The starting point in selecting the most effective channel arrangement is a clear determination of the target market for the company’s marketing effort and a determination of the needs and preferences of the target market. Where are the potential customers located? What are their information requirements? What are their preferences for service? How sensitive are they to price? These are some of the questions that the channel manager should answer. Customer preference must be carefully determined because there is as much danger to the success of a marketing program in creating too much utility as there is in creating too little. Moreover, each market must be analysed to determine the cost of providing channel services. What is appropriate in one country may not be effective in another. Channel strategy in a global marketing program must fit the company’s competitive position and overall marketing objectives in each national market. If a Continue reading
International Business
International Business Management deals with the maintenance and development of a multinational operation across national borders, whose manager has the knowledge and the skills to manage and handle cross-cultural processes, stakeholders and business environments in a right way.
Structural Design of Multinational Enterprises(MNEs)
Organizational structure gives the framework or lines of communication, authority, responsibility and accountability. Organizational structure specifies the firm’s reporting relationships, procedures, controls and authority and decision processes. It is a critical component of effective strategy implementation process. Organizational structure provides for specialization and interfaces among specializations for collaborative synergism and competitive dynamism. For Multinational Enterprises(MNEs) deciding the organization structure is very important because it cannot be the same for all units and at the same time cannot be just one design for all. Whatever the design, it must be organic enough to adapt to situations. The structure must have stability to facilitate day to day activities to go on consistently and flexibility to facilitate taking advantage of opportunities that environment throws up. While it is becoming true that form must follow function, there are some traditional/ classical organizational structures that are followed; besides new structures are experimented with. Multinational Enterprises(MNEs) Continue reading
Global Company Competitiveness Analysis
A domestic company may extend its products to foreign markets by exporting, licensing and franchising. Initially, the exporting is indirect. It may develop a more serious attitude towards foreign business and move to the next stage of development. International company is normally the second stage in the development of a company towards transnational corporation. The orientation of the company is basically ethnocentric and the marketing strategy is extension. The marketing mix developed for the home market is extended into the foreign markets when a company decides to respond to market differences, it involves into the stage there multinational that pursues a multidomestic strategy. Multinational company’s each foreign subsidiary is managed as if it were an independent city stage. The subsidiaries are part of an area structure in which each country is part of a regional organization that reports to world headquarters. The transnational corporation is much more than a company Continue reading
What Is International Franchising?
Franchisers sell a defined, proven business format or method of operation, offering a product or service that has sold successfully. An independent business is based on both an untried idea and operation. Franchisees can often buy lower-cost goods and supplies through the franchiser, resulting from the group purchasing power of all the franchises. Franchising provides a uniform system of operation, so that consumers receive uniform quality, efficiently and cost-effectively. A uniform system brings with it the advantages of mass purchasing power, brand identification, and customer loyalty, capitalizing on the proven format. A franchiser also provides management assistance, including accounting procedures, personnel and facility management. An individual with experience in these areas may not be familiar with how to apply them in a new business. The franchiser helps a franchisee overcome this lack of experience. Franchisors help franchisees develop a business plan. Many elements of the plan are standard operating procedures Continue reading
The Advantages and Disadvantages of Globalization
Globalization has become a hot-debated issue in the last ten to twenty years. Globalization is affecting the world from different perspectives, such as political perspective, economic perspective, and cultural perspective. Currently, whether globalization can bring more positive effects or negative effects to the modern world is still open to debate. Different scholars around the world hold distinctive views regarding the definition of globalization, but in this article, the following two definitions are used. Globalization refers to the creation and intensification of global linkages. In addition, globalization also refers to the compression of the world and the intensification of consciousness of the world as a whole. One of the main ideas of globalization is to break the barriers between countries. Everyone can receive information about different events happening in the world instantly. In the era of globalization, breaking barriers between countries is inevitable. Trading, foreign investments, population movements, these activities across Continue reading
Business-Government Relationships – Meaning, Advantages, and Disadvantages
The success of any business around the world depends on a wide-range of factors, some of which may be from the internal or external business environment. For this reason, business owners and managers have no option but to try and understand the underlying factors, which are essential in defining the progress and future performance of the business. From the manner in which a firm treats its customers, to its relationship with internal stakeholders, it is necessary to underscore how various factors are generally intertwined in any business market. The question we ought to ask is the need for establishing a relationship with the government when running a business. The manner in which governments relate with the business world has remained debatable for several years, presenting two sides of a coin in which debaters view the advantages and demerits of enhancing such relationships in any setup. This is based on the fact Continue reading