...Russia Introduction The Procter & Gamble Company was founded in 1837 and is based in Cincinnati, Ohio. The Company provides consumer packaged goods in the United States and internationally. With 1.6 million shareholders around the globe, P&G operates in more than 160 countries and employs around 135,000 (including the Gillette business). Operating in Russia since 1991, P&G Russia is now one of the fastest developing subsidiaries of the Procter & Gamble Company. It has in Russia a solid portfolio of over 70 P&G brands, the key of them are Ariel, Tide and many other brand such as Pampers, Pantene. In this case study, we will focus on Always, a leading brand of feminine protection disposal pads launched in 1995, which is part of the paper division, trying to expand its brand and gain a maximum market share and enhance its market penetration. Strategic and Tactical Problems Always was the world-leading brand of feminine protection disposal pads, a market worth some USD 7 billion at retail in 1997, of which P&G hold 25% worldwide. This market has been growing steadily at 5%-10% in the previous decade. In order to increase its market share (by increasing usage) and expand its market penetration, P&G should establish some analysis such as identifying the issues. 1. Macro-economic situation: The economic situation in Russia, after the fall the Soviet regime, has not been very economic friendly to support any flawless market penetration...
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...they began to experience slower growth, profits and sales in the in the early 1990’s did they take a serious look into their business model for international expansion. But up to this pint they were unparalleled by any other competitor as the chart shows below. b. Why do you think this strategy became less viable in the 1990’s? • P&G’s costs were too high because of extensive duplication of manufacturing, marketing, and administrative facilities in different national subisidiaries. The duplication of assets made sense when national markets were segmented from each other by barriers to cross-border trade. (Products produced in one country could not be economically sold in another due to high tariff duties levied on imports to Germany for example). First, the changing global market created a better market for companies to expand and compete with less restrictive policies from host nations and more openness to foreign direct investment have all aligned to make the older strategy almost doomed to be defeated. Second, a combination of cheaper more efficient transportation of goods and markets more free for the import and export of materials aided to P&G losing some market share and profitability. c. What strategy does P&G appear to be moving to ward? What are the benefits of this strategy? What are the potential risks associated with it? P&G initially expanded internationally when it earned Canada in 1915. However, even after expanding into Western Europe and Asia...
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...How International Expansion has affected the Business world today International Business Abstract The business world as we know it today has changed from the business world that existed when our parents were growing up. Many business leaders and companies are beginning to expand their business internationally or globally. The advances in technology, and with the use of internet, television shows and politics we see the mention of globalization everywhere. What in fact is globalization, and how has it affected the business world today? When it comes to doing business internationally or globally, there are many different factors that one must take into consideration such as language and culture barriers, negotiation of contracts and various laws concerning issues such as intellectual property rights. With all of these various factors why are companies still looking to expand internationally? How do business and companies survive with all the laws and other forces they have to contend with? This paper will discuss globalization, what it is, and what effect it has had on the business world today. It will also discuss how to overcome language and culture barriers, the various laws business owners and managers need to be aware of and how to negotiate a legal contract. Finally this paper will discuss my own ideas of marketing a professional organization business internationally, and how it would benefit the international market, along with my personal view of international expansion...
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...The E-Commerce Industry 8 Consumer culture 9 Section 2: International Expansion Plan 10 Graze Company History 10 The Product 10 The Business 10 Location 10 Reasons for expansion 11 Timing of Entry 11 Modes of Entry 12 FDI Entry Mode 13 Place 14 Organisational strategy 14 Competition 15 Organizational architecture 16 Control systems and incentives 18 Target market 18 Response to competitive threats 19 Conclusion 20 Bibliography 21 Section 1: Country Profile Introduction Successful businesses know when and how to adapt and change. In the increasingly competitive and rapidly changing business environment of today, expanding a company internationally provides opportunities not only for revenue growth, but also the exchange of knowledge and the enhancement of capabilities, thereby strengthening the long-term competitiveness of a firm. However, the decision to embark on an international expansion can be both an exciting yet frightening prospect. Seemingly endless opportunities exist, nevertheless, with them come significant risk. It is therefore imperative to conduct preliminary research into the chosen market and realistically outline the capabilities of the firm. In this report we will explore the expansion of Nature Delivered Ltd., a UK based company that delivers healthy snacks by post, to Germany. This expansion...
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...couple in the ad. However there were others who supported the idea and inundated social media with note of support for the company and few others who probably didn’t get involved. This is a reflection of today’s modern and segmented society. Globalization and technology have taken front seat in merging cultures and creating a world where communities interact more closely than ever. According to United Nations Conference on Trade and Development (UNCTAD) there are about 63,000 multinational companies (MNCs) in the world and they have 700000 branches in other countries. Looking at the enormous reach of these global entities, one can only agree how critical it is to understand the cultural perspective of different societies. As a global business, it was an attempt by Coca Cola Company to embrace the diversity of multicultural world -- both in the marketplace and in the workplace. Evidently because societal culture has major influence on businesses. Global businesses have to deal with customers/clients, distributors, strategic partners, employees with different background and cultural mindsets. How organizations make decisions, implement policies, recruit workforce or even make strategic choices are affected by these cultural forces, both externally and internally, and impact the way organizations behave and deal with issues affecting society at large. My interest as a student of Gender and Cultural studies and a Human Resource Professional would be to explore the role of cultural...
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...Eyleen G. Rivera MGMT415: Global Operations Management IP Unit 1: PPQ Parts Company October 5, 2012 Issues that the host foreign country could face as a result of the expansion. PPQ Parts is a company in the auto parts industry. When PPQ Parts decides to expand their business to foreign countries, they will have to make many adjustments to be able to enter these different markets. It is important for the company to be aware of any environmental impact that the expansion may play regarding the host country. They could face issues related to landscaping and the use of water where the company operation is going to be located. Also, they might experience some impact on the wildlife from the incursion of new employees in the area. Also, the company unconsciously could cause conflict with the local population with the introduction of new workers and their families. Schools and communities where the company is based may also experience changes from the addition of new people into the population. Also they might experience problems related to the foreign nature of the interaction between the new staff and the current members of the community where PPQ decides to set up the shop to sell their merchandise. All of the above factors and many more need to be the first thing in the mind of the management of PPQ so when the time comes they know how to approach and solve any difficulties before they become overwhelming to the people of the host country. (Global HR News) What cultural...
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...Success… Full service Investment bank with strong capabilities in M&A, PE & India Entry Strategy Many Services…One Goal MERGERS & ACQUISITIONS INDIA ENTRY STRATEGY PRIVATE EQUITY One of the top ten Investment Bankers and winner of the M&A Atlas Awards – Deal of the Year 2011, ACQ Global Award 2009 for ‘Corporate and M&A Advisory firm of the year-India’ o Co po ate a d & dv so y o t e yea da Multi–dimensional focus, covering all major sectors and industries Current focus with mid market and growing Corporates, while having strong relationships with top business houses in the country E Experienced & S bl M i d Stable Management, l di leading a team of >35 f 35 professionals, 70% of the team averaging 6+ years with Singhi Strong relationship and confidence from existing clients with 60% repeat business and 80% strike rate Live relationship with >250 Corporates, resulting in >800 ve e at o s p w t 50 Co po ates, esu t g 800 completed assignments. CORPORATE RESTRUCTURING DEBT SYNDICATION CORPORATE ADVISORY Global Reach Exclusive Indian Member of “Mergers-Alliance”, a leading international network of independent Investment Banking Firms and Corporate Finance advisory firms offering seamless services on mid-market transactions With the successful closure of more than 90 transactions valued at over Euro 5 billion to its credit Mergers-Alliance is ranked No 19 credit, No. globally by Thomson Financial Table Mergers-Alliance helps us offer clients a global platform, seamless...
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...to Germany Prepared for Mr. Stephen P. Jones CEO of Grayhat Inc. Oklahoma City, Oklahoma, 73145 Prepared by Grayhat Inc San Antonio, TX 78245 October 04, 2013 Grayhat Inc. 1247 Industrial Drive San Antonio, TX 78245 October 04, 2013 Mr. Steven P. Jones, CEO Grayhat Inc. 10782 Skyline View Rd Oklahoma City, OK 73150 Dear Mr. Jones: In this document you will find the report you requested in August. I have provided the necessary information and made recommendations on a plan of action to expand Grayhat Inc. network security, software manufacturing, and distribution into Germany. My analysis of expansion into Germany covered several critical areas that will help you decide whether or not Grayhat Inc. should expand and build a manufacturing and distribution plant in Germany. To assist us in making that decision, I looked at the government, economy, culture, and competition. Germany is a technologically advanced country which has a stable economy. My research has led me to recommend expansion into Germany. I strongly believe that Grayhat Inc. can be profitable in the long term and become a successful business in Germany. Grayhat Inc. used several resources in forming my analysis. The Central Intelligence Agency's World Factbook, World Bank Group, and The Economist Newspaper were all helpful in answering my research questions. Thank you for allowing me to conduct research into Germany. If...
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...Case Treppen aus Nord‐ Case ”Treppen aus Nord‐ Nordwegen” g Story Intro • "We must not underestimate the risks of this project. Johannes Stiklestad looked this project " Johannes Stiklestad looked at his in‐law worriedly. Briefly, Per Moen had a slightly annoyed expression, but he controlled himself quickly. He was fully aware that they were talking about a big investment for such a small business, and that the implementation of the project would require great efforts. If it should would require great efforts If it should fail, it would also likely lead to the traditional business closing down. However, after working with this for a long time, he really saw no other possible way forward Johannes Stiklestad as • • • • • Established in 1950s by Johannes Stiklestad Producing stairs in pine and spruce + archways Producing stairs in pine and spruce + archways In 1982, Per Moen – Johannes Stiklestad son‐in‐ law entered business Stiklestad is not Chairman, and Moen is CEO Strategy: "We shall, according to customer needs, develop and market building products for homes. The products will have an appearance of craftsmanship and quality, be solid and have p q y, good custom‐made designs. We will not serve the cheapest market. Stairs should have a slightly exclusive impression, but we will not serve the very exclusive market. “ y Good reputation among customer: prefabricated houses, medium/small builders, some private 2000 m2 factory floor 2000 m2 factory...
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...Strategic Plan, Part I: Conceptualizing a Business BUS/475 October 7, 2013 Strategic Plan, Part I: Conceptualizing a Business Worlds Apart is a new concept restaurant that incorporates different dishes from all over the world into one restaurant. There will be amazing food dishes from Ireland, Germany, Mexico, Italy, France, China, and Greece, and of course, good ole down home southern dishes as well. Mission Statement Worlds Apart inspires to be a high-quality restaurant that meets and exceeds all expectations. The restaurant will offer a diverse menu from around the world using natural ingredients of the highest quality possible, and still offer moderate prices. We will give our employees the best training in respect, courtesy, and service better to assist our customers. We will use environmentally safe products to protect our ecosystem and the community around us to help reduce our carbon footprint. We strive to be an internationally known household name for our excellent service and high-quality foods in a way that will help us grow and expand profitably. Vision Statement Within the next five years, Worlds Apart will be a well-known “five star” restaurant in Southern Kentucky by combining exquisite customer service and perfectly prepared meals that creates a unique dining experience. Values and Guiding Principles Accountability-being responsible and taking ownership for our actions. This is essential to preserve our customers and societies trust and protect...
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...MGMT415 Unit 1 Assignment International Expansion Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global. Some of the issues that can arise in the host foreign country could face as a result of a global expansion are provisions for the occupant of good health, decent education, opportunities for promotion, decent house, employment, adequate income, and personal and national security. One benefit to the other nations is the rapidly expanding internet, which holds promise for developing nations. Its capabilities include communication and information delivery made easier and faster, and the nations gain from the revolution. However, the same benefits for developing nations are not the same in developed nations where transportation and communications are already established. These benefits serve all sectors of society such as education, government, science, health, and technology. These computers and networks are technologies that have to be absorbed and utilized in an internal and external way. The internal factors can include...
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...Introduction Originally established in Thailand in 1962 under the name Krating Daeng, Red Bull was incorporated in 1984 with its head office in Austria. It is now a market leader in the energy drink segment with presence in over 130 countries and an employee base of over 3,900 worldwide. It recorded a turnover of $2.6 billion in 2006 with a whopping 300% increase in global sales as compared to the year 2000. Starting with its first international foray in the neighbouring Hungary in 1993, it has since then entered and established a foothold in various key markets like United States, Germany and United Kingdom. Through its well developed network of local subsidiaries in these and other key markets, it manages to make its products available in more than 100 countries. The brand Red Bull has a reputation of unconventional marketing strategies, first mover in the energy drinks market and a strong player in the overall functional drinks market. This report is based on Red Bull GmbH’s international development and is divided into four distinct sections. Firstly, the key strategic challenges that it faces internationally in the functional drinks sector would be identified and evaluated. Secondly, the existing product mix of Red Bull and any suitable changes to the same will be analysed and discussed. Third section of the report will talk about Red Bull’s existing market entry mode into non-domestic markets and relevant alternative strategies. The final section will cover the company’s...
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............... 2 Issues ............................................................................................................................................... 2 3.1. 3.2. 3.3. 3.4. Cultural distance...................................................................................................................... 2 Administrative distance ........................................................................................................... 3 Geographic distance ................................................................................................................ 3 Economic distance ................................................................................................................... 3 4. 5. Business Model fit...
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...economic development growth, the environment of business has become more and more complicated as a huge number of firms want to globally expand their businesses. Subsequently, the managerial implications of cross-cultural management is the challenge of this development. As Abbe (2007) states, cross-cultural leadership has developed as a way to understand leaders who work in the global markets. Culture is the “software of mind” that can influence people’s patterns of thinking and behaving. (Hofstede, 1997). Referring to a work of He and Liu (2010), different characteristics of culture result in thinking, understanding and communication diversity. These diversities more or less make organisational development and management difficult. Therefore, multicultural managers should create cross-cultural training in their companies in order to increase effectiveness across culture. This essay will be discussing whether effective cross-cultural management has to be grounded in a detailed knowledge of individual cultures with examples of two multinational companies: Wal-Mart and Alfa Laval. II/ The Debate on Cross-Cultural Management: Globalisation has increased the awareness of consumers, and made nations more inter-dependent. In these days, international corporations require managers who can adapt to various environment quickly and work with their partners as well as employees from other cultures (House et al., 2001). Today, business in different nations should increase their sensitivity...
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...International business development – what are the considerations? Robert G. Watters Introduction There are now many companies in various business sectors which can be classed as global operators. Coca-Cola, McDonald’s, Avis, IBM, Sony and Ford are ideal examples of worldwide brands. There are also many other companies which have decided to expand their marketing operations by going into new markets abroad because they are confident they can compete, although they could not be truly classed as global operators. Marks & Spencer with their move into France and Aldi’s move into the UK are examples. Global operators The financial services sector has no worldwide brands and has even lacked this extensive expansion across borders because, while some of the considerations, such as management control and language, are the same as other business sectors, others, such as legislation and regulation, are unique to this sector. Perhaps the relative importance of these factors has limited expansion and contributed to why there are no truly global financial services brands, although there are some noticeable success stories in companies like General Electric USA, through their financial subsidiary, GE Capital Services, which has successfully expanded by using, or creating, local brand names in niche markets. This expansion consists currently of 13 businesses in Europe providing financing, leasing and loan servicing for capital equipment and speciality insurance for the business market plus...
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