Understand the strategies used by international businesses (Oyin)…
Understand the strategies used by international businesses (Oyin)
Strategy aimed at winning larger market share, even at the expense of short-term earnings.
to reduce risk involved in specialising in one product / service
Spreading a bank's assets (loans) over a wider assortment of quality borrowers, to maintain or improve earning levels while maintaining the same level of exposure
Allow organisations to increase market share and sales
New market structures arising
Economies of scale
Purchasing and producing in mass
Benefiting from a lower taxation regime in free trade zones
Legal and regulatory regime
To manufacture in partnership with others.
Beneficial in 2 ways
1 manufacturer can say that they worked with that brand
2 for the brand all the sales/profit that comes in
Entering into an agreement with a business to manufacture or provide services locally
Collaboration between companies
Reliable, accurate and appropriately selected information that is used for the right purpose
Helps organisations consider:
Type of strategy
Creation of policies
Development of the marketing mix
To identify trends, consumer behaviour and make informed decisions
Marketing information systems
Helps maintain & update research so that an organisation can good business decisions
Storing information that is relevant to decision makers.
Adaptation/standardisation of product and promotion (marketing mix)
Meeting differences at the stage of development consumer differences in taste, needs, wants etc. (adaption)
Consideration of legal requirements when it comes to advertising
Psychological meaning (standardisation)
Production and distribution
The process of managing distribution and flow of materials form the beginning stage until the stage that they are being used
Products are being priced according to the country they are going to be sold in.
The way a product gets from A to B
The use of relevant transportation
Is the movement of goods from supplier until to the end consumer.
People, technology, information and sources are involved
Standardisation of products
Important aspect of international business
The process of setting generally uniform characteristics for a particular good or service.
The process of distinguishing a product from others, to make it more attractive to the target market.
Differentiating it from competitors' products as well as a firm's own products.
Human resource management
Staff/ foreign people
Staff needs to be qualified and experienced for a business to be successful
Most expatriates only stay in the foreign country for a certain period of time, and plan to return to their home country eventually,
A person who has citizenship in at least one country, but who is living in another country.
Education is values in developing countries.
Because of the available skills International businesses use the skills in devloping countries if the skills are not avaibalbe in their own country
With advanced technology, transportation has the ability to move to any country
Skills , expertise and ability of new employees help a business to succeed in a foreign country
The process of finding and hiring the best-qualified candidate for a job opening,
analyzing the requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee to the organization.
Induction and training
This is for foreign personnel that has been relocated, because they need to adapt inter new working environment.
The training is there to help employees handle working in a business environment where participants from different countries or regions interact, bringing different values, viewpoints and business practices.
Transfer of technology
The transfer of
Adapting technology conditions
Businesses need to have pace pop change to adapt technology, so that they stay competitive in the market.