Once each entry mode has been subjected to the three kinds of analysis just discussed and all the results have been brought together and compared, the management team in charge of identifying and evaluating foreign market entry strategies prepares a recommendation. This report should briefly summarize and rank the findings for each individual mode as well as for combinations of them. It should highlight the best mode, pointing out nonquantifiable advantages as well as disadvantages. Such a report supplies management with the wherewithal to make and implement an informed decision.
The strategy approach to the choice of a foreign market entry mode is not foolproof. But at least it forces the managerial team to become familiar with all available modes and to think through all possible consequences of using a particular mode. It thereby guards against adoption of a mode that is incompatible with either the company's philosophy or the external environment. Entry modes that run counter to management philosophies or to the corporate culture will fail. By the same token, entry modes and strategies that seem to satisfy corporate objectives and top management wishes will not succeed if they are in conflict with the external environment, especially the explicit or implicit fiscal, monetary, political, and social policies pursued by a host government.
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