International Business Week 9 International Management (functional strategies)

Week 9: International Management (functional
strategies)
08 November 2022 15:07


International Management: Marketing and HR strategies (function-level strategy) Part 2 INTERNATIONAL HRM STRATEGY Part 3: The SDGs and doing international busine
- 4 Ps & HRM practices
- Responsibilities of MNC beyond profit motive GLOBAL MINDSET
UN GLOBAL COMPACT
How MNE perceive and interpret global social and economic environment, impact on strategies
THE MARKETING MIX: THE 4 Ps Combine openness to awareness of diversity, ability to synthesize across adversity

Marketing strategy needs integrated with business strategy and other business
functions
SDGs AND INTERNATIONAL BUSINESS




DIFFERENT GOALS


Criticisms: less effective for services, too internally-focuses, no consumer input
3 added later
Open constant learning

INTERNATIONA HRM
Standardise or customise the marketing mix Employ:
Home-country
GLOBAL VS LOCAL Host-country
Third country nationals
EPG model international business 3 alternatives: = different people management challenges

ETHNOCENTRIC APPROACH: market goods same international and domestic APPROACHES TO HRM
(home country bias) - Ethnocentric: practices from home country
- Polycentric: different management system in different countries
POLYCENTRIC: customise marketing mix meet needs each foreign market - Geocentric: standard approach management worldwide SUMMARY
(host country adaptation)
THE EPG MODEL (PHILIPS TRADITIONALLY)
GEOCENTRIC: analyse customer needs globally and adopt standard mix worldwide Ethnocentric used to dominate:
(global orientation) - Host country not have requisite skills
- Unified corporate culture
- Core compentencies
STANDARDISED INTERNATIONAL MARKETING Less popular now:
- Devalues + distance
- Cultural myopia, lack of understanding

Polycentric approaches: home country managers at HQ and host country managers internaionally CONCLUSION
- Reduce risks of cultural myopia
- Cost efficient
Challenges:
- Host country cannot progress beyond operation host country
- Lead gaps practices between countries


Geocentric not specific nationality, seeks best people
- Best use of resources
CUSTOMISED INTERNATIONAL MARKETING
- Develops managers can work across culturs
- Increase local reponsiveness with effective shared learning
Challenges
- Costly
- Rules around who is employed

HIDDEN EXPATRIATES:
Can be lower skill expatriates working less advantageous conditions


SUMMARY

THIRD CHOICE: CONTINGENCY APPROACH
Standardisation is not isolated from adaptation, strategy ranges between two




PRICING DECISIONS




PRICING POLICIES:
- Standard price policy: same price wherever sold (geocentric)
- Two-tiered pricing: one price domestic, another abroad - problematic long
term (egocentric)
- Market pricing: localised profit maximisation (polycentric)


PROMOTIONAL STRATEGIES
- Advertising: extent of glob scope
- Personal selling
- Sales promotion
- Public relation: enhance firm's reputation/image


INTERNATIONAL DISTRIBUTION
2 keys:
- Physically transporting
- Selecting means to produce

INTERNATIONAL DISTRIBUTION
Modes of transportation/shipping depend on:




Consider environmental impacts?


SUMMARY
Internal marketing:
- Vital international success
- Places more emphasis on environmental analysis
- Require larger repertoire skills
- Higher risk investment if marketing goes wrong



LECTURES Page 1