...year for a tremendous challenge. As experts affirmed, the launch of MTV Arabia in the Middle East was the biggest challenge MTV had faced since its foundation. It was a big challenge for many reasons. First, the cultural difference between the Middle East and the west is incredibly different. Second, the Arab acceptance of a western brand could be tough. Then comes the ambiguity about the success of the localization strategy. Also, the possibility of MTV Arabia to be altered by the local programming could be expected. There is a considerable number of existing Arab music channels, thus, the competition might be difficult as they have the same focus as MTV Arabia. Although those challenges, MTV Networks invaded the Arabian market and applied a business strategy that enabled it to build a solid infrastructure. This paper analyzes the challenges that MTV faced during this process and the strategy that it applied to move forward highlighting its pros and cons. We will also analyze its success and survival in the market. Launching MTV Arabia in the Arab world is the most challenging process that MTV went through. Dana El Baltalji, a special Projects Manager, Trends magazine in Dubai said: “MTV has a penchant for airing controversial material and making a mockery of convention. And of course, it’s an American brand. The challenge, therefore, is transforming a notoriously risqué channel into a Middle Eastern-friendly platform for music and creativity without stripping MTV of its edge...
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...years developed a reputation for its ability to provide localized content without diluting what MTV stood for. However, the company faced the most challenging test in late 2007 with its launch of MTV Arabia in the Middle East, which some experts considered as the biggest launch in the channel’s history. While the market in the Middle East offered MTVN with huge opportunities due to its huge youth populace, MTV’s controversial content that was known for angering religious, political, and conservative communities could easily backfire in the conservative environment prevalent in the region. On the other hand, too much localization to suit the tastes of the region could dilute MTV’s global brand. The case discusses in detail the strategy adopted by MTVN to enter and expand in the Middle East and also the challenges faced by the channel. TEACHING OBJECTIVES & TARGET AUDIENCE The case will help the students to: • Understand the issues and challenges in entering and expanding operations in new markets which were culturally different from the organizations home/traditional/existing markets. • Understand the pros and cons of entering a new market with a standardized/adapted product to suit local preferences. • Analyze MTVN’s strategy in the Middle East, identify challenges and explore strategies that the channel could adopt in the future This case is meant for students of the MBA/MS level programs in the Business Strategy curriculum. The case is also suitable...
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...European Union and Turkey Introduction to European Union In this globalization era, the world seems to be borderless, especially in Europe. This further confirmed by the formation of the European Union, which serves as a binding substance between the countries contained in the European continent. European Union is a political and economic based union, established in 1993 after the ratification of Maastricht Treaty. The international organizations are working together to create economic and political stability among member states. During its development, the European Union may not run smoothly. The emergence of the economic problems that rocked the euro zone, then Spain and Cyprus emerged as a "burden" in these economic problems. Another emerging issue is productivity, border policy, and the exchange rate that makes this organization stability unsteady. Another issue that emerged is the exclusivity of the organization. Another issues arising from the exclusivity of membership expansion problem. Preceded by the six founding countries, EU has 28 members now, as Croatia joined on 1st July 2013. The membership number is certain to grow rapidly with the number of countries that volunteered to become a member. Regardless of all the problems it faces today, the EU is still believed to be an organization that brings positive impact to its members. States' desire to be able to join the candidate can not be separated from the success tale of the European Union, particularly in the fields...
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...more regulated and somewhat “fair” and competitive playfield. International organizations, such as the International Monetary Fund (IMF) and the World Trade Organization (WTO), have gained strength while working to ensure a firm and stable environment for trade and payments at a global scale. Smaller, regional organizations also play a strong hand and trade regulations can be found at a country and state level. This colossal amount of regulations and regulators aim, for the most part, to establish a fair environment for the benefit of both the consumers and the companies; yet, these regulations pose great, and sometimes hidden, risks. But these regulatory risks represent one of the many institutional differences companies may face when entering a foreign market. In order to have a better understanding of the potential political risks, one must study, not only the current state of the targeted area, but also the historical context and analyze examples of other companies in similar situations. Sometimes the industry, or even the area are not the same, but the knowledge gained is still valuable and many points can always be applied. The articles analyzed in this summary serve as broad overview of these risks and examples of companies that have struggled with a wide array of political risks and how some of them have used them in their favor, it gives insight on how to hedge this risks, how to manage them and how to foresee them. * “The new rules of globalization”: In this article...
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...IWhat is International Marketing? Marketing a product or service across national boundaries in order to satisfy the needs of customers and the objectives of the organization. Different Terms: Multidomestic marketing: adapting product and marketing programs to each foreign market independently. Global marketing: marketing activities in multiple country markets are coordinated and integrated. Foreign marketing: loosely refers to marketing a product in a market outside the home market. International Marketing Environments Global Economic Environment Cultural Environment International Marketing Global Competitive Environment Political/Regulatory Environment Systems Global Systems Global Financial Systems International Monetary Systems and Foreign Exchange Market Global/regional Trading Systems (WTO, EU, NAFTA, ASEAN,...) Importance of International Marketing • • • • World trade has risen from $2 trillion to $18 trillion in last three decades. International trade grows twice as fast as domestic trade. Global marketing is a “must” for firms to achieve sustained growth. Marketing success will be defined on a global scale. Domestic and International Trade Growth Percentage of Growth 12% 10% 8% 6% 4% 2% 0% Year International Trade Domestic Trade Financial Statistics Yearbook Source: International 2011, International Monetary Fund, Washington D. C. Uniqueness...
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...This paper sheds some light on the pros and cons of the proposed joint venture between Otis Elevator Company, CITIC and TEC, and some changes I think may be necessary in the Joint Venture proposal. Exhibit A summarizes the current business overview of Otis and its competitors, which is important to understand the context of the JV and how will a JV in China would be helpful for Otis’s market position. I think this is a good time for Otis to enter the Chinese market. Otis entered China earlier in 1930, and left the country in 1951 due to political instability of the country. A quick timeline of China’s political evolution is highlighted in Exhibit B. The conditions persistent in the country in 1951 are very different from the present conditions in 1983. China has experienced immense growth in all sectors, and the construction industry is booming due to modernization efforts. Even after the death of Deng, I think his successors would encourage foreign investments because all these effort are producing good results in terms of GDP growth, exports, and technological know-how (Exhibits 3, 4 and 5 of the case) for China. In addition to all these, China-Schindler joint venture has proved very successful. This strengthening position of Schindler poses a threat to the market share of Otis. Other smaller players, such as Hitachi, are also entering into agreements with Chinese elevator companies. Also, the JV proposal is for Tianjin, the third largest Chinese city which is also emerging...
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...The USA PATRIOT ACT, commonly known as the Patriot Act, is an acronym for Uniting and Strengthening America by Providing Appropriate tools required to Intercept and Obstruct Terrorism Act of 2001. On October 23, 2001, Republican Rep. Jim Sensenbrenner introduced H.R. 3162 incorporating provisions from a previously sponsored House bill and a Senate bill also introduced earlier in the month. The next day on October 24, 2001, the Act passed the House 357 to 66, with Democrats comprising the overwhelming portion of dissent. The following day on October 25, 2001, the Act passed the Senate by 98 to 1, with Russ Feingold the only opposition. This act was signed then into law by former president George W. Bush on October 26, 2011, just six weeks after the September 11th attacks to the World Trade Center and the Pentagon. This act reduced restrictions in law enforcement agencies’ gathering of intelligence with the U.S. The act also expanded the definition of terrorism to include domestic terrorism. The Patriot Act made many changes to U.S. law, such as the Foreign Intelligence Surveillance Act of 1978 (FISA), the Electronic Communications Privacy Act of 1986 (ECPA), the Money Laundering Control Act of 1986 and Bank Secrecy Act (BSA), as well as the Immigration and Nationality Act. It was strongly opposed by Senator, Russ Feingold; he was the only Senator to vote against the bill. The final Act had a number of sunsets that was supposed to expire on December 15, 2005. On May 26, 2011, President...
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...The USA PATRIOT ACT, commonly known as the Patriot Act, is an acronym for Uniting and Strengthening America by Providing Appropriate tools required to Intercept and Obstruct Terrorism Act of 2001. On October 23, 2001, Republican Rep. Jim Sensenbrenner introduced H.R. 3162 incorporating provisions from a previously sponsored House bill and a Senate bill also introduced earlier in the month. The next day on October 24, 2001, the Act passed the House 357 to 66, with Democrats comprising the overwhelming portion of dissent. The following day on October 25, 2001, the Act passed the Senate by 98 to 1, with Russ Feingold the only opposition. This act was signed then into law by former president George W. Bush on October 26, 2011, just six weeks after the September 11th attacks to the World Trade Center and the Pentagon. This act reduced restrictions in law enforcement agencies’ gathering of intelligence with the U.S. The act also expanded the definition of terrorism to include domestic terrorism. The Patriot Act made many changes to U.S. law, such as the Foreign Intelligence Surveillance Act of 1978 (FISA), the Electronic Communications Privacy Act of 1986 (ECPA), the Money Laundering Control Act of 1986 and Bank Secrecy Act (BSA), as well as the Immigration and Nationality Act. It was strongly opposed by Senator, Russ Feingold; he was the only Senator to vote against the bill. The final Act had a number of sunsets that was supposed to expire on December 15, 2005. On May 26, 2011, President...
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...Facts: It was up until the mid-19th century that India and Brazil were the only producers that supplied the world with diamonds. Diamonds were so scarce that royalty found it extremely difficult to acquire them and the conception of making diamonds available to the public was unthinkable (Tsounta). In 1867 diamonds were discovered in South Africa and the diamond supply increased but this did not displace the ideology that diamonds are a precious and rare commodity that exists to this very day. Cecil Rhodes was a businessman that rented pumping equipment to diamond miners. Through his business he recognized the potential of the expanding diamond mining industry. He reinvested his profits in the acquisition of time and claims and by 1880 he had a large enough share of claims form a separate company that focused on managing the diamond mines. This was the beginning of the DeBeers Consolidated Mines Limited in 1888 (Kretschmer). DeBeers then began to exploit the diamond mines in South Africa. While diamonds were a rare resource only a couple of centuries ago, the prices began to fall due to the discovery of the extremely rich mines in South Africa and other countries of Africa. DeBeers worked with other producers in a parallel effort, successfully set up a cartel to control international prices of diamonds (St. Antoninus Institute). DeBeers had control of 95% of the world's diamond production by 1890. Ernest Oppenheimer and J.P. Morgan founded mining giant Anglo American PLC. They...
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...Journal of World Business 37 (2002) 69±80 Eastern European cluster: tradition and transition     Gyula Bakacsi, Takacs Sandor, Karacsonyi Andras, Imrek Viktor1 Budapest University of Economic Sciences and Public Administration, 1093 Budapest, Hungary Abstract The eastern European cluster consists of Albania, Georgia, Greece, Hungary, Kazakhstan, Poland, Russia, and Slovenia. It has a population of 232 million and a gross domestic product (GDP) of U.S.$772 billion. The cluster's distinctive cultural practices are high power distance and high family and group collectivism. The region is facing signi®cant challenges during its period of transition from communist philosophy to market-based economies. The participating managers value a much greater degree of future and performance orientation, but are strongly attached to their cultural heritage of deep family and group cohesion. They are also highly value charismatic and team-oriented leadership. The challenges and complexities facing the region are explored in the paper. # 2002 Published by Elsevier Science Inc. 1. Introduction This article provides an in-depth look at the eastern European culture. This region is understudied due to its socialist past and was not (with the exception of Greece and Yugoslavia), included in Hofstede's seminal work (1980) or basic reviewing and synthesizing study of Ronen & Shenkar, 1985 comparative study of 25 countries. Over the past few years, a few writers have examined cultural and...
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...Justifying Military Intervention Some of the most difficult decisions that United States policymakers are faced with are those regarding when, where and how the United States should exercise military force. Most people feel that military force may be used if a vital interest of the United States is threatened. “The difficulty lies in getting people to agree on what constitutes a vital national interest” (Military Intervention). In addition, there will be disagreements over the costs and benefits in intervening in a particular region and what type of military or political action should be carried out on the region. From a domestic perspective, almost every United States citizen would agree that an attack by a foreign country on the United States is a direct and serious threat to national security. In addition, if an organization or country attacked a nation which the United States has a security agreement with, a retaliation from the United States military and NATO would see no disagreements from Americans and the United States friends. Where disagreements can arise is when the situation does not pose an immediate threat to U.S. security but could imperil it in the future, such as when a region becomes unstable and the instability may lead to wider conflicts. Another area of debate emerges over issues of human rights and humanitarian efforts. The United States is the most powerful democratic nation on Earth. Does that mean we always have a vital interest in promoting human rights...
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...Outback Steakhouse March 3, 2014. Outback Steakhouse ............................................................................................................................ 3 Appendix A: Situational Analysis: Why has Outback been so successful? ........................ 7 Appendix B: Internal Analysis: What are Outback’s Strengths, Weaknesses, Opportunities and Threats? ............................................................................................................. 8 Appendix C: Internal Financial Analysis ...................................................................................... 9 Appendix D: External Analysis: What are some Key Success Factors for the restaurant industry? ............................................................................................................................................... 11 Appendix E: External Analysis – How attractive is the restaurant industry? ................ 12 Appendix F: External Analysis: PESTEL ...................................................................................... 14 Appendix G: Analysis of ...
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...Expansion into Online Marketing/E-Commerce Table of Contents Executive Summary…………………………………………………………………… 3 Introduction……………………………………………………………………………..4 Research Findings………………………………………………………………………5 Finding Number 1………………………………………………………………5 Finding Number 2………………………………………………………………6 Finding Number 3……………………………………………………………6, 7 Recommendations………………………………………………………………………8 Conclusion………………………………………………………………………………9 References………………………………………………………………………10 Executive Summary Monte Carlo Magic, LLC is a medium level competitor in the casino gaming supplies industry within the United States. Monte Carlo Magic, LLC. has eight retail locations across the United States servicing the main casino centers within the United States. Monte Carlo Magic, LLC. desires to become a larger player within the casino gaming supplies industry not only in the Unites States, but expand their reach globally. Currently, the cost for opening retail locations in casino centers around the globe is an expensive venture. The large investment costs would include retail outlet leasing, manpower costs, warehouse distribution supporting the individual retail outlets and political climate of the different countries we expect to expand into. It is our position that we can accomplish the same market penetration by providing...
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...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 to understanding the desires and behaviors of a consumer (Perrau 2013). Throughout his subsistence, a consumer will be influenced by his family, his friends, his cultural environment or society that will “instruct” him morals, preferences as well as familiar behaviors to their own culture (Perrau 2013). When looking further into the cultural factors, we can think about countries in the Middle...
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...McDonald’s Corporation Analyst Maria Jose Abuawad April 23, 2013 Pros: Cons: Figure 1 1 Year Performance MCD vs. S&P 500 Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2015 P/E Projected 2015 EPS Dividend Yield Debt Rating Beta MCD NYSE Restaurants Consumer Staples Income and Capital Appreciation US $99.3 Billion $83.31 - $99.78 $99.05 18.48 17.5x $7.24 3.10% A 0.34 Recommendation: HOLD Strong brand Economies of scale Cohesive franchisee system International growth opportunities High profit margins Pays a dividend Market share leader Vulnerable to currency exchange Highly competitive industry Obesity propensity Porter’s Five Forces: Threat of Competition: HIGH Threat of New Entrants: LOW Threat of Substitutes: HIGH Power of Suppliers: MODERATE Power of Buyers: MODERATE Brief Overview McDonald’s is the leading global foodservice retailer with more than 34,000 local restaurants serving nearly 69 million people in 119 countries. The company operates in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald’s employs 1.8 million people. It also franchises 80% of its restaurants. The company was founded in 1940 and is based in...
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