Summary International Entrepreneurship IOR3

International entrepreneurship
Samenvatting
1. Chapter 1: B2B marketing and Industrial procurement ............................... 3
1.1 B2B marketing and industrial procurement ............................................ 3
1.2 B2B marketing versus consumer marketing ........................................... 5
1.3 The procurement process (aankoopproces) ............................................ 8
1.4 The procurement process: group behavior ........................................... 16
1.5 The (industrial) marketing mix ........................................................... 24
1.6 Review questions: B2B marketing and industrial procurement ................ 33
2. Chapter 2: Balancing between local responsiveness and global coordination 48
2.1 How to structure your international organization ................................... 48
2.2 Bartlett and Ghoshal: managing across borders .................................... 52
2.3 Subsidiary strategy ........................................................................... 59
2.4 Review questions: balancing between local responsiveness and global
coordination .............................................................................................. 60
3. Chapter 3: Intellectual property (IP) and patent databases ....................... 67
3.1 Some principles................................................................................ 67
3.2 Brands ............................................................................................ 70
3.3 Patents ........................................................................................... 74
3.4 Review questions: intellectual property (IP) and patent databases .......... 84
4. Chapter 4: Kaizen, the Japanese way of improvement ............................ 103
4.1 Kaizen, difference with ‘classic’ innovation ......................................... 103
4.2 The concept ................................................................................... 107
4.3 Company-wide control .................................................................... 111
4.4 PDCA-circle ................................................................................... 113
4.5 Lean manufacturing: MUDA ............................................................. 115
4.6 Problem solving.............................................................................. 116
4.7 Disadvantages of Kaizen.................................................................. 117
4.8 Culture-bound ................................................................................ 118
4.9 Review questions: Kaizen, the Japanese way of improvement............... 121
5. Chapter 5: Diversity as lever for talent competitiveness .......................... 133
5.1 Defining diversity ........................................................................... 133
5.2 Diversity at different levels .............................................................. 135
5.3 Studies regarding diversity .............................................................. 137
5.4 Diverse companies ......................................................................... 145
5.5 Review questions: diversity as a lever for talent competitiveness .......... 149
6. Chapter 6: Geopolitics and corporate strategy ....................................... 156


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,6.1 Geopolitics .................................................................................... 156
6.2 Today’s geopolitical situation............................................................ 156
6.3 Risks for a Belgian/EU entrepreneur .................................................. 164
6.4 Geopolitics and corporate strategy .................................................... 168
6.5 Conclusion on geopolitics ................................................................. 170
6.6 Review questions: geopolitical factors affecting EU businesses .............. 171




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,1. CHAPTER 1: B2B MARKETING AND INDUSTRIAL
PROCUREMENT

1.1 B2B marketing and industrial procurement

B2B marketing and industrial procurement is important as most of the industry
around us is in the B2B sector.

B2B MARKETING (industrial marketing) = business-to-business marketing, refers
to the marketing of products or services to other businesses and organizations.

Example of a traditional B2B market: automobile manufacturing → in every model of
car or truck that is being produced, there are dozens of other companies' products
(such as tires, hoses, batteries and electronics). When you buy a car from one
company, you're purchasing parts created by dozens or even hundreds of other
businesses from all around the world. General Electric makes plenty of consumer
goods, but it also provides parts to other enterprises.

(→ also see the following example on page 3)

INDUSTRIAL PROCUREMENT (industrial marketing)
= the act of obtaining goods or services, typically for business purposes.
= activities focused on controlling and directing the incoming flow of goods until the
moment the goods are put into production.

Procurement → broader concept than purchasing, as it includes:
• material requirement planning
• inventory management
• transportation

→ there is the need to forecast sourcing expenditures for the long-term, so careful
thought is given before the purchase is made. Procurement is of great added value
to organizations.

IMPORTANT: B2B marketing = industrial procurement, industrial marketing




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, Example: BISF sells raw materials, such as chemicals to Recticel (producer of
insulation materials, foam fillings, etc.) → Recticel makes polyurethane foam, which
is sold to Johnson Controls (producer of car seats) → then these car seats are sold to
Volkswagen or Audi to install them in the cars → only hereafter, a small part of the
chain is consumer marketing, when selling the car to the consumer.

All the steps upstream are all B2B steps.

IMPORTANT:

• the demand in the B2B sector: derived demand → because it’s our end
consumer buying a car, so they will trigger the demand upstream

DERIVED DEMAND = the demand for a good or service that is the result
from the demand for a different, or related, good or service

• parties in B2B are often partners and really need each other (e.g. car seat and
foam)


• industrial marketing is much more global, more international
entrepreneurship → much more than consumer goods, where we only see the
last step, which is often a local step.
à everything is B2B, except the last step which is consumer marketing




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