Literature review of international business Essay
Executive SummaryInternational Marketing Plan is concerned with the structuring of the relationship between a business and the global sector. The environment in which business operates has a greater influence on their successes or failures. There is a strong linkage between the changing circumstances, the strategic response of the business to such changes and the performance.
It is therefore important to understand the forces of external environment the way they will influence this linkage. The external environment which is dynamic and changing holds both opportunities and threats for the organisations.
The changes in the environment affect the risk levels of various investments to be made in the new situations.The macro environments in which all firms operate broadly consist of the economic environment, the political and legal environment, the socio cultural aspects and the environment related issues.
The technological temper and its progress has been the key driver behind the major changes witnessed in the external environment making it increasingly complex to enter in other countries.
Competitive Strategy: To have the widest range of variants on its regular production schedules as a differential advantage vis-à-vis its competitors.Overall Marketing ObjectivesThe company needs to analyze the kind of impact the export may bring in their industry as the impacts are never same for all industries. The emerging demographic profile of any country will have very different consequences for businesses.
The former will face an adverse effect, the latter will have a positive effect and this needs to be analyzed and integrated into strategic decision making.Detailed Analysis of StrategiesResponding to these various impacts with new strategic initiatives the management must take notice of the fact that if the changes are significant, it may have the potential of changing the competitive rules.1. Long Term ObjectivesPlanning is formulated keeping in mind the long term objectives of the organization.
It is so because it emphasizes on long term growth and development. Planning is future oriented and therefore concerned with the objectives which have a long term perspective. The objectives give directions for implementing a concrete plan.Functional Area Objectives for Strategic Decision Making2.
Competitive AdvantageWhenever new market is formulated, management has to note the competitors of the organization. The environment has to be continuously monitored for forming a strategy. Planning has to be made in a sense that the firm may have competitive advantage. It makes the organization committed enough to meet the external threats and profit from the environmental opportunities.
3. VectorPlanning involves adoption of the course of action and allocation of resource for meeting the long term objectives. Amongst the various courses of action available, the, management have to choose the one which utilizes the resources of the organization in the best possible manner and helps in the achievement of the company objectives. A series of decisions are taken and they are in the same direction.
4. SynergyOnce there is a series of decisions to accomplish the objectives in the same direction, there will be synergy. Long drawn planning boosts the prospects by providing energy.Competitive International Market AnalysisThe purpose of international marketing is to determine and communicate a picture of enterprise through a system of major objectives and policies.
The nature of International marketing is correlated by the following facts:· It is a major course of action through which an entrepreneur relates itself to its new objectives particularly in meeting the target of the organization.· It is the combination of actions aimed to meet a particular target, to solve certain problems or to achieve a desirable end. The actions are different for different situations.· It is future oriented which are required for new situations which have not arisen before in the past.
· It provides overall framework for guiding enterprise thinking actions. General Role of International MarketingThe first and foremost role is that it stimulates potential aggregate demand and thus enlarges the size of the market. Further role which marketing plays is that it helps in the discovery of entrepreneurial talent and improving the sale of the product.Future prospectsA large part of the process of international marketing seeks to explore the unknown dimensions of the future which emphasizes on what would happen in the near future.
For doing the international marketing, there can be the strategic advantage profile which provides for analysis of internal environment, and the organization capability profile as well. For analyzing the external environment, competitor’s threat and opportunity profile has been adopted.Correlation and Regression MethodsThese methods have been used to examine the relationship between past sales and one or more variables such as population, per capita income or gross national product, etc. The use of regression analysis is done in order to determine whether any relationship exists between the past sales, and changes in one or more economic, competitive or internal variables to a company.
Typical forecasting applications of these methods are sales forecasts for industrial equipments.Financial Opportunities Comparison MethodMarket Examination: An international business can’t flourish unless the market is thoroughly analysed,the type of customers, the possibility of growth and the target market. The needs and services of the customers are to be fulfilled to capture the market. The product price has to be competitive, on the basis of demand and cost unit pricing and working on market fluctuations.
The promotional channels to be tapped, like advertising, on-line demonstration, tracking suitable customers and convincing them to purchase the product. The scheme of free delivery at the destination and also free replacement if found non- working within a certain period. Market environment will change frequently and the company has to change strategy often depending upon the demand analysis.Research for Target Market: There need to be a correct answer as to how many individuals are marketing on internet.
Whether such markets are expanding or declining or just stable.Financial Implication: The whole plan depends upon the availability of funds, the resources and the finance required carrying on the business. It all tells the time frame from when it may turn into a profit making company. The financial statement tells the financial health giving information to investors how they are going to react.
ConclusionOne of the most fundamental problems is the lack of a market system. There are huge numbers of people who do not have an access to such goods. Many of these people are used to the same old system in these countries. Proper incentives should exist for entrepreneurs to produce such goods.
The most basic incentive is their access to the proper knowledge being used in other countries. References1. Beaumont,P.B.
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& Fyffe,( 1977), David E. Marketing Development Feasibility Analysis. A guide to profitable New Venture. John Wiley & Sons, New York4.
Croney, J.S., Competition Relations System : A Study of Vital Issues, Sterling Publishers, HongKong,2000Franked, Ernest G. (1990), Marketing and Economic Development .
Butterworths, London.6. Hamblin, A.C, Evaluation and Control of Training, McGraw Hill, London, namics of Competion, Shuttle Publications, CapeTown,19917.
Hamel,G. (1999). Strategic Planning: Formulation Of Corporate Strategy (Texts and Cases) 1st ed., Macmillan Limited.
8. Hitt, Michael A, (2001), International Marketing: Competitiveness and globalization, 4th ed., Thomson Learning.J.
Taylor Sims, J. Robert Foster, ArchG. Woodside,(1997) Marketing Channels: Systems and Strategies Harper and Row: New York.10.
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