Question

We learned international businesses differs from domestic business in that a firm operating across borders must deal with the forces of three kinds of environments - domestic, foreign, and intentional. We also recall that no domestic firm is entirely free from foreign or international forces. Because the possibility always exists, that a domestic firm will eventually face competition from foreign imports or from foreign competition. A manager must be prepared to manipulate one or more controllable forces in responding to a change in the uncontrollable forces. Give a hypothetical situation that will demonstrate how as manager of International Business X; would manipulate controllable force(s) against one or more change in uncontrollable forces. You will need to provide a minimum of 300 words or more reply in explaining your scenario and proposed solution(s).

Answer 1

A hypothetical situation is that an international business manager has been given the responsibility to operate a new international market where the socio-cultural  environment are completely different, and employees of the organization are not so familiar with this socio-cultural environment.  It means that manager has the responsibility to manipulate the controllable forces to help the organization and its employees to be ready for the challenges posed by the new market. There are different controllable forces named as product, price, place and promotion collectively named as market mix, available to the manager of the international business to work up and succeed.

As a first step, the manager, will modify the product according to the demand, needs and choices of the people in the new market. It will bring adaptability to the product and people will accept it as the product now caters to their requirement. One example of it is McDonald as it served hamburger in the USA, but it served veg burgers in India. It is the initiative to manipulate the controllable forces. The second step will be the modification in pricing strategy. Pricing should be done on the basis of multi-domestic basis where the pocket size of the consumers will decide the price of the product. The third step will be the place. Here, the manager will choose the locations, where the product will be launched. It will increase the success. The next step, will be to promote the product. Here, manager will design the message that will be suitable to the traditions, customs and beliefs of the target audience. With this modification, the message will be served to the audience and its impact will be better than that of the standard message. So, Carefully crafted messages, will increase the success rate.

Besides, the manager should train the employees on the basis of culture, language and preferred behavioral training so that they can represent the organization properly.

These initiatives will help manager succeed in the new international market.