International marketing strategies and its effectiveness assists in the expansion of an organization. The development of global markets was established by the needs of the consumer. If a domestic nation cannot supply what the consumer wants, this gives opportunity to the nations with the supply of the goods wanted. Additionally, global awareness has become an essential proficiency in international business. In order to become globally aware, the managers of firms must be accepting of cultural differences, understand the culture, have an understanding of global economics and recognize the political trends (Cateora et al., 2013).
Introduction According to Al-Emadi & Al-Asmakh (2006), global marketing ethical issues and social responsibility influence one another. They expound by indicating that when firms expand to international markets, diverse problems are experienced especially in regard to ethical and social aspects. Mishra & Suar (2010) define the wave of globalization which is enticing firms to take their businesses international. Although the process has been going on for a significant period but has now there is chance to increase market share. The dilemma of moving into an international market is grounded on the dimensions of political, economical and even cultural differences.
The always changing global business environment presents countless different challenges to those who are in charge. Business managers must utilize new organizational techniques and discover in what way to make the most efficient decisions regarding the market domestically and also at the global level. Globalization has become more common place in the business community as the barriers of communication and travel have been demolished. Consequently maintaining a consistent corporate culture through expansion has many obstacles as there are different regulations and cultural differences as a firm crosses boarders. Corporate culture is the application of a company’s mission statement, and their ability to transplant that culture from one country to another is crucial to the success of an international company.
Globalisation has a huge impact on marketing in many ways. Globalisation can force businesses to change their operations, perform to expectations, vary their marketing strategies or adopt a Global Marketing strategy. Businesses must adapt to these situations to succeed in the Global Market and establish themselves as a Global Brand. Marketing is a key, arguably the most important factor of a business. It is the range of activities that aim to identify, anticipate and shape customer demands and satisfy these demands in a way that furthers the businesses objectives (Moore,2011) It is crucial in the role that it generates funds, but it is also dependant on other business functions.
The company’s philosophy of decentralized structure in the 1960’s and 1970’s was imperative, but has since required change due to current international challenges. Section I Strategic Issue This case analysis will take into account the many great aspects of Nucor’s historic business model, but will primarily focus on the need for a clear strategy to expand the industry internationally. Section II Situation Analysis External Analysis: P.E.S.T. Analysis Political Factors State, federal and international agencies all heavily regulate businesses. These laws provide the basis for successful profit margins; but also challenge the ease to which these margins are gained.
Finally, conclusions will be drawn with implications for companies operating in today's global environment, together with suggestions for future research on strategic alliances. THE GLOBAL LOGIC OF STRATEGIC ALLIANCES The underlying argument or reasoning behind Ohmae's opinion that strategic alliances, or entente, are the only way forward for all companies competing globally. "Globalization mandates alliances, makes them absolutely necessary." (Ohmae, 1989). The author has supported this viewpoint, that globalization makes strategic alliances necessary as vehicles for customer-orientated value, with four issues facing today's companies: 1.
Other important elements in determining suppliers and venders are the pricing analysis, creditable service, conflict of interest to our business, and ensuring free market competition with the suppliers and venders. Quality Businesses separate themselves for the competition with great quality goods and services. The quality of the products will also boost the overall appeal of the business itself. Having higher quality products is not only great for advertising, but it shows that the supplier or vendor really cares about their product they produce. “Your suppliers should want to know how they are performing (arcplan, 2014).
Organizational structure plays a critical role in the presentation of company image, the hierarchical perspective and the overall explanation of an entity’s objectives and ambiance. The current organizational structure for IKEA stands out to be one of the most appealing and accommodative chart in the functional dissemination and divergence of roles and responsibilities. However, to better support the IKEA Company’s international strategy in the competitive business market, it is prudent that the company adopts an organizational structure that puts the company’s image and scope beyond the standards set and ahead of the potential competitors in the business. Although the analysis and adjustment of IKEA business organizational structure is at the behest of top executive management board and the stakeholders, coming up with a proposed organizational structure to support and well equip the company’s international strategy is essential (Bert Markgraf, 2016). This paper, therefore seeks to critically analyze and present an optional organizational structure that IKEA can adopt to better support its international strategy and elevate its innovative approach in the global expansion.
The essential elements of effective international marketing are the ability to interpret the business environment, recognize foreign market opportunities and appreciate how the firm’s resources can best be used to match and develop patterns of market demand. The development of successful international marketing strategies is based on a sound understanding of the similarities and differences that exist in countries around the world. Differences between International and Domestic marketing: There are many factors within the International environment which substantially increases the challenge of Internationa... ... middle of paper ... ...e perceived as central to the company’s future and growth. The company becomes ‘global’ in outlook. The ‘well-established exporter’ knows that exporting is integral to the business and sees the domestic market as just another market.