"World" is moving to the East and the South. For more than 300 years we have been used to define Europe and US as the power of the "the world". In the recent years map of “the world” has radically changed. When growth in European countries stagnated or even fallen, BRICS countries with their exponential growth not only attracting new FDI, but also rising a question to the businesses from European countries if they have done homework and are ready to explore upcoming possibilities1. I find it interesting to investigate opportunities lying for Danish Small and Medium sized companies ((further SME), penetrating selected BRIC markets as well as what challenges SMEs face, in order to build tools that SME’s could employ and be more efficient penetrating those markets. Effective project management for example has positive impact in the internationalization process, yet the international project management community does little to provide guidance and the tools for SME’s to increase efficiently in international project management (Diab, 2010; Project Management Institute, 2010). Topic I think is especially important in today’s global competitive environment, where neighbouring markets are being exchanged to more distant markets. As never before it becomes crucial to focus on more effective ways in Internationalization process for SME’s so that they could embark the globalized world shoulder to shoulder with big companies. In my project I willing to come with tools and strategies for Danish SME that are willing to penetrate selected BRIC markets. Motivation for this paper on internationalization of SME’s in selected BRIC markets comes from my several years of involvement in international projects, work with Danish SMEs and my recent engagement in promoting cross-cultural knowledge to Danish SME’s in order to strengthen their export possibilities. 1 Globalsherpa.org HD (IB), May 2015 Raimundas Gaizutis 5 1. PROBLEM FORMULATION Problem formulation refers to the lack of the research within the study in the field of Danish SME’s efficient ways penetrating selected BRIC markets. There are studies regarding entrance of BRIC markets, but they are based not on SMEs but on large companies’ experience2. Challenge for SMEs in penetrating BRIC markets lies in the barriers that are harsher than penetrating neighbour markets. Typically, SMEs have also fewer resources than big companies that adversely affect efficiency of internationalization process. In the highlight of the challenges formulated above, this paper will answer following problem question: Is there a potential for Danish SME’s to enter selected BRIC markets and what tools SME’s could employ for more efficient market penetration process. To answer main problem question following secondary research questions to be answered: 1. Is business environment in selected BRIC countries favourable for Danish SME’s? 2. What sectors in selected BRIC countries benchmarks for Danish SME’s? Is there a match? 3. What is typical internationalization process to BRIC of Danish SMEs in practice? 4. What are important elements of internationalization process? 5. What tools could Danish SME’s employ for more effective internationalization process to BRIC countries?
|Educations||Graduate Diploma in International Business, (Diploma Programme) Final Thesis|
|Number of pages||69|