Global Business Environment, Multinationals Such Thesis

Length: 10 pages Sources: 10 Subject: Business - Advertising Type: Thesis Paper: #29703902 Related Topics: Multinational, Multinational Companies, Soccer, Global Perspective
Excerpt from Thesis :



Some of the problems that this type of approach offered were:

Reliability issues -- many of these marketing directors had their own host perspective (local responsiveness) and the headquarter perspective (global integration), but none of the overarching overview that someone coordinating all the activities in other countries might have.

7. Research findings, Analysis and Evaluation

The results of the primary research are fully supported by the findings of the secondary research and backed by the general theory in the area of global marketing strategy. The marketing directors of both companies in all different regions (Asia, Latin America, Europe) have admitted to adapting their marketing strategies as much as possible to local specificities, but also recognized the important role that the headquarters and central marketing department played in the way they made their decisions, especially since the central departments were also coordinating the marketing budgets and were working towards creating economies of scale and a more profitable global company.

Some of the most interesting examples were related to the way that the marketing mix was subject to local responsiveness pressure and parts of it or the whole had to be tailored to fit the local conditions. Perhaps one of the most interesting examples in this sense was in Spain, where Coca Cola was sometimes presented as a soft drink that could be combined with wine, mainly because this was a custom among the young generation in Spain. This type of local responsiveness pressure affected the product and the promotion, two of the elements of the marketing mix.

In both Pepsi Cola and Coca Cola's case, the advertisements were very often the most subjected to local responsiveness pressure. Some of the Pepsi advertisements, for example, had been tailored in the United States to be based on football as the intermediary by which the drink could be brought to the consumers. This meant a significant campaign to have different important football players join in promoting the product.

This was obviously not possible in Brazil, where the marketing director informed that the football played in the U.S. was more or less unknown and that the entire theme needed to be changed so that it would focus on soccer and some of the Brazilian stars. Nevertheless, this was not a phenomenon singular in Brazil: the same commercial made plenty of sense both in Poland and in Japan, places where soccer has been or is becoming a cult sport. In all these countries, the commercial where different soccer player (Ronaldinho, Beckham, Henry etc.) meet and play together is a great success, as is the fact that many of these soccer players have been, at some time or other, the official figures for Pepsi (as was the case for Ronaldinho).

Most of the marketing directors who were interviewed reported a constant communication with the marketing department at headquarters, which comes to emphasize the idea that in both companies, there is a gradual flexibility between global integration and local responsiveness. Marketing decisions sometimes tend to be local, but, most often, decisions about marketing campaigns or the launch and promotion of a new product are taken with more factors of decision involved. As is the case, the local marketing director is always consulted, mainly...

...

Kotler who actually discusses the exact case of Coca Cola in one of the chapters of his book "Marketing Management." The way that both companies tended to approach the problem of global integration and local responsiveness pressures was by a centered positioning, where the decision were made at a central, thus global level, but customization was allowed and encouraged based on the input from the different locations.

8. Conclusion

Global integration pressures, along with local responsiveness pressure, play a more and more important role in the way that global marketing strategies are created. The study evaluated that the impact of both types of pressures on the final marketing decision was significant. However, some of the primary research has also revealed that many of the global marketing strategy decisions were taking into consideration both the global constraints (necessity to remain competitive on the market through decreasing costs and economies of scales, the creation of a global brand and global characteristics etc.) and local responsiveness (the necessity to adapt parts of the marketing mix to local realities, so as to better appeal to the customers, creation of particular products for some markets etc.).

In both cases, the way that the company best managed to position itself between the two types of pressures impacted the market share and company profitability. The marketing director in Spain, for example, mentioned that Pepsi's capacity to adapt to the local custom of drinking wine with a soft drink increased the company's market share on the local market by 5%. Similar figures could most likely be reported in the case of Coca Cola on other foreign markets. The best conclusion from this is that local responsiveness does pay off, especially in the short and medium term, while global integration has a greater impact on profit and market share in the long run, especially considering that local responsiveness is more costly.

Bibliography

1. Aswathappa, A. 2006. International Business. Tata McGraw Hill.

2. Kotler, P. 2006. Marketing Management. Academic Internet Publishers Incorporated.

3. Wasilewski, Nikolai. 2001. Transnational Marketing Strategies: Performance and Limitations. Global Competitiveness

4. Egan, J. 2007. Marketing Communications. Cengage Learning Business Press

5. Venaik, S. (1999). A Model of Global Marketing in Multinational Firms: An Empirical Investigation. The Australian Graduate School of Management. Retrieved March 27, 2009 from http://www.library.unsw.edu.au/~thesis/adt-NUN/uploads/approved/adt-NUN2000.0008/public/02whole.pdf.

6. Annual Report (2008). The Coca Cola Company. Retrieved March 28, 2009 from http://www.thecoca-colacompany.com/investors/pdfs/10-K_2008/Coca-Cola_10-K_Item_01.pdf.

7. Schuh, A. (2009). Global marketing standardization vs. adaptation: What can we learn from marketing strategies for CEE? Vienna University of Economics and Business Administration. Retrieved March 28, 2009 from http://www.wu-wien.ac.at/cee/en/schuhpersonal/imb.

8. Zickmund, W. (1994). Exploring Marketing Research. The Dryden Press, Harcourt Brace College Publisher, Chicago.

9. Parasuraman, A. (1991). Marketing Research. Second Edition, Addison Wesley Publishing Company, New York.

10. Aacker, D. & Day, G. (1986). Marketing Research. Third Edition,…

Sources Used in Documents:

Bibliography

1. Aswathappa, A. 2006. International Business. Tata McGraw Hill.

2. Kotler, P. 2006. Marketing Management. Academic Internet Publishers Incorporated.

3. Wasilewski, Nikolai. 2001. Transnational Marketing Strategies: Performance and Limitations. Global Competitiveness

4. Egan, J. 2007. Marketing Communications. Cengage Learning Business Press


Cite this Document:

"Global Business Environment Multinationals Such" (2009, March 29) Retrieved October 22, 2021, from
https://www.paperdue.com/essay/global-business-environment-multinationals-23520

"Global Business Environment Multinationals Such" 29 March 2009. Web.22 October. 2021. <
https://www.paperdue.com/essay/global-business-environment-multinationals-23520>

"Global Business Environment Multinationals Such", 29 March 2009, Accessed.22 October. 2021,
https://www.paperdue.com/essay/global-business-environment-multinationals-23520

Related Documents
AT&T Standards and Business Global Business Environment
Words: 2552 Length: 6 Pages Topic: Business Paper #: 18562025

AT&T STANDARDS AND Business Global business environment is an environment within different sovereign countries and exogenous factors to the home of an organization influence the process of making decisions when it comes to the use of resources and capabilities. These include political, social, economic, legal, cultural, tax, regulatory and technological environments. Global business environment is an environment within different sovereign countries whereby factors that are exogenous to the home environment of a

Human Resources As the Global Business Environment
Words: 1340 Length: 4 Pages Topic: Careers Paper #: 91511636

Human Resources As the global business environment continues to grow and flourish, the field of international human resources management is emerging as a vitally important area of study and competency. Managing the resources -- and hiring the best people -- that are available has become pivotal to success in the highly competitive world. Understanding the critical role that international human resource management (IHRM) dynamics can bring to an organization is the

Global Business International Reserves, in
Words: 2721 Length: 10 Pages Topic: Business Paper #: 24643959

other intangible assets such as patents and management strength. Finally, those future earnings are discounted to arrive at a net present value. Interbrand discounts against current interest rates and also against the brand's overall risk profile to factor in brand strength. Considerations include market leadership, stability, and global reach -- or the ability to cross both geographic and cultural borders. The final result values the brand as a financial

Business Environment in Taiwan
Words: 2867 Length: 9 Pages Topic: Economics Paper #: 65743863

Business Environment in Taiwan Taiwan is an island situated approximately 180 kilometers (Eastern Asia) away from southeastern coast of mainland China. Having a geographical area of 35,883 Km2, Taiwan is officially part of the Peoples Republic of China (PRC) although there is much tension between Taiwan and China regarding statehood of Taiwan. The U.S. however does not acknowledge Taiwan as a separate state. Taiwan has a population of 23 million (consisting

Global Business and Ethics the
Words: 1044 Length: 3 Pages Topic: Economics Paper #: 99153293

S.$36 million) for immediate expenditures; and redefining "priority sector" expenditures to include spending on security. For its part, the World Bank responded to Chad's renegging on its ageements in 2006 by suspending disbursement of $124 million in loans to Chad, and froze the country's $125 million in assets in the London-based Citibank escrow account (Zissis, 2006). In effect, the World Bank has ceased its involvement in Chad. However, the Chad oil

Global Business Cultural Analysis: Russia
Words: 3930 Length: 12 Pages Topic: Business Paper #: 94601648

This paper helped in identifying the differences and similarities between the two nations and their cultures. The paper also presented the fact that theories and studies hold true for all the business environments. Gratchev, M., Rogovsky, N., & Rakitski, B. (2007). Leadership and culture in Russia: The case of transitional economy. Culture and Leadership across the World: The GLOBE Book of In-Depth Studies, 25, 803-831. This paper gives a detailed analysis