Chapter 1: Global marketing in the firm
It is often the case that a firm going into an export adventure should have
stayed in the home market because it did not have the necessary competences
to start exporting.
Globalization: Reflects the trend of firms buying, developing, producing and selling products and
services in most countries and regions of the world. It increases the companies’ competitiveness and
facilitates innovation.
Internationalization: Doing business in many countries of the world, but often limited to a certain
region. It is unlikely to be successful unless the company prepares in advance.
1.3 Comparison of the global marketing and management style of SMEs and LSEs
LSEs SMEs
Resources Many resources Limited resources; lack of financial
Internationalization of resources due to limited equity base
resources Externalization of resources
Coordination of:
Personnel
Financing
Market knowledge
Formation of Deliberate (‘planned’) Emergent (‘not planned’) strategy
strategy/ strategy formation formation
Decision-making Adaptive decision-making The entrepreneurial decision-making model
processes mode in small incremental The owner/manager is directly and
steps personally involved and will dominate all
decision-making throughout the enterprise
Organization Formal/hierarchical Informal
Independent of one person The owner usually has the power to control
a total organization
Risk-taking Mainly risk-averse because of Sometimes risk-taking/sometimes risk-
use of decision-making model averse. It depends on circumstances.
that emphasizes small Sometimes risk-averse after damage after
incremental steps risk-taking actions.
Focus on long-term Focus on short-term opportunities
opportunities
Flexibility Low High, because of shorter communication
lines between enterprise and customers
Take advantage of Yes Only limited
economies of Scope: by entering into alliance/joint
scale/scope venture with partner that has what
company is missing
It is often the case that a firm going into an export adventure should have
stayed in the home market because it did not have the necessary competences
to start exporting.
Globalization: Reflects the trend of firms buying, developing, producing and selling products and
services in most countries and regions of the world. It increases the companies’ competitiveness and
facilitates innovation.
Internationalization: Doing business in many countries of the world, but often limited to a certain
region. It is unlikely to be successful unless the company prepares in advance.
1.3 Comparison of the global marketing and management style of SMEs and LSEs
LSEs SMEs
Resources Many resources Limited resources; lack of financial
Internationalization of resources due to limited equity base
resources Externalization of resources
Coordination of:
Personnel
Financing
Market knowledge
Formation of Deliberate (‘planned’) Emergent (‘not planned’) strategy
strategy/ strategy formation formation
Decision-making Adaptive decision-making The entrepreneurial decision-making model
processes mode in small incremental The owner/manager is directly and
steps personally involved and will dominate all
decision-making throughout the enterprise
Organization Formal/hierarchical Informal
Independent of one person The owner usually has the power to control
a total organization
Risk-taking Mainly risk-averse because of Sometimes risk-taking/sometimes risk-
use of decision-making model averse. It depends on circumstances.
that emphasizes small Sometimes risk-averse after damage after
incremental steps risk-taking actions.
Focus on long-term Focus on short-term opportunities
opportunities
Flexibility Low High, because of shorter communication
lines between enterprise and customers
Take advantage of Yes Only limited
economies of Scope: by entering into alliance/joint
scale/scope venture with partner that has what
company is missing
