Question

((Subject : Marketing ))

Assignment Question(s):                                              

Learning Outcomes:

1.   Analyze marketing opportunities using environmental scanning market data, measurement, and analysis.

2.   Explain issues pertaining to marketing environment both internally and externally.

3.   Demonstrate an understanding of the global competitive environment and the changing marketing practices.

4.   Ability to formulate marketing strategies that incorporate psychological and sociological factors that influence consumers.

5.   Ability to carry out objective and scientific analysis of consumers' needs and wants.

Assignment-1

CRITICAL WRITING

From the real national market,( select any company )of your choice, wishing to go global. Critically analyze the chosen company based on the following questions.

Questions:

1.   What variables need to be considered while developing a list of potential countries?   

2.   Describe the four steps a firm should take when it is considering going global.                  

3.   Discuss at least three challenges that a company may face in the early period of expansion.

4.   Describe the three main categories of market entry strategies.

·     ***(( Referencing is necessary and student must apply APA Referencing Style.))***

Answer 1

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Variables to be considered while developing a list of potential countries

today, companies are quickly going global. For example, McDonald’s decided to expand into the Indian market. This entry into India as a joint venture was motivated by various factors such as domestic market opportunity, growing technology infrastructure, human capital, and open regulatory environment . Before going global, a company must consider various variables when developing a list of potential countries. These variables include economic factors, social and cultural factors, political and legal factors, the capability of the company, and market attractiveness. Not all foreign countries will be attractive to a company. For example, a company might discover that a market cannot afford the services or products being sold. A company should avoid such a country.

On the other hand, if there is the possibility of a country affording the products, a company should invest in that country. Social and cultural factors should also be considered. Countries differ in various perspectives such as the food eaten, religion practiced, language spoken, among other ways. Such differences in culture are significant and very real. As such, a company must consider how the differences will hinder or facilitate the marketing strategies in the new market. Political and legal factors are also important. It is vital to know the attitude of the people and the government of the potential country before committing company resources. It is also advisable to consider the attitude of a country’s nationals towards foreign companies and their products. Incentives, subsidies, minimum or no bureaucratic hurdles, and streamlined procedures are good indicators that the government of a potential country is willing to welcome foreign investors. Attitude towards foreign investment and stability are also significant variables to consider in an overseas market. The last variable is market attractiveness. This attractiveness can be assessed by carefully evaluating the market potential in terms of revenue that can be generated and access to the market. Before going global, a company must carry out an audit of its capabilities and resources. For example, the company must have a competitive advantage in terms of reliable partners, a portfolio of products, technology, and market knowledge.

Four steps a firm should take when it is considering going global.      

When a firm is considering to go global, it should take four critical steps. These steps include defining the opportunities, researching the potential market, planning the global operations carefully, and measuring performance and continually finetuning it. On defining the opportunities, a firm must establish a clear picture of the possible demand for services or products in a potential country. Researching the trends in the prospective country is also essential. This research may include the customers’ attitudes towards a particular product and the motivations for buying. A firm must also establish connections with the local organizations and companies that may provide crucial information about customers. The third step involves planning global operations carefully. Right from customer service to the systems of payment, a firm needs to analyze each aspect of its operations in detail critically. The fourth step involves measuring firm performance and adjusting continually. When deciding to venture into a foreign market, a firm must define its expectations right from the start. At this point, it is crucial to realize that desired results might take longer than expected.      

Discuss at least three challenges that a company may face in the early period of expansion.

In the early period of expansion, a company may face challenges such as cash flow management, responding to competition, and keeping up with market changes. Cash flow related problems are a major reason why companies fail. A company must spend money to make money. However, this can prove troublesome and result in problems. It is, therefore, necessary for a company to manage cash carefully. Competition is expected when it comes to business. It is common for a company to face challenges of fierce competition. The market keeps changing. As such, a company must be ready to adjust effectively; else, it will end up failing.

Describe the three main categories of market entry strategies.

The three main categories of market entry strategies include exporting, joint ventures, and direct investment. Exporting involves taking a product into another country. Exporting is the most well established and well-established market entry strategy. An advantage of exporting is that the manufacturing process is home-based, thus less risky than overseas manufacturing. Also, exporting minimizes the many risks involved when operating overseas. Joint ventures involve two or more investment companies sharing control and ownership rights. A joint venture is a common strategy when a company is entering a foreign market. Investment is the other market entry strategy. This may be a foreign direct investment where a company may build a factory in a foreign country.

References

Lymbersky, C. (2008). Market entry strategies: Text, Cases, and readings in market entry management. Christoph Lymbersky.

Nandini, A. S. (2014). McDonald's Success Story in India. Journal of Contemporary Research in Management, 9(3).

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