Those two foreigners are really tall and big.

Amy Counselor stood as tall as they were sitting.

After Lin Chen's fat man caused everyone to laugh, the two foreign guests looked at everyone and laughed, and they also nodded happily, although they didn't understand it just now.

Professor Zhao is a poker face, and after a while he was already talking.

Students, our topic today is to discuss whether enterprises should internationalize the strategy, the motivation and benefits of the internationalization strategy of enterprises.

Professor Kafua is a well-known European expert in corporate strategy, especially in the internationalization of enterprises.

Mr. Steve is the former Chief Executive Officer of the Belgian Motivation Group, where he helped the Belgian Motivation Group internationalize.

Let us once again applaud the arrival of Professor Kafoya and Mr. Steve.

There was another round of applause from the podium.

Professor Kafua and Mr. Steve stood up again with joyful faces, bowed and thanked everyone for their applause.

Professor Zhao Mingbo continued, "Internationalization and globalization are hot topics for enterprises to go global. Take a look at the advertising themes, magazines, books, television, and movies are all full of international success stories.

According to our analysis, between 1770 and 1992, the total volume of world trade increased tenfold. From $330 billion to about $3.8 trillion, and from $3.8 trillion to $17 trillion from 1992 to 2016, an increase of as much as four times.

The interest of management in the study of internationalization arose in the 80s of the 20th century, when a large number of Japanese companies were in a wide range of industries. From humble companies to global leaders, they have pulled down players from long-established national and international businesses.

How did Japanese companies do this, and that was because they implemented a globalization strategy! They claim that the needs and cultures of ethnic groups are becoming more and more homogeneous, and that companies should sell the same products in the same way around the world.

For example, they know that Argentina and France are different, but they treat them the same, they sell them the same products, use the same production methods, and implement the same company policies. Even with the same approach, using different languages, of course.

In the late eighties of the twentieth century.

The management community has shifted its focus away from internationalization and more towards corporate restructuring.

This time, too, we were encouraged by the successful operation of Japanese companies, but in the nineties of the 20th century, internationalization made a comeback.

Technological and economic developments have also contributed to the arrival of this wave.

Companies that fail to take advantage of these new opportunities are seen as making a strategic mistake that will affect their long-term viability and will be held hostage, with slogans such as internationalization or death, eat or be eaten, bigger is better, etc., permeated annual reports, business forums and executive director meetings, many of whom saw globalization as a pressing issue.

Most of these Japanese companies have been successful, and other countries have imitated them, but some questions have been raised about internationalization, and the evidence against the same internationalization has begun to attract attention, and it is true that not all companies can succeed from internationalization, and some companies have fallen into trouble because of internationalization.

When the Bank of Bahrain expanded into the Asian market and caused huge losses that eventually led to its bankruptcy, their extensive operations proved out of control, and when Kodak entered Japan to try to fight back against Fuji, the company did not manage to get as much cooperation as it could get from internationalization, because the country's distribution habits were difficult to change and the company's distribution habits were difficult to change.

Now that we are going to get into our topic, we will discuss the three issues of the company's internationalization strategy, in order to maximize the chances of success, then first, why should our company internationalize, and secondly, what is the usable internationalization model strategy.

The third is how to manage the internationalization process of a company

The discussion was to use as an example the Belgian Dynamics Group, which is now a large company in the country of Belgium that is most cited in international business publications.

Let me ask Mr. Steve, the former CEO of the Belgian Dynamics Group, "Mr. Steve, how big was the Belgian Dynamics Group before the internationalization process began?"

When Steve finished answering in English, Counselor Amy immediately translated on the fly.

"Belgium Dynamics Group was very small before it started to internationalize, he only served the Belgian domestic market, as you know, Belgium is actually not as big as a province in China, so the company's development is very slow, and the slow development is the most fundamental reason why we are determined to internationalize. ”

Mr. Steve, what you're saying is that there is no other way out, that sounds like a pretty common motive.

"Yes, perhaps, but a little unusually, in less than a decade, in 2000 we had grown to become the third largest independent power producer in the world. ”

"It is a remarkable achievement to hear that Belgium has become the third largest multinational company in the world in less than a decade, and to find out if growth is the reason why Belgian Dynamics is on the path to internationalization. Let's take a look at what motivates other companies to internationalize. Professor Zhao said.

"Professor Kafuya, please help us describe something. ”

"Okay, so there's a lot of things that are pushing those companies to internationalize, like for example, my consumers are going global, and our competitors are already doing it.

In our global business system, only a few large companies survive

Or to the Belgian Dynamics Group, we have penetrated the domestic market and have no choice but to enter the international market. ”

"And what do you think of these motives, Professor Kafuya?"

"The list of companies that initially used these motivations to justify their internationalization behavior but ultimately failed can be as long as the list of successful companies.

There are many motivations for internationalization, and the key question is whether you can maximize the value of your business once you go international.

For some companies, it may make great business sense, but for others it is not at all. ”

"Okay, thank you, Professor Kafuya, for your analysis. ”

"Nowadays, the management community thinks that the internationalization of enterprises is to gain business value in three aspects: cost advantage, network benefits or learning opportunities. ”

"Let's start by looking at cost advantages, a prime example of which is economies of scale, where companies can reduce their cost per unit of product as they scale. In the domestic market, companies can consider internationalizing operations if they are unable to produce at scale at the lowest cost and without barriers such as product taste differences or regulations.

Taking the production of cars in Europe as an example, today's technology can no longer meet the needs of a manufacturer to carry out limited production and operation within the scope of one country, and it is good for these companies to be large. ”

Speaking of which, I would like to ask the students.

Is it good to have a large business?

What kind of company is big?

Local, national, multinational, European or global?

I don't think it's better to say "good makes you big!" than to say "good makes you big!"

I wonder if the students can understand what I mean?

Did any classmates answer? If not, I'll name it.

"Xi Ming, so that I can make you big, can you understand this sentence?"

"Professor, my understanding is that if a company's products and services can continue to do well, then the company will definitely be bigger and stronger in the future. ”

"Very good, Xi Ming, please sit down, you understand very well. ”

"It seems that the students have understood, so let's go back to the first point at the beginning, good economies of scale like the automotive industry we just mentioned, it is a good example of the cost advantage that can be obtained through internationalization, which can optimize the productivity utilization factor.

To give an example, if a production unit can produce 5,000 bottles a day, and he only produces 3,000, its production capacity is not fully utilized, but the cost of producing the additional 2,000 bottles is still paid a fixed amount, although they are not produced. So through internationalization, companies can find a market for the remaining 2,000 bottles, thus increasing their cost advantage.