Reference no: EM133084977

Windsor Limited currently has more than 250 stores overseas such as Malaysia, United Arab Emirates, Malta and Poland, about two-thirds of which are run directly and the rest via franchise partners. China is Windsor Limited's biggest overseas territory, in terms of store numbers, followed by the Middle East, where the group has 58 franchise outlets. Just after five years of entering China market, Windsor Limited has formally made announcement to close all its 108 shops in China by the end of 2022. Its Shanghai head office is expected to close in January following year after disappointing sales.

"Having reviewed the trading performance of our business in China and the substantial investment required to continue operations in the market, we have made the difficult decision to exit our stores in China. As our turnaround plans continue, we remain focused on ensuring that Windsor Limited is well positioned to drive strong business performance and profitable growth." James Peters, its executive chairman, said. It had decided to withdraw from China market, where it employs 713 people because it had "not achieved the necessary sales and profitability to support the significant future investment required to continue.

Required:

a) Identify and describe the modes of entering international markets.

b) Identify major risks of Multinational Corporations seeking for expansion as international strategy; support your arguments with any relevant case materials.