Organizational Issues in Global Environment
Answer the following question in 300 words, using in text
citations and 2 references
Research one organization that has expanded into a global
market and outline some of the problems that the organization had to mitigate
when entering the new market-space. Specifically identify three of the seven
characteristics that are listed blow. Was there another global market barrier
the company had to deal with that is not addressed in the seven characteristics
that are listed below?
Culture: No two cultures are the same, and understanding the
business culture in another country is one of the first keys to success in
international business. Culture defines everything a society does, including
business practices, responses to advertising and marketing, and overall sales.
It is important to conduct research on the culture of the country that an
organization intends to enter. Understanding these areas allows an organization
to be better prepared to enter the global market.
Data Accessibility and Reliability: The degree of technology
can vary substantially in global markets. If an organization’s product or
service requires a high degree of technology to use or implement, then markets
with low levels of technology will not be suitable or sustainable for
operations.
Competition: In today’s global markets, every organization
is pitted against worldwide competitors with consistently improving
productivity, better performance, and shrinking prices. Typically, the lowest
cost producer usually wins. Many global producers accept lower profit margins,
which increases competitive pressures.
Consumer Preferences: The success of your marketing strategy
involves gaining a comprehensive understanding of the particular markets that
an organization serves. A large portion of these markets may be based on
consumer preferences. A simple method of identifying consumer preferences is to
answer the questions, who is buying the goods and why are these consumers
purchasing these items.
Product Mix: When gathering market information on the
product the organization intends to introduce, it is important to understand
the overall product market, the competition and the product market entry
strategy. It can be difficult to find information for some markets; however, it
is important for organizations to gather as much information as possible in
order to enter the market successfully.
Business Operations (Logistics): Worldwide shipping
(transportation and logistics) must take into consideration costs, time delays,
and country restrictions. Each country has its own laws governing what goods
may be imported. Companies must comply with all importation laws, and must be
willing to invest time to learn the various rules and regulations concerning
exports and imports.
Currency: Pricing products for a global marketplace can be
challenging. In addition to online sellers needing currency converters, or
payment processing systems that accept multiple currencies, organizations must
also be aware of pricing sensitivities by country, by product and by market.
Characteristics International Marketing Domestic Marketing
1. Culture Multicultural Typically single culture
2. Data accessibility Difficult Easy
3. Data reliability Typically low High
4. Competition Intense Less than globally
5. Consumer preferences Country dependent Vary to a small
extent
6. Product mix Adaptability required Standardization required
7. Business operation More than one country Home country
only
8. Currency exposure Required Required only if importing
