Podcast
Questions and Answers
What is the primary reason firms must customize their marketing mix?
What is the primary reason firms must customize their marketing mix?
Which factors contribute to the variation of consumer needs across countries?
Which factors contribute to the variation of consumer needs across countries?
How do legal considerations affect product attributes?
How do legal considerations affect product attributes?
What impact do national differences in standards have on firms?
What impact do national differences in standards have on firms?
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Which of the following is NOT mentioned as a factor causing variation in consumer preferences?
Which of the following is NOT mentioned as a factor causing variation in consumer preferences?
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What evidence points towards a change in consumer behavior globally?
What evidence points towards a change in consumer behavior globally?
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What must firms consider when marketing their products internationally?
What must firms consider when marketing their products internationally?
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How can technical standards affect marketing strategies?
How can technical standards affect marketing strategies?
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What is the relationship between product attributes and consumer satisfaction?
What is the relationship between product attributes and consumer satisfaction?
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Which of the following statements best summarizes the challenges of global product marketing?
Which of the following statements best summarizes the challenges of global product marketing?
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Study Notes
International Business Risks
- Political changes can significantly impact international operations.
- Foreign exchange risk involves fluctuations affecting exporting or producing abroad.
- Natural disasters, exemplified by the 2011 tsunami, can disrupt supply chains and operations.
- Pandemics, like COVID-19, can severely affect global trade and business continuity.
Analyzing Country Aspects
- Assign grades to countries based on specified aspects related to international business.
- Weight each aspect to formulate a comprehensive score.
- Exclude countries that meet "no-go" conditions early in the analysis.
Porter’s Generic Strategies
- Cost Leadership focuses on low costs and pricing, targeting average customers with minimal differentiation.
- Differentiation aims to provide unique products that offer perceived value, targeting niche markets willing to pay higher prices.
- Differentiation can be tangible (observable product traits) or focus on unique attributes like quality or prestige.
Organizational Structures
- Functional Structure organizes the company by functions, beneficial for companies with limited product ranges but may hinder cross-functional knowledge.
- Divisional Structures specify roles by product or market, allowing for international divisions or product-based divisions, though they can create inefficiencies.
International Division Structure
- Isolates international operations as a stand-alone unit; may create tensions between domestic and international divisions.
Worldwide Product Division Structure
- Groups products by worldwide divisions, commonly used by multinational enterprises (MNEs) but can cause coordination issues.
Worldwide Area Division Structure
- Divides operations by geographic areas, facilitating distribution but may lead to redundant efforts.
Global Matrix Structure
- Aimed at balancing global integration and local responsiveness, allowing for decision-making across multiple perspectives; can lead to complexity in supervision.
Boundaryless Companies
- Feature flatter organizational formats promoting egalitarian access to information and decision-making with a focus on self-organizing teams.
Network Structure
- Delegates people and resources to decentralized projects, optimizing outsourcing and supported by advanced communication technologies.
Virtual Organizations
- Operate across geographies with links reinforced by technology. Employees are often viewed as free agents, moving across projects rather than adhering to rigid hierarchies.
Market Segmentation
- Marketing strategies must adapt to diverse segments, recognizing cross-national differences and customizing products or packaging accordingly.
Product Attributes
- Successful products align attributes with consumer preferences, influenced by legal, cultural, and economic factors.
- Legal considerations and technical standards may necessitate product modifications across different markets.
Cultural Differences in Product Attributes
- Cultural factors such as tradition, language, and religion can vastly affect consumer preferences, showing that a truly global culture remains elusive.
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Description
This quiz explores the various risks faced by international businesses, including political, economic, and environmental challenges. Additionally, it delves into strategies such as cost leadership and differentiation that companies can adopt to navigate these risks effectively. Test your knowledge on the intricacies of global commerce and strategic management.
