In an ideal scenario, the development of an export strategy and ultimately export markets would prove to be a significant addition to company sales volume. As discussed in the textbook, the complexity of establishing and executing business in foreign markets can be daunting. In addition to the typical challenges associated with assessing domestic market opportunities and business development, issues such as market exchange rates, culture, language, regulatory environments, and export paperwork deter many businesses from exploring opportunities for strategic growth in the export marketplace. The case study detailing SteelMaster Building’s entrance into the foreign marketplace was an excellent example of an organization that identified how …show more content…
It should also be noted however, that product standardization (in addition to providing cost efficiencies, also may assist with brand development and consistency in meeting the expectations of loyal customers who travel across markets). Assuming that the objective of an international marketing strategy is to maximize sales while minimizing costs, the optimum blend between the two should identify the individual market opportunities to determine if a standard market approach can adequately capitalize on a market’s potential, or, if by adapting to the tastes, demand, and culture of the market (at additional expense), it can position itself to increases sales or tap into new areas of product demand. I may offer a personal anecdote which can dimly illustrate this. When traveling in the Philippines with my wife, we ate at a local McDonalds. Many of the offerings were standard fare from my American experience with the restaurant (standardization). However, also on the menu was “McSpaghetti” (which incidentally was a failure in other …show more content…
De-centralized negotiations provide local management the ability to adjust to local political circumstances, cultural norms, and the specific demands of local unions. While flexibility based on local circumstances still holds value, many organizations are tending towards centralization. (The text’s example of Japanese automakers, who have insisted upon accommodations to local labor norms in deference to Japanese managerial preferences, is a good example of centralization). The relative value to the local labor force of the FDI may be related to the leverage of the firm in dictating these terms. (This may be considered analogous to the ability of the firm to secure advantageous tax breaks or other economic terms, in relation to the value of the investment to the local economy). The comparison between centralized and de-centralized approaches to international labor can be compared to the relation of standardization and adaptation, with the tension between greater flexibility/higher cost, and standardization/lower cost. With increasing price pressures associated with continually higher levels of global competition, the exercise of centralized negotiations built around standardization/cost and process efficiencies, with countries in competition with each other, can be