Block 2 - Competing in a global context (Marketing (Triggers for…
Block 2 - Competing in a global context
CSR - Corporate social responsibility. (Harris, 2011, p.30
Damaging exposure of unethical activities
Long, complicated supply chains can be the downfall of many high street business' in the fashion industry due to the unethical nature of the work.
Differing standards of consumer protection (Crane and Matten 2016)
Targeting lower income consumers in developing countries
Consumer vulnerability with self-perception (Baker et, al. 2005)
Divergence - a global business that doesn't act locally. Influencing the surroundings
Crossvergence - being influenced by the surroundings but also influencing the surroundings.
Convergence - Being influenced by the new local surroundings, working with them to create a better global business.
Ethical issues for marketing in a global context.
The global marketplace
Globalisation refers to greater permeability and interdependence across national boundaries and is an economic, political and cultural phenomenon. (Winchester, 2015)
Triggers for international expansion
Low-growth domestic markets
Small domestic markets
Saturated domestic markets
Exchange rate differences
Transport and communication infrastructure
Political and legal considerations
Accountability - reducing the information gap between the providers of capital and ones trusted with their money.
Efficiency - aiding investors to identify opportunities and risks worldwide.
Transparency - enhancing comparability and quality of worldwide financial information.
The globally recognised statements of business entities.
International Financial Reporting Standards
International Accounting Standards Board
"Providing investors, lenders and others with relevant, transparent and comparable information in general-purpose financial statements."
Foreign Exchange Market / Global Taxation
Two companies that are a part of the same multinational group trade with each other. Not illegal but it is an issue in international tax. Estimated 60% of int. trade happens within multinationals.
Arms length - a market price for the transaction between two unrelated countries of different origin will be generated
"Allocating profit earned (or loss incurred) by a corporation or corporate group to a particular tax jurisdiction in which the corporation or group has a taxable presence."
Impact of an exchange rate
Proportion of inputs imported
Competition in the market of overseas markets
Proportion of sales exported
Price elasticity of demand for exports and imports
Value of the currency