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Barbie Doll Issues

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Submitted By lee1509
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Rmit University

Huynh Trung Nghia- s3372953

* International Business * Assignment 1, Short Individual Essay * Word Limit 500 words + reference list and appendix * TASK
Discuss a major issue that a company has faced while internationalising and how it managed this challenge. Use examples from a real company (ies) to illustrate your points.

Business chosen: Mattel-“ Creating the future of play”
Introduction:
According to Heino (2008), Globalization of Business can be defined that the company extend to foreign market beside the domestic market. It means that the firm comes to the market out its home country to globally popularize its brand, product and increase the sales as well as revenue and profit. However, there are several common issues that the businesses have to face with when they are in process of internalizing business. This analysis is going to target on the term of external challenge of globalizing progress, specifically of social connection-cultural management issue.
Issue:
Cultural management is one of significant challenges of internalization process. It is an important way for any firm successfully extends and operates the business to other countries. It is also a crucial key of success for the firm to have capability of meeting the customers demand (Heino 2008).
Mattel is the company launched by Ruth and Elliot Handler and Harold "Matt" Matson in 1945. In 1959 the main product was officially released to the market, which called “Barbie” doll. This company becomes extremely successful in term of Internalization Process; however Matt had to face with a huge challenge in Chinese market because of lack of careful considering the social factor. In 2009, the company made a foray by establishing the world's largest "House of Barbie" valuing $30 millions in a prime Shanghai location, which built the six-story shop including

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