978-0134129945 Chapter 1 Lecture Note Part 3

subject Type Homework Help
subject Pages 9
subject Words 2848
subject Authors Mark C. Green, Warren J. Keegan

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TEACHING TOOLS AND EXERCISES
Additional Cases:
"GENICON: A Surgical Strike into Emerging Markets" by Allen H. Kupetz; Adam P. Tindall;
Gary Haberland. June 2010, HBS: 910M41-PDF-ENG.
"Market Stretch" by Gavin Price and Margaret Sutherland. June 2009. HBS: 909M46-PDF-
ENG.
“Global Brand Face-Off”, HBR Case Study and Commentary RO 306A. Anand P. Raman, Peter
M. Thompson, Jennifer L. Aaker; Harish Manwani; Simon Clift; Masaaki Mike Kotabe.
“Mary Kay Inc: Asian Market Entry (B)”, John A. Quelch. HBS 509067.
Video: This article is from Management International Review, March 2011. It is titled “Effective
Global Strategy Implementation: Structural and Process Choices Facilitating Global Integration
and Coordination.”
The abstract states that this article offers “a contingency framework of global strategy
implementation effectiveness on firm performance. The research question we seek to address is
what the structural and process requirements are for MNEs to successfully implement global
strategy through increased efficiency and effectiveness of integration and coordination across
world markets. Our central premise is that MNEs' capabilities in establishing supporting
structural and process mechanisms will enhance the effectiveness and efficiency of implementing
their global strategies which would, in turn, lead to better firm performance.”
Link: http://www.freepatentsonline.com/article/Management-International-
Review/256930786.html and here is a different link to the PDF of this document:
http://www.springerlink.com/content/12181r4440117312/
This next video is just a quick two-minute video showing Pepsi’s marketing throughout the
world, and how they differentiate packaging and advertising to adapt to the region in which they
are marketing. It provides a good example to show how companies cater their products to
different regions.
Film: Assign “The Gods Must Be Crazy.” This classic, humor-filled movie examines the life of a
bushman unaware of white culture who finds a Coca-Cola bottle in the Kalahari (dropped by a
passing pilot) and promptly has his life turned around by this mystical object. It shows how our
simplest acts can have far-reaching impacts. This is a great introduction to global awareness.
Out-of-Class Reading: Zou, Shaoming and S. Tamer Cavusgil, “The GMS: A Broad
Conceptualization of Global Marketing Strategy and Its Effect on Performance.” Journal of
Marketing 66 (October 2002) pp. 40-56.
Internet Exercise: Fortune magazine profiled the world’s richest man
(http://money.cnn.com/2007/08/03/news/international/carlosslim.fortune/). Have students read
and summarize this piece and use this as the basis for an in-class discussion on the changing face
of world business.
Full Semester Research Assignment and Activity
This is a full semester cultural and marketing plan project designed for individuals or groups.
Students should choose a country and a product / service that is not currently found in the
targeted country and devise a cultural analysis and marketing plan for the chosen country.
For example, students can choose to market an automobile from the United States into a foreign
country or can choose to market an automobile into the United States that is not currently
available here.
At the Instructors discretion, this project can be spread over the entire semester or used as a “take
home” final exam, collected in sections as the material is covered in class or any combination
deemed.
Foreign students are especially encouraged to find products / services that they’ve been
accustomed to or enjoyed (a favorite type of food product) here in the United States and wish to
“export” to their home country.
Cultural Analysis: The data suggested in the cultural analysis includes information that helps the
marketer make market-planning decisions. However, its application extends beyond product and
market analysis to being an important source of information for someone interested in
understanding business customs and other important cultural features of the country. This
cultural analysis is composed of two parts: information on the cultural makeup of the country
and the economic analysis of the country.
The information in this analysis must be more than a collection of facts. In preparing this
material, you should attempt to interpret the meaning of cultural information. With that said,
your country analysis should contain at least one paragraph on each of the following areas:
Per the instructors discretion, this section could be collected either before or after Part 2 of the
text has been discussed in class (Part 2 is chapters 2, 3, 4, and 5).
PART I: Introduction to the Culture of the Country
I. Include short profiles of the company, the product to be exported and the country with
which you wish to trade.
II. Brief discussion of the country’s relevant history
III. Geographical setting
a) location
b) climate
c) topography
IV. Social institutions
a) Family
i) The nuclear family
ii) The extended family
iii) Dynamics of the family
(1) Parental roles
(2) Marriage and courtship
b) Education
i) The role of education in society
(1) Primary education (quality, levels of development, etc)
(2) Secondary education (quality, levels of development, etc.)
(3) Higher education (quality, levels of development, etc.)
ii) Literacy rates
c) Political System
i) Political structure
ii) Political Parties
iii) Stability of government
iv) Special taxes
v) Role of local government
d) Legal System
i) Organization of the judiciary system
ii) Code, common, socialist, or Islamic-law country?
iii) Participation in patents, trademarks and other conventions
e) Organizations
i) Group behavior
ii) Social classes
iii) Clubs, other organizations
iv) Race, ethnicity and subcultures
f) Business customs and practices
V. Religion and aesthetics
a) Religion and other belief systems
i) Orthodox doctrines and structures
ii) Relationship with the people
iii) Which religions are prominent?
iv) Membership of each religion
v) Any powerful or influential cults?
b) Aesthetics
i) Visual arts (fine arts, plastics, graphics, public arts, colors etc.)
ii) Music
iii) Drama, ballet, and other performing arts
iv) Folklore and relevant symbols
VI. Living conditions
a) Diet and nutrition
i) Meat and vegetable consumption rates
ii) Typical meals
iii) Malnutrition rates
iv) Foods available
b) Housing
i) Types of housing available
ii) Do most people own or rent?
iii) Do most people live in one-family dwellings or with other families?
c) Clothing
i) National dress
ii) Types of clothing worn at work
d) Recreation, sports, and other leisure activities
i) Types available and in demand
ii) Percentage of income spent on such activities
e) Social security
f) Health Care
VII. Language
a) Official language(s)
b) Spoken versus written language(s)
c) Dialects
VIII. Executive Summary
After completing all of the other sections, prepare a two-page (maximum length) summary of the
major points and place it at the front of the report. The purpose of an executive summary is to
give the reader a brief glance at the critical points of your report. Those aspects of the culture a
reader should know to do business in the country but would not be expected to know or would
find different based on his or her home country should be included in this summary.
IX. Sources of information
X. Appendixes
Per the discretion of the instructor, this part could be collected after Part 3 of the textbook has
been covered in the class. (Part 3 of the text includes chapter 6, 7, 8, and 9).
PART II: The Economic Analysis of the Country
The reader may find the data collected for the economics analysis guideline are more
straightforward than for the cultural analysis guideline. There are two broad categories of
information in this guideline: general economic data that serve as a basis for an evaluation of the
economic soundness of a country and information on channels of distribution and media
availability. As mentioned earlier, the guideline focuses only on broad categories of data and
must be adapted to the particular company and its product needs. With that said, write at least
one (1) paragraph for each of these sections.
Guideline
I. Introduction
II. Population
a) Total
i) Growth rates
ii) Number of live births
iii) Birth rates
b) Distribution of population
i) Age
ii) Sex
iii) Geographic areas (urban suburban, and rural density and concentration)
iv) Migration rates and patterns
v) Ethnic groups
III. Economic statistics and activity
c) Gross national product (GNP or GDP)
1. Total
2. Rate of growth (Real GNP or GDP)
a. Personal income per capita
b. Average family income
d) Distribution of wealth
i) Income classes
ii) Proportion of the population in each class
iii) Is the distribution distorted?
e) Minerals and resources
f) Surface transportation
i) Mode
ii) Availability
iii) Usage rates
iv) Ports.
g) Communication systems
i) Types
ii) Availability
iii) Usage rates
h) Working conditions
i) Employer-Employee relations
ii) Employee participation
iii) Salaries and benefits
i) Principal industries
i) What proportion of the GNP does each industry contribute?
ii) Ratio of private to publicly owned industries
j) Foreign Investment
i) Opportunities?
ii) Which industries?
k) International trade statistics
i) Major exports
(1) Dollar value
(2) Trends
ii) Major imports
(1) Dollar value
(2) Trends
iii) Balance-of-payments situation
(1) Surplus or deficit?
(2) Recent trends
iv) Exchange rates
(1) Single or multiple exchange rates?
(2) Current rate of exchange
(3) Trends
l) Trade restrictions
i) Embargoes
ii) Quotas
iii) Import taxes
iv) Tariffs
v) Licensing
vi) Customs duties
m) Extent of economic activity not included in cash income activities
i) Counter trades
(1) Products generally offered for counter trading
(2) Types of counter trades requested (i.e. barter, counter purchase, etc.)
(3) Foreign aid received
n) Labor force
i) Size
ii) Unemployment rates
o) Inflation rates
IV. Developments in science and technology
a) Current technology available (computers, machinery, tools etc.)
b) Percentage of GNP invested in research and development
c) Technological skills of the labor force and general population
V. Channels of distribution (macro analysis)
This section reports data on all channel middlemen available within the market. Select a specific
channel as part of your distribution strategy for your marketing plan
a) Retailers
i) Number of retailers
ii) Typical size of retail outlets
iii) Customary markup for various classes of goods
iv) Methods of operation (cash/credit)
v) Scale of operation (large/small)
vi) Role of chain stores, department stores specialty shops
b) Wholesale middlemen
i) number and size
ii) Customary markup for various classes of goods
iii) Method of operation (cash/credit)
c) Import/Export agents
d) Warehousing
e) Penetration of urban and rural markets
VI. Media
This section reports data on all media available within the country or market. Select specific
media as part of the promotional mix and strategy for your marketing plan.
a) Availability of media
b) Costs
i) Television
ii) Radio
iii) Print
iv) Other media (cinema, outdoor etc.)
c) Agency assistance
d) Coverage of various media
e) Percentage of population reached by each of the media
VII. Executive summary
After completing the research for this report, prepare a two-page (maximum) summary of
the major economic points and place it at the front of the report
VIII. Sources of information
IX. Appendixes
Per the instructors discretion, this section can be used as a final exam, a take home writing
assignment or group work. It can / could be used in conjunction with Part 4 of the textbook,
which are chapters 10, 11, 12, 13, 14, and 15).
THE MARKETING PLAN
Market-oriented firms build strategic market plans around company objectives, markets and the
competitive environment. Planning for marketing can be complicated even for one country, but
when a company is doing business internationally, the problems are multiplied. Company
objectives may vary from market to market and from time to time; the structure of international
markets also changes periodically and from country to country; and the competitive,
governmental, and economic parameters affecting market planning are in a constant state of flux.
These variations require international marketing executives to be specially flexible and creative
in their approach to strategic marketing planning.
PART III: Market Audit and Competitive Market Analysis
Of the guidelines presented, this is the most product or brand specific. Information in the other
guidelines is general in nature, focusing on product categories, whereas data in this guideline are
brand specific and are used to determine competitive market conditions and market potential.
Two different components of the planning process are reflected in this guideline. Information in
Parts I and II, Cultural Analysis and Economic Analysis, serve as the basis for an evaluation of
the product or brand in a specific country market.
Information in this guideline provides an estimate of market potential and an evaluation of the
strengths and weaknesses of competitive marketing efforts. The data generated in this step are
used to determine the extent of adaptation of the company’s marketing mix necessary for
successful market entry and to develop the final step, the action plan.
The detailed information needed to complete this guideline is not necessarily available without
conducting a thorough marketing research investigation. Thus another purpose of this part of the
country notebook is to identify the correct questions to ask in a formal market study.
Write at least one (1) paragraph on each in each of these areas.
I. Introduction
II. The Product
A. Evaluate the product as an innovation as it is perceive by the intended market.
1. Relative advantage
2. Compatibility
3. Complexity
4. Trialability
5. Observability
B Major problems and resistance to product acceptance based on the preceding
evaluation
III. The Market
A. Describe the market(s) in which the product is to be sold
1. Geographical region(s)
2. Forms of transportation and communication available in that (those)
region(s)
3. Consumer buying habits
a. Product-use patterns
b. Product feature preferences
c. Shopping habits
4. Distribution of the product
a. typical retail outlets
b. Product sales by other middlemen
5. Advertising and promotion
a. Advertising media usually used to reach your target market(s)
b. Sales promotions customarily used (sampling, coupons, etc.)
6. Pricing strategy
a. Customary markup
b. Types of discounts available
B. Compare and contrast your product and the competition’s product(s).
1. Competitors product(s)
a. Brand name
b. Features
c. Package
2. Competitors prices
3. Competitors promotion and advertising methods
4. Competitors distribution channels
C. Market size
1. Estimated industry sales for the planning year
2. Estimated sales for your company for the planning Year
D. Government participation in the marketplace
1. Agencies that can help you.
2. Regulations you must follow
IV. Executive Summary
Based on your analysis of the market, briefly summarize (two-page maximum) the major
problems and opportunities requiring attention in your marketing mix, and place the summary at
the front of the report
V. Sources of information
VI. Appendixes
SUGGESTED READINGS
Books
Arnold, David. The Mirage of Global Markets. Upper Saddle River, NJ: Pearson Education,
2004.
Barnet, Richard J., and John Cavanaugh. Global Dreams: Imperial Corporations and the New
World Order. New York: Simon & Schuster, 1994.
Bartlett, Christopher A., Sumantra Ghoshal, and Paul W. Beamish. Transnational Management,
5th edition. New York: McGraw-Hill/Irwin, 2006.
Bryan, Lowell. Race for the World: Strategies to Build a Great Global Firm. Boston: Harvard
Business School Press, 1999.
Doremus, Paul. The Myth of the Global Corporation. Princeton, NJ: Princeton University Press,
1998.
Friedman, Thomas L. The World Is Flat 3.0: A Brief History of the Twenty-First Century, New
York, Picador 2005.
Friedman, Thomas L. The Lexus and the Olive Tree. New York: Anchor Books, 2000.
Garten, Jeffrey. World View: Global Strategies for the New Economy. Cambridge, MA: Harvard
University Press, 2000.
Greider, William. One World, Ready or Not: The Manic Logic of Global Capitalism. New York:
Simon & Schuster, 1997.
Johnson, Chalmers. Japan, Who Governs? The Rise of the Developmental State. New York: W.
W. Norton, 1995.
Kets de Vries, Manfred F.R., and Elizabeth Florent-Treacy. The New Global Leaders: Richard
Branson, Percy Barnevik, David Simon and the Remaking of International Business. San
Francisco: Jossey-Bass, 1999.
Kynge, James. China Shakes the World. New York: Houghton Mifflin, 2006.
McGregor, James. One Billion Customers: Lessons from the Front Lines of Doing Business with
China. New York: Free Press, 2005.
Micklethwait, John, and Adrian Wooldridge. A Future Perfect: The Challenge and Hidden
Promise of Globalization. New York: Crown Publishers, 2000.
Ohmae, Kenichi. The End of the Nation State: The Rise of Regional Economies. New York: Free
Press, 1995.
Watson, James L., ed. Golden Arches East: McDonald's in East Asia. Stanford, CA: Stanford
University Press, 1997.
Wendt, Henry. Global Embrace: Corporate Challenges in a Transnational World. New York:
HarperBusiness, 1993.
Yergin, Daniel, and Joseph Stanislaw. The Commanding Heights. New York: Simon & Schuster,
1998.
Articles
Bartlett, Christopher A., and Sumantra Ghoshal. “Going Global: Lessons from Late Movers.”
Harvard Business Review 78, no. 2 (March-April 2000), pp. 132-142.
Craig, C. Samuel, and Susan P. Douglas. “Responding to the Challenges of Global Markets:
Change, Complexity, Competition, and Conscience.” Columbia Journal of World
Business 31, no. 4 (Winter 1996), pp. 6-18.
Griffith, David A. "Understanding Multi-level Institutional Convergence Effects on International
Market Segments and Global Marketing Strategy" Journal of World Business Volume 45,
Issue 1, January 2010, Pages 59–67.
Halal, William E. “Global Strategic Management in a New World Order.” Business Horizons 36,
no. 6 (November-December 1993), pp. 5-10.
Hu, Tao-Su. “Global or Stateless Corporations are National Firms with International
Operations.” California Management Review 34, no. 2 (Winter 1992), pp.107-126.
Lazer, William. “Changing Dimensions of International Marketing Management.” Journal of
International Marketing 1, no. 3 (1993), pp. 93-103.
Li Jiato, and Stephen Guisinger, “How Well Do Foreign Firms Compete in the United States?”
Business Horizons 34, No. 6 (November-December 1991), pp. 49-53.
Morrison, Allen J., David A. Ricks, and Kendall Roth. “Globalization Versus Regionalization:
Which Way for the Multinational?” Organizational Dynamics (Winter 1991), pp. 17-29.
Quelch, John A. and Edward J. Hoff. “Customizing Global Marketing.” Harvard Business
Review (May-June 1986), pp. 59-68.
Zou, Shaoming, and S. Tamer Cavusgil. “The GMS: A Broad Conceptualization of Global
Marketing Strategy and Its Effect on Performance.” Journal of Marketing 66 (October
2002), pp. 40-56.

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