performance in the French market.The entry method that should be implemented by the company isfranchising method where the company will license distributors offranchisees of these products in the French market and supplying themwith the products which they will be distributing to customers in theFrench market. The franchisees will be responsible for paying theAmerican company (Franchiser) fees of an agreed amount in order toacquire these rights. The main challenge that should be reviewedduring this entry method is competition from established retailclothing stores in French market that will compete significantly forcustomers with the American franchises. This will require the companyto prepare adequately for this competition by carrying out intensivesales promotion in the French market so that its productcompetitiveness is improved. Another challenge will be the need tocomply with political and legal requirements of entry into the Frenchmarket such as registration of the Franchises, entering intoagreement with the franchisee which will consume time and finances tofacilitate these processes. In order to prepare for these challenges,the company will set aside an adequate amount of financial resourcesso that these activities are accomplished without difficulties.

References

Alon,I. (2012).&nbspGlobalfranchising operations management: Cases in international and

emergingmarkets operations.Upper Saddle River, N.J: Financial Times.

Burnett,R., &amp Bath, V. (2009).&nbspLawof international business in Australasia.Leichhardt, NSW:

FederationPress.

Konigsberg,A. S. (2008).&nbspInternationalfranchising.Huntington, NY: Juris Pub.