Wednesday, October 9, 2019

International Business - Global Marketing Essay Example | Topics and Well Written Essays - 750 words

International Business - Global Marketing - Essay Example Most firms will be reluctant to enter countries that have high political risks unless the potential returns are high or when countries with high political risk are providers of raw material that are in short supply. Thus, inflation rates, balance of payments, exchange rate stability, government budgets and the record of growth will be considered to evaluate the prospects for economic instability or crisis. Environmental scanning, strategy development and consistent market and global industry monitoring are the main steps for successful operation oversees (Keegan, Green, 2003). 2. The organizational theory/management has a long history goes back to ancient times. The main stages of management history development coincide with the traditional stages of historical development. The first is the Ancient history including Sumerians, Egyptians, Babylonians (Hammurabi's Code), Hebrews (Jethro), when private merchants appeared. Scalar and Exception Principles were the core of management. It is possible to include the primitive stage into this classification, when collecting and primitive trade (interchange) existed, but this management process was not conscious, but rather intuitive. In Ancient East, China developed management thought based on a class principle (division of labor), generic and distinct management styles. Further, Alexander the Great developed a staff principle. During Medieval Period delegation principle and Mercantilism were developed. In their works Machiavelli and Thomas More discussed the principle of ideal organizational structure. Industrial period has lasted from 1765 to present time. This period is marked by a free market system of production, corporate culture and integration (R. Owen, A Ure). The XX century has evolved the main concepts of contemporary management practice utilizing the previous knowledge (Keynes). (Minor, 1995). 3. a). A company should use international division when it achieves competitive advantage in a national industry and requires executives and managers to maintain a well-defined strategic focus abroad. Their task is to guide marketing efforts, coordinate and direct activities and monitor economic environment of a country to predict possible opportunities and threats. International division will be able to maintain a strict control over trade and administrative activities in a foreign country, and reach wider target audience implementing advertising and promotion activities. A single organizational unit will help to deal with special environment of a foreign country. The international division cannot solve the problems of another layer of management if its budget is inadequate to this task. It cannot solve the problems outside its regional location (Keegan, Green, 2003). b). Global product structure is often considered as a separate marketing context requiring adaptations of the product, its price and the way it is promoted to account for differences in cultural expectations or constraints imposed by the governments of nation states. Geographic approach allows a firm to select particular markets similar to their organizational arrangements, which help to avoid a failure if products are not tailored to local markets. Such differences have led many firms to appoint local agents in different countries to

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