Business Model (International Business Management) Essay

Business Model (International Business Management) - Essay Example In the foreseeable future there will be heavy demand of organic apparel products, and the market will grow. To enter the market with this plan, we will adopt the strategy of a Wholly Owned Subsidiary for entrance. Choosing a strategy to enter the market is very essential. It must be well thought out and it completely defines what will happen to the enterprise. There are various ways one can enter a market, such as joint ventures, mergers and acquisitions, turnkey projects, etc. â€Å"A Wholly Owned Subsidiary is a subsidiary whose parent company owns 100% of its common stock. In other words, the parent company owns the company outright and there is no minority owners.† (â€Å"Wholly Owned Subsidiary†). This eliminates the share holders and thus the concept of co owners of the enterprise. This gives the management benefits such as full control over the decision making. Turkey is one of the world’s leaders in organic cotton production: â€Å"Turkey is a world leader in organic cotton production with a 53 per cent share of the market. The countrys history, climate and culture play main role in this leadership." (Gulveren). This makes Turkey a good choice in which to launch a wholly owned subsidiary. Many of world well known fashion companies such as Gap, Banana Republic and Nike are producing their products in Turkey. Thus there are already existing original equipment manufacturers in Turkey that ensures that obtaining raw materials will be easy. â€Å"This Original Equipment Manufacturers segment has helped triple apparel export in the past decade - apparel now accounts for more than 20% of Turkey’s total export volume† (â€Å"Apparel† 365 ) Turkey houses a high percentage of skilled labor. This plays a very important role the plan chosen and will be very beneficial to the authorities since a good workforce leads to better work and better results. Being a wholly owned subsidiary unit would mean taking over the operations of an existing