...in China: Think Local, Act Global – A Summary When multinational companies (MNCs) started to get entrance into the Chinese market, they were received with open arms. This includes them enjoying government privileges other local companies were not entitled to. The Chinese consumers also preferred goods from the MNCs, and not their local companies. This however, took a twist when in the year 2000, when the per capita GDP rose in the country to $1,000. The perception of the Chinese toward the MNCs changed further when China became a member of the World Trade Organization in 2001. Their earlier privileges were withdrawn, as even the Chinese started to embrace their local companies. Conditions ever since have become tight for the MNCs, as they are now expected to strictly adhere to the Chinese standards in their businesses. Although the MNC have positively contributed to the Chinese economy, much of their challenges lie within the framework of adapting to the local Chinese expectations in their business practice. For instance, it is important to be aware of the kind of advertisements to use, which cannot be considered offensive by the local Chinese people. Most MNCs have difficulty understanding the expectations the Chinese have of them, since the Chinese are sensitive people, with respect to moral integrity and social prestige. For the MNCs to survive in China, they must “think local and act global,” meaning they should conduct their business according to the local Chinese culture...
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...recognized as a Multinational Corporation (MNC). The impacts of Multinational Corporations can be negative and positive. But in today’s assignment I am going to talk about Chinese cultures impact on Multinational Corporations. Since 1970s, the multinational corporations in China has changed dramatically when the nation opened its economy and welcomed the direct investment. During the 1980s, MNCs like Motorola, Philips and NEC was welcomed in China with open arms. They used to pay half of the imposed tax rate from the local companies, and also they pay no duties on their goods imports. However, in the beginning of 2000, when per capita GDP went above UD$1,000 and when China joined the World Trade Organization, the consumers and the Chinese government changed their perceptions of MNCs drastically. Multinational Corporations main goal was to fit national interests. Then because of the National cultures impact, MNCs started to follow this rule “Think local and act global”. Chinese consumers have also become more demanding and as a result they don’t really see the difference between products which are made by the MNCs or Chinese companies. For example in 1977 there were 1 million cars in China, by 2008 there were 51 million and now there are 85 million cars in China. Every day that number increase by 38 thousand. Which means somebody buys a new car in China every 2.3 seconds. Because of this Chinese and MNCs car factories are running at light speed. In 2012 the whole of Europe combined...
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...STUDY « Think global, act local » T. Levitt 1) What is the primary basis for Coke’s past international marketing success? Is it only advertising? The Coca Cola Company expanded slowly abroad in the early 1920’s. Coca Cola presented the beverage with different logos which are culturally symbolic. However the true growth of Coca Cola beverages in the world had been possible during the World War II. Coca Cola Company delivered beverages to the US soldier in Europe and Asia. Marketing: understanding the market Marketing philosophy: A good understanding of customer needs and providing a good offer. Coca Cola: in America is a ritual, you open the fridge and drink a coca cola. Abroad, drink coca cola is to live the American dream. Many will say that it is the level of advertising. But the better answer may be the consistent and effective, locally oriented global marketing, aimed carefully at targeted markets around the globe. Coke and other brands have become leaders in their product categories by understanding consumer motivations and desires and by creating relevant and favorable image associations. Image association: Pavlov theory Cowboy Marlboro Coke Soft drinks Cigarette Pleasant There is nothing fly-by-night in such activities. 2) Given the growing political and economic uncertainty, what changes can Coke make to its global marketing strategy? During the 1990’s, the marketing strategy of Coca Cola Company was described by the phrase “think global...
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...------------------------------------------------- The Global Marketing Environment ------------------------------------------------- Case 1-2: McDonald’s Expands Globally While Adjusting Its Local Recipe Identify the key elements in McDonald’s global marketing strategy. In particular, how does McDonald’s approach the issue of standardization? Does McDonald’s think global and act local? Does it also think local and act global? The plan to Win initiative is built around five factors that drive McDonald’s business: people, products, place, price, and promotion. As a student of marketing, what can you say about these factors? Product | One burger, but so many variations. McDonalds, in order to answer to its clients’ needs all around the globe, worked on customized meals for each of its regions. Depending on religious beliefs, habits, taste, and other stuffs... customers are expecting different offers. | Place | In the U.S., 50% of the outlets are situated within the distance of 3 minutes. Maybe easier to find a McDonald’s restaurant than a drugstore. They place their brand everywhere, and well located in order to reach as much as people as possible (near college, train station...) | Price | Depending on the purchasing power, meal prices fixed. McDonald offers a price list: as in India, a complete meal is about $2, in France $10. This pricing strategy, locally adapted allows the brand to be the fast-food chain world leader. | Promotion | Advertising, through different...
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...TCCC sponsors events, such as NASCAR, the Olympic Games, NBA, PGA, and NCAA, the list could continue and on with their mass marketing genius to continue their stranglehold of the soft drink market. As management strategies TCCC has also been an innovative company. Their thought for management is “Think Global, Act Local.” This mantra has had TCCC as a global competitor but has allowed the company to augment local economy with many jobs in towns across the world. Also TCCC has adopted creative marketing strategies to appease a local buyer. During the annual Folkloric Parintins Festival that is in the Rain Forest there is a singing and dancing presentation by two teams, one red and one blue. The red team and all their vendors bought plenty of Coca-Cola; however, the vendors on the blue side went with Pepsi because it has the same blue color. A Brazilian TCCC planner had the idea to make blue cans only in that region for this purpose and because of that decision Coca-Cola has been the soft drink for both sides just in different colors. That is a prime example of global thoughts but local actions. Accidental Thinking (21 October, 2009) Think Global Act Local. Retrieved from...
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...the key elements in McDonald’s global marketing strategy. In particular, how does McDonald’s approach the issue of standardization? Does McDonald’s think global act local? Does it also think local and act global? McDonald’s is a fast-food legend that gives its consumers a chance to experience it delivering inexpensive food with consistent taste regardless of location, quick service, and a clean familiar environment. The key elements that McDonald’s use envolve both global and local elements. McDonald’s offers american style hamburgers in most of its restaurants around the world and the group people who are consuming this food is growing everday and including its french fries too. McDonald’s tries to sell its products in the same way everywhere in the world. Labeling and the brand name are two of the items used to standarize, including the product characteristics. One of the aims that McDonalds is using to create standarized set of items that can taste the same anywhere in the world where ther is a McDonald’s, it wants everyone to have the same quality in its products and the experience. McDonald’s thinks local and act global because it wants to expand by giving the rest of the world an experience that includes things that are traditional in the United States. Do you think government officials in developing countries such as Russia, China, and India welcome McDonald’s? Do consumers in these countries welcome McDonald’s? Why or why not? I think because of its well known name...
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...Big Ideas in Science: From Methods to Mutation August 16, 2011 Breakfast Toast- Horsham-Pennsylvania Scrambled Eggs-Omaha Nebraska Sausage- Kosciusko Mississippi Lunch Bread- Horsham-Pennsylvania Boars Head Turkey- Sarasota Florida Boars Head Swiss Cheese- Sarasota Florida Duke’s Mayonnaise – Richmond Virginia Tomatoes- Kingsville Ontario Carrots- Lakeland Florida Lays Wavy Potato Chips- Plano Texas All of the products that were eaten during both meals were purchased from Publix Supermarket, a Florida based supermarket except for the sausage. The sausage was purchased from my Uncle’s custom meat locker in Kosciusko, Mississippi. He gets the hogs he processes into sausage from local people who raise hogs. When buying food in the grocery store, we don’t tend to think that the store is actually the middle step of getting the food to the table. We plan a meal without considering where the food originates. It is possible that the food we are eating is grown within the US or even outside its borders. An advantage of buying products that are grown in our borders helps to stimulate the national economy. After some research into what steps there are in the food chain, the most common example seen was that of milk. Milk is collected from a cow on the farm and transported for the pasteurization process. The pasteurization usually occurs in a specific geographical location due to milk having a short shelf life. The shelf life for milk is usually 2 weeks. (Milk Processing...
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...The current issue and full text archive of this journal is available at http://www.emerald-library.com/ft McDonald's: ``think global, act local'' ± the marketing mix Principal Lecturer, Manchester Metropolitan University, Manchester, UK Keywords Globalization, Marketing mix, Marketing management, Fast-food industry, Marketing, Franchising Abstract Focuses on the marketing mix of McDonald's. Highlights how the company combines internationalisation and globalisation elements according to various fast food markets. Using the effect of strategical and tactical models, the case illustrates the effect of McDonald's on the global environment and how they adapt to local communities. Describes future franchise plans for McDonald's. McDonald's: ``think global, act local'' 97 Claudio Vignali Introduction McDonald's background Two brothers, Richard and Maurice McDonald founded McDonald's in 1937. The brothers developed food processing and assembly line techniques at a tiny drive-in restaurant east of Pasadena, California. In 1954, Ray Kroc, a milk-shake mixer salesman, saw an opportunity in this market and negotiated a franchise deal giving him exclusive rights to franchise McDonald's in the USA. Mr Kroc offered a McDonald's franchise for $950 at a time when other franchising companies sold restaurant and ice-cream franchises for up to $50,000. Mr Kroc also took a service fee of 1.9 per cent of sales for himself plus a royalty of 0.5 per cent of sales went to the McDonald brothers...
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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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...Assignment 1 Spring 2015 Syed Akbar Jamil Submitted on January 27, 2015 Virginia International University School of Business MBA 616 INTERNATIONAL MARKETING Global marketing strategy of McDonald’s is established on combination of local and global mixed elements of marketing. 1) The first element is, McDonald’s offers basic items like burgers, french fries and soft drinks in most countries. The popularity of American-style burgers, fries, and soft drinks are growing around the world. Second element of McDonald’s global marketing strategy (GMS) is a dynamic element in McDonald’s business model restaurants system which can be set up virtually anywhere in the world and the restaurants by themselves offer the consumers a chance to experience for themselves a fast food legend. McDonald’s think global and local but they also act locally. A huge amount of ingredients they use, come from local producer. This decision is also an excellent mean to give them a responsible conscience. 2) McDonald’s bring to developing countries the chance to get well trained and at the same time the company is acting locally too to enhance the agricultural industry by working together with the local producers. Additionally, life-styles are being changed all over the world; the need to save time and money is growing in countries such as China. People are more and more influenced by the Western-lifestyle, and junk food is part of this culture. Also McDonald’s is offering meal to modify their...
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...Transcript of Coca-Cola photo credit Nasa / Goddard Space Flight Center / Reto Stöckli PRESENTATION OUTLINE COCA-COLA HERITAGE TIMELINE 1886 -2013 How might Coca-Cola have responded differently when this situation first occured, specially in terms of responsibility to negative perceptions among Indians of Coke and other MNCs? If Coca-Cola wants to obtain more of India's soft drink market, what change does it need to take? Companies like Coca-Cola and PepsiCo in demonstrating their commitment to working with different countries and r especting the cultural and natural environments of those societies. WONG KIM MAY ESHA CHOWDHURY KHO XIAN WEI 3.1% of all beverages consumed around the world are Coca-Cola products. DO YOU KNOW? Coke make so many different beverages that if you drank one per day, it would take up 9 years to try them all. Coca-cola's $35.1 billion in revenue makes it the 84th largest economy in the world, just ahead of Costa Rica. The Coca-cola brand is worth an estimated $74 billion : more than Budweiser, Pepsi, Starbucks and Redbull combined. If every drop of Coke ever produced were put in 8-ounce bottles and laid end-to-end, they would reach the moon and back over 2000 times. DO YOU KNOW The red & white Coca-cola logo is recognized by 94% of the World's population. There are 33 non-alcoholic brands that generate over $1 billion in revenue. Coca-cola owns a whopping 15 of them. Around the world, the average person...
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...NAME: _______________________________________ CASE 8: Research In Motion: Managing Explosive Growth 1. BACKGROUND INFORMATION |Timeframe |Country(s) Involved |Key Individuals & Titles |Company Type & Size | | | | | | 2. BRIEF SUMMARY OF CASE SITUATION |Business or Industry Description |Particular Company Situation | 3. INDUSTRY AND COMPETITIVE ANALYSIS |Dominant Economic Characteristics |Strategic Group MAP | | | | | | | | | | | | | | ...
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...Cornela Maria Rampengan 7- Eleven in Taiwan 7-Eleven Inc. was the world’s largest operator, franchisor and licensor of convenience stores, with annual sales of more than $ 62 billion. Its company become a pioneer the concept of convenience stores in the US, where it had 7.200 stores. This concept was also expanded to several countries, which are North America, Europe, and Asia and the largest store located in Asia. 7- Eleven was founded in 1927 as the Southland Ice Company in Dallas, Texas. It started by selling ice blocks and the first stores were known as “ Tote’m stores because customers “ toted” away the ice blocks. Tote’m changed its name to 7-Eleven in 1946, when the stores were open from 7 A.M. to 11 P.M. daily and during 1950s, 7-Eleven started moving beyond the Dallas market into other regions of Texas and also into Florida and Washington DC. By time being, they stay open 24 hours started by accident in 1962, at a store in Austin, Texas located close to the university campus. Mission of 7-Eleven : “ Meeting the needs of convenience-oriented customers by providing a broad selection of fresh, high quality products and services at everyday prices, speedy transactions and a clean, friendly shopping environment.” The concept of convenience stores that developed by 7-eleven was shaping the way American shopped, which is Americans shopped at big box stores and supermarkets for all their weekly or monthly supplies. Basically, three distinctive features of the American...
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...internationalization process. The case has represented a clear sequence of HR issues regarding choice of HR processes to be managed globally or in country, the role of local HR business partners developed in relation to recruitment and selection activity, and emerging complexity of approaching into the behavioral implications of central HR policies within local cultures. Question: As an organization globalizes, what decisions have to be made as to which HR processes will be managed at a global level and co-ordinated in-country? ------------------------------------------------------------------------------------------------------- When any organization enters the global business era, some decisions have to be made for which their HR processes can be managed at the global level and co-ordinated in-country. The management of the organization will have to think whether they should recruit local people or they should go for international recruitment. According to the job type they might have to think whether the experience or cultural knowledge is more important. They also might have to take a decision about taking help of any recruiting agency because recruiting a person with required skills and experience at a short notice is not an easy task. In that case they also have to think whether to go for local or international recruiting agency. Question:...
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...Impacts of a borderless society Unit 6 Assignment Professor Robert P Black, MS I am a serious bargain shopper. I try to save wherever I can. That usually means buying products from a mega chain, whose items are usually from outside of the U.S., verses buying from a local “mom and pop” store. The local stores usually have higher prices than most of the larger chain stores. I have never really understood why. For my family, buying all our food locally can be a challenge sometimes. My husband is Asian and he refuses to let go of some of the Asian food items he loves. For example, he has to have bok choy instead of green cabbage from right here. Rice is another issue for us. It has to be jasmine rice from a South East Asian country. He swears there is a difference. In my opinion, it all tastes the same….bland. List all of the components of two of your meals. Meal 1: For breakfast I had eggs, Conecuh sausage, peaches, and iced sweet tea. Meal 2: For lunch I had a ham sandwich with Sargento Colby- jack cheese, Lays brand sour cream and onion potato chips, and a Jell-O pudding cup. I had a bottle of Aquafina water to drink. A. Where did each component of your meal originate? List the country that each part of your meal came from. (i.e., Did that glass of red wine come from Australia? Is the cheese from France?) Meal 1 – Breakfast My eggs Eggland’s Best eggs came from Jeffersonville, PA. My peaches came from Clanton, Al, which is about an hour north of my home...
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