...CHAPTER 1 INTRODUCTION TO GLOBAL MARKETING SUMMARY Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. A company that engages in global marketing focuses resources on global market opportunities and threats. Successful global marketers such as Nestle, Coca-Cola, and Honda use familiar marketing mix elements – the four Ps – to create global marketing programs. Marketing, R&D, manufacturing, and other activities comprise a firm’s value chain; The value equation (V =B/P) expresses the relationship between values and the marketing mix. Global companies also maintain strategic focus while pursuing competitive advantage. The marketing mix, value chain, competitive advantage, and focus are universal in their applicability, irrespective of whether a company does business only in the home country or has a presence in many markets around the world. However, in a global industry, companies that fail to pursue global opportunities risk being pushed aside by stronger global competitors. A firm’s global marketing strategy (GMS) can enhance its worldwide performance. The GMS addresses several issues. First is nature of the marketing program in terms of the balance between a standardization (extension) approach to the marketing mix and a localization (adaptation) approach that is responsive to country or regional...
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...year). An example of foreign direct investment would be an American company taking a majority stake in a company in China. Stock of foreign direct investment: The total accumulated value of foreign-owned assets at a given time. For example, French enterprises have been significant foreign investors for McDonald’s; some 1,100 French multinationals account for around 8 percent of the global stock of foreign direct investment Common law system is based on tradition, precedent, and custom. Tradition refers to a country’s legal history, precedent to cases that have come before the courts in the past, and custom to the ways in which laws are applied in specific situations. It differs from a civil law system which is based on a detailed set of laws organized into codes. When law courts interpret civil law, they do so with regard to these codes. Factor endowments are the extent to which a country is endowed with such resources as land, labor, and capital. A simple example of a factor endowment with respect to land would be the presence of natural resources such as oil. Countries with abundant oil tend to export oil, focusing internal resources toward producing the factor they have in quantity. Angola is an extreme example of such specialization: oil accounts for 98% of its exports or for instance, as China's labor force has grown more skilled, wages have risen and China has begun specializing in more complex manufactured goods. Local content requirement is a requirement that some specific...
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...due to globalization. The discussion of contemporary issues in international business illustrates the unique challenges of international business. A review of macro-economic and political changes that have taken place in the last 30 years highlights the issues that a typical manager must address in a global market. Information technology and technological changes have put global markets within the reach of small firms in remote locations. In spite of all its benefits, globalization is not a panacea. Critics of globalization point out that it has adverse effects on some firms and individuals. The opening case chronicles the meteoric rise of Wal-Mart from its humble Arkansas beginnings in 1962 to a global retailing giant with $218 billion in sales in 2002. The closing case, Ecuadorian Valentine Roses, follows a rose from Ecuador to New York while describing the hazardous working conditions in Ecuador and the growing backlash among European consumer groups. ________________________________________ WebeSource http://www.cnn.com/2004/US/Southwest/01/08/levi.s.closing.ap/...
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...significance due to globalization. The discussion of contemporary issues in international business illustrates the unique challenges of international business. A review of macro-economic and political changes that have taken place in the last 30 years highlights the issues that a typical manager must address in a global market. Information technology and technological changes have put global markets within the reach of small firms in remote locations. In spite of all its benefits, globalization is not a panacea. Critics of globalization point out that it has adverse effects on some firms and individuals. The opening case chronicles the meteoric rise of Wal-Mart from its humble Arkansas beginnings in 1962 to a global retailing giant with $218 billion in sales in 2002. The closing case, Ecuadorian Valentine Roses, follows a rose from Ecuador to New York while describing the hazardous working conditions in Ecuador and the growing backlash among European consumer groups. [pic] WebeSource http://www.cnn.com/2004/US/Southwest/01/08/levi.s.closing.ap/ http://www.nacsonline.com/NACS/News/Daily_News_Archives/July2003/nd0722036.htm...
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...With the globalization of production as well as markets, you need to evaluate your international strategy. Here’s a framework to help you think through your options. by Pankaj Ghemawat W Managing Dif ferences Ian Whadcock The Central Challenge of Global Strategy hbr.org | March 2007 | Harvard Business Review 59 YEL MAG CYAN BLACK HEN IT COMES TO GLOBAL STRATEGY, most business leaders and academics make two assumptions: first, that the central challenge is to strike the right balance between economies of scale and responsiveness to local conditions, and second, that the more emphasis companies place on scale economies in their worldwide operations, the more global their strategies will be. These assumptions are problematic. The main goal of any global strategy must be to manage the large differences that Managing Differences arise at borders, whether those borders are defined geographically or otherwise. (Strategies of standardization and those of local responsiveness are both conceivably valid responses to that challenge – both, in other words, are global strategies.) Moreover, assuming that the principal tension in global strategy is between scale economies and local responsiveness encourages companies to ignore another functional response to the challenge of cross-border integration: arbitrage. Some companies are finding large opportunities for value creation in exploiting, rather than simply adjusting to or overcoming, the...
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...Globalization on Corporations Regional Trading Blocs The European Union (EU) Asia Comparative Management in Focus: China's Economy Keeps on Chugging. The Americas Other Regions in the World The Russian Federation The Middle East Developing Economies The African Union The Globalization of Human Capital The Global Manager's Role The Political and Economic Environment Political Risk Political Risk Assessment Managing Political Risk Managing Terrorism Risk Economic Risk The Legal Environment Contract Law Other Regulatory Issues The Technological Environment Global E-Business Conclusion Summary of Key Points Discussion Questions Application Exercises Experiential Exercise Internet Resources Case Study: Indian BPOs Waking Up to the Philippines Opportunity? Management Focus: Intel Brings Changes to Vietnam's Economy and Culture Information Technology OBJECTIVES: 1. To understand the global business environment and how it affects the strategic and operational decisions which managers must...
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...Answer: Aspects of the issue seem to overlap with both areas of international economics. The article discusses goods and services transactions [trade], as well as international borrowing and exchange rates [money]. 2. Many economists seem to be giving the issue of the current account a lot of thought. Does there seem to be a consensus in the article? Does your answer surprise you? Answers will vary. If anything, the consensus is confusion—confusion at how the deficit has persisted for so long with no severe consequences. Bergsten stands out as the most alarmed, though almost every economist seems a bit concerned about the trade deficit. This economist, on the contrary, is not concerned at all about the current account deficit, and you may come to your own conclusion upon reading further chapters. In general economists tend to agree about many big-picture issues, but may disagree occasionally where the data is open to interpretation or when more ideological considerations come into play. 3. Near the end of the article there is a logical fallacy about the current account deficit. Can you find it? Answer: The 4th to last paragraph begins with the sentence "[w]ith less and less production at home…" This sentence is fallacious because the current account does not imply that less production is taking place at home—in fact GDP has been rising steadily year after year, even while the U.S. runs a large trade deficit—it implies that...
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...Final Paper Project due 8/24/14 11:59 pm EST Topic: APPLE IN CHINA Apple Inc. is a Multinational American company with its headquarters in Cupertino, California was established in 1977.It is a much revered multinational company that designs and sells desktops, laptops, Smart phones, Tablets, software and accessories. Apple was the first major novel entrant to the evolving mobile Internet market otherwise known as smartphone which in 2007 introduced the Apple iPhone. ``It catalyzed a shift in the architecture of the mobile phone industry and set the standard in two ways. First, it provided a fully functional web browser that allowed users to escape previous operator-specific silos of mobile content by linking them directly to the infinitely larger and more diverse Internet value networks.Ineffect, it collapsed the boundaries between the mobile device and the Internet with its enormous content. Secondly, leveraging the iPod ecosystem, but going far beyond it, the iPhone created a platform sufficiently open and attractive to create an ecosystem of application providers with 250,000 iPhone-specific applications that encouraged billions of downloads``( Kenney,M. & Pon,B.2011). Apple designs, markets and manufactures portable communication digital media devices like personal computers (pc`s), digital musical players, and interrelated software products. Among the Company’s products and services are the iPhone, IPod, iPad, Mac Pc, Apple TV, ICloud, iTunes, iBook, the iOS...
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...money" issue? Answer: Aspects of the issue seem to overlap with both areas of international economics. The article discusses goods and services transactions [trade], as well as international borrowing and exchange rates [money]. 2. Many economists seem to be giving the issue of the current account a lot of thought. Does there seem to be a consensus in the article? Does your answer surprise you? Answers will vary. If anything, the consensus is confusion—confusion at how the deficit has persisted for so long with no severe consequences. Bergsten stands out as the most alarmed, though almost every economist seems a bit concerned about the trade deficit. This economist, on the contrary, is not concerned at all about the current account deficit, and you may come to your own conclusion upon reading further chapters. In general economists tend to agree about many big-picture issues, but may disagree occasionally where the data is open to interpretation or when more ideological considerations come into play. 3. Near the end of the article there is a logical fallacy about the current account deficit. Can you find it? Answer: The 4th to last paragraph begins with the sentence "[w]ith less and less production at home…" This sentence is fallacious because the current account does not imply that less production is taking place at home—in fact GDP has been rising steadily year after year, even while the U.S. runs a large trade...
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...digital TVs, LEGO toys, Swatch watches, Burberry trench coats, and Caterpillar earthmoving equipment are found practically everywhere on the planet. Global companies are fierce rivals in key markets. For example, American auto industry giants General Motors and Ford are locked in a competitive struggle with Toyota,Hyundai,and other global Asian rivals as well as European companies such as Volkswagen. U.S.based Intel, the world’s largest chip maker, competes with South Korea’s Samsung. In the global cell phone market, Nokia (Finland), Ericsson (Sweden), Motorola (United C States), and Samsung are key players. Appliances from Whirlpool and Electrolux compete for precious retail space with products manufactured and marketed by China’s Haier Group and LG of South Korea. Now consider a second proposition: We live in a world in which markets are local. In China, for example, Yum Brands’ new East Dawning fast-food chain competes with local restaurants such as New Asia Snack.1 France’s domestic film industry generates about 40 percent of local motion picture box office receipts; U.S.-made movies account for about 50 percent. In Turkey, local artists such as Sertab account for more than 80 percent of recorded Exhibit 1-1: England’s Burberry Group celebrated its 150th anniversary in 2006. Burberry’s trademark is registered in more than 90 countries. The company’s signature plaid pattern—often referred to as “the check”—is incorporated into a wide range of apparel items and accessories...
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...Page 3. economics and Political science Page 5. entrepreneurship and Family enterprise Page 9. Finance Page 11. marketing Page 13. organisational behaviour Page 14. strategy Page 16. technology and operations management Here is a list of electives that were offered to the MBA Classes of 2012. This list is not comprehensive and is likely to change annually to reflect changes in the economic and business environment. If you are interested to find out whether a particular elective is being offered for your class, you can email us at mba.info@insead.edu. Also, notably 90% of the electives will be offered across both campuses, but there are some courses that will be tied to a specific campus due to the availability of the professor or the link to the specific region. All students will be given a full list of electives offered for their class in Period 1 so that they can take this information into account when planning for their campus exchange. accounting and control applied corporate reporting To be successful in any career involving financial analysis, you need a deep and broad knowledge of financial reporting standards and their application in practice. Building on the concepts covered in core courses, this elective gives students an understanding of the rationale and principles behind financial reporting. It also provides a clear sense of the main players (managers, directors, employees, investors, lenders, legislators) – and the main tensions between them. Ultimately,...
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...685–708 China Eastern Airlines: People’s Republic of China Accounting Standards, International Financial Reporting Standards, or U.S. Generally Accepted Accounting Principles? John L. Haverty ABSTRACT: China Eastern Airlines, headquartered in the People’s Republic of China, has been listed and traded on the New York Stock Exchange since 1997. In its 2005 annual report, China Eastern Airlines presents two sets of financial statements: one prepared under People’s Republic of China accounting regulations, and a second set prepared under International Financial Reporting Standards. In addition, as a listed company on the New York Stock Exchange, China Eastern Airlines files Form 20-F with the United States Securities and Exchange Commission. This filing includes a limited reconciliation of net income and net assets from International Financial Reporting Standards to United States’ generally accepted accounting principles. Your job is to examine these financial statements, explore any differences noted between each of the financial statements and U.S. GAAP, and highlight some issues to be included in a financial analysis of China Eastern Airlines for possible inclusion in an investment portfolio. W INTRODUCTION alt Gregory is a junior portfolio analyst at Chartgood, a portfolio manager for several major mutual funds. Susan Bedell, the portfolio manager, just informed Walt that one of the funds she managed, the Global Horizon Fund, was considering adding one company from the People’s...
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...acquisition of IBM’s personal computer (PC) division by 20-year-old Lenovo, China’s largest PC maker, made headlines around the world. A relative upstart in the business, founded with $25,000 of seed capital from the Chinese Academy of Sciences, Lenovo was acquiring the IBM division that invented the PC in 1981. While Lenovo was arguably the best known brand in China and had some brand presence in Asia, it was virtually unknown to the rest of the world. In 2004, over 90% of Lenovo’s revenues came from China (see Exhibit 1 for financials).2 But with this major deal, Lenovo aimed to become a global technology giant. Annual revenues would triple to $12 billion, making Lenovo the third-largest PC maker in the world after Dell and Hewlett-Packard. As a new multinational with 20,000 employees operating in 138 countries, Lenovo needed a global marketing and branding strategy to match its new reach. This meant determining what Lenovo stood for and designing products that supported that claim. In January 2006, 13 months after the deal was announced and eight months after it closed, Lenovo was preparing for the intense limelight that would come with its sponsorship of the February 2006 Turin Winter Olympics. There it planned to introduce a Lenovo-branded product line designed from the bottom up for small and medium enterprises, a move considered bold and risky by industry observers. The Global PC Industry History Twenty-five years before this landmark deal, IBM introduced its first...
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...will facilitate readers’ understanding of the nature and complexity of the SHRM debate, and enable them to apply their knowledge and understanding. Introduction to strategic human resouce management This chapter charts the development of strategic human resource management. It assumes a certain familiarity with the evolution of HRM, early HRM models and frameworks and their theoretical underpinning as discussed in Chapter 1. The aim of this chapter is to provide a challenging and critical analysis of the strategic human resource management literature, so that you will be able to understand the synthesis both within and between strategic human resource management and strategic management in its various forms. Since the early 1980s when human resource management arrived on the managerial agenda, there has been considerable debate concerning its nature and its value to organisations. From the seminal works emerging from the Chicago school and the matching model of HRM (Fombrun et al., 1984), the emphasis has very much concerned its strategic role in the organisation. Indeed, the now large literature rarely differentiates between human resource management (HRM) and strategic human resource management (SHRM). Some writers have associated HRM with the strategic aspects and...
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...licensee. Organization The overarching logic of the book is intuitive—organized around answers to the what, where, why, and how of international business. WHAT? Section one introduces what is international business and who has an interest in it. Students will sift through the globalization debate and understanding the impact of ethics on global businesses. Additionally, students will explore the evolution of international trade from past to present, with a focus on how firms and professionals can better understand today’s complex global business arena by understanding the impact of political and legal factors. The section concludes with a chapter on understanding how cultures are defined and the impact on business interactions and practices with tangible tips for negotiating across cultures. WHERE? Section two develops student knowledge about key facets of the global business environment and the key elements of trade and cooperation between nations and global organizations. Today, with increasing numbers of companies of all sizes operating internationally, no business or country can remain an island. Rather, the interconnections between countries, businesses, and institutions are inextricable. Even how we define the world is changing. No longer classified into simple and neat categories, the rapid changes within countries are redefining how global businesses think about developed, developing, and emerging markets. This section addresses the evolving nature of country...
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