International Business: Session 5

Chia sẻ: The Anh | Ngày: | Loại File: PPTX | Số trang:49

Thêm vào BST

Báo xấu

87
lượt xem 8
download

Download Vui lòng tải xuống để xem tài liệu đầy đủ

"International Business: Session 5" The state is responsible for making all decisions: what goods and services the country produces; quantity of production; prices at which they are sold; and distribution.

Chủ đề:

Bình luận(0) Đăng nhập để gửi bình luận!

Lưu

Nội dung Text: International Business: Session 5

International Business Session 5
Understanding and Analyzing International Markets Political P E Economic S Social/Cultural T Technological
PEEST, PESTEL, PESTLE, SLEPT, STEEPLED, PEST LIED (L)egal (E)nvironmental (Ecological/Physical) (E)thical (E)ducational (D)emographic
Understanding and Analyzing International Markets Political P - includes (L)egal, (E)nvironmental law/policy E Economic S - includes (E)nvironmental climate and T weather Social/Cultural
Key Variables Politics Social / Cultural and Demographic  Political System  Dimensions of culture  Legal System  Beliefs and Attitudes  Laws (affecting business)  Language  National Trade Policies  Religion  Government Stability and Risk  Population and Age Structure  Openness to FDI  Education  Urban/Rural Composition Economics and Market Characteristics  Economic System Technical  Per Capita GDP and Growth Rate  Infrastructure  Purchasing Power  ICT level 
Economic Systems Command Economies (Centrally Planned) Market Economies Mixed Economies
Command (Centrally Planned) Economies  The state is responsible for making all decisions:  What goods and services the country produces; Quantity of production; Prices at which they are sold; and Distribution  The state owns all wealth, land, and capital, and allocates resources based on which industries they want to develop.  Command economies were common in the 20th century; they proved so inefficient that most have gradually died out.  Centralplanning is less efficient than market forces in synchronizing supply and demand.  Today many countries exhibit some characteristics of command economies- examples- China, India, Russia, and certain countries in Central Asia, Eastern Europe, and the Middle East.
Market Economies  Decisions regarding production levels, consumption, investment, and savings resulting from the interaction of supply and demand (market forces).  Economic decisions are left to individuals and firms.  Government intervention in the marketplace is limited.  Capitalism (private ownership of production) is closely aligned with market economies.  State should establish a legal system that protects private property and contractual agreements.
Mixed Economies  Exhibitsmarket and command economy features, thus combining state intervention and market mechanisms.  Most industries are under private ownership, and entrepreneurs freely establish, own, and operate corporations- but the government also controls certain functions, such as pension programs, labor regulation, minimum wage levels, and environmental regulation.  The state usually funds public education, health care, and other vital services and owns enterprises in transportation, telecommunications, and energy.  Examples- France, Germany, Japan, Norway, Singapore, and Sweden, government often works closely with business and labor interests to determine industrial policy, regulate wage rates,
Laws affecting business NationalLegal Environment – doingbusiness.org Laws directed against foreign firms ◦ Restrictions on Income Repatriation ◦ Controls on Operating Forms and Practices ◦ Expropriation, Confiscation, Nationalization Environmental laws Marketing and Advertising laws
Levels of International Strategy
International Strategic Management External Analysis Environmental Opportunities Conditions & and Strategy Formation Trends Threats Identify Choose & Evaluate Options Strategy Inventory of Strengths Distinctive and Competencies Weaknesses Strategy Implementation Internal Analysis
Pressures for Global Integration  Economies of Scale. Concentrating manufacturing in a few select locations to achieve economies of mass production.  Capitalize on converging consumer trends and universal needs. Companies such as Nike, Dell, ING, and Coca-Cola offer products that appeal to customers everywhere.  Uniform service to global customers. Services are easiest to standardize when firms can centralize their creation and delivery.  Global sourcing of raw materials, components, energy, and labor. Sourcing of inputs from large-scale, centralized suppliers provides benefits from economies of scale and consistent performance.  Global competitors. Global coordination is necessary to monitor and respond to competitive threats in foreign and domestic markets.  Availability of media that reaches customers in multiple markets. Firms now take advantage of the Internet and International Business: 14 cross-national television to advertise their offerings in Strategy, Management,
Pressures for Local Responsiveness  Unique resources and capabilities available to the firm. Each country has national endowments that the foreign firm should access.  Diversity of local customer needs. Businesses, such as clothing and food, require significant adaptation to local customer needs.  Differences in distribution channels. Small retailers in Japan understand local customs and needs, so locally responsive MNEs use them.  Local competition. When competing against numerous local rivals, centrally-controlled MNEs will have difficulty gaining market share with global products that are not adapted to local needs.  Cultural differences. For those products where cultural differences are important, such as clothing and furniture, local managers require considerable freedom from HQ to adapt the product and marketing. International Business: 15  Host government requirements and regulations. When Strategy, Management,
International Strategy Forms High Global Transnational Strategy Strategy Home Multidomestic Replication Strategy Low r uss e P Low High Pressures for Local Responsiveness r
Where would you place these companies? Toshiba Boeing BMW Vodafone Unilever Texas Intel Instruments Microsoft City University Coca-cola Disney Nestle Citibank Colgate Nokia
GMOA (Global Market Opportunity Assessment) Six Steps
1: Key Questions to assess Readiness • What does the firm hope to gain from international business? • Is international business expansion consistent with other firm goals, now or in the future? • What demands will internationalization place on company resources, such as management, personnel, and finance, as well as production and marketing capacity? How will such demands be met? • What is the basis of the firm’s competitive advantage?