The economic factor depends on outside control of the business, but it can affect the performance and marketing of the organisation. The main factors which mainly influence the economic balance of an organisation are political, economic, social technological, environmental and legislative factors. On an international front economic aspect is an essential interference in the performance of Tesco. Apart from the political stability of the region, factors also involve acts of legislation and tax rates. It is a major point of concern for the organisation, therefore it is essential to be aware of the changes in the policies.
…especially in today global economy, yet many organizations grapple with how to develop and apply diversity principles in a way that will affect revenue and market position, as well as reputation (love 2010). And argues that for companies to successfully utilize the diversity, they must derive a ‘strategic framework’ where she emphasizes the importance of cultural inclusion while retaining diversified workforce. She outlays following traits for
Managers need to consider the different factors that create uncertainties and risks as a global supply chain have numerous delay points, greater uncertainties, and hence the need for greater coordination, communication and monitoring (Manuj & Mentzer, 2008). The challenges faced by multinational organisations can be translated into a unique test of performance measurements standards due to the fluctuations in the exchange rate and inflation rate between the host and home country. The organisation has the capability of transferring knowledge, skills on a global basis, the ability to manage relationships and obtaining leadership in managing logistics and information in the formulation of strategies ( Manuj & Mentzer, 2004). 5 step process
Purpose of the study is to describe and discuss customer relationship coordination challenges following international acquisitions. Focus of this research is placed on B2B customers. The research are conducting base on these two thesis statement which first is what coordination challenges arise from international acquisitions in regard to customer relationship and how are the challenges connected to different customer-related motives and pre-acquisition relationships. To conducting data collection, the researcher use multiple case study approach. This type of method enable comparison and also provide additional explanations and examples.
This report aims to analyze the effect of external analysis and the various other forces of change that has an effect on the business environment of Zara. External environment is an important consideration while planning the strategy for future as well as for venturing into the international markets. Every company irrespective of the sector of operation faces a phase of stagnation in the domestic market at one point in time and there is a need to take stock of situation and reframe the strategy to move ahead. External environment comprises of many dynamic forces like political, technological, social, cultural and environmental factors. These factors form the macro environment of the company.
This project aim to discover answers concerning; How culture can affect the international business and in what form? Is this effect favorable or unfavorable? What are the obstacles in the international business? How can business overcome those challenges? How the country laws affect the international business?
Political environment, regulatory and legal systems is one of the essential aspects to consider with when a firm decided to enter an international market. Root (1994) said that the political environment of the target country is able to affect a marketer to make a decision on the entry mode, especially based on the government policies and regulations regarding to the international business. While Globerman and Shapiro (2003) stated that the legal system can play a vital role to encourage the marketer to expand their market into foreign countries. These two statements can prove that political environment and legal system are vital importance for international business. The political and legal system is varied from one country to another country.
Introduction: Many businesses are expanding globally, offering products and services across borders. This leads to debates regarding the extent to which international firms should adapt their operations and strategies to new, cultural markets. An understanding of culture is crucial as it is deemed to contribute to successful entry to international markets, thus the role of adaptation is emphasized in marketing practises (Pham and Zeidan, 2015). Furthermore, Akgün, Keskin and Ayar (2014) argue that adaptation is demanded because firms are market dependent, and it is significant particularly within the emerging markets which may be culturally different to the home market. Firms such as McDonalds who were previously advocates of standardisation and globalisation have adapted practices to act in a more local manner (Vignali, 2001).
American Marketing Association (AMA) refers to international marketing as the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. However, the external and uncontrollable factors in international marketing environment are much more complex. The managers involved in international marketing have to acquire new skills and capabilities to tackle the multidimensional environment in global markets. Depending on the level of involvement of the parent company in foreign markets, international can be classified as export marketing, global marketing or international marketing. The decision about level of involvement is based on environmental analysis of various elements of the marketing environment.
And at last, we will turn ourselves towards the main advantages, concerns and problems of going international, as both sides of the coin must be carefully weighed before deciding whether or not to enter the international scene. 2.0. Motivations to go abroad According to (Micheal Czinkota, 2009) ‘there are a variety of motivational factors that can push or pull an individual or organization along the international pathways. The major types of motivations that have been found to make firms go international are either proactive motivation; which represent stimuli for an organizational-initiated strategic change, or reactive motivation; which describe stimuli that result in an organization’s response and adaptation to changes imposed by the outside environment.’ Some examples of proactive motivations are; Exclusive information, unique products, Technological advantage, economies of scale, profit advantage and Tax benefits. And some examples of reactive motivations are; Overproduction, proximity to customers, declining domestic sales, excess capacity, saturated domestic markets and competitive pressures.