chapter 1 global service

8/11/2019 Chapter 1 Global Service

1/23

CHAPTER 1: INTRODUCTION TO GLOBAL MARKETING

A look at the appropriate figures, (for example The World Development Report by the

World Bank) ill indi!ate that the orld is be!oming in!reasingly interdependent for itse!onomi! progress" #n $%&', in the A, for instan!e, imports ere only one per!ent of*+, but in $%-' they had risen to $./" #n food !rops, hile developing !ountries tradein !offee, !o!oa, !otton and sugar a!tually de!lined in value during the $%-.s, developing!ountries as a group experien!ed annual export groth rates of ' to $$/ in !ategorieslike pro!essed fruit and vegetables, fresh pro!essed fish produ!ts, feed stuffs and oilseeds" 0igh value food produ!t exports in $%%. totalled approximately 1$'' billion, thesame as !rude petroleum, representing &/ of orld !ommodity trade" #n $%%., more thantenty 2ess Developed 3ountries (2D3s) had exports of high value foods ex!eeding1&.. million in!luding !ountries like Bra4il, 3hina, Thailand, #ndia and enegal"

Terms su!h as 5global village5 and 5orld e!onomy5 have be!ome very fashionable"6arketing goods and servi!es on a global s!ale !an happen in an 5engineered5 ay, butoften it is as a result of good and meti!ulous planning" 7or example, in order to stave offpotential famine, the nited +ation8s World 7ood rogramme (W7) may pur!hasemai4e from 9imbabe and distribute it in Tan4ania, 6alai and :enya" This5engineered5 international marketing transa!tion may benefit 9imbabe, ithout9imbabe having to prospe!t markets" 6ost international transa!tions are not like this"6ost are !learly planned, involving meti!ulous attention to global so!ial and e!onomi!differen!es and;or similarities in produ!t, pri!e, promotion, distribution andso!io;e!onomi!;legal re


2/23

The ev$%"ti$& $# '%$ba% (ar)eti&'

Whether an organisation markets its goods and servi!es domesti!ally or internationally,the definition of marketing still applies" 0oever, the s!ope of marketing is broadenedhen the organisation de!ides to sell a!ross international boundaries, this being primarily

due to the numerous other dimensions hi!h the organisation has to a!!ount for" 7orexample, the organisation8s language of business may be 5?nglish5, but it may have to dobusiness in the 57ren!h language5" This not only re

5#nitiating, negotiating and managing a!!eptable ex!hange relationships ith key interestgroups or !onstituen!ies, in the pursuit of sustainable !ompetitive advantage ithinspe!ifi! markets, on the basis of long run !onsumer, !hannel and other stakeholderfran!hise5"

Whether one takes the definition of 5marketing5 or 5strategi! marketing5, 5marketing5must still be regarded as both a philosophy and a set of fun!tional a!tivities" As a


3/23

philosophy embra!ing !ustomer value (or satisfa!tion), planning and organising a!tivitiesto meet individual and organisational ob=e!tives, marketing must be internalised by allmembers of an organisation, be!ause ithout satisfied !ustomers the organisation illeventually die" As a set of operational a!tivities, marketing embra!es selling, advertising,transporting, market resear!h and produ!t development a!tivities to name but a fe" #t is

important to note that marketing is not =ust a philosophy or one or some of the operationala!tivities" #t is both" #n planning for marketing, the organisation has to basi!ally de!idehat it is going to sell, to hi!h target market and ith hat marketing mix (produ!t,pla!e, promotion, pri!e and people)" Although these tenents of marketing planning mustapply anyhere, hen marketing a!ross national boundaries, the differen!e beteendomesti! and international marketing lies almost entirely in the differen!es in nationalenvironments ithin hi!h the global programme is !ondu!ted and the differen!es in theorganisation and programmes of a firm operating simultaneously in different nationalmarkets"

#t is re!ognised that in the 5postmodern5 era of marketing, even the assumptions and long

standing tenents of marketing like the !on!epts of 5!onsumer needs5, 5!onsumersovereignty5, 5target markets5 and 5produ!t;market pro!esses5 are being !hallenged" Theemphasis is toards the emergen!e of the 5!ustomising !onsumer5, that is, the !ustomerho takes elements of the market offerings and moulds a !ustomised !onsumptionexperien!e out of these" ?ven further, post modernisim, posts that the !onsumer ho isthe !onsumed, the ultimate marketable image, is also be!oming liberated from the solerole of a !onsumer and is be!oming a produ!er" This reveals itself in the desire for the!onsumer to be!ome part of the marketing pro!ess and to experien!e immersion into5themati! settings5 rather than merely to en!ounter produ!ts" o in !onsuming foodprodu!ts for example, it be!omes not =ust a !ase of satisfying hunger needs, but also !anbe rendered as an image produ!ing a!t" #n the post modern market pla!e the produ!t

does not pro=e!t images, it fills images" This is true in some foodstuffs" The !onsumptionof 5designer ater5 or 5slimming foods5 is a statement of a self image, not =ust a produ!t!onsuming a!t"

A!!eptan!e of postmodern marketing affe!ts dis!ussions of produ!ts, pri!ing,advertising, distribution and planning" 0oever, given the fa!t that this textbook isprimarily ritten ith developing e!onomies in mind, here the environmental!onditions, !onsumer sophisti!ation and systems are not su!h that allo a


4/23

market" Cne su!h example is the referential Trade Area (TA) in ?astern and outhernAfri!a here involved !ountries !an trade interregionally under !ertain !ommonmodalities" Another example is the 3old torage 3ompany of 9imbabe"

Cae 1*1 C$%+ !t$ra'e C$(pa&, O# -i(bab.e

The 3old torage 3ompany (33) of 9imbabe, evolved in $%%&, out of the 3oldtorage 3ommission" The latter, for many years, had been the parastatal (or nationalised!ompany) ith the mandate to market meat in 9imbabe" 0oever, the 33 lost itsmonopoly under the 9imbabean ?!onomi! Reform rogramme of $%%.%&, hi!h sathe introdu!tion of many private abattoirs" During its monopoly years the 33 had builtfive modern abattoirs, a number of hi!h ere up to ?uropean nion rating" #n addition,and as a driving for!e to the building of ? rated abattoirs, the 33 had obtained a %...tonnes beef


5/23

There is no time limit on the evolution pro!ess" #n some industries, like horti!ulture, thepro!ess !an be very


6/23

These in!lude the theory of !omparative advantage des!ribed in the book Wealth of+ations (Adam mith) and David Ri!ardo), the produ!t trade !y!le (Raymond Fernon)and The Business Crientation (0oard erlmutter)"

The the$r, $# c$(parative a+va&ta'e:

The theory !an be relatively !omplex and diffi!ult to understand but stated simply thistheory is a demonstration (under assumptions) that a !ountry !an gain from trade even ifit has an absolute disadvantage in the produ!tion of all goods, or it !an gain from tradeeven if it has an absolute advantage in the produ!tion of all goods" ?ven though a !ountryhas an absolute produ!tion advantage it may be better to !on!entrate on its !omparativeadvantage" To !al!ulate the !omparative advantage one has to !ompare the produ!tionratios, and make the assumption that the one !ountry totally spe!ialises in one produ!t" Tomaximise the ellbeing of both individuals and !ountries, !ountries are better offspe!ialising in their area of !ompetitive advantage and then trading and ex!hanging ithothers in the market pla!e" Today there are a variety of spreedsheets that one !an use to

!al!ulate !omparative advantage, one su!h is that of the 7ood and Agri!ultureCrgani4ation (7AC)" 3al!ulation of !omparative advantage is as follos>

?xample

#t may be assumed that 0olland is more effi!ient in the produ!tion of floers than :enya"Get :enya su!!eeds in exporting thousands of tonnes of floers to ?urope every year":enya floer groers ulma! and Cserian have a!hieved legendary reputations, in thesupply of fresh !ut floers to ?urope, 0oH

Take the simple to !ountry to produ!t model of !omparative advantage" ?urope

gros apples and outh Afri!a oranges, these are to produ!ts, both undifferentiated andprodu!ed ith produ!tion units hi!h are a mixture of land, labour and !apital" To usethe same produ!tion units outh Afri!a !an produ!e $.. apples and no oranges, and?urope !an produ!e -. apples and no oranges" At the other extreme outh Afri!a !anprodu!e no apples and &. oranges and ?urope no apples and . oranges" +o if the to!ountries spe!ialise and trade the position is as follos>

Pr$+"ct !$"th A#rica E"r$pe

Pr$+"cti$& I(p$rt C$&"(er Pr$+"cti$& I(p$rt C$&"(er

Apples (...8s) . . . -. . &.

Cranges (...8s) &. $' I . $' ''

The trading pri!e is .>$' J"$' apples J $ orange

$'>. J '"IE oranges J $ apple


7/23

o in apples, outh Afri!a has an advantage of $"& ($..;-.) but in oranges $"IE (&.;.)"o outh Afri!a should !on!entrate on the produ!tion of oranges as its !omparativeadvantage is greatest here" nfortunately the theory assumes that produ!tion !osts remainrelatively stati!" 0oever, it is a ell knon fa!t that in!reased volumes result, usually,in loer !osts" #ndeed, the Boston 3onsulting *roup observed this phenomenon, in the so

!alled 5experien!e !urve5 effe!t !on!ept" And it is not only 5produ!tion5 related but 5allexperien!e5 relatedK in!luding marketing" The Boston 3onsulting group observed that asan organisation gains experien!e in produ!tion and marketing the greater the redu!tion in!osts" The theory of !omparative advantage also ignores produ!t and programmedifferentiation" 3onsumers do not buy produ!ts based only on the loest !osts ofprodu!tion" #mage,


8/23

s!ale and experien!e that it starts exporting to the original high in!ome produ!er at aprodu!tion !ost loer than its original high in!ome produ!er at a produ!tion !ost loerthan its original high in!ome supplier" 0igh in!ome produ!ers, on!e en=oying a monopolyin their on market, no fa!e !ompetition at home"

The !y!le !ontinues as the produ!tion !apability in the produ!t extends from otheradvan!ed !ountries to less developed !ountries at home, then in international trade, andfinally, in other advan!ed !ountries home markets"

Cae 1*0 UK Teti%e

There are numerous examples of the #nternational produ!t trade !y!le in a!tion" +on morethan the textiles industry, spe!ially !otton" #n the early and mid tentieth !entury the :as a ma=or produ!er of !otton textile materials, primarily based on its a!!ess to !heapra materials from its 3ommonealth !ountries and its relatively !heap labour" 0oever,its former !olonies like #ndia, akistan and !ertain Afri!an !ountries, hi!h ere sour!es

of !otton in themselves realised that they had the labour and materials on their doorstep!ondu!ive to domesti! produ!tion" They began to do so" u!h as their su!!ess insupplying their on huge markets that their produ!tion !osts dropped dramati!ally ithgroing e!onomies of s!ale"

oon they ere able to support !loth and finished good ba!k to the :, hi!h by nohad experien!ed groing produ!tion !osts due to rising labour !osts and failing marketshare" +o the : has little !otton materials produ!tion and it served by many !ountriesover the orld, in!luding its former !olonies and 3ommonealth !ountries"

Whilst the underlying assumption behind the #nternational rodu!t Trade 3y!le is that the

!y!le begins ith the export of ne produ!t ideas from high in!ome !ountries to loin!ome importers, then lo in!ome !ountries begin produ!tion of the produ!t et!", thingsdo not alays turn out as the !y!le suggests" ometimes a high or even lo in!omeexporter may put a produ!t into a high;lo in!ome !ountry hi!h is simply unable torespond" #n this !ase, the Trade 3y!le !eases to be the underpinning !on!ept" This may bedue to a number of fa!tors like la!k of a!!ess to !apital to build the fa!ilities to respond tothe import, la!k of skills or that the !osts of lo!al produ!tion !annot get don to the levelof !osts of the imported produ!t" #n this !ase, produ!t substitution beteen the exporterand importer may also take pla!e" A !lassi! example of this phenomenon is the !ase of9imbabe unsplash fruit =ui!e drinks"

Cae 1*2 !"&p%ah -i(bab.e

unsplash, based in 6asvingo, 9imbabe had, sin!e $%-', pro!essed a variety of fruit=ui!es for the 9imbabean market" When 9imbabe embarked on its World Banksponsored stru!tural ad=ustment programme in $%%., 9imbabe steadily moved from a!ommand to a market e!onomy, part of hi!h alloed foreign importers"

#n a short spa!e of time, market share for unsplash fell from $ million litres annually to a


9/23

mere '.. ... litres" Cn this redu!ed volume, !oupled ith higher transport !osts, the!ompany simply !ould not !ompete and !losed its doors in @anuary $%%&" 0oeverredu!tion in in!ome and transport !osts ere not the only problems" ?xpenses like highinterest rates ere an inhibiting fa!tor" The !ompany needed to make the transition to

asepti! pa!kaging hi!h ould alleviate the need for !hemi!al preservations and enhan!eunrefrigerated shelf life" The ne pa!kaging ould have greatly enhan!ed the produ!t andgenerated export potential" 0oever, !ashflo !onstraints ithin the holding !ompany,(A7D#), !oupled ith high interest rates made the 1&,- million investment unviable"

Orie&tati$& $# (a&a'e(e&t:

erlmutter$($%IE) identified distin!tive 5orientations5 of management of internationalorganisations" 0is 5?R*5 s!heme identified four types of attitudes or orientationsasso!iated ith su!!essive stages in the evolution of international operations"

?thno!entrism home !ountry orientation exporting surplus"

oly!entrism host !ountry orientation subsidiary operation"Regio!entrism regional orientation orld market strategies"*eo!entrism orld orientation orld market strategies"

The latter to are based on similarities and differen!es in markets, !apitalising onsimilarities to obtain !ost benefits, but re!ognising differen!es"

Mar)et #$rce a&+ +eve%$p(e&t

Cver the last fe de!ades internationalism has gron be!ause of a number of market

fa!tors hi!h have been driving development forard, over and above those fa!torshi!h have been attempting to restrain it" These in!lude market and marketing relatedvariables"

6any global opportunities have arisen be!ause of the !lustering of market opportunitiesorldide" Crganisations have found that similar basi! segments exist orldide and,therefore, !an be met ith a global orientation" 3otton, as an ingredient in shirtings,suitings, and !urtain material !an be globally marketed as natural and fashionable" Cne!an see in the streets of +e Gork, 2ondon, :uala 2umpar or 0arare, youth ith thesame style and brand of basketball shirts or Ameri!an 7ootball shorts" 3o!a 3ola !an beuniversally advertised as 5Adds 2ife5 or appeal to a basi! instin!t 5 Gou !an8t beat the

7eeling5 or 53ome alive5 as ith the !ase of epsi" Cne !an


10/23

agri!ultural organisation as long as it has the means to buy it" 3omputers in agri!ultureand other appli!ations are used universally ith #B6 and 6a!intosh be!oming householdnames" The need to re!oup large !osts of resear!h and development in ne produ!ts mayfor!e organisations to look at global markets to re!oup their investment" This is !ertainlytrue of many veterinary produ!ts" *lobal volumes allo !ontinuing investment in R L D,

thus helping firms to improve


11/23

!ompanies" The unexpe!ted release of 3hinese toba!!o depressed the toba!!o pri!e ellbelo expe!tations, leaving farms ith sto!k and large interest !arrying produ!tion loans"

A number of suppliers of agri!ultural produ!e !an take advantage of 5off season5 in other!ountries, or the fa!t that they produ!e spe!iality produ!ts" This is the ay by hi!h

many ?ast Afri!an and outh Ameri!an produ!ers established themselves in ?urope andthe A respe!tively" #n fa!t the !ase of :enya vegetables to ?urope is a !lassi!,!overing many of the fa!tors hi!h have =ust been dis!ussedimproved te!hnology,emerging global segments, shrinking !ommuni!ations gaps and the drive to diversifyprodu!t ranges"

Cae 1*3 Ke&,a O## !ea$& 4e'etab%e

:enya8s export of off season and spe!iality vegetables has been su!h that from $%&E to theearly $%%.s exports have gron to I ... tonnes per annum" :enya took advantage of:

a) in!reased health !ons!iousness, in!reased affluen!e and foreign travel of West?uropean !onsumersK

b) improved te!hnologies and distribution arrangements for fresh produ!ts in Western?uropeK

!) the emergen!e of large immigrant populations in several ?uropean !ountries>

d) programmes of diversifi!ation by agri!ultural export !ountries and

e) in!reased uplift fa!ilities and !old store te!hnologies beteen ?urope and :enya"

?xports started in $%&E, via the 0orti!ultural 3ooperation nion, hi!h pioneered the?uropean 5off season5 trade by sending small !onsignments of green beans, seetpeppers, !hillies and other !ommodities to a 2ondon based broker ho sold them to upmarket hotels, restaurants and department stores" 7rom these beginnings :enya has!ontinued to give high


12/23

and its diverse agroe!ologi!al !onditions" These fa!ilitated the development of adiversified produ!t range, all year round supply and better


13/23

6onetary 7und (#67) and the evolution of the World Trade Crganisation from theoriginal *eneral Agreement on Tariffs and Trade (*ATT)"

ntil $%I% the orld e!onomy traded on a gold and foreign ex!hange base" This affe!tedli


14/23

+o doubt a great impetus to global trade as brought about by the development ofe!onomi! blo!s, and, !onversely, by the !ollapse of others" Blo!s like the ?uropeannion (?), A?A+, the +orth Ameri!an 7ree Trade Agreement (+A7TA) ith theA, 3anada and 6exi!o has !reated market opportunities and !hallenges" +e!ountries are trying to =oin these blo!s all the time, be!ause of the e!onomi!, so!ial and

other advantages they bring" imilarly, the !ollapse of the old !ommunist blo!s havegiven rise to opportunities for organisations as they strive to get into the ne marketbased e!onomies rising from the ruins" This is !ertainly the !ase ith the former ovietblo!"

#n the late $%-.s and early %.s, the nited tates, along ith @apan, have been playing anin!reasingly influential role in orld affairs, espe!ially ith the !ollapse of the formerR" Whilst on the one hand this is good, as the A is !ommitted to orld elfaredevelopment, it !an be at a pri!e" The *ulf War !oalition of the %.s, primarily puttogether by the A as the leading player, as an example of the pri!e"

I(pet" t$ '%$ba% (ar)eti&' i&v$%ve(e&t

#ndividuals or organisations may get involved in #nternational 6arketing in a ratherunplanned ay hi!h gives the impetus to more formal and larger operations" This mayhappen in a number of ays>

/$rei'& c"t$(er

nsoli!ited en


15/23

Attit"+e a prec"r$r t$ '%$ba% i&v$%ve(e&t

3avusgil($%-') developed a three stage model of export involvement, based on the fa!tthat the opportunity to export may arise long before exporting behaviours be!amemanifest" ee figure $""

/i'"re 1*0 Cav"'i%5 three ta'e ($+e% $# ep$rt i&v$%ve(e&t

A!!ording to 3avusgil attitudes are determined by the operating style of the organisationand !ultural norms hi!h prevail in the domesti! market" An organisation8s style may bedefensive or prospe!tive" The latter type of organisation may systemati!ally, or in an adho! manner, sear!h out international opportunities"

3ulture plays a vital part in the internationalisation pro!ess" 0akansson et al '" ($%-)demonstrated that *erman and edish firms internationalise mu!h earlier in their!orporate history than do 7ren!h or British !ompanies" Afri!an !ulture is not littered ith

international marketers of note" This may be due to !olonialisation late into the tentieth!entury"

Behavi$"r a a '%$ba% (ar)eti&' i(pet"

We sa earlier in the internationalisation pro!ess that organisations may evolve fromexporting surplus or serving ad ho! en


16/23

progress" #f the organisation fa!es intense !ompetition then it may be for!ed to up thepa!e and s!ale of foreign investment" Rising prote!tionism in re!ent years has givenimpetus to late starters to establish produ!tion fa!ilities in target markets" #nfrastru!turefor foreign operations may also !hange (firms also redu!e their investment as ell asinvest)" When this happens the per!eived risk !hanges also"

This dis!ussion on international infrastru!ture !on!ludes the fa!tors hi!h have led tointernationalisation" #t is a !omplex fo!us of internal and external fa!tors and looking!arefully at risk versus opportunities"

P%a&&i&' t$ (eet the $pp$rt"&itie a&+ cha%%e&'e $# '%$ba% (ar)eti&'

#n order to take advantage of global opportunities, as ell as meet the !hallengespresented by so doing a number of !on!epts !an be parti!ularly useful" ?veryorganisation needs an understanding of hat is involved in 5strategy5, or else thehaphar4ardness involved in !han!e exporting !an be a!!epted as the norm ith all

inherent dangers involved" Also potential exporters need to kno hat is going on in theglobal 5environment5" @ust as in domesti! marketing 5*overnment5 5!ompetition5,5so!ial5 and other fa!tors need to be a!!ounted for, su!h is the !ase in internationalmarketing" #f one !an pla!e produ!ts or servi!es at a point on an environmentalsensitivity;insensitivity !ontinuum, one !an see more !learly the need to a!!ount fordifferen!es in the marketing mix" By !omparing the similarities and differen!es beteendomesti! and international marketing needs and planning re


17/23

that a!!ording to the 5relationship5 marketing s!hool of thought, the so !alled5in!ontrollables5 !an be made more 5!ontrollable5 by building relationships ith theinfluen!es of these fa!tors" 7or example, if an exporter of horti!ultural produ!e ishes tobe able to anti!ipate !hanges in the politi!al environment, it may build a relationship ith!ertain politi!ians ho may have intimate knoledge of the politi!al system" This should

not, of !ourse, be mis!onstrued as 5insider information5" 0oever, having made this!aveat, this text ill treat the 5in!ontrollables5 in the !onventional ay"

/i'"re 1*6 /$rei'& 7"&c$&tr$%%ab%e78i& the '%$ba% (acr$e&vir$&(e&t

I&ter&ati$&a% e&vir$&(e&t

An analysis of the environmental un!ontrollables allos the potential marketers to pla!eprodu!ts on a !ontinuum of environmental sensitivity" At the one end are environmentallyinsensitive produ!ts and at the other end, those more sensitive to e!onomi!, so!io!ultural,physi!al and other fa!tors" The greater the sensitivity, the greater the need for the

organisation to learn the ay the produ!t intera!ts ith the environment" An example isgiven belo (figure $"&)"

/i'"re 1*3 E&vir$&(e&ta% e&itivit,

/ra(e.$r) #$r i&ter&ati$&a% a&a%,i

#n order to put together the task of finding the differen!es and similarities inenvironmental and market analysis, a frameork needs to be devised" Where unifyinginfluen!es are found then the marketer is able to develop more standardised plans" Whenthere are a large number of differen!es, then plans have to be designed adapted to

!ir!umstan!es" 7igure $"I gives a frameork for the pro!ess of identifying similaritiesand differen!es"

/i'"re 1*9 A C$&cept"a% #ra(e.$r) #$r ("%ti&ati$&a% (ar)eti&': Nati$&a% (ar)et

ver" $ther &ati$&

Cn!e having identified the unifying and differentiating influen!es and ansered many


18/23

indebtedness and poli!ies

ii) *overnment8s poli!y of e!onomi! development, foreign ex!hange, barter deals, e

b) Appropriate environmental variable data

i) 6arket !hara!teristi!sphysi!al, !ultural, si4e, groth rate, stage of developmentH

ii) 6arket institutions distribution, media, resear!h, servi!esH

iii) #ndustry !onditions si4e, pra!ti!es, development stage, appropriate te!hnologyH

iv) Resour!es manpoer and moneyH

P%a&&i&'

!)Target !ountry experts or generalist staff to plan operationsH

d) What are the authorisedtarget markets and the produ!t appropriatenessH

e) 6arket si4eH

f) What is the stage of development and strenght of !ompetition both state and privateH

g) What is the appropriate produ!t;market te!hnologyH

h) What is the ne!essary adaptaton of the marketing mixH


19/23

i) 0o do the goverment and !ompany ob=e!tives !oin!ideH

=) What is the trading riskH

k) What goverment;organisation interfa!e is re


20/23

The market life !y!le is very similar and hat global marketers have to be ary of is thatnot all markets are at the same stage globally" #t may be appropriate to have tra!tormounted dit!hers and diggers in Afri!a or the : here labour is not too plentiful, but in#ndia, they may be the last thing re


21/23

Chapter !"((ar,

The development of global marketing has been brought about by a number of variablesboth exogenous and endogenous" The evolution of global marketing has been in a seriesof four stages from exporting to truly global operations" These stages have been termed

5domesti!5 in fo!us to 5ethno!entri!5, 5poly!entri!5 and 5geo!entri!5" When planning todo global marketing, a number of 5environmental5 fa!tors have to be !onsidered butgenerally one is looking for 5unifying5 or 5differentiating5 influen!es hi!h ill di!tate a5standard or 5adapted5 planning approa!h" 7inally, a number of !on!epts and te!hni


22/23

" 7a!tors in!lude>

Theoreti! !omparative advantage, the rodu!t Trade 3y!le and erlmutter8s businessorientation"

6arket for!es market !lusters, te!hnology, !ost;volume !onsiderations, shrinking oftransport and !ommuni!ation gaps, international leverage"

The #nternational ystem development of e!onomi! blo!s, groth in domesti!e!onomies, the #nternational 6onetary 7rameork, global pea!e, !ommuni!ation andtransport te!hnology, global !orporation groth, *ATT"

Cthers impetus through global experien!e, attitudes (3avusgil), behaviour, !ontextand the international infrastru!ture"

" 3on!epts and te!hni

trategy formulation*lobal environmental s!anning7rameork for isolating similarities and differen!es3on!eptual frameorksrodu!t;market life !y!les

tudents should be en!ouraged to give examples of the !on!epts, te!hni


23/23

$" Fernon, R" 5#nternational #nvestment and #nternational Trade in the rodu!t3y!le"5 Quarterly Journal of Economics,6ay $%II, pp $%. .E"

" erlmutter, 0"@" 5o!ial Ar!hite!tural roblems of the 6ultinational 7irm"5 QuarterlyJournal of AISEC International.Fol" , +o" , August $%IE"

" 3avusgil, " T" 5Differen!es among ?xporting 7irms based on Degree of#nternationalisation5"Journal of Business esearch,Fol" $,$%-'"

'" 7irat A" 7", Dholakia +", Fenkatesh A", 56arketing in a ostmodern World"?uropean5Journal of !ar"etingFol % +o" $ $%%& pp '.&I

&" 0akansson, 0" (ed), 5#nternational 6arketing and ur!hasing of #ndustrial *oods"5#6 ro=e!t *roup, @ohn Wiley and ons, $%-"

I" @affee " 5?xporting high value food !ommodities"5 World Bank Dis!ussion aper +o"

$%-" The World Bank $%%"

E" @ohanson, @ and 6attison, 2"*" 5#nternationalisation in #ndustrial ystems A +etorkApproa!h"5 aper prepared for the rin!e Bertil ymposium on trategies in *lobal3ompetition" to!kholm !hool of ?!onomies, $%-'"

-" :eegan, W" @" 5*lobal 6arketing 6anagement5 'th ?dition" renti!e 0all#nternational ?dition $%-%"

%" :otler, "5 6arketing 6anagement, Analysis, lanning, #mplementation and 3ontrol5,Ith ?dition" renti!e 0all #nternational ?dition, $%--"

$." Wensley @"R"3" 5#6 and B3* +e 0ori4ons5 or#alse $awns Strategic!anagement Journal %o. April;@une $%-"

$$" 3arter, " 56ultinational and #nternational 6arketing in 3onstraint ?!onomies"5 ThePuarterly Revie of 6arketing, ummer $%--, pp $$-"

$" mith, " 5#nternational 6arketing"5 niversity of 0ull, 6BA +otes, $%%."

$" Terpstra, F" 5#nternational 6arketing5, 'th ed" The DrydenPress, 1987.

14. "The Business Herald " (Zimbabwe) January 19, 199
http://www.fao.org/docrep/W5973E/w5973e03.htm#TopOfPagehttp://www.fao.org/docrep/W5973E/w5973e02.htm#TopOfPagehttp://www.fao.org/docrep/W5973E/w5973e01.htm#TopOfPage

chapter 1 global service

Documents