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Management possesses a broad range of international experience. Decisions may be made at head office or at the subsidiary level, but in either case management is familiar with both outlooks.
The rationale behind the ethnocentric approach is that the home office will deliver consistent decisions that are always in line with core values and objectives. The local managers are directly and specifically oriented towards corporate-wide objectives. The polycentric approach reflects the belief that the local managers will do what is best for the local subsidiary, which in turn will be what is best for the head office. The geocentric approach believes that the best management teams will be able to fuse local and global perspectives and that the other two approaches to do not achieve this.
4. Management development programs are systems for developing managers with specific skills and traits that are consistent with the corporation's strategic objectives. Managers are bred to promote the organization's culture and goals. Management develop programs map out career paths and focus on skills development for prospective managers. International businesses can use management development programs as a strategic tool because they can bring managers up through the company with specific training that supports the company's international focus. The managers can receive posts internationally in order to give them a greater breadth and depth of experience than the managers...
Moreover, a strong management development program can attract top talent from around the world, something that is strategically valuable for international companies. Additionally, these programs can be designed so that prospective managers are learning the skills and tools that specifically support the organization's strategic objectives.
5. There are many factors that can influence a firm's ability to sell the same product worldwide. One is the degree to which the need the product satisfies is universal. If the need is not universal, the product may not sell in certain areas. The price point of the product is also a factor - a high end product may not sell in poorer countries. There are also legal considerations, since some products are highly regulated. Trade barriers can also impact the ability to sell the same product worldwide, since many products are subject to tariffs, import quotas and other barriers.
Whether it is better to sell the same product worldwide or to customize the product for each market depends on the product. Selling the same product allows for brand consistency, but may be less effective in some markets. Customization, however, can result in confusion, as the same brand is associated with different products, strategies and images by different people in different places. This can also make the product difficult to manage, whereas selling the same product worldwide is easier to implement.
International Business Competitive strategy is the bedrock on which companies base business decisions to reach their targets and achieve profitability. Formulating and implementing strategies in international business is much more complicated and difficult task than doing so in home or familiar markets. Competitive strategy deals with the development of abilities by a firm to keep ahead of competitors in the fields in which it operates. Firms develop competitive edge in global
The localization strategy into Vietnam is also characterized by the fact that it ensures higher levels of business diversification for the company, which in fact serves the number one rule of investments -- portfolio diversification. This in essence means that, through the penetration of the Vietnamese market, the company would increase its sources of revenues and it would decrease its dependency on the more traditional manufacturing plants. Finally, the localization strategy
This plan is focused on financial stability and profitability, through the reduction of operational costs. In this business strategy, outsourcing plays a crucial role. References: Dunai, M., 2012, Hungarian town suffers as Nokia announces big layoffs, Reuters, http://www.reuters.com/article/2012/02/08/us-hungary-nokia-idUSTRE8171OU20120208 last accessed on March 21, 2012 Haikio, M., 2002, Nokia: the inside story, Pearson Education, ISBN 0273659839 Layard, R., Nickell, S., Eichorst, W., Zimmermann, K.F., 2011, Combating unemployment, Oxford University Press, ISBN 0199609780 Louis, P.J., Nokia
International Business and the Regions How far has the competitiveness of two East Asian firms been based on: (1) national networks and institutions, including localised clusters; (2) regional links and networking across the East Asian region; (3) transnational links beyond the East Asian region and; (4) support from the policies of one or more East Asian governments? Over the last several decades, globalization has been having a tremendous impact on the way
International Business Small and medium enterprises (SMEs) or could also be referred to as small and medium-sized businesses (SMBs) are firms with a limit as to the number of personnel who operate and run them. Small enterprises are usually more than large companies are. They also employ many more workers. SMEs have the capacity for enhancing innovation and competition in different economic sectors in a market (Beck, 2000). Many SMEs are involved
International Business 5 Pertinent Topics The Cultural Effect on International Business Description Political Issues Affecting International Business Description Regional Economic Integration AND INTERNATIONAL Business Description Impact of Exchange Rates on International Business Description Corporate Strategy in International Business Description An Analysis of International Business Today No one can dispute the fact that the world economy is increasingly globalizing as we move into the 21st century. As this internationalization of business grows, there is an increasing challenge being faced to deal with cultural