This document discusses the marketing environment and its importance to marketers. It covers the major components of the marketing environment including the social, economic, technological, competitive, demographic, political/legal, and institutional environments. It explains how changes in these environments can create opportunities or threats for marketers and affect specific markets and marketing activities. It provides details on trends in various environments like population growth, largest cities, median ages in countries, economic trends, political trends like free trade and terrorism, and more.
COEPD - Center of Excellence for Professional Development is a primarily aBusiness Analyst and PMP Training Institute in the IT industry of India head quartered at Hyderabad. COEPD is expert in PMP Training and Business Analyst Training in Hyderabad, Chennai,Pune, Mumbai&Vizag. We offer PMP and Business Analyst Training with affordable prices that fit your needs.
COEPD conducts 4-day workshops throughout the year for all participants in various locations i.e. Hyderabad, Pune. The workshops are also conducted on Saturdays and Sundays for the convenience of working professionals.
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Since the early 1990s, developing countries have been the fastest-growing market in the world for most products and services. Companies can lower costs by setting up manufacturing facilities and service centers in those areas, where skilled labor and trained managers are relatively inexpensive.If Western companies donât develop strategies for engaging across their value chains with developing countries, they are unlikely to remain competitive for long.Companies that choose new markets systematically often use tools like country portfolio analysis and political risk assessment, which chiefly focus on the potential profits from doing business in developing countries but leave out essential information about the soft infrastructures there.
Economic Environment - International Business - Manu Melwin Joymanumelwin
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Economic conditions, economic policies and the economic system are the important external factors that constitute the economic environment of a business. The economic conditions of a country-for example, the nature of the economy, the stage of development of the economy, economic resources, and the level of income, the distribution of income and assets, etc- are among the very important determinants of business strategies.
COEPD - Center of Excellence for Professional Development is a primarily aBusiness Analyst and PMP Training Institute in the IT industry of India head quartered at Hyderabad. COEPD is expert in PMP Training and Business Analyst Training in Hyderabad, Chennai,Pune, Mumbai&Vizag. We offer PMP and Business Analyst Training with affordable prices that fit your needs.
COEPD conducts 4-day workshops throughout the year for all participants in various locations i.e. Hyderabad, Pune. The workshops are also conducted on Saturdays and Sundays for the convenience of working professionals.
For More Details Please Contact us:
Visit at http://www.coepd.comorhttp://www.facebook.com/BusinessAnalystTraining
Center of Excellence for Professional Development
3rd Floor, Sahithi Arcade, S R Nagar,
Hyderabad 500 038, India.
Ph# +91 9000155700,
helpdesk@coepd.com
Since the early 1990s, developing countries have been the fastest-growing market in the world for most products and services. Companies can lower costs by setting up manufacturing facilities and service centers in those areas, where skilled labor and trained managers are relatively inexpensive.If Western companies donât develop strategies for engaging across their value chains with developing countries, they are unlikely to remain competitive for long.Companies that choose new markets systematically often use tools like country portfolio analysis and political risk assessment, which chiefly focus on the potential profits from doing business in developing countries but leave out essential information about the soft infrastructures there.
Economic Environment - International Business - Manu Melwin Joymanumelwin
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Economic conditions, economic policies and the economic system are the important external factors that constitute the economic environment of a business. The economic conditions of a country-for example, the nature of the economy, the stage of development of the economy, economic resources, and the level of income, the distribution of income and assets, etc- are among the very important determinants of business strategies.
Basic concepts, Positioning, Saturation levels, Design considerations, COO effect, Strategic alternatives, Global products and brands, Building brands in International markets, Standardization versus adaptation.
Market scanning is the process of continually analyzing the external market environment in order to define the marketâs needs, track competitor actions, stay alert to new regulations, identify value-added technologies and adjust to economic conditions. The key benefits of effective scanning are the identification of new market opportunities and the development of proactive strategies to guard against market disruptions. The following illustration details the components included in a market scan and how they relate to your business and suppliers, the workforce and ultimately, the customer.
Basic concepts, Positioning, Saturation levels, Design considerations, COO effect, Strategic alternatives, Global products and brands, Building brands in International markets, Standardization versus adaptation.
Market scanning is the process of continually analyzing the external market environment in order to define the marketâs needs, track competitor actions, stay alert to new regulations, identify value-added technologies and adjust to economic conditions. The key benefits of effective scanning are the identification of new market opportunities and the development of proactive strategies to guard against market disruptions. The following illustration details the components included in a market scan and how they relate to your business and suppliers, the workforce and ultimately, the customer.
PRSA 2013 Pre-Conference: Managing the Non-Market Environment & Social Mediaevolve24
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20 Rules of Change Management in Organizations by Catherine AdenleCatherine Adenle
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20 Rules of Change Management in Organizations.
When implementing change, no two organizations are the same, nor is there a âone-size-fits-allâ approach because each organisation is different in structure, size, vision, culture, business needs and most all, each change management is different. However, despite the range of approaches to change management, there are common guidelines for delivering a successful change. The content of this presentation is intended as a tool to facilitate best practice of change management, thereby guide the actions that will result to successful change.
Running Head: INTERNATIONAL BUSINESS 2
International Business
Student Name
University Name
Date
Instructor Name
Discuss a âreal worldâ MNCâs international strategy. The discussion should identify the companyâs strategic plans, how the factors of international strategy, above, affected them, location efficiencies, a SWOT analysis, their application of the steps in international strategy formulation, and so on.
Support your paper with a minimum of five (5) external resources In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.
Length: 5-7 pages not including title and reference pages
Your paper should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.
INTERNATIONAL BUSINESS
Introduction:
Dawn of economic process has raised up, where international business is changing into more and more common. Transnational organizations will measure among the foremost profitable within the world. An organization must bear in mind of the speech and civilization of the country wherever it plans to board with its asset. Politics and laws of the condition will moreover produce international trade simple or onerous. With the achievement of international business, its outlook is polished, on a planet scale. Effective organization of international business process includes inexpensive organization of money, workers, expansion, advertising, and announcement. This is over and over again so the association, completion and organization of the operation go well. The long lope of international business is intense as fiscal process and therefore they would similar to for catholicity persistence. Even though the business goes globally there are some issues to be considered around as such
1. Social Issues
2. Ethical Issues
3. Labour Issues
4. Environmental Issues
Impacts of Political, Legal and Economic System:
Political, economic, and legal assortment and change within the international souk, and the way executive reply to the confront with data and considerate resulting not exclusively from the business regulation though conjointly from economic expansion, sociology, faith, topography, and the past. Early labors to tie together technology and take manufactured goods into foreign markets; the crash of dispersion catalysts like super language, script, print technology, transport innovation, transmit medium, electronic medium, and advertising institution; and consequently the appearance of recent companies will calculate to manage to level back the crash. Largely North America or Western Europe is that the specific regions were these impacts have taken place. Political modification happens as nations look for to ascertain stability and order.
The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc.
2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc.
3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors.
This environment influences the organization directly.
It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders.
In this context, micro describes the relationship between firms and the driving forces that control this relationship.
It is a more local relationship, and the firm may exercise a degree of influence.
Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing.
Political forces affecting international businessMis bah
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Political Forces : Affecting international business
1. Ideological forces
2. Government ownership of business
3. Privatization
4. Government stability
5. Country-Asset risk analysis
Concept of international business environmentPinki Verma
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Presentation on Concept of International Business Environment which includes:
1. Difference between International Business and International Business Environment
2.Difference between Domestic Business and International Business
3.Entry Modes of International Business
4.Nature of International Business
5.Advantages of International Business
6.Classification Of International Business Environment
(a) Micro and Macro Environment
(b) Domestic, Foreign and Global Environment
7.Components Of International Business Environment with examples.
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Memorandum Of Association Constitution of Company.pptseri bangash
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
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Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
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Unveiling the Secrets How Does Generative AI Work.pdfSam H
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At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
2. After Studying This Chapter
You Should Be Able To:
ď Understand the nature of the marketing
environment and why it is important to
marketers.
ď See how the political/legal environment affects
marketing.
ď Describe the major components of the social
environment and how trends in the social
environment affect marketing.
ď Understand how the economic environment
affects marketing.
3. After Studying This Chapter
You Should Be Able To:
ď Appreciate the importance of the
technological environment to marketers.
ď Understand differences in the competitive
environment.
ď Know how changes in the institutional
environment affect marketers.
5. Creation of Market Opportunities & Threats
⢠The Marketing
Environment Creates
Opportunities or Threats
in 2 Ways:
1. Changes affect specific
markets.
2. Changes affect specific
marketing activities.
7. The Social Environment
⢠The Social Environment:
â All factors and trends related to groups of
people including:
⢠Their number
⢠Characteristics
⢠Behavior
⢠Growth Projections
8. The Economic Environment
⢠The economic environment includes factors and trends related to
income levels and the production of goods and services.
⢠Economic trends in different parts of the world can affect
marketing activities in other parts of the world.
⢠Market opportunities are a function of both economic size and
growth. The Gross Domestic Product (GDP) represents the total
size of a countryâs economy measured in the amount of goods
and services produced.
9. The Demographic Environment
⢠The Demographic
Environment:
â Refers to the size, distribution,
and growth rate of groups of
people with different
characteristics.
10. The Demographic Environment
Global Population Size and Growth:
â The world population is now more than six billion.
â Approximately 95 percent of that growth took place in
developing countries in Asia, Africa, and Latin
America.
â China currently has the largest population, followed
by India, with the United States a distant third.
11. The Worldâs Largest Cities
City 1995 2015 (estimated)
(in thousands) (in thousands)
1. Tokyo, Japan 26,959 28,887
2. Mexico City, Mexico 16,562 19,190
3. Sao Paulo, Brazil 16,533 20,320
4. New York, USA 16,332 17,602
5. Mumbai, India 15,138 26,218
6. Shanghai, China 13,584 17,969
7. Los Angeles, USA 12,410 14,217
8. Calcutta, India 11,923 17,305
9. Buenos Aires, Argentina 11,802 13,856
10. Seoul, South Korea 11,609 12,980
12. Median Ages In Selected Countries
Italy 36.2 42.4
Japan 37.2 42.2
Britain 35.7 40.0
U.S. 32.9 37.4
Korea (North & South) 25.7 34.4
China 25.4 33.9
Brazil 22.9 29.2
Mexico 20.0 6.5
Nigeria 16.3 18.1
Country 1990 2010
13. The Political/Legal Environment
⢠The political/legal
environment encompasses
factors and trends related to
governmental activities,
specific laws and regulations
that affect marketing
practice.
⢠The political/legal
environment is closely tied to
the social and economic
environments
14. Global Political Trends
⢠International political events greatly affect marketing
activities.
⢠The most significant global political trend is the âwar on
terrorism.â
⢠A second important political trend is movement toward
free trade and away from protectionism.
Benefits to Free Trade:
â Countries with the freest trade had the highest GDP
growth from 1990 to 2000.
â Free trade in a global economy requires the free
movement of people, goods, and capital across borders.
15. International Politics
⢠International Politics: Political
relations and conflicts between
countries can have a profound impact
on firms trying to do business
internationally. If relations between
countries improve, business can
benefit
⢠International Law: No enforceable
body of international law exists. Firms
are subject to home and host-country
laws. Areas of cooperation among
nations exist through bilateral treaties
guaranteeing fair treatment. It also
includes patent and trademark
protection
16. ⢠The laws and policies of the
government and society can affect
international marketing. Political
situations can be stable or unstable
and can create opportunities and
threats. Business needs to consider
the surrounding political and legal
environmental forces.
⢠The economic interests of the country
that an international marketer does
business in might not necessarily
coincide with their own. The political
and legal environments that impact
them are inherently related and
inseparable
The Political / Legal Environment
17. Political factors will impact on:-
⢠Government policies and how they affect
the costs and certainty of doing business
in the host/foreign country.
⢠Stability of the government and
continuity affecting business confidence.
For e.g. current episode between
Malaysian government and Anwar is
unsettling for investors.
⢠On bi/multilateral relations between
governments; this affects stability of
doing business. If relations are strong,
then more market opportunities will arise.
For e.g. more flights now being mounted
between China and Taiwan; cross-straits
relationships still tense but slowly
improving.
18. Political Environment and International Business
⢠Political ideology is a body of
constructs, theories, and aims
that constitute a sociopolitical
program.
⢠Ultimate test of any political
system is its ability to hold a
society together despite pressures
from different ideologies, and its
ability to meet its objectives.
⢠Ideologies help bring countries
together/keep them apart.
⢠In Terms of Business, Companies
must understand the potential
sources of political tension and
instability.
Basic
Political
Ideologies
19.
20. The Political Spectrum
ď Democracyâinvolves wide participation by citizens in the decision-making process.
Democratic governments differ :-
⢠Presidential versus parliamentary
⢠Number of important political parties
⢠Amount of citizen participation in decision making
⢠Fragility and stability of new democracies
Democracy (not surprisingly) is believed in democracies to be the best form of
government.
ď Totalitarianism (Absolutist) âa single party, individual, or group of individuals
monopolizes political power. Opposition is effectively not permitted
Totalitarianism takes several forms: -
ď Theocraticâreligious leaders are political leaders
ď Secularâgovernment often imposes order through military power
ď Authoritarianismâdesires to control the people
ď Communismâpolitical and economic systems are virtually inseparable
21. Impact of the Political System on
Management Decisions
⢠Political Risk- It is caused by political instability. It promotes
fear that operating position will deteriorate. It tends to be
higher in totalitarian regimes.
It can be termed as the risk of change in political environment
or government policy that would adversely affect a companyâs
ability to operate effectively and profitably.
When perceived political risk is high, a country will have a
difficult time attracting foreign direct investment
22. Indicators of Political Risk / Instability
Some indicators of political risk include:
⢠War , Social unrest, Corruption, Nepotism,
Crime, Labor costs, Tax discrimination etc
⢠Negative Attitude of nationals towards
foreign business and foreigners including
exploitation ,colonialism, repatriation,
employment to foreigners etc.
⢠Politically-motivated violence ,
Transparency,
⢠Social Unrest (population density and wealth
distribution),Clashes between or among
community groups, ethnic groups and
regional groups.
⢠Host Govt. policies affecting International
Business directly and internally or
externally.
23. How to Minimize Political Risk?
Political risks cannot be eliminated.
However they can be minimized by:-
⢠Stimulating the economic development
of host country by investing in their
priority areas/ portfolios.
⢠By employing, developing and
promoting local people.
⢠By Sharing Ownership
⢠By being civic minded.
⢠By being politically neutral in host
countries
⢠By observation of political mood and
⢠By reduction of exposure
24. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Legal and Regulatory Environment
25. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
The Legal and Regulatory Environment
⢠One of the more difficult aspects of doing business globally is dealing with vast
differences in legal and regulatory environments.
⢠The United States, for example, has an established set of laws and regulations that
provide direction to businesses operating within its borders.
⢠But because there is no global legal system, key areas of business lawâfor example,
contract provisions and copyright protectionâcan be treated in different ways in
different countries.
⢠Companies doing international business often face many inconsistent laws and
regulations. To navigate this sea of confusion, American businesspeople must know and
follow both U.S. laws and regulations and those of nations in which they operate.
⢠The annals of business history are filled with stories about American companies that have
stumbled in trying to comply with foreign laws and regulations. Coca-Cola, for example,
ran afoul of Italian law when it printed its ingredients list on the bottle cap rather than on
the bottle itself. Italian courts ruled that the labeling was inadequate because most people
throw the cap away.
⢠In another case, 3M applied to the Japanese government to create a joint venture with the
Sumitomo Industrial Group to make and distribute magnetic tape products in Japan. 3M
spent four years trying to satisfy Japanâs complex regulations, but by the time it got
approval, domestic competitors, including Sony, had captured the market. By delaying
3M, Japanese regulators managed, in effect, to stifle foreign competition.
26. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Approaches to deal with âŚ..
⢠One approach to dealing with local laws and
regulations is hiring lawyers from the host country
who can provide advice on legal issues.
⢠Another is working with local businesspeople who
have experience in complying with regulations and
overcoming bureaucratic obstacles.
Dear all, I have also covered this topic with the
help of some questions that I have included in the
question bank given to you⌠therefore we move
to impacts of legal environment in next slides
27. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
How Bribery and Other Types of Corruption Threaten the Global Marketplace?
⢠Thereâs no doubt that corruption, endemic in emerging economies around the
world, throws economic development into chaos. It affects decisions made by
bureaucrats, degrades the quality of those in power, and discourages foreign
investment.
⢠Itâs also an increasingly hot business topic, with a growing number of
influential business and political leaders from around the globe regularly
pinpointing corruption as one of the greatest threats to global economic
development.
⢠Bribery, of course, is the most widespread form of corruption, and corporate
strategies for dealing with bribe requests vary.
⢠Some companies opt to pay, sometimes damaging their public images and
making it more difficult to refuse future requests. Others have the sheer bulk
and revenues to successfully and consistently say âno.â
⢠Oil giant Texaco, for example, has such a formidable reputation for refusing to
pay bribes that its jeeps are often waved through even remote African border
crossings without paying a penny.
28. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Question that arisesâŚ
On a practical level, what does the upswing in international corruption
mean to a company?
ď The fact that a great number of government officials in a great number
of countries, including some potentially large markets, seem to demand
bribes is critical to any business that has a cross-border presence.
ď Then thereâs the reality that more than 20 nations, including the
wealthiest and most-active trading nations, have made bribe paying
illegal, and the fact that despite this there are still competitors who will
pay bribes.
29. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Is bribery a strategy to enter international markets? Is it ethical?
⢠It depends on the culture we grow up
in to classify a specific amount as
either bribery or easing business and
probably building relationships.
⢠Some time before I was asked about
how business is done in my home
country and I described it as
partnering with some officials
involuntary. Others might describe
this as a type of bribery.
⢠I agree that bribery is unethical,
however if a certain attractive market
requires a business to enter into such
untraditional actions, should the
company do them?
30. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Case Study of Wal âMart (Bribery)
⢠Some years before, a news report came out about Wal-Mart paying bribes to
Mexican officials to obtain permits in virtually every corner of the country.
⢠Walmart said: âWe do not believe that these matters will have a
material adverse effect on our businessâ. They probably believe that doing
such acts is necessary to do business in Mexico.
⢠They donât believe that they violated the Foreign Corrupt Practices Act, a
federal law that makes it a crime for American corporations and their
subsidiaries to bribe foreign officials.
⢠The US law is clear regarding US companies paying bribes for foreign
officials. This clearly makes the Mexican market a lost opportunity.
⢠Walmart as an example going to Mexico should adapt to the way business is
done there and formulate strategies that coop with the country.
⢠Bribery should be a taboo of practicing business in any place. Walmart could
have lost the opportunity to enter the Mexican market, however it would have
not risked its reputation in the US market that compromise most of its revenue
(around 70% of sales based on the last quarter report).
⢠Walmart runs from a more regulated country compared to other countries.
Laws such as the Foreign Corrupt Practices Act and others, discourage
companies to engage in such acts. Other companies on the other hand that run
from different unregulated countries could have the short-term financial
advantage.
⢠A market system that relies a lot on bribes could easily suck
companiesâ earnings by asking more with time.
31. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
PERMANENT ESTABLISHMENT (BRANCH) VS SUBSIDIARY
⢠A permanent establishment (Branch) is generally defined as a fixed
site through which the business of the company is wholly or partly
carried on within that territory. It can include an agent habitually
exercising authority to do business on behalf of the company.
⢠A Subsidiary is a separate legal entity so liabilities arising within the
company can not be claimed against another company in the group.
⢠The points of difference are clearly stated in the table in the next slide.
32. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Issue Branch Subsidiary
Legal entity Not a separate legal entity, so claims and
liabilities arising in the PE can be
extended to the main company of which it
is part.
A separate legal entity, so liabilities
arising within the company can not be
claimed against another company in the
group.
Inter office remittances/
repatriation of profits
Inter office remittances are not taxable. â˘Repatriation of profits can take various
forms and is therefore flexible.
â˘Timing of the repatriation of profits can
be arranged to suit the group tax
position.
â˘No withholding tax on dividends
Profits/losses Relief for start up costs and initial trading
losses can be set against parent
company profits for tax purposes.
Corporation Tax will be due on any profit
made by the branch.
The rate of corporation tax can be higher
as a result of increased numbers of
companies in the worldwide group.
Filing requirements. Public filing of parent company accounts
is usually required, depending on the law
in the country of origin
There is public disclosure of the
accounts. There is no cross border
consolidation so administration can be
more straightforward.
Generally A PE can be easier to establish and close
down if unsuccessful. However, later
incorporation may trigger tax liabilities
because of transfers to a separate
company although these can often be
overcome.
Home Country customers may prefer to
deal with a domestic company rather than
the branch of an overseas company
33. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Counterfeiting
⢠Counterfeiting is the practice of manufacturing goods, often of inferior quality, and
selling them under a brand name without the brand ownerâs authorization.
⢠Generally, counterfeit goods are sold under a trademark that is identical to or
substantially indistinguishable from the brand owner's trademark for the same
goods, without the approval or oversight of the trademark owner.
⢠Many well-known brands, spanning various industries, are victims
of counterfeiting.
⢠Counterfeiting can be distinguished from traditional trademark infringement or
passing off, which involves the use of confusingly similar trademarks or service
marks on or in association with similarâas opposed to fakeâproducts or
services.
⢠The manufacturing of counterfeits is most prevalent in developing countries with
a strong, inexpensive manufacturing capability, including many nations throughout
Asia (such as China and Taiwan), although counterfeit goods are sold around the
globe.
⢠Counterfeits are manufactured to a lesser degree in developed countries.
⢠Anything that can be made can be counterfeited. Counterfeit goods include not
only clothing, jewelry, purses, CDs, and DVDs, but also baby formula,
medications, cigarettes, electronic equipment and parts, airplane and automobile
parts, and toys etc.
34. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Does counterfeiting cause any damage?
⢠Yes. Although some believe counterfeiting is a victimless crime, it has many far-
reaching consequences.
⢠To begin with, depending upon the nature of the product being counterfeited, there
can be serious health and safety concerns for consumers, such as in the examples
of counterfeit baby formula, toys for children, medications, car parts, or electronic
goods. In nearly every instance, counterfeited goods are not made with the same
quality materials or to the same high standards as the original.
⢠In addition, counterfeiting damages brand ownersâ reputations and lowers consumer
confidence in the affected brands. Counterfeiting also damages brand owners and
retailers selling legitimate products by causing missed sales opportunities and actual
job losses by manufacturers and retailers.
⢠Consumer confidence and the value of branding may suffer when purchasers
discover that the product they bought, believing that it was being sold under a
recognized brand, is in fact not authentic. Damages do not stop with brand owners
and consumers because counterfeiting also deprives national economies of customs
duties and tax revenues.
⢠Counterfeiting may also be linked to organized crime or criminal activity, which may
pose serious threats to the health and safety of consumers, economies and national
security.
35. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Gray market
⢠The gray market, while not illegal like the black market, involves the sale of goods
through means other than what was intended or approved by the original maker of a
product.
⢠A private person or business purchases the good at retail, wholesale, or a
discounted price, and attempts to resell it legally at a higher price.
⢠The list of things that can be sold this way is endless, but popular items include
electronics, photographic equipment, cigarettes, DVDs, and wine. The term can
also be used to refer to the securities market, where it defines the buying and
selling of securities that will be issued at some point in the future.
⢠It is extremely difficult to track the gray market because, once a good is sold to an
unauthorized dealer, the manufacturer has no way of tracking the sale of it. This
market exists just about everywhere.
⢠In the suburbs, one prime example is the snack stand at a high school football
game. In an effort to raise money, the student council may purchase soda, hot
dogs, and chips at a wholesale warehouse store, then sell them for a profit at the
game.
⢠Another good example is when someone buys goods at a garage sale or outlet
store and resells them on an online auction site at a higher price.
36. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Gray market continuedâŚ..
⢠Under some circumstances, different countries have different markets for different goods.
When a person takes advantage of the disparity in market prices of a particular good, it is
called arbitrage. An arbitrageur takes advantage of this disparity by buying a good in a
country where it is significantly cheaper, then reselling it legally in another country where
he can demand a higher price.
⢠One drawback of the gray market is that many manufacturers will not honor warranties on
electronics purchased through it. Because the good is not purchased through âauthorizedâ
channels, manufacturers refuse to spend the money to honor the warranty. One of the ways
that manufacturers identify items resold this way is by putting different model numbers on
the same product in different countries. When someone calls for warranty issues, the
manufacturer can identify whether their product was sold in the correct country. The
warranty cannot usually be enforced, because it was sold through a third party in a different
country.
⢠Authorized agents and sellers are most often financially affected by the gray market,
because they lose business to unauthorized sellers. Local laws can help or hurt this market.
In some cases, food is difficult to resell because local laws dictate packaging, so what is
legal in one state or country may not be in another.
⢠In an effort to curb the resale of DVDs and DVD players, DVD region codes are written
onto the disc for the specific geographical area it is supposed to be sold in. Only the DVD
players intended for sale in that area can play these DVDs.
37. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Cultural Influences
on International Marketing
38. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Chapter Objectives
⢠Identify the elements of culture and examine how they affect
marketing practices around the world
⢠Describe national and regional character based on dimensions
such as time orientation, business practices, gift giving,
socializing, gender roles, and materialism
⢠Discuss cultural variability in terms of the Hofstede dimensions
with appropriate examples and address cultural change in a
marketing context
⢠Address the self-reference criterion and ethnocentrism and
describe how they impeded mutual understanding and
cooperation, with direct negative effects on marketing practices
⢠Describe the global consumer culture as it manifests itself
around the world
39. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
The Importance of Understanding
⢠Many companies find that their new foreign firm is
about to collapse because they have failed to learn
that countryâs customs, cultures, and laws
⢠Two out of every three U.S. executives sent to Saudi
Arabia are promptly repatriated due to difficulties in
adapting to the local culture
⢠The costs associated with premature returns
(repatriation) negatively affects the bottom-line of
international companies
40. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Culture Defined
⢠A continuously changing
totality of learned and shared
meanings, rituals, norms, and
traditions among the members
of an organization or society.
ď§ Ecology
ď§ Social Structure
ď§ Ideology
41. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Cultural Dynamics
⢠Culture: definition, origin, and scope
⢠Culture and consumption (e.g., flower, food, habitats):
modernization influence
⢠Culture is shaped and influenced by
ď§ Geography, history and politics
ď§ Technology
ď§ Social Institutions: family, religion, school, media, and
government
⢠Elements of culture
ď§ Cultural values- Hofstedeâs five cultural values
ď§ Beliefs, rituals, thought process
ď§ Language: verbal, nonverbal, silent language of time, space and
friendship
ď§ Aesthetics: arts, folklore, and music, drama, dance etc.
⢠Cultural change: planned and unplanned, resistance to
change
42. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Hofstedeâs Cultural Value
⢠Individualism/collective index (IDV): Refers to preference of
behavior that promotes oneâs self interest. Higher score (e.g.,
USA) means high on individualism.
⢠Power distance index (PDI): Measures the tolerance of social
inequality, that is, power inequality between superiors and
subordinates within a social system. Higher score (e.g., Arab
countries) means more hierarchical.
⢠Uncertainty avoidance index (UAI): Refers to the intolerance of
ambiguity and uncertainty among members of a society. Higher
score (e.g., Greece) means less tolerance for uncertainty.
⢠Masculinity/feminity (MAS): Refers to oneâs desire for
achievement and entrepreneurial tendencies. Higher score (e.g.,
Latin culture) means more assertiveness and masculinity.
⢠Future orientation: Refers to the long-term orientation of the
society.
43. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Elements of Culture
⢠Spoken/Written Language
ď§ Differences in meaning in
different countries which share
the same language
ď§ Dealing with multiple dialects
ď§ High costs of translation
ď§ High costs of translation
blunders
44. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Elements of Culture
⢠Nonverbal communication
ď§ Proxemics - the branch of knowledge that deals with the amount of space that
people feel it necessary to set between themselves and others.
ď§ Postures - a particular approach or attitude/ viewpoint
ď§ Orientations -
ď§ Oculesics - is the study of eye movement, eye behavior, gaze, and eye-related
nonverbal communication.
ď§ Chronemics - is the study of the use of time in nonverbal communication. The way
that an individual would perceive and value time, structure our time and react to
time is a powerful communication tool, and helps set the stage for the
communication process.
ď§ Haptics - is any form of nonverbal communication involving touch.
ď§ Kinesics - the study of the way in which certain body movements and gestures serve
as a form of non-verbal communication.
ď§ Paralinguistics- the study of vocal (and sometimes non-vocal) signals beyond the
basic verbal message or speech.
ď§ Appearances- the way that someone or something looks.
ď§ Olfactions â The sense of smell/ past participle of olfacere.
45. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Culture and Business
⢠Role of adaptation
ď§ cultural imperatives: must conform (e.g., trust, relationship)
ď§ cultural electives: may or may not conform (e.g., kissing, hugging,
wine in business meetings)
ď§ cultural exclusives: exclusively for the locals, do not have to
conform (e.g., local dress, local food, religious practices)
⢠Critical features of different Management Style
⢠Management Styles in the World
ď§ Authority and decision making
ď§ Management objectives and aspirations
ď§ Role of individual in a company- social dimension
ď§ Communication styles (High context vs. Low context)
ď§ Formality
ď§ P-time (poly chronic) vs. M-time (mono chronic)
ď§ Negotiation style
46. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Culture and Business (contd.)
⢠Gender bias in international business
⢠Business Ethics and Corruption
⢠Transparency Internationalâs CPI or Bribery Index
⢠Bribery: definition and variations
ď§ Gifts vs. Bribery
ď§ Extortion
ď§ Lubrication
⢠Long term vs. short term orientation in decision making
⢠Relationship-oriented vs. Information-oriented culture
47. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
High vs. Low Context Cultures
⢠Low-Context cultures:
What is said is precisely what
is meant
⢠High-Context cultures:
The context of the messageâ
the message source, his or
her standing in society or in
the negotiating group, level
of expertise, tone of voice,
and body languageâare
all meaningful
48. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
High Context vs. Low Context Cultures
High
Context
Implicit
Japanese
Arabian
Latin American
Spanish
Italian
English (UK)
French
North American (US)
Scandinavian
German
SwissLow
Context
Explicit
49. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Religion and Its Impact on Marketing
Practice
⢠Protestant Religion â stresses hard work and
frugality
⢠Judaism â stresses education and development
⢠Islam â focus on rules for social interaction
⢠Hinduism â encourages family orientation and
dictates strict dietary constraints
⢠Buddhism â stresses sufferance and avoidance
of worldly desires
50. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Religion
⢠Business days
⢠Gender roles
⢠Gift giving
⢠Marketing practices
51. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Cultural Values
⢠Enduring beliefs about a specific mode of conduct
or desirable end-state
⢠Guide the selection or evaluation of behavior
⢠Are ordered by importance in relation to one
another to form a system of value priorities
52. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Cultural Values
⢠Enculturation
Process by which individuals learn the beliefs and
behaviors endorsed by oneâs own culture
⢠Acculturation
Learning a new culture
⢠Assimilation
Maintenance of the new culture, and resistance to
new cultures and to oneâs old culture
53. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Cultural Norms
⢠Norms are derived from values and defined as
rules that dictate what is right or wrong, acceptable
or unacceptable
ď§ Imperative
- What an outsider must or must not do
ď§ Exclusive
- What locals may do but an outsider cannot
ď§ Adiaphora
- What an outsider may or may not do
54. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
National/Regional Character
⢠Time Orientation
⢠Business Hours
⢠Gift Giving
⢠Socializing
⢠Gender Roles
⢠Status Concern and Materialism
⢠Other â for example, access
(transportation by bicycle,
personal automobile, public
transportation
55. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Cultural Variability
⢠Power Distance
⢠Uncertainty Avoidance
⢠Masculinity Versus
Femininity
⢠Individualism Versus
Collectivism
56. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Cultural Change & Marketing
In an advertisement, if the above
are perceived as faces, censors
might erase them; if they are
perceived as a vase, they would
not be altered.
Marketers need to identify
the symbolic elements that
are important to a market
segment and use them
effectively in creating the
marketing mix.
57. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Obstacles to Cultural Understanding
⢠Ethnocentrism
ď§ A related belief that a particular culture is superior to
another and that strategies that are used in the home
country will work just as well abroad.
⢠The Self-Reference Criterion:
ď§ The unconscious reference to oneâs own value system
58. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
Dealing with the Self-Reference
Criterion
1) Define the marketing goal in terms of oneâs home
countryâs cultural traits, norms, and values
2) Define the marketing goal in terms of the host
countryâs cultural traits, norms, and values
3) Isolate the self-reference criterion influence and
evaluate it to understand how it affects the
marketing issue
4) Solve the marketing problem based solely on the
unique conditions of the host country.
59. Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002
THANK YOUâŚâŚ.