New methods of outsourcing are today redefining the way of working. Co-sourcing is a situation of partial outsourcing, in which a business function or process is performed by both internal staff and by an external party or external resources, such as consultants or outsourcing vendors, with specialized knowledge of the business function. Compared to full outsourcing, for the traditional owner of the processes, co-sourcing has advantages of staying in control, a non-transactional partnership and the ability to grow the own knowledge level of the co-sourced process. One such way is co-sourcing which is an investment relationship marked by shared objectives, shared risks and shared rewards between two companies, one of which is a service provider. Specifically, the service provider would have to help restructure the company and be willing to make new investments, while driving out costs from the co-sourcing company’s existing ways working. Although it may seem similar toContinue reading
International Business
International Business Management deals with the maintenance and development of a multinational operation across national borders, whose manager has the knowledge and the skills to manage and handle cross-cultural processes, stakeholders and business environments in a right way.
Global Market Entry and Exit Strategies
Each company has a specific strategy may be selected to suit a company’s needs. Many companies use a combination of global and national strategies. Some firms use a global strategy elsewhere some countries and some products are more receptive to global strategies than others. Global strategies are directed at those national product markets that are large and have low barriers to foreign products and companies. They are also likely to compromise the center of world demand, particularly in the newer, more technologically intensive product. Companies adapting global strategies are not likely to target seriously countries with high barriers and small national product markets. However given the long term trend in declining trade barriers coupled with the economic growth, more companies will adopt global strategies. Global Market Entry Strategies Strategy is planning through companies achieve their goals and move forward. A company makes a decision to enter an international market, thisContinue reading
Global Marketing Strategies
Marketing strategy is one of the most interesting, challenging and important elements in international business. Compared with art and science, marketing strategy is more about people finding ways to deliver exceptional value by fulfilling the needs and wants of customers, shareholders, business partners and society. It is inherently driven by people and is always changeable which explains why making marketing strategy is difficult and significant. Moreover, a perfect marketing strategy that is executed without any flaws can still fail. Additionally, sometimes businesses get success despite having a general strategy or execution because marketing is complicated and flexible and the nature or characteristics of marketing can make planning strategy very difficult and frustrating. Marketing strategy has been a great challenge for each enterprise. To some degree, the difficulty of making marketing strategy highlights the extraordinary success of those famous business, for instance, Coca-cola, Starbucks, Best buy, Apple, etc. A global marketingContinue reading
Why Does a Company Go Global?
There are a number of objectives of international business but the primary and the basic of them being; 1. Learning and Product Development: Today every organization is a learning organization. Also it has to continuously be in touch with the competition in the market. Hence it has to do the up gradation of the existing products eventually whenever required. When one enters international markets, one comes across other competitors from other countries. One is therefore exposed to competition from other countries. Domestic goods have to match international standards to remain in competition, not only with respect to product, cost and quality but services as well. Therefore, one gets an opportunity to learn and develop or improvise new products. 2. Brand building for other products In international markets, if the company is competent enough to beat the rivals in the field, it not only creates a goodwill and image of theContinue reading
Promotion Component of the Global Marketing Mix and Global Promotion Strategies
Marketing communications–the promotion “P” of the marketing mix–refers to all forms of communications that organizations use to establish meaning and influence buying behavior among existing and potential customers. Marketing communications should be designed to tell customers about the benefits and values that a product or service offers. The principal forms of marketing communications that is/ the elements of the promotion mix are Advertising, Personal selling, Publicity and Sales Promotion. All of these elements can be utilized in global marketing; however, the environment in which marketing communications programs are implemented can vary from country to country. Advertising may be defined as any sponsored, paid communication placed in a mass-medium vehicle. Advertising plays a more important communication role in the marketing of consumer products than industrial products. Frequently purchased, low-cost products generally require heavy advertising support. Not surprisingly, consumer products companies top the list of big advertising spenders. Global Promotion Strategies CompaniesContinue reading
Target Markets in a Global Environment
The starting point in selecting the most effective channel arrangement is a clear determination of the target market for the company’s marketing effort and a determination of the needs and preferences of the target market. Where are the potential customers located? What are their information requirements? What are their preferences for service? How sensitive are they to price? These are some of the questions that the channel manager should answer. Customer preference must be carefully determined because there is as much danger to the success of a marketing program in creating too much utility as there is in creating too little. Moreover, each market must be analysed to determine the cost of providing channel services. What is appropriate in one country may not be effective in another. Channel strategy in a global marketing program must fit the company’s competitive position and overall marketing objectives in each national market. If aContinue reading