The paper “ Current and Future Development of Vinci International Business” is a fascinating example of the case study on business. All-value adding activities such as sourcing, manufacturing, and sourcing can be done in international locations. International trade often involves labor, products and services, technology as well as capital (Chetty and Campbell, 2003). In order to enter into new markets, firms require entry strategies such as exporting, licensing, direct investments, and mergers and acquisitions. Companies participating in international business for a number of reasons such as to acquire growth and expansion, to serve a large market, to gain competitive advantage, to gain better-value factors of production, and to develop economies of scale among others (Chetty and Campbell, 2003).
Currently, more and more firms are opting to internationalize more rapidly than ever before. An organization can choose to expand and grow its operations by reaching markets that are found beyond its national boundaries and makes a decision on the mode of entry to be employed (Douglas, 2009). With globalization and liberalization, it is not difficult for companies to enter into new markets (Thirwall, 2003).
The expansion of companies into international markets can be found to be beneficial for foreign companies and to the domestic market. The idea of internalization by foreign companies sounds promising for both the company and the new market but it is not as easy as it sounds (Thirwall, 2003). This paper is based on the case study of Vinci Construction Company. The report will describe the background and history of Vinci’ s international business and its recent developments in terms of international business. In addition, the report will offer an overview of the management of international operations and the issues that must be addressed in terms of the internalization process.
A strategy will be developed for the future of the organization and to solve the issues faced by Vinci. 2.0 Background of Vinci Construction CompanyVinci is a French multinational construction company that was established in 1899. It has operations in different countries and has employed more than 179,000 people across the globe (Vinci, 2011).
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