...Global Operations Management June 8, 2012 Unit 1 IP PPQ Auto Parts is striving to expand their company globally over the next few years. In order to properly and successfully expand the business, the managers of PPQ must be trained in multiculturalism and diversity management; which have large playing factors in whether or not the company will be successful abroad. The executives of PPQ Auto Parts must fully understand and be aware of any political and economic distress that could potentially affect the company’s expansion as well. When considering expanding a business abroad, especially for PPQ, individuals should look into the possible issues the host foreign country could face as a result of the expansion. There are many issues that must be addressed such as: the strategy to enter and expand, the trends within the foreign land, the different marketing approaches to reach the niche consumers, political and social climate, taxes, legal system, location, differences in culture, host country’s available workforce. As many individual know, all countries are different, slight or considerable, there are many issues that a company can face, especially within the cultural barriers and diversity issues. Cultural barriers and diversity issues are commonly encountered by international, multinational and global organizations. Culture is immensely important and should be treated as such by the PPQ representatives. Culture is the beliefs and certain behaviors of a specific group...
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...It is necessary for most companies in the world who wish to broaden their business to expand to foreign markets. Thus, companies expanding internationally must consider the environment in their new country. There is no better way to explore said environment than by conducting marketing research in the area so as to formulate the most appropriate marketing strategies. Nevertheless, companies entering a new market still encounter difficulties even if they employ a marketing strategy because they make several critical mistakes in their marketing. Be it cultural misunderstandings, systemic political differences, or a poor understanding of the market conditions in a given country, marketing mistakes damage a company’s ability to enter (Ghauri and Cateora, 2010). While political differences or a poor understanding of the market strongly impact success in a foreign market, the slightly larger issue that multinational corporations encounter are due to cultural misunderstandings. However, the impact that cultural misunderstandings have on success in a foreign market is dependent on the industry in question. In some industries, international marketing mistakes can often be rooted in the lack of understanding of different cultures such as the aspects buying behavior and product preference. Take the retail industry for example, since the purchasing behavior of customers varies by region, foreign retailers might usually make marketing mistakes due to insufficient knowledge of a given region’s...
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...Question 3 “Ultimately, the study of international business is no different from the study of domestic business. Thus, there is no point in having a separate course on international business.” Evaluate that statement. Introduction The study of international business is more mind boggling than the study of domestic business. After mulling over the question for some time, I figured out that there is definitely some contrast between a domestic and international business. The difference between the businesses is that, International business is the exchange of goods and services across national borders whilst, Domestic business conducts commercial activities within the borders of the home country. Thus, after learning about the definition of both of them I can say that I do not agree with the statement. Therefore, in these following paragraphs, I will be discussing the differences between studying International business and Domestic business with the aid of two examples. Body When one travels from their home country to another foreign land, he/she do lots of planning. Example, he/she looks for the places to go, what is the currency difference, what is their cultural norms, what is their national language, do the locals converse in English, what is the country’s rules and regulations, and others. In the same way, when we are doing business with a foreign country we need to consider matters like the above. Hence, International business possess a much higher and complex level...
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...Asia” Assignment #5 “eBay in Asia” MKT 505 International Marketing Dr. Deborah Hill 1. Analyze the key factors that have caused eBay to struggle in Japan, China, and other Asian markets to determine if these mistakes could have been avoided. eBay is an online auction site that works as the middle man of buyers, sellers, and businesses. They allow sellers and buyers to auction or sell their products or services on their site for a fee. eBay struggled in Japan and other Asian countries for a number of reasons such as: Yahoo! Japan – The rival auction company started about 4 years prior to eBay coming to Japan. They were offering free services such as news, chat, and email on the world wide web. As the site began to see more users, advertisers began to pay to add banners on the site. Soon after Yahoo! Japan was encouraged to start an on-line auctioning site to cater to China. It was not easy for Yang the founder of Yahoo to decide. He was told that eBay would soon come in and take over. The on-line auction started in September of 1999, while eBay’s started in Feb of 2000 (Keegan and Green pp.482). The early entry in the market was a success for Yahoo! Japan and a failure for eBay. eBay did not take the time to research and study the market or culture of Japan. eBay thought that the same approaches they had used in other countries would also work in Asian countries. Yahoo! Japan did not charge any fees for or commissions in their auction,...
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...issues and decide which country is best for PPQ to expand to. When contemplating expanding a business globally, it is important to consider how it affects the business and how it affects the foreign country that you are trying to expand to. There are many things for a foreign country to consider before making the decision to expand to that country. With the business being based out of the United States, the people from the foreign country may face some conflict with the people from the foreign country because of the new people coming into their country. This expansion would affect communities and schools where PPQ decides to start up their global business. The foreign country would also have to evaluate the use of the land and water that PPQ would need in order to start the business in their country. This would also have an effect on the foreign country especially is clean water is already hard to come by. The new site for the global PPQ may also run off the local wildlife in which the population may use for hunting or recreational use or even to live off of. This would also cause conflict for the foreign country. PPQ may encounter many cultural and diversity issues when expanding globally. There are language barriers that would have to be taken into consideration as well as cultural barriers. PPQ would need to learn the language and the culture in order to successfully move the business to any foreign nation. Learning the language and culture would be the best option because...
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...BEHAVIOR IN INTERNATIONAL BUSINESS 439 Part 3 Closing Cases Ben & Jerry’s—Japan On an autumn evening in Tokyo in 1997, Perry Odak, Angelo Pezzani, Bruce Bowman, and Riv Hight gratefully accepted the hot steaming oshibori towels their kimonobedecked waitress quietly offered. It had been just over nine months since Odak had committed to resolving the conundrum of whether to introduce Ben & Jerry’s ice cream to the Japanese market and, if so, how. The next morning would be their last chance to hammer out the details for a market entry through 7-Eleven’s 7,000 stores in Japan or to give the goahead to Ken Yamada, a prospective licensee who would manage the Japanese market for Ben & Jerry’s. Any delay in reaching a decision would mean missing the summer 1998 ice cream season, but with Japan’s economy continuing to contract, perhaps passing on the Japanese market would not be a bad idea. Perry Odak was just entering his eleventh month as CEO of the famous ice cream company named for its offbeat founders. He knew the 7-Eleven deal could represent a sudden boost in the company’s flagging sales of the past several years. He also knew that a company with the tremendous brand recognition Ben & Jerry’s enjoyed needed to approach new market opportunities from a strategic, not an opportunistic, perspective. imported ice cream, and expectations of falling tariffs on dairy products suggested new opportunities for ice cream imports from abroad. Although prices were attractive in Japan, about...
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...for employees. Ben Cohen and Jerry Greenfield were not the standard corporate managers, instead they were quite bias against traditional business practices because of the short-term interests as well as large profits; most commonly corporate managers are under pressure to produce shareholders’ demands. Ben Cohen and Jerry Greenfield did not place emphasis or value, on cash, equipment and inventory; the “tangible assets” of the firm. Instead, Ben Cohen and Jerry Greenfield focused on “intangible assets” such as social concerns, quality of life, charity, and reputation, but in their minds the “intangible assets” were just am important if not more important. Ben Cohen and Jerry Greenfield business values were based on growth, shareholder value, and the overall care/quality of employees. Ben Cohen and Jerry Greenfield were intentionally slow to embrace the foreign market (Kursh, Lant, Majeske, Olver, Plant, 2014). Ben Cohen was quite reluctant to embark on global expansion because he felt that it did not coincide with the mission of Ben & Jerry’s. On the other hand, Jerry Greenfield was open to the idea of expansion and this is part of the reason why he visited Japan, for a market research tour in 1996. The purpose of the trip to Japan for Jerry Greenfield was to inquire on how Ben & Jerry’s would be able to enter the market in Japan. 2. Which of the environmental factors do you think are the two most important to the decision whether or not to expand into...
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...Toy’s “R” Us Goes To Japan Section I: Relevant Facts Toys “R” Us first told the public about their decision to enter the Japanese toy market in 1989. A lot of critics worried that Toys “R” Us would not be successful in this new and foreign market. They raised several issues that they believed proved the Japanese market was not ready for the marketing and retailing strategy that Toys “R” Us offered. They stated that the Japanese culture and beliefs were too different from that of the United States and Europe for Toys “R” Us to be successful. Toys “R” Us incorporates a “category killer” strategy (Johansson 181). In this marketing strategy they use mass advertising in order to make brand recognition, which in turn helps consumers remember and want to shop at their store. They also discount some of the popular items at certain times which give the consumer the impression that everything at their store is inexpensive or discounted. Some critics said that this strategy would clash with the Japanese consumers, since Toys “R” Us competes on price and the Japanese culture links quality with price. Another concern was that Toys “R” Us Japan would not be able to get ample permission and space to build their large toy stores. Toys “R” Us has a policy that none of their stores can be less than 3,000 square feet. This is a problem when entering the Japanese market because they have laws against big stores and land is so expensive. Also some Japanese toy manufacturers...
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...US and the entry strategies it adopted in international markets, and discusses the various risks faced by Starbucks and the effect of these risks in its revenues in international markets. Problem Major Problem The major problem of the case was the not so well planned international operations of Starbucks compared to its US operations and the entry strategies it adopted in international markets. Minor Problem The minor problems were: The pricing of the products offered. The high level of prices of the products of Starbucks is generally caused by too expensive cost of production that causes suffering to its customers. The operation problems encountered by the business due to lack of a trained workforce. The inappropriate and unsuitable real state/location for its store. Objectives To solve the problems of this case study. To recommend advices and solutions regarding the problems encountered of this business. Facts *Alternative Course of A*ction To study and think carefully about the decision of entering international markets. To go for a supplier of cheaper items needed in the operation that would enable the business to lower the prices of its products and make it affordable and attract those middle as well as low profile consumers. To hire trained applicants to ensure the smooth flow of daily business activities. To plan and find the appropriate...
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...Cork Institute of Technology Bachelor of Business (Honours) in Information Systems – Award (NFQ – Level 8) Summer 2007 International Business (Time: 3 Hours) Instructions Answer: Section A: Answer all question one on case study Section B: Answer three (3) from five (5) questions. % of marks allocated for this exam: 70 Do not write, draw or underline in red. Examiners: Ms. C. O’Reilly Mr. L. Elwood Section A: Case study - John Higgins Answer all Question 1 Leonard Prescott, vice president and general manager of Weaver-Yamazaki Pharmaceutical of Japan believed that John Higgins, his executive assistant, was loosing effectiveness in representing the U.S parent company because of an extraordinary identification with the Japanese culture. The parent company, Weaver Pharmaceutical, had extensive international operations and was one of the largest U.S. drug firms. Its competitive position depended heavily on research and development (R&D). Sales activity in Japan started in the early 1930s, when Yamazaki Pharmaceutical, a major producer of drugs and chemicals in Japan, began distributing Weaver’s products. World War II disrupted sales, but Weaver resumed exporting to Japan in 1948 and subsequently captured substantial market share. To prepare for increasingly keen competition from Japanese producers, Weaver and Yamazaki established in 1954 a jointly owned and operated manufacturing subsidiary to produce part of Weaver’s product line. Through the combined effort of both parent...
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...Going Global Fast Ronnie Deaver MKG400 International and Multi-Cultural Marketing Colorado State University – Global Campus Dr. Michael E. Ricco June 19, 2016 Starbucks: Going Global Fast Starbucks is a fast growing and well known US based company focused on penetrating international markets. When entering a new market, there are always associated risks, problems, controllable/uncontrollable elements, and process optimizations. Below is a discussion on the factors contributing to Starbucks expansion into international markets such as Japan. Controllable Elements For any company expanding to a new market, there is a plethora of controllable and uncontrollable elements to consider; some new and some similar to those faced in domestic markets. Interestingly, the controllable factors that Starbucks encountered when entering the global market were similar to those faced in their domestic market; product, price, place and promotion. The Starbuck’s brand name and image connect with millions of customers globally. Starbucks can control and adjust its product to meet the cultural needs and expectations of a market; including price, availability, and their marketing strategy. Using appropriate market research, Starbucks can pre-emptively make certain that their product is the right fit for each of its international locations. According to Starbucks (n.d.), they maintain a high level of success internationally by working with international partners who understand and share their...
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...stores in 35 countries, 849 stores are located in the United States, 170 in Japan, and 700 in other overseas locations. Toys “R” Us is divided into 5 corporate divisions which are Toys “R” Us, U.S., Toys “R” Us, International, Kids “R” Us, Babies “R” Us, and Imaginarium; accumulating between the 5 divisions an estimated business value of around $11 billion. Japan is an Asian country with 377,835 sq. kilometers and an estimated population of a little over 127 million inhabitants, it is known as an economically powerful an stable country. Japan’s economy is among the 3 largest economies worldwide and is the second most technologically powerful economy. From a cultural perspective Japan has strong cultural values greatly influenced by Confucianism and western cultures. When analyzing Japan from Hoftede Cultural dimension point of view it is clear that is low power distance culture with high collectivism, high masculinity, high uncertainty avoidance, and long-term oriented. This tendencies are reflected in marketing practices and consumer behavior, it also has a great impact on management as long-term oriented employment, high uncertainty avoidance, and long-life employment are expected from both employers and employees. Also managers have to be aware there is preference to local and high quality products, however there are some entry barriers and large competitors. After TRU started its international expansion in 1984 it had to rapidly learn to adapt to different competitive...
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...Xuyun Executive summary 2 Introduction 3 SWOT 4 Strengths 4 Weaknesses 8 Opportunities 8 Threats 9 Rank and prioritize 10 STP 11 Entering New Markets 13 1. Japan 13 2. China 15 Products 15 Place 16 Promotion 17 Positioning 18 Conclusion 18 Executive summary John Lewis is currently in a very strong position, possessing a committed workforce, enviable brand equity, and strong growth. The long term growth horizon, however, is limited by the prospect of saturation in the UK market. In this report, we examine the case for, and execution strategies for, international expansion. We focus on two large countries where this strategy could be especially profitable: China and Japan. We conclude that China holds excellent prospects for John Lewis and we therefore recommend expansion. Our recommendation for expansion into Japan is more qualified, but we believe that an expansion there would also be profitable. However, market constraints in this country lead us to caution that a more thorough analysis may be prudent before any action is taken. Introduction The John Lewis Partnership is one of the UK’s leading retail businesses with 29 John Lewis department stores, 8 John Lewis at home stores, johnlewis.com, 246 Waitrose supermarkets, 31 Waitrose convenience stores, waitrose.com and business to business contracts in the UK and abroad. John Lewis and Waitrose are two of the strongest retail brands in the UK. John Lewis manages upmarket, large department...
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...company is not only about coffee, but also about the experience created in the stores and in the company. Also, Starbucks persists to be profitable and it is. They live by a strict, slow growth policy completely dominating a market before setting its sights further abroad. As a supplement tot the growth provided by new outlets, Starbucks tried out new concepts in their store but the management felt that it took away from their core business. In 1994, Starbucks introduced a drink called Frappuccino, a cold coffee drink. Through a joint venture with Pepsi, a grocery-store version was marketed. International expansion to Japan and the UK As Starbucks was reaching the point of saturation in North America, the firm set its sights on overseas expansion. In 1996, Starbucks opened its first Japanese store (a joint venture with Sazabu) in Tokyo’s Ginza district. Almost immediately, Starbucks enjoyed huge success in Japan. By 2003, more than five hundred stores were operating as joint ventures in Japan. A large portion of its international business is in Asia, and Starbucks plans to continue expanding its presence throughout Asia. Starbucks’ experience in Britain was quite different....
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...manufacturers do not sell their goods directly to the final consumer. Between the final consumer and the manufacturer stands a group of intermediaries who perform various functions. The intermediaries are referred to as marketing channels, groups of interdependent organizations involved in the process to help make a product or service available for consumption or use, marketing channels (Kotler, & Keller, 2007). Every manufacturer needs a marketing strategy in order to promote their product and make it readily available to the public. So choosing the correct strategy is a critical decision facing management. Apples launch of the new mini iPad will need two channel strategies, one for their domestic market (U.S.A), and one for their international market (Japan). Since the product is new choosing the correct market is crucial for the success of the mini iPad. Apples reputation in their domestic market is one of high brand loyalty. Apple has many brand loyal customers that demand Apple products and choose to purchase Apple products before they go to the store. For this reason a pull strategy is the best route to take concerning the launch of the mini iPad in the domestic market. The pull strategy involves manufacturers promoting their product in a way that consumers start asking intermediaries for the product and in response inducing intermediaries to order the product. Apple may be in high...
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