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Module 7: International Business & Strategy

7.10

Internationalisation Check

Judge honestly whether you are ready to enter a new country, and decide what to fix first.

Test your business against the gates that matter before your first foreign market or a new wave of markets. You finish with a verdict you can defend, a short list of fixes and a date to check again.

Mixed evidence. The stepwise Uppsala model (Johanson & Vahlne, 1977) is influential but revised by its authors and challenged by born-global firms (Knight & Cavusgil, 2004); Dunning's four motives are an organizing scheme, better for forcing clarity than for prediction. The gates and the 1 to 5 scale are rules of thumb.

When to use it

Use it when:

Skip it when:

The idea

The classic claim is that going international is a learning process, not a leap. Johanson and Vahlne (1977) described firms deepening commitment step by step as market knowledge grew: knowledge lowers perceived risk, and each commitment produces the knowledge that funds the next. The evidence is mixed. The model has been revised by its own authors and challenged by research on born-global firms, which internationalize from or near founding (Knight & Cavusgil, 2004). Read the stepwise picture as one well-documented path, not a law.

The motives line uses the four-motive scheme (market, resource, efficiency and strategic asset seeking) from Dunning's work on the eclectic paradigm (restated in Dunning, 1988). Ask for the motive first, because an entry that cannot name its motive usually has none. The gates encode the logic that commitments should not outrun knowledge and capacity. And the failure this page guards against is scoring readiness on home-market strength instead of on what the target market will demand.

First step: Intent

Say why this market and what you want from it. A motive you cannot name usually means the entry is a hope.

Strong answer: "Market-seeking: the home market is nearly saturated, and Germany is the closest large market where our product needs little change. Pilot within 12 months." Not: "Growth."

Target country or region:

Why this market:

Motive (market, efficiency, resource or strategic asset seeking):

Time horizon:

Example

Illustrative example: the business is made up. It carries on through 7.11 and 7.12.

A Swedish family-owned producer of oat-based drinks, strong in Swedish grocery, considers Germany within 12 months. Motive: market-seeking.

Gate Verdict Evidence
Domestic baseline Pass Repeat purchases stable for two years; margins predictable
Financial capacity Partial Budget approved, but runway falls below twelve months if listing costs are higher than planned
Leadership bandwidth Pass The export manager has handed over two Swedish accounts
Scalable operations Partial German consumer service and product labeling not ready
Exportable advantages Pass Taste and short supply chain travel; the story needs translating

Weakest capability items: German-language service and local labeling. Call: ready with fixes. Run a 90-day sprint on labeling checks with a local adviser and a German-language service line, then a pilot with one retail chain. Retest the gates in 90 days.

Fill it in and keep your answers

This page shows the first step. The whole template is in the MGMT AC app for iPhone, which opens soon. Your answers stay on your own device.

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