...Environmental Factors The global market has made a significant increase over the last two decades. More companies are making the step into the international market. Though risks are associated with this opportunity, the rewards can surpass the risks that are associated with it. When a company decides to join the international market there are many things that they need to keep in mind, including their marketing strategy and the environmental factors that are associated with the move. Throughout this composition, the environmental factors of the global and domestic markets will be evaluated, and Apple, Inc. will be used as an example of the global markets. Environmental Factors The global market has many environmental factors that need to be taken into consideration, both before a company enters into the global market and on a daily basis while conducting business. Domestically and globally, marketing decisions must take into consideration many factors. The international trade system is one aspect of international trade that must be looked into. Tariffs are used often in foreign markets to charge a tax on imported products. Though there are some forces to help with international trade, companies still must evaluate all aspects. The General Agreement on Tariffs and Trade (GATT) helps to “promote world trade by reducing tariffs and other international trade barriers” (Kotler, P. & Keller, K.L., 2009, pg 453, para 3). The World Trade Organization (WTO) was put in place to...
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...cosmetics in the global market, it is imperative for the company to use this opportunity and plan to go global. This document briefs about the analysis that will be done as the part of the project to formulate a fine strategy for Forest Essential to land in the foreign market. Project Summary: The project will explore the possibility for Forest Essential to march into foreign market. The analysis will incorporate the following elements: 1. Industry Analysis 2. Current operations/ marketing and financial analysis of the firm 3. Demand Analysis in foreign markets 4. Screening criteria for countries/ cities 5. Modes of Entry and the degree of co-ordination 6. Implementation plan At the end of the project we aim to address the question of Why Forest Essential should go global? and What should be the strategy to go global? Data Requirements: 1. Secondary research - news and magazine articles, company website information, industry research reports- euro monitor, market watch, macroeconomic data sources -EIU 2. Primary research - try to contact founder to understand business and value proposition more deeply 3. We will use the various frameworks covered in class to understand the different aspects of strategy and devise a strategy for the firm. Project Details: Following are the details of the analyses which will be done as the part of the project: Industry Analysis: We will analyze the information about the industry on a global basis. It is...
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...International Market 2 2.1 PEST Analysis: Tesco in Brazil 2 2.2 Market Specific Issues 4 3. Industry Analysis: Brazil 4 3.1 Competitive Rivalry in the industry 5 3.2 Bargaining Power of Suppliers 5 3.3 Bargaining Power of Customers 5 3.4 Threat of New Entrants 5 3.5 Threat of Substitutes 6 4 Company Analysis: Tesco 6 4.1 Resource Based View: Tesco 6 4.2 SWOT Analysis: Tesco 8 5. CAGE Analysis 9 6. Conclusion 11 7. References 12 1.Introduction Tesco Plc is the second largest retailer in the world and currently operates in over 6000 stores worldwide (Tesco Annual Report, 2014: n.p). This report analyses Tesco as an organisation and proposes a potential market for international expansion. The aim of this report is to analyse the international market’s environment and then indicate a potential strategy for Tesco to enter the market. The report initially works towards the analysis of the new market’s macro environment to understand key aspects linked with the proposed business market. This is followed by an internal analysis of Tesco and an overall external analysis of the retail industry in the new market. A strategic approach to enter the new international market is then presented. The proposed market for entry is Brazil. Brazil has a population of over 200 million and is the fastest merging economy in the world (IBGE, 2014: n.p). The country poses an exciting opportunity for Tesco to enter as the new trendsetter in the retail market. 2. Analysis...
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...options and learn new things for its company internationally. The ultimate goal is to learn about other cultures and expand a companies knowledge on a Global level. For a company to only have exposure in its own culture and own country would not attract as much business and it would not make the company as versatile. According to the Article The Performance Implications of International Intensity, Diversity and Distance Internationalization has three main parts: intensity, diversity, and distance. These three elements are studied to learn more about acclimating one country and culture to many other countries and to see how to appeal to the Global Market and gain knowledge and insight outside of a Company's home. Based upon the article in order to successfully take anything out of internationalization a company has to save money or avoid spending more money. Cutting costs is one of the main goals, and a company wants to see how internationalization will make the company more money on a global basis and save the company money. For example when a company is incorporating the intensity aspect of internationalization in needs to be careful the level of intensity and setup costs and foreignness and can play a role in intensity. Once the right balance of intensity is established a company has the ability to learn about the new market and gain new ideas and build new relationships with the other firm. According to the article over exposure to diversity will create more costs and eventually...
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...Definition of Globalization in Supply Chain Management 3.0 Advantages of Globalization in Supply Chain Management 3.1 Reduced Cycle Time 3.2 Cost Competitive 3.3 Increase Sales, Profits 3.4 New Markets 3.5 Satisfy Shareholders 3.6 Learn From Others 4.0 Disadvantages of Globalization in Supply Chain Management 4.1 Inefficient and Undersized Transportation and Distribution Systems 4.2 Market Instability 5.0 Conclusion 6.0 References 1.0 Introduction Today’s business environment characterized is by faster technological development, shorter product life cycle, and more intense global competition. Having the right product available in the right place, at the right time, enable the company to compete in this volatile market place. This environment forces companies to actively acquire new way to achieve competitive advantage since a firm competitive advantage is now more dependent on operating efficiency and productivity across functional areas of the organization. Companies are going truly globalization in Supply Chain Management. A change in the way of serving and providing customer needs and wants emerge as a result of economy globalization. The role of manufacturing companies has changed from supplying domestic market to supply international market carried out in business network on supply chain. A company can develop a product in Singapore, manufacture in China and its customers throughout the world with globalization in Supply Chain Management...
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...Chapter 1 Write-up Summary Global commerce produces peace, which makes international marketing possible and important. At the same time, international marketing promotes the peace and prosperity of the world, satisfying the needs and wants of customers from all over the world. U.S. business is a good example of the internationalization. Many familiar U.S. companies are now foreign controlled or headed in that direction. Meanwhile, there are other foreign companies that entered the U.S. market through exporting their products into the U.S. realized sufficient market share to justify building and buying manufacturing plants in the U.S. , such as Honda and BMW. International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit. International marketing has complicated task in many aspects, such as the aspects of the domestic environment and of the foreign environment. International marketing needs appropriate environment to adapt to it. International marketers must adjust their marketing efforts to different cultures. Adaptation is a conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects. The primary obstacles to success in international marketing...
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...Analyze Cultural and Legal Environments of MNCs Analysis of conducting business in International Business Cross cultural issues can crop up in a number of business environment. Internal companies should have the top leadership, who are from different countries, be conversant with the local staff from host countries that may need different models and processes. In international business operations, getting to be aware of the set structures and processes that include the varied cultures of the company in a balanced manner. Cross cultural interaction in the business world calls for cultural compromise; the aspect of ignoring or favoring one culture over the other one would bring revenue to a decline and general decline of the whole company. For success to be acquired, varied decision making process and organizational models have to be considered with regard to how they change and cultures involved. Culture affect the behavior and preferences of customers and business partners. To be effective in a foreign market, the manager has to adapt their products to acquire the varied needs of a certain group of clients. Any change that has to be made in advertising or features of products among others will to some extend be based on cultural context. The success or inefficiency of a company is reliant upon how well the staff undertake their business and technical skills in a new environment. This capacity is reliant upon the job-based skills and personal sensitivity and how they...
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...Introduction Globalization is a popular term used to describe the process of global expansion of economies and markets across borders, exchange of goods and services, mass movements of communities for better working conditions, multi-cultural exposures, exchange of technological know-how etc. The process of globalization is considered to be erasing transnational boundaries with people sharing common goods and services or adopting the cultures of another culture. Thus, the statement given above by Knox and Marston that globalization seems to lead to loss of originality or territorial identity can be considered as true in a way. According to definitions of globalization, the primary characteristics that it possess include movement of people and goods, improvement in technology and telecommunications, diffusion of knowledge and a spurt in multinational corporations. There have been debates about the positive and negative aspects of globalization. Those who are in favour of globalization point out that economically weaker countries can have the opportunity to join the global market and export their goods and services and thereby improve their economies. Also, different governments can co-operate together for global welfare and citizens can experience other cultures and become global citizens. The positive aspects of globalization are again overshadowed by its negative aspects which include loss of territorial identity and original culture. International bodies like the World Bank...
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...Global Management Session 1: Globalization and You as a Global Manager The session becan by showing a short video called ‘Did you know’ The video briefly pointed out how globalisation has reshaped the world in terms of social, economic, environmental and technological aspects. One of the key idea that the video clip demonstrated is that the economy in emerging markets will overtake the economy in developed countries by 2020 for the first time in human history. Fundamental concepts of the session- What is globalisation, how it has evolved and affected our lifestyles, the globalisation of markets and production Example of Starbucks and Boeing- How did these two firms take the opportunity of globalisation to way they used to operate, and expand in both their home country and overseas . The global economic activities are shifting towards emerging markets, e.g The BRICS Why and how big data will play an essential role in the aspects of business competition and managing a multinational company. Even though global companies account for the world/s ¼ GDP, ½ of these companies ‘profits are still generated from their home coutries, big question is, has globalisation made the world flat and removed the barriers to do business in the globe or do differences still exist across different countries. CAGE Framework- Cultural differences, Administrative differences, Geographic attributes, Economic distance Some examples of the frame work: 1. Cultural differences...
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...Toolscorp Corporation’s Introduction To The Global Marketplace Strategic Plan Overview David Lomidze American Intercontinental University Dr. Leland Taylor June 17.2013 Abstract This paper will address ToolsCorp Corporation’s attempt to penetrate the global marketplace and broaden the area of the operations and sales. Overall evaluation of the establishment and the environment and Toolscorp Corporation’s long term strategic plan development in early phase and its mission and vision statements will be defined. Toolscorp Corporation’s Introduction To The Global Marketplace Strategic Plan Overview Toolscorp Corporation ToolsCorp Corporation is the well-established organization that builds power tools, lawn mowers, lawn furniture, microwaves, and ranges and located it in Tennessee. All products are manufactured locally and sold through large retailers as Sears, Best Buy, and Wal-Mart. They have some advertisement and although they have a greatly established and very promising business in US and Canada, ToolsCorp is trying to introduce its product into the global marketplace. In case of success Toolscorp will become one of the largest establishment in its field and will overcome its competitors in sales by gaining huge share of the marketplace that gives the Corporation great power of dominating the market. Mission Statement Nine essential components of the mission statement are Customers, Products or Services, Markets, Technology, Concern for survival, growth...
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...becoming a more interdependent system, thus creating a global economy that is causing the economies of the world to interact with one another as one market instead of many national markets. International business is paramount and it is becoming increasingly important in this technology-driven era. The big question is: why do companies such as BP and other firms expand internationally? Why are businesses becoming international? And why must we create global economic interdependency? More than likely, businesses expand internationally in order to have a competitive advantage over its rivals. Businesses are changing and becoming more and more global due to international competition and competitive strategy. Domestic industries are shifting to global or multinational corporations in order to overcome country parochialism. Competition should be at a global platform, rather than on a country-by-country basis because competition fosters development and efficiency. Creating a global brand, such as BP did in a short period of time, poses several problems to a corporation. Although the foreign environment offers so many capabilities such as availability of supplies, new emerging markets that can be explored, lower labor and manufacturing costs, more access to finance capital, and even avoidance of tariffs and import quotas, other things need to be considered in order to build an effective strategy that unites all of these markets together and gives employees a sense of belonging. Repositioning...
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...DRINDOD DEWI SANT School of Business The Global Business Environment SBUS4004 Summer June 2014 – Term 1 October 2014 – Term 2 SBUS4004 The Global Business Environment MODULE CODE: TITLE: LEVEL: CREDITS: TEACHING METHODS: SBUS4004 The Global Business Environment 4 20 Lectures Seminars Independent Study N100 16% 8% 76% JACS CODE: AIM(S) • To introduce the importance of the global business environment within which organisations operate. To enable students to identify and recommend business decisions considering the changing components of the global business environment. • LEARNING OUTCOMES By the end of this module students should be able to: • • • outline and discuss the characteristics of an organisation’s environment; identify and discuss how organisations interact with the global business environment; interpret and produce supply and demand (price) predictions based on global business environment scenarios; distinguish how different organisations compete domestically and internationally; understand and identify cultural differences between countries and the importance of the different aspects of culture in doing business in a global context. • • CONTENT • Determining the difference between needs and wants and their significance to economics and business. Three economic systems, planned, free and mixed economies and the implications of each system on business/ organisations and society. Market classifications and characteristics: consider...
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...Final Paper – International Management (2012-08-MAN-372-OL011) Management Strategies and Building a more Successful Global Business Introduction Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. It has manifold dimensions: economic, political, security, environmental, health, social, cultural, and others. The focus here is on the concept of "globalization" as applied to the world economy. International expansion is simply about smart preparation and well-thought-out execution; it can be enticing and highly profitable, but only if you do it right. If you don’t plan for tax exposures, business model alterations, and international corporate structure in advance, then you’re setting yourself up for an uphill battle at best — and failure at worst. With the increasing trend of globalization, industries are rapidly expanding into the international market. With no exception, many U.S.-based companies are expanding beyond the home country despite the risks. Why is international expansion important? A company can grow by exploiting overseas market opportunities and imperfections through internationalization, and growth has a positive impact on the firm performance. In short, international expansion can be profitable to companies. Moreover, why is the relationship between international expansion and firm performance important? Ultimately, a company’s performance...
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...publications were examined and reviewed covering standardization process as a measurement to manage global operation of international business. Its limitations and drawbacks are deliberated as well. Through out this research papers, the following subjects were deliberated: reasons for picking this key term as a topic, a specific explanation and definition of standardization and its role, process, a summary for the major article chosen which is titled “A Model of Advertising Standardization in Multinational Corporations” and the main points it covered, a specific discussion covering the relation of this article to key term and to manage global operations and international market, the relation of the four other scholarly articles research and their discussion to the relation to the major article and main key term. Keywords: standardization, global operation, culture, marketing mix, advertising Standardization Key Term and Why I am Interested In It The key term I decided to extend my research on for this week is “Standardization”. After reading the required material for the International Business class, I have acquired a better conceptualization for the aspects and dimensions of doing business abroad. Consequently, I have desired to further my understandings on one of the important topics covered in Chapter 8 of the textbook (Satterlee, 2014) under the notion of global operation management process issues. Upon relying on the assorted scholarly journals and articles I...
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...Implementation and Standardization Strategies Success in today’s business world implies that all aspects of planning be utilized to the fullest. This includes the analysis segmentation and targeting of a potential market to facilitate sales whether retail, local, or global. When these protocol are combined this results in implementation and standardization strategies. Current research also show that, “targeting implementation also implies developing media and message strategies to reach each selected segment”(Johansson, 2009). Team A will construct a document that reviews the implementation strategy for their products which includes the protocol to be used in the global standardization of the merchandise. Factors influencing local and foreign buyer behavior There are many factors that could influence the local and foreign buyer behavior but in this paper, we will focus on four major aspects of influencing. The four key components that we will elaborate on are Cultural, Social, Personal, and Psychological factors. These four key components can be interchanged on the local and foreign buyers market. Understand these particular factors will not only be a good basis for a successful product launch but it can also help bridge the gap within global affairs and communication. Cultural factors involve many situations depending on the country of orgin, or if there is a specific need for the product within that country. According to Perrau, Culture is essential when it comes...
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