MODE OF ENTRY
INT 220 • Foreign Market Entry Lab
From market analysis to an entry decision
Across three scenarios, teams calculate a five-year ROI for three possible modes of entry, vote for the most profitable option, and then compare their decision with the revealed results. The exercise prepares you to justify mode-of-entry recommendations in the Four Lands assignment.
Rules
- Work in teams of up to six.
- For each scenario, use the matching worksheet tab to calculate the five-year ROI for all three entry modes.
- When your team is ready, record one vote beside the mode you believe produces the highest ROI.
- Reveal the ROIs. Every team that selected the highest ROI earns one point.
- After three scenarios, use the debrief to connect profitability to the broader strategic tradeoffs of each mode.
ROI reminder: ROI = 5-year net profit ÷ total investment
Profitability matters, but a real mode-of-entry recommendation also considers control, resources, risk, culture, and the firm's strategic objectives.
5-YEAR ROI
Scoreboard
Mode of Entry: Debrief
You have now compared modes that differ substantially in investment, control, revenue structure, and operating responsibility. ROI is useful because it forces unlike alternatives into a common profitability measure—but ROI alone is not a complete market-entry decision.
Four Lands connection: When you recommend an entry mode, use the market evidence to explain why the mode fits. Consider profitability alongside ownership/control, location conditions, internalization, resource requirements, and risk.