《国际市场营销学》教案.doc

Chapter 9 Global Marketing Management:Planning and OrganizationDiscussion Questions1.Define:Global marketing managementLicensingCorporate planningFranchisingDirect exportingJoint VentureStrategic planningGlobal market conceptIndirect exportingSIATactical planning2. Define strategic planning. How is strategic planning different for international marketing than domestic marketing? Strategic planning is a systemized way of relating to the future. It is an attempt to manage the effects of external uncontrollable factors on the firms strengths, weaknesses, objectives, and goals to attain a desired end. Further, it is a commitment of resources to a country market to achieve specific goals. The principles of planning are not in themselves different between international and domestic marketing, but the intricacies of the operating environments of the MNC (host country, home, and corporate environments), its organizational structure, and the task of controlling a multicountry operation create differences in the complexity and processes of international planning. Strategic planning on an international level allows for rapid growth of the international function, changing markets, increasing competition, and the ever-varying challenges of different national markets. The plan blends the changing parameters of external country environments with corporate objectives and capabilities to develop a sound, workable marketing program.3. Discuss the effect of shorter product life cycles on a companys planning process.Global competition is placing new emphasis on some basic tenets of business. It is reducing time frames and focusing on the importance of quality, competitive prices, and innovative products. Time is becoming a precious commodity for business, and expanding technology is shortening product life cycles and creating greater opportunities for innovative products. A company no longer can introduce a new product with the expectation of dominating the market for years while the idea spreads slowly through world markets. In any given year, for example, two thirds of Hewlett-Packards revenue comes from product introduced in the prior three years. Shorter product life cycles mean that a company must maximize sales rapidly to recover development costs and generate a profit by offering its products globally. Along with technological advances have come enhanced market expectation for innovative products at competitive prices. Today, strategic planning must include emphasis on quality, technology, and cost containment. To achieve the flexibility and speed required under such conditions, many firms are entering collaborative relationships to shore up their weaknesses whether in distribution, technology or manufacturing that will enable them to respond to the problems created by shorter life cycles.4. What is the importance of collaborative relationships to competition?The competitive environment of international business is changing rapidly. To be competitive in global markets a company must meet or exceed new standards for quality and new levels of technology. There is an increasing change of pace for product development and profitability. Cost efficient, technologically advanced products are being offered by competitors and demanded in established markets as well as in markets rising from formerly Marxist-socialist economies. Opportunities abound the world over, but to benefit, firms must be current in new technology, have the ability to keep abreast of technological change, have distribution systems to capitalize on global demand, have cost-effective manufacturing, and have capital to build new systems as necessary.The accelerating rate of technological progress, market demand created by global industrialization, and the creation of new middle classes will result in tremendous potential in global markets. But, along with this surge in global demand comes an increase in competition as technology and management capabilities spread beyond global companies to new competitors from Asia, Europe, and Latin America. Although global markets offer tremendous potential, companies seeking to function effectively in a fragmented global market of five billion people are being forced to stretch production, designengineering, and marketing resources and capabilities because of the intensity of competition and the increasing pace of technology. Improvements in quality and staying on the cutting edge of technology are critical and basic for survival but often are not enough. Restructuring, reorganizing and downsizing are all avenues being taken by firms to strengthen their competitive positions. Additionally, many multinational companies are realizing they must develop long term, mutually beneficial relationships throughout the company and beyond to competitors, suppliers, governments, and customers. In short, multinational companies are developing orientations that focus on building collaborative relationships to promote long-term alliances and they are seeking continuous, mutually beneficial exchanges.The environment facing multinational companies demands flexibility, quality, cost containment, cutting edge manufacturing skills, and a rapid response to market changes to sustain a competitive advantage. The strengths and capabilities a company must have to be a major player are enormous and few companies can cover all the bases all of the time. To shore up weaknesses, companies are entering relationships with others to share what each does best whether in marketing, research or manufacturing. Collaborative relationships are becoming a common way to meet the demands of global competition and a successful collaboration means that each achieves more together than either can accomplish alone.5. In phases one and two of the international planning process, countries may be dropped from further consideration as potential markets. Discuss some of the conditions in each phase that may exist in a country that would lead a marketer to exclude a country. In phase one of the planning process, there are a host of reasons why a country would no longer be considered. On balance, those countries that do not offer sufficient potential for further consideration will be eliminated. Some of the reasons why this may occur are that product acceptance within the country could not be achieved without extensive investment and new product development, and the firm does not have sufficient resources to make that investment; the legal structure may be such that it would be impossible for the company to function within that country. Competition in the country is such that, based on the companys objectives, resources, etc., it is felt that it would not be a profitable venture. In other words, any problem that would lead to minimum market potential, minimum profit, minimum return on investment, unacceptable competitive levels, unacceptable political stability, unacceptable legal requirements, etc., may all lead to the dropping of a country. While the major reasons for dropping a country in phase one center around general environmental constraints, the reasons that a country may be dropped in phase two center around the more specific questions of what cultural environmental adaptations are necessary for successful acceptance of the companys marketing mix, and will adaptation costs allow for profitable market entry. In phase two, the marketing mix is the focal point of analysis. Still, the final determination of whether or not a country is dropped depends upon the anticipated profitability of the market after necessary adaptations are made.6. Assume that you are the director of international marketing for a company producing refrigerators. Select one country in Latin America and one in Europe and develop screening criteria to use in evaluating the two countries. Make any additional assumptions about your company that are necessary. This is a library-type project. Whatever the details of the screening criteria, the major points that should be considered are: (1) company objectives and goals, (2) product-use characteristics, (3) country environmental characteristics.7. “The dichotomy typically drawn between export marketing and overseas marketing is partly fictional; from a marketing standpoint, they are but alternative methods of capitalizing on foreign market opportunities.” Discuss. The dichotomy drawn between export marketing and overseas marketing is very misleading, for in fact they are but alternative methods of approaching the foreign markets. Yet, on the other hand, these approaches are often interrelated in the complete marketing structure. Both exporting and overseas marketing can be successfully interchanged to reach various heterogeneous markets. Depending on market structure, competition, and company policies, the organizational structure can be so devised so as to use exporting, overseas marketing, or a combination of both to successfully reach a wide assortment of foreign markets. In one country, due to high tariff rates, overseas production and marketing might be advised; on the other hand, poor communications or resources might necessitate exporting.8. How will entry into a developed foreign market differ from entry into a relatively untapped market? The differences between entering a fully developed market and an untapped foreign market are many and extremely varied. Some of these differences are channels of distribution which may or may not be developed. Governmental attitudes toward business, foreigners, and industry may be very liberal in a growing economy, while an established market may be very restrictive. Communication and transportation may be highly limited in untapped markets and highly developed in successful countries. The amount of capital, banks, and exchange-rate systems will vary according to the markets development. Finally, the degree and amount of competition will vary accordingly. To this list, endless factors could be added such as cost of entering the market, social customs, laws, etc.9. Why do companies change their organizations when they go from being an international to a global company?An international marketing plan should optimize the resources committed to stated company objectives. The organizational plan includes the type of organizational arrangements to be used, and the scope and location of responsibility. Many ambitious multinational plans meet with less than full success because of confused lines of authority, poor communications, and lack of cooperation between headquarters and subsidiary organizations.Companies are usually structured around one of three alternatives: global product divisions responsible for product sales throughout the world; geographical divisions responsible for all products and functions within a given geographical area; and a matrix organization consisting of either of these arrangements with centralized sales and marketing run by a centralized functional staff, or a combination of area operations and global product management.10. Market-oriented firms are finding greater competitiveness in world markets makes it essential to assume a global perspective in planning and organizational structure. Global competition also requires quality products designed to meet ever-changing customer needs in the face of rapidly growing competition from every corner of the world. Cost containment, escalating technology, customer satisfaction and a greater number of players mean that every opportunity to refine international business practices must be examined in light of company goals. Strategic international alliances, strategic planning and alternative market entry strategies are important avenues to global marketing that must be implemented in the planning and organization of global marketing management.11. Formulate a general rule for deciding where international business decisions should be made. International business decisions should reflect the culture of the country in which they will be implemented. Thus the decision should be as close to the country where it is to be implemented as possible.12. Explain the popularity of joint ventures. Joint ventures have become popular for a number of reasons. One important marketing reason is to gain access to markets. Nearly all of the developing countries, and many developed countries, require some degree of local participation for operating in their country. Mergers with distributor companies or companies which already have well-established local distribution may provide rapid market access and distribution to foreign companies entering a country. Sometimes companies join forces in order to broaden the line of merchandise that they have available, thereby gaining marketing efficiency and better public image. Another market reason for joining ventures is that local firms possess market information and the marketing know-how which would take years for a foreign company to acquire. Such participation minimizes the risk of market failure and speeds the marketing effort. Joint ventures may also arise for financial and manpower reasons. Financially it is sometimes desirable to merge with foreign companies because the merger provides access to local capital markets and combines the resources and fund raising capabilities the companies have. It may also give access to a higher quality and more capable managerial manpower.13. Compare the organizational implications of joint ventures versus licensing. Joint ventures involve the partners in a new venture and usually require significant inputs of both capital and management. In licensing, the companies retain separate identity. Usually the licensor is little affected by his licensing actions.14. Visit the homepages of Maytag Corporation / and the Whirlpool Corporation /, both appliance manufacturers in the United States. Each has some international involvement. Search their Web sites and compare their international involvement. How would you classify each, as exporter, international, or global?The following excerpts from the homepages of these two companies reveals rather forcefully that these two giants in the U.S. market are far apart when it comes to international marketing. Maytag is an exporter with some desire to become international while Whirlpool is an international company with global sales.MaytagMaytags heritage is more than a hundred years old and synonymous with a single product: washing machines. Today, Maytag Corporation is a $3.4 billion home and commercial appliance company focused in North America and targeted international markets.Maytag International is responsible for finished goods export sales, licensing of the corporations appliance and floor care brands, and joint ventures worldwide.Investing for profitable growth is a key corporate objective. That was underscored in September 1996 when Maytag announced a joint venture with Hefei Rongshida, the leading washing machine company in the Peoples Republic of China. Maytag invested $35 million for an ownership position in the China joint venture and both parties will each invest $35 million over approximately two years to expand the joint venture into the Chinese refrigerator market. Maytags interests in the joint venture are managed by Maytag International, the division responsible for appliance exports, licensing and international ventures. China is a huge appliance market with tremendous growth potential. For example, Chinese consumers buy more than 8 million refrigerators a year, which is comparable to the U.S. market. However, fewer than one out of four households in China has a refrigerator. Maytags China joint venture involves a well-established, profitable business with high-quality washers, a widely recognized brand name, RSD, and an effective nationwide sales and distribution network. Their annual revenues more than doubled from 1993 to 1995, and operating margins are strong. Maytag will receive a full-year benefit from its China joint venture in 1997, and significant growth opportunities exist in the years ahead. The China joint venture is part of Maytags strategy to grow profitably by making selective investments domestically and abroad. WhirlpoolWhirlpool Appliances are manufactured in 13 countries and marketed in approximately 140 countries around the world. Whirlpool Corporation is the worlds leading manufacturer and marketer of major home appliances. Its growth, from primarily a U.S. manufacturer to “world leader,” is the result of strategic direction set in the mid 1980s and reaffirmed through an exhaustive and integrated strategic planning process in 1992. In the 1980s, four manufacturers accounted for almost all major home appliance sales in the United States, a market where approximately 40 million appliances are sold annually. Each was a tough, seasoned competitor fighting for greater sales in a market predicted to grow little in the decade ahead. Whirlpool was one of those companies. Unable to find growth potential in the U.S. appliance market and unwilling to accept the status quo, the company began a systematic evaluation of opportunitiesboth inside and outside the appliance industryworldwide. At the same time, Whirlpool established parameters within which decisions about the companys future would be made. New ventures would provide opportunity for growth, build on existing company strengths, and be market driven. Leadership opportunities, too, would be a consideration. With growth parameters established and study data in, the decision was made to remain focused on major home appliances but to expand into markets not already served by Whirlpool. The goal was world leadership in a rapidly globalizing major appliance industry in which approximately 190 million appliances are sold each yea