International Marketing.HND
国际市场营销

Price Product
2. Technology
5. Political- Target
6. Geography and Legal
Market 7
Infrastructure
Promotion Place or 2 .Technology
Distribution
Environmental uncontrollables country market B
3. 政府的支持和鼓励
4. 科技的发展提供了物质前提
5. 学习先进的科学技术和管理经验
国际市场营销学
13
1.4 Stages of International Marketing Involvement
In general, firms go through five different phases in going international:
利润 公司营销记录
是 是 是 一般没有 一般没有 一般没有 没有
国际市场营销学
海外营业额不计入
是 国际贸易统计,导
是 致贸易逆差,营销
是
顺差
有
有
有
有
12
1.3 企业走向国际市场的动因
Why Companies Go International? 1. 国内市场需求饱和及市场竞争激烈
2. 国际市场的吸引力
Exchange: Commodities and labor Services 经营环境:复杂的国际环境
Environment: International, with complexity 理论基础:比较利益学说,国际产品生命周期
Theories: Comparable Advantage,
HND国际营销导论report

Contents1.0 Introduction2.0 Findings2.1 Why is PK Electrics Entering International markets?2.2 Sources of Information2.3 Opportunities and Threats2.3.1 Opportunities2.3.2 Threatsand threats PK Electrics faced2.4 the Process to Select a Market to Enter2.5 the Modes of Market Entry2.6 Why Select This Mode3.0 Conclusion4.0 Reference1.0 IntroductionPK Electrics has grown from a local supplier producing a limited range of electrical cabling and switches to national supplier. It is considering entering the international market. This report is aimed to show the reasons why it need to enter the market and how to select a mode which suitable to it.2.0 Findings2.1 Why is PK Electrics Entering International markets?International marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. According to the case, we could know that over last two years the rate of growth has begun to decline with sales rising 5% profits by 2% last year ( So entering international market is good way to improve the current situation.There are five reasons why the PK Electrics should enter the international market. The first is excess capacity and home market saturation. In an attempt to minimize its fixed costs per unit the firm may undertake foreign orders. And if the domestic market is fully occupied, there is no or little potential market, no or little profits, the international marketing seems to be the prior choice to make more profits.The next reason is the intense competition. Intense competition in price and market share may occur in home market, and may cause low growth and profits. PK Electrics, the firms may choose to be internationalized, to avoid such competition.The third one is there will be more opportunities in international market. In a highly flexible and changeable international market, new opportunities and chances will frequently occur. Normally, International marketing, with more risky, could also bring more chances. Therefore it will be a opportunity to realize the long term goal profit maximization for PK Electric again.The fourth one is competitive advantages. Some countries possess unique natural or human resources that could give them comparative advantages, such as price or quality when it comes to producing particular products. For example, PK Electric could enter the country with enough metal and plastics.The last reason is that entering international market could reward employees of PK Electrics experience International marketing is an opportunity to let both employees and managers learn different ways of thinking and looking at things. It increases problem solving skills as it forces you to look at a problem from different angles. This way would help PK Electrics develop better.2.2 Sources of InformationInternational marketing managers must pay great attention to the quality, quantity and relevance of the information that they seek. So does PK Electrics managers. They should collect sufficient information to help they decide which international market to enter. On the one hand we should collect the primary information. On the other hand, secondary information is needed.Primary information is information gathered first hand by the organization for a specific purpose, such as from the representative of the organization in person,commissioning research to be undertaken on behalf of the organization. PK Electrics shall get some effective information from the trade fairs. A trade fair is an exhibition organized so that companies in a specific industry can showcase and demonstrate their new products and services. Generally speaking, a trade fair is not open to the public and can only be attended by company representatives and members of the press. If PK Electric could attend or even hold some trade fairs, they would get much information they wanted.Secondary information is information that already exists and should always be checked first as it is readily accessible and saves time and effort being used in collecting primary information. You could achieve this information from the world chambers network, regional trade organizations like APEC, EU and commercial organizations. The Organization for Economic Co-operation and Development (OECD) is an international economic organization of 34 countries founded in 1961 to stimulate economic progress and world trade. It is a forum of countries committed to democracy and the free-market economy, providing a platform to compare policy experiences, seek answers to common problems, identify good practices, and co-ordinate domestic and international policies of its members. Thus PK Electric could know which country’s market deserves entering.2.3 Opportunities and Threats2.3.1 OpportunitiesPolitical FactorsIt has some significant influences to enterprise supervision, spending power and other relevant activities with enterprise produced. Political factors include tax policy, labor law, environmental law, trade restrictions, tariffs, etc. The policy may help the organization avoid the bankruptcy in the competition. If governments support companies enter into international markets, it must provide a lot of opportunities. China is playing a significant role in world trade, which is also the opportunity for PK Electrics to enter international markets.Economic FactorsIt refers to the total national economy development, the form of international anddomestic economy and Economic development tendency, the enterprise faces industry environment and competitive environment, etc. The weak currency could make PK’s export easier because price of goods can be reduced in the foreign markets.Social FactorsIt includes the cultural aspects and includes health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, the level is high of consumption in India, India have strong desire in buying so PK will be interested in those countries in Africa.Technological FactorsIt refers to the total level of the social technology and changing trends, technical change, Technological breakthroughs that influence the development of the enterprise. At present, the technology is growing at a high speed. Some new skills benefit for PK Electrics, for example, the Internet, multimedia and the commercial infrastructure. Environmental FactorsIt include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones. If the PK Electrics select the country that is vulnerable to natural disasters, it also isn’t helpful to the entering the international market.Legal FactorsIt includes some laws about discrimination, consumer, antitrust, employment, and health and safety. These factors can affect how the running of a company, its costs, and the demand for products. Some countries’ trading barrier is low; it can attract PK much more. Developing countries’ barrier is lower than developed countries. Demographic FactorsIt also play important role in international trade. Large population can lead to more demand of the electric products. Residents of high income countries are anotheropportunities for PK to enter the international market.2.3.2 ThreatsThe policy may hinder the organization’s development if the organization has a strong power that may become a monopoly in the industry. And if some governments carried out protectionist measures, which limit foreign companies to enter their markets to protect national industry, it is difficult for PK Electrics to enter into international markets.The economic factor can influence the organization’s benefit by the change of economic transition and the exchange rate. It is obvious that the tax rate now is very high and employees need higher wages and higher welfare. So this is a threat for PK’s entering.As for social threats, if do not understand their local culture and customers, it is hard to get into their markets without any rejection and disrespect.Also consumption habit will influence market demand, residents in some countries are used to saving money in bank, it will do harm to company’s market perform ance.Refer to environment factors; the harsh climate of the area is not suitable for the development of foreign trade and economic. Like some countries with extreme weather. Legal threats mean some lows which prevent foreign investments.and threats PK Electrics facedOn the political factor, if PK Electrics enter a developed country, the opportunities contain high political stability. Generally, developed countries have their complete law system, such as anti-trust laws, and these countries have perfect industrial safety regulations, also the intellectual property protection is mature, and their pricing is competitive and in the past the organization has used price-based promotions to attract new customers, thus there are probably many favored trading partners. In addition, if PK Electrics enter a developed countries, they can become the biggest electrics company in the country, this firm have not intensive competitor. And the markets possibly have been not developed; this firm can acquire enormous customers. Maybe the government gives some political awards to PK Electrics in order to developingtheir poor economy.On the economic factor, it mainly covers macro and micro 2 aspects. Macro economic factors mean a country's national income, GDP and the relevant changes, and all the information that could illustrate the speed and level of the economic development. The type of economic system in countries of operation is an opportunity for the firm, and the business cycle stage of a country is significant to PK Electrics, if a country are experience prosperity, it definitely an opportunity for the firm. The economic growth rate of a country is important to the company, These factors directly determine the market.2.4 the Process to Select a Market to EnterThere are 6 stages of the market selection process. The whole selection process will take into account number of other steps to ensure that the company considers, is prepared for and has a plan for the whole operation.The first stage is collecting information from a variety of reliable sources. At this stage such techniques as PEST analysis can be used. PK Electrics should know the information about the policies, risk assessment and terrors for which countries to enter.The second step is screening the collected information using set criteria. For example as in the Business Environmental Risk Intelligence (BERI) index. And a company should look for International organizations and identify the standards of international organization, such as GDP, tariff, customer groups and population.Next, select top-scoring countries.The forth step is applying secondary screening criteria by using data from markets and the business. And then PK Electrics should learn about market attractiveness and competitive advantage.Then select best countries to enter. Comparing with some standards, and analyze the data, choosing the best country for PK Electrics,Before entering the international market, PK Electrics should prepare an international marketing plan which is helpful to selecting a most appropriate entry mode, becausePK Electric is a medium company, it doesn’t have much funds and can’t bear strong risk. So the indirect export is suitable for PK Electrics. At last, selecting the most appropriate target market and marketing mix which suits to the country and the target market.2.5 the Modes of Market EntryThere are several entry modes, including exporting, turnkey projects, and licensing, franchising and foreign direct investment. Typically, there are modes of market entry available to PK Electrics: exporting (direct and indirect), joint venture and foreign direct investment.Exporting is divided into direct exporting and indirect exporting. Direct exporting occurs where the producing organization itself performs the export tasks rather than using an intermediary. In direct exporting, PK Electrics can have a direct relationship with its overseas buyers. Mainly PK company will be pushed by core competencies and will improve their performance of value chain. Direct exporting is considered to be the most popular option for PK Electrics to develop its own international marketing capability.In indirect exporting, the market-entry technique that offers the lowest level of risk and the least market control is indirect export, in which products are carried abroad by others. The firm is not engaging in international marketing and no special activity is carried on within the firm; the sale is handled like domestic sales. Therefore, firms may not increase its understanding of the export market. In this case, PK Electrics just wants to expansion their market to abroad. It does not have enough power to establish a new company that can become a channel with oversea market. So if choice the indirect export, PK Electrics can buy offices in other countries, or piggyback which means using its own established international marketing channels to market the products of another producer as well as its own.Joint ventures entry takes place when an international company shares the ownership of an enterprise in a target country with local private or public interests. PK Electrics will have less control over a joint venture than over a sole venture, particularly when it has only a minority equity position. So if PK Electrics select this mode to enter intoan foreign market, the profits it gains must be shared with others. (/Foreign_market_entry_modes)Licensing the transference of knowledge between the parental company and the licensee is strongly present, the decision of making an international license agreement depend on the respect the host government show for intellectual property and on the ability of the licensor to choose the right partners and avoid them to compete in each other market. Licensing is a relatively flexible work agreement that can be customized to fit the needs and interests of both, licensor and licensee.Franchising agreements tends to be longer and the franchisor offers a broader package of rights and resources which usually includes: equipment, managerial systems, operation manual, initial trainings, site approval and all the support necessary for the franchisee to run its business in the same way it is done by the franchisor. The international licensing firm gives the licensee patent rights, trademark rights, copyrights or know-how on products and processes. In return, the licensee will p roduce the licensor’s products, market these products in his assigned territory and pay the licensor royalties related to the sales volume of the products.A turnkey project refers to a project in which clients pay contractors to design and construct new facilities and train personnel. A turnkey project is way for a foreign company to export its process and technology to other countries by building a plant in that country. Industrial companies that specialize in complex production technologies normally use turnkey projects as an entry strategy. (/Foreign_market_entry_modes) Contract manufacturing business model is that hire firm approaches the contract manufacturer with a design or formula. The contract manufacturer will quote the parts based on processes, labor, tooling, and material costs. Typically a hiring firm will request quotes from multiple CM. After the bidding process is complete, the hiring firm will select a source, and then, for the agreed-upon price, the CM acts as the hiring firm's factory, producing and shipping units of the design on behalf of the hiring firm.Foreign direct investment can take a number of forms. It can take the form of joint ventures, international acquisitions or the establishment of a wholly-owned subsidiary.If PK Electrics want to investment overseas directly, it can set up a local sales company with warehousing from which to attack a market from inside for the first time.A management contract is an arrangement under which operational control of an enterprise is vested by contract in a separate enterprise which performs the necessary managerial functions in return for a fee. Management contracts involve not just selling a method of doing things (as with franchising or licensing) but involve actually doing them. A management contract can involve a wide range of functions, such as technical operation of a production facility, management of personnel, accounting, marketing services and training. (/Management_contract)PK Electrics has little international influence, and the company scale is very small, so agent will be suitable. An overseas export agent is an overseas firm hired to facilitate a sales contract between the exporter and their customer. Agent do not take title to the goods, they work on commission. Agents have expensive knowledge and experience of market, and require little investment and low political risk. PK Electrics need international market experiences and foreign electric technology. So that is no doubt select agent enter mode.2.6 Why Select This ModeWhen PK Electrics enter the international market, some key factors need to consider in the selection process. As for the firm, over the two years the rate of growth has begun to decline with sales rising 5% and profits by 2% last year. Organization has limited financial resources, therefore the cost of any entry method must be carefully considered. The organization should think that how much effort is required to make the method work, allowing someone to help will reduce the level of commitment. The management of the company is now in the hands of a young dynamic team of managers who want to improve the performance of the organization, thus the management definitely needs high control. Then, the organization should consider that how long does the method take to organize and to get the products to the marketplace, some products require fast entry methods in order to gain competitive advantage because the organization building on its currentsuccess, so the speed must be fast. There are multiple risks associated with international market entry which include aspects of financial, political, legal and economic. PK Electrics also should consider the investment, it is the application of funds to hold assets over a longer term in the hope of achieving gains and/or receiving income from those assets.Absolutely, direct export is suitable to PK Electrics, and this can be achieved in the way of selecting local representatives or agent to prospect the market, to contact potential customers and to negotiate on behalf of the exporting firm. Agent is the most appropriate for small or medium competitive manufacturing firms with little identity in the world because the low cost and risk, and high speed of entry by the help of local agents can make them easily entered. Although the control and investment are limited and sales and the proportion of profits are moderate, the method of agent is suitable to PK Electrics. 3.0 ConclusionThis report has explained why PK Electrics enter into international market. Before entering into markets, companies should learn about Office of National statistics, Chamber of commerce and IMF concerned about data. And then analyze opportunities and threats affect company to enter into international markets. Later identify the process of selecting which markets to enter and which modes of market entry available to PK Electrics. Additionally, it evaluated the most appropriate method of market entry for PK Electrics by using criteria.4.0 Reference/Joint-venture/Management_contract/m/marketsaturation.asp/974b4724192ef576.htmlScottish Qualifications Authority, International Marketing: An Introduction, China Modern Economics Publishing House, Beijing (2005).。
第一章国际市场营销双语ppt课件

• 1.2 The Concepts of International Marketing
国际市场营销基本范畴
• 1.3 Related International Economic Organizations
与国际市场营销相关的国 际经济组织
精品课件
1.1The Concepts of Marketing
Technological factors
• 社会文化因素 • 科技因素
精品课件
Monopolies
legislation
Environmental
protection laws
Taxation policyΒιβλιοθήκη Employment laws
Government policy
Legislation
P
S
精品课件
1.1.2. Marketing philosophy
• a way of organizing and controlling marketing. The whole philosophy of marketing is changing. Previously, marketing involved creating a demand for a specific product or service. That approach is obsolete. Today marketers must interact with the market, determine what products and services are needed, and supply enough information to the market about those products so that the products find their own market.
International-MarketingPPT课件

price— customer cost promotion---customer communication
product-- customer value
place--customer convenience
Which P is this article about?
2021/6/4
13
Changes in marketing Mix from 4 Ps to 4Cs
Unit 1
International Marketing
Think Globally, Act Locally
2021/6/4
1
Teaching arrangement
Warming Reading Viewing Case study Practical writing
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– Indirect exporting 间接出口 – Direct exporting 直接出口 – Licensing 许可 – Joint ventures 合资 – Direct investment 直接投资
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10
Reading
International Marketing Mix
2
Warming
What products do you know that are marketed internationally?
Cars: Clothes: Food: Cleaning products: Etc.
2021/6/4
3
Possible answers:
Cars
What is international marketing?
What is the difference between domestic marketing and international marketing?
HND国际市场营销OUTCOME

HND国际市场营销OUTCOMEContentsI.Introduction (2)II.Discussion (2)1 Why is the company comsidering entering internationalmarkets (2)2 Secondary sources of information (3)3 The key opportunities and threats (4)4 The process of Spain market assessment (5)5 The modes of market (10)6 Why select this mode (11)III.Conclusion (11)IV.References (11)Report on PK ElectricsI.IntroductionPK Electrics was set up in 1987 in Ningbo, Zhejiang province, China. The company products cables, sockets, switches and light fittings and currently operating three factories all based in Zhejiang province. Over the years the organisation has developed a good reputation for quality and customer service. But over the last two years the rate of growth has begun to decline with sales rising 5% and profits by 2% last year. The management team are aware of big changes in international trading that have occurred over the last 10-15 years with the Chinese economy becoming more market-based and the more recent impact of China joining the World Trade Organisation in December 2001.II.Discussion1 Why is the company comsidering entering international marketsMarket saturationMarket-related factorsProduction-related factorsPersonnel-related factorsRisk-related factorsCost-related factorsProduct life cycleIn the case, PK Electrics is part of market saturation. With rising economic growthand the rising disposable incomes, especially of the urban population PK Electrics has seen demand for its products grow as people seek improvements to their homes and living standards.2 Secondary sources of informationPK Electrics enter Spain market. But the company need to consult information about Spain market. The company could consult from the following professional organization:The World Trade OrganisationPK Electrics could get commercial information about Spain:Goods schedules and tariff dataServices schedules and MFN exemptionsTrade Policy Reviews of SpainDispute cases involving SpainDDA negotiating documents from or mentioning Spain(WORLD TRADE ORGANISATION, 06/18/2011)The World BankPK Electrics could get commercial information about Spain:Income levelEconomic policy and external debtInfrastructureLabor & social protectionPrivate sector – merchandise trade(THE WORLD BANK, 06/18/2011)3 The key opportunities and threatsPK Electrics has to understand PEST if it enter Spain market.Political:Spain is a higher score signifies a less violent and politically more stable society.the government introduced austerity reforms aimed at reducing the fiscal deficit to sustainable levels that reduced government employees' salaries,froze pension funds, and suspended public works.Economic:interest rate stands at 1.00 percentSpain Gross Domestic Product is worth 1460 billion dollars or 2.35% of the world economy, according to the World Bank. From 1960 until 2009,Spain's average Gross Domestic Product was 402.19 billion dollars reachingan historical high of 1604.24 billion dollars in December of 2008 and arecord low of 12.07 billion dollars in December of 1960.Sociocultural:There are few elderlyies and they have small pensions in Sapin.In daily consumption, Spanish larger demand.Technological:Spain has defines its scientific and technological priorities focusing on not only its domestic needs but also the Community's ones.Spain's technology enters the information age.(TRADING ECONOMIC, 06/19/2011)Then, PK Electrics may meet opportunity and threaten.Opportunity:In daily consumption, Spanish larger demand. PK Electrics product all kinds of electrical items. The company can meetSpanish larger demand.Spain is a higher score signifies a less violent and politically more stable society. It could offer PK Electrics a stable market. Threaten:In the Spain, there are a lot of such PK Electrics. There are many competitors.Spainish life habits have different from Chinese. PK Electrics spend much time on marketing research.4 The process of Spain market assessmentThis is PK Electrics the process of Spain market assessment:(Source: Mulbacher et al, International Marketing1999 International Thomson Business Press, London.)Stage 1: Corporate policyThe organisation had focused predominantly on the trade market. The management team are aware of big changes in international trading that have occurred over the last 10-15 years with the Chinese economy becoming more market-based and the more recent impact of China joining the World Trade Organisation in December 2001. They have recently met with Trade delegations from several different countries and are now looking outside China for new markets to enhance their growth and business performance.Stage 2: Market assessment criteriaThe measure of the market with customers and national policy related. Market criterias:Income levelGDPPopulationPoverty headcount ratio at national poverty lineStage 3: Potential country marketsIn the beginning, there are two countries market: Spain and South Africa. In the Question 3, Spain PEST have been analysed. Next, South Africa PEST analysis:Political:The political arena has a huge influence upon the regulation of health care, the money available, the priorities for disease management. The market is not stable. PK Electrics consider issues such as:ecological/environmental issuescurrent legislation home marketfuture legislationSADC/international legislationregulatory bodies and processesEconomic:Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. PK Electrics need to look at:home economy situationhome economy trendsoverseas economies and trendsgeneral taxation issuestaxation specific to product/servicesmarket and trade cyclesSociocultural:The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include:lifestyle trendsdemographicsconsumer attitudes and opinionsmedia viewslaw changes affecting social factorsbrand, company, technology imageTechnological:Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points: competing technology developmentresearch fundingassociated/dependent technologiesreplacement technology/solutionsmaturity of technologymanufacturing maturity and capacity(Wiki dot, 06/19/2011)Market criterias:Income level: High income(Spain), Upper middle income(South Africa)GDP: $1,460,250,360,148 in 2009(Spain), $285,365,879,676 in 2009(South Africa)Population: 45,957,671 in 2009(Spain), 49,320,150 in 2009(South Africa)(THE WORLD BANK, 06/19/2011)Stage 4: Conditions (not) fulfilledThrough market criterias and PEST analyse, Spain’s conditions are fulfilled because Spain could offer a stable market. South Africa could not.Stage 5: Local products and Stop assessmentsAt first, stop South Africa assessments. The company must know local products. Local products has FAGOR, BERONOR, MATHIUS, ect.Stage 6: Success factorsTechnologyThe company want to take in Spain market, and it have the strong technical support.Customer CareCustomers are god. The organisation have to develop a good reputation for customer service. This way of the enterprise for a long time.PromotionBecause the company is a foreign enterprise, it must increase the strength of promotion. Although initial cost greatly, it could bring long-term interests to the company.Stage 7: Distinctive competenciesPK’s products are selectively distributed using specialist electrical retailers, department stores and more recently DIY outlets.5 The modes of market(SQA, August 2005, International Marketing: An Introduction)PK Electrics should entry the mode is direct exports.6 Why select this modeTotal controlDirect export of its products offers a company greater control over the entire export transaction and entitles them to greater benefits.Direct contact with customersDirect export could face to face customers. PK Electrics can better understand the needs of customers.A sales representative plays the role of the manufacturer's representativeHe works on a commission basis. He uses the product manual and samples of the product, which he presents to the prospective buyers and entices them to purchase it. However, unlike an agent, who is entitled to take decisions on behalf of his company, a representative has no authority, and he takes no risk or responsibility of the product.III.C onclusionPK Electrics entry Spain market, which could increase profit.IV.References“Spain and the WTO”, (11/30/2009), (WORLD TRADE ORGANIZATION), Available:/doc/3a106a0979563c1ec5da71aa.html /english/thewto_e/countries_e/spain_e.htm(Accessed:06/18/2011).“Data of Spain”, (12/31/2009), (THE WORLD BANK), Available:/doc/3a106a0979563c1ec5da71aa.html /country/Spain (Accessed: 06/18/2011).“SPAIN GROSS DOMESTIC PRODUCT”, (12/31/2010), (THE WORLD BANK), Available:/doc/3a106a0979563c1ec5da71aa.html /spain/gdp (Accessed: 06/19/2011).“PEST Analysis”, (05/12/2007 at 20:19), (Wiki dot), Available: /doc/3a106a0979563c1ec5da71aa.html /pest-analysis (Accessed: 06/19/2011).“Data of South Africa”, (12/31/2009), (THE WORLD BANK), Available:/doc/3a106a0979563c1ec5da71aa.html /country/Spain (Accessed: 06/19/2011).Scottish Qualifications Authority (August 2005), International Marketing: An Introduction, China Modern Economic Publishing House, Beijing.。
hnd国际商务组织GBO1

hnd国际商务组织GBO11.IntroductionThe main idea of this report is want to indicate the differences of organization structures between early organization and after-changes. And analyse the key factors, both internal and external that influence the design of international organization structures. And explain how organizations ensure that the structure is both effective and efficient.2.Produces:The data for this report were gathered from Dec 1th to 9th 2010 and sourced from internet and library.3.Findings3.1Describe the types of organization structures used by Johnson &Johnson that are just beginning international expansion.Johnson &Johnson is established in 1886, the product sells the whole world 175 countries. Johnson &Johnson is the largest and comprehensiveness medicine health care company in the world. At first Johnson & Johnson Stetting up an export department in Greece.After several years later,the Johnson & Johnson set up 72 stores in China,Greece,Mexico city.so we can see stetting up an export department will help company gain access to a range of advice and help. When a business first moves into the arena of international trade it is likely that, in the early stages, the main signs of the expansion will be the setting up of an export office and an overseas sales office.Exporting involves the transfer of goods and services to foreign countries for their sales through a company operating in that country.The overseas sales office is a reasonable first step in providing feed back,offering research opportunity.3.2Describe how these structures change as the organizationincreases its international presence.The Johnson &Johnson Stores offer the business as a franchising of business opportunity to international expanding. Using franchising as the vehicle for expansion allows parent company to retain control over the basic business operation. When people have a direct interest in their work, they enjoy it more.The Johnson &Johnson Stores constantly adjust to provide organizational change in order to reach strategic goals.The Johnson &Johnson Stores adjust to the challenges, such as decreases in performance, aftermath of mergers and acquisitions, strategic shifts, competitive pressure and customer demand changes.The W Johnson &Johnson Stores ability to adjust to the new challenges is defined by the flexibility of its organizational capabilities, the actual organizational structures, processes, the quality and motivation of its people and the openness of its culture.3.3Analyze the key factors, both internal and external that influence the design of international organization structures.There are two internal factors affecting the Johnson &Johnson business structure, respective is the enterp rise’s management philosophy of operating and QualityFor enterprise’s management philoosophyJohnson &Johnson concept is to put ourselves in the sake of our customers to maximize convenience for customers. Johnson & Johnoson leads management technique and all new principle of management of several years of retail experience,forerunnerinto the region and seeks and the common deveopment of local dealer.For the QualityJohnson & Johnson has many Medical apparatus,and the quality of them are very good,For example,the Johnson & Johnson has a medical apparatus called blood sugar instrument,it is one of world's most advanced instruments.Many oversea hospital areuse it.From these we can see the Johnson & Johnson’s quality is very goodThere are two external factors that influence the Johnson & Johnson Competition in the same industry and economic conditionFor the Competiton in the same industryBetween the companies have many competiton,and the brand’s characteristic is very important,Also the Johnson & Johnson has many completion in the same industry. Loreal also is famous company,And it enter the same oversea maket.So Johnson & Johnoson change the organizational structure.Johnson & Johnson setting up shop everywhere in the oversea market.Let it have more completion in the oversea market make its brand more famousFor economic conditionBefore Johnson & Johnson enter the oversea market,they must know these country’s econmic conditon,make sure they can change the organization strcture to meet the market.For example,before Johnson & Johnson enter the Chinese market,Johnson & Johnson have know about the Chinese economic condition,they must change the organization sturcture let the chinese have the ability to buy their product.3.4 Explain how organizations ensure that the structure is both effective and efficient.Relationships between companies, cooperation and strategic are becoming even more important. They provide a number of key advantages because as well as offering mutual benefits to one of the most effective way of boosting their competitiveness.It is also important for the deployment of international standards, as a means of access to EU and non-EU markets and of consolidating domestic ones, developing new complementary activities, etc.Johnson &Johnson is flat-structure organization. They are more/greater communication between management and workers and better team spirit. Inadditional of less bureaucracy and easier decision making. Finally, they are fewer levels of management, which includes benefits such as lower costs as managers are generally paid more than workers. In summary of the organizations can ensure that the structure is both effective and efficient.Organizations constantly audit, design and implement. First, the reason for the organization audit is systematically identify improvement potential in the organization identify improvement potential in the organization as it stand today. Second, organization design helps develop organizational solutions in order to improve the effectiveness and performance of the organization. Third, the typical organizational design project is structured in three phases: analysis, concept development and implementation planning. Fourth, the purpose of organizational implementation is to realize the new organization by increasing the flexibility if the company’s organizational capabilities.4.ConclusionThe main idea of this report is the differences of organization structures between early organization and after-changes. And analyse the key factors, both internal and external that influence the design of international organization structures. And explain how organizations ensure that the structure is both effective and efficient.5.ReferenceThe information about Johnson &Johnson organization structureBusiness culture and strategy: An introduction. Scottish qualifications authority. Handy, C(1990) inside organization:21 Ideas for manages,London:BBC Books。
HND国际营销导论

Individual ReportInternational Marketing: An introductionOutcome 1 and 2Candidate Name:Candidate Class:Candidate SCN:Table of contents1 Introduction (3)2 Findings (3)2.1 Explain Wildhorse Automobile entering international markets reasons (3)2.2 Two sources of information that Wildhorse Automobile (4)2.3 Key opportunities and threats associated with entry international market (5)2.4 Wildhorse Automobile would use to select which markets to enter (7)2.5 The modes of market entry available to Wildhores Automobile (8)2.6 The most appropriate method for Wildhorse Automobile to entry market错误!未定义书签。
3 Conclusion (12)4 Reference (13)1 IntroductionThis report describes the Wildhorse Automobile to enter the overseas market. This report consists of six parts. Reported the contents of the package wild horse why enter the international market. Wild horse company identified two markets to enter the source of information. Of the wild horses. What methods of automobile companies to enter the overseas market. Select the appropriate methods to enter the overseas market and evaluate the criteria you use in marketing. Wild horse car companies choose the right way to enter the overseas market. The wild horse of the car to assess the standard of your marketing in the market.2 Findings2.1 Explain Wildhorse Automobile entering international markets reasonsInternational marketing is the application of marketing principles in more than one country, by companies overseas or across national borders. International marketing is based on an extension of a company’s local marketing strategy, with special attention paid to marketing identification, targeting, and decisions internationally.China's production costs rise, the price of the Wildhorse Automobile’s car prices will lead to a decline in sales. Therefore, the wild horse car companies should look for the production of low-cost overseas countries.National policy restrictions on the country's resources. Company responds to the government's policy. So Wildhorse Automobile company to build factories in overseas countries.The Wildhorse Automobile company products due to ecological causes of poor sales.Ecological factors influence the production efficiency of the company. So company's products are sold overseas.The Wildhorse Automobile Company in order to compete with rivals. Wildhorse Automobile Company to increase the share of overseas markets and enhance the company's influence. Wildhorse Automobile Company to expand overseas markets.2.2 Two sources of information that Wildhorse AutomobileCompany research methods include primary research and secondary research. Companies can use secondary research ways to gather information. The advantages of secondary research includes convenient save money and research staff do not need to have too much experience. But secondly research information with uncertainty.Companies can be used through two international organizations to do secondary research.The European Union was founded in November 1, 1993. EU to set up Brussels. EU official website: Europa.eu The EU's aim is the establishment of internal borders by a space, strengthen coordination to develop and establish the eventual introduction of a unified currency Economic and Monetary Union economic, social, and promote balanced economic and social development of Member States through the implementation of the Common Foreign and Security Policy. EU car emissions has strict criteria. European Emissions Directive certification stands for non-road mobile machinery emissions certification, the English translation of "Emissions From Non-road Mobile Machinery", referred to as "NRMM". China's auto exports to Europe need to reduce automobile exhaust emissions. China's auto exports emissions must comply with EU vehicle emission standardsInternational Organization for Standardization be called for short is ISO. ISO was founded in 1946. ISO official website: /iso/home.html. ISO's purpose is: to promote worldwide development of standardization to facilitate international exchange of goods and mutual assistance and to expand cooperation in intellectual, scientific, technological and economic aspects. ISO's headquarters in Geneva, Switzerland. ISO / TS16949-2002 the International Automotive Task Group (IATF) in ISO9001: 2000 quality management system based on the combination of the requirements of the international automotive industry, automotive production, enacted in 2002, the service member organization of international quality system requirements standard. China's automobile companies supporting plant requirements more stringent, requiring high quality, but also requires the supplier to strictly control costs and improve efficiency. TS16949 provides a unified can develop quality management system model for the automotive industry. Chinese auto companies continue to deepen the implementation of continuous improvement, strengthen defect prevention, reduction of variation and waste, will make the management system more optimized, so that auto companies in the market competition continued to maintain a competitive advantage.The overseas car website includes . The overseas magazines includes <Auto motor and sport> is from Germany and <Automotive News> is from America. Wildhorse Automobile Company can include information from foreign website and magazines.2.3 Key opportunities and threats associated with entry international market Primary research should pay attention includes:Primary research includes local policy local economy and local culture, Companies should be familiar with the culture of the target country is conducive to the acquisition of the target country information. It is convenient for the company to understand the local culture and communicate with the local people. The government policy of thetarget country can affect the development of the enterprise. To understand local policies can avoid the loss of enterprises. The target country's economy will directly affect the income of the residents of the target country. The company produces the car that is suitable for the target country through the local economic level. The company's cars go more smoothly into the target country.The wildhorse automobile company can obtain the information in these 3 public places. For example, the office of the parking lot, car wash shops, toll stations. Companies from the office of the parking lot to get information, the company can understand the popular car models and the use of. Get information from the car wash shop, the company can get the popular car price information to record. Companies produce the most attractive cars through the acquisition of information. Companies can collect information from the toll station, the company can know the different car charges, speed and performance of a car running, you can find a long-distance car running models, which is conducive to the company's car sales.External environment includes six factors, divide into political, legal, social, natural, technological and economic.Politics, including the government's energy conservation and emission reduction policies, foreign policy and vehicle control policy.Economy includes per capita income, unemployment, consumption level.Society, including population, local education level and the proportion of local population age.Technology includes technical workers, technical optimization and updating of traditional technologies.Nature, including air pollution, natural disasters and waste of resources.The law includes local laws to protect local car companies.The opportunity of Wildhorse Automobile Company in the overseas market includes:Technological: Target country’s government requires imported cars meet the standards of energy conservation. So target country has high demand for new energy vehicles. Chinese auto companies have great development in the new energy. China's auto can exports to target countries. Technology can help Wildhorse Automobile company increase sales.Economy: the target country's economic recovery, the target country's employment rate rises, the target country's public demand for the car increases. So the public demand for cars is working in the target country. Chinese cars have price advantage, which is conducive to the sale of the target country.The technical threat of Wildhorse Automobile Company to enter the overseas market includes:Social: Developed countries car brand is good in target country public’s heart. But, Chinese car brand has bad impression in target country public’s heart. Bad impression of brand can influence Chinese automobile efficiency in target country. "Made in China" in a part of the foreign market impression is inferior, China needs to change the impression of the brand. Promotion of brand image can promote the sales of Chinese automobile brand.2.4 Wildhorse Automobile would use to select which markets to enter1.When a company to overseas market need do market research. The researchincludes primary research and secondary research. Secondary research’s way includes collect information from a variety of reliable sources. At this stage such techniques can be used.2.Screen the collected information using set criteria, e.g. as in the BusinessEnvironmental Risk Intelligence (BERI) index.3.Select top-scoring countries or region4.Apply secondary screening criteria using data from markets and the business, e.g.market attractiveness/competitive advantage(GE matrix)5.Select best country (ies) and region(s) to enter.6.Prepare an international marketing plan/strategy6.1 The selection of the most appropriate entry mode6.2 The selection of the most appropriate target markets6.3 The selection of an appropriate marketing mix suited to the country and targetmarket.2.5 The modes of market entry available to Wildhores Automobile1)The InternetThe popularity of Internet computers and mobile phones has shortened the distance between people and improve people's working efficiency, which is good for international marketing. Internet makes international payments more convenient. The advantages of the international network of the buyer and the seller including security and fast. The Internet can monitor logistics, make logistics more secure, and promote trade between countries.2)Exporting (Direct and Indirect)Direct exports can enable enterprises to quickly sell their products in the international market at a very small start-up cost, in terms of fixed assets does not require or requires only a small amount of investment, so there is little risk. In the initial exploratory export, on the basis of previous success, the enterprise by increasing the export volume of export lines and enter the new international market, so as to gradually increase the export volume. Direct export can enable enterprises to accumulate a lot of international experience, so that enterprises in the process of internationalization of the more far away.Indirect export may be a good way for enterprises to enter the international market for the first time. Manufacturers need only a little knowledge of foreign or foreign markets, but also because of this, it has separated the manufacturers from foreign markets. Indirect exports reduce the risk.3)Contractual AgreementContract mode is a non-equity contract signed between the enterprise and the target country, the former patent, technology, experience, management, human resources and other intangible assets for the latter to use, and from the latter to obtain economic benefits to share. Contract is a way to enter the foreign market through the output of knowledge and technology. Contract mode mainly includes: license mode, franchise mode and project contracting mode, etc.Entry modes of international marketingWays to enter the international market include international agent, licensing, franchising, joint venture, turnkey projects, and strategic alliance. Detailed three ways to enter the overseas market. Three ways includes international agent, licensing, and franchising.International agent: International export agency is a method for a company to employoverseas agents to promote international sales. Agents have no title to the goods. Agents only charge a commission. International agent take less investment and get less money.The advantages of international agent includes international agent have expensive knowledge and experience of market. Little investment required and low political risk. The disadvantage of international agent includes international agent may lack commitment and motivation. International agent may be too small to exploit the whole market. And this method may be inefficient for large markets.Franchising: Franchising is the owner of the franchise is in the form of contractual agreement, which allows the franchisee to use its name, trademark, proprietary technology, product and operation management experience to engage in business activities. Franchising Take less capital investment, and get the amount of money earned moderate.The advantages of franchising includes high level of control, highly motivated business contact with market knowledge, money. And franchising can give protection of patents. The disadvantage of franchising includes problems with local legislation, high cost of marketing package to support franchisees. Cost and time involved in finding good franchisees.Licensing: Licensing is authorized to operate, charge to allow others to use their own brand of commercial operation mode in the specified time. Licensing in international market take less investment and get less return.The advantages of licensing includes a prolonged depreciation of a target country’s currency may also swing a manufacturer from export to licensing. Licensing overcomes the problem of high transportation cost, which make the export of some products non-competitive in target markets. Political risk is lower than with equity investments. Many host government favour licensing over foreign investment as a way to get technology.The disadvantage of licensing includes lack of control by the licensor over the marketing plan and programme in the target country. Risk of creating a competitor in third markets or even in the manfacturer’s home market. Armed with the licensors technology, the licenses may become a formidable competitor in world markets. Absolute size of income from a licensing arrangement as compared to that from exporting to, or investing in, the target country.2.6 The most appropriate method for Wildhorse Automobile to entry market Wildhorse Automobile Company have chosen the Malaysian market. Wildhorse can chose India market. India's political stability leads to social stability. India is Asia's anchor economy. India's economy is developing very fast. India's per capita income increased. Indian employment is rising, and the demand for cars is increasing. Due to the economic development of India, the road becomes better. More Indians are willing to drive.Wildhorse Automobile Company can choose an international agent in India. India's automotive industry has a great degree of development. Wildhorse Automobile Company can choose an international agent in India. India's automotive industry has a great degree of development. Wildhorse Automobile Company looking for international agents to sell the car is relatively low cost. Agents have shop facilities and sales of car service personnel so wild horse car companies can save costs. Wildhorse Company's human involvement is low in India market. The company needs to pay for the international agent to sell cars. The company has limited control for international agent. India local agents to understand the political economy and culture of India. Wild horse car companies through the agents can accelerate the sales of cars, agents to help the wild horse car companies to improve the speed of the occupation of overseas markets. So India agents can help companies reduce risk. But the Wildhorse Automobile Company's profits are low. Wildhorse Automobile Company need to bear the costs including agency fees, customs duties, transportation costs, and production and management costs. Wildhorse Automobile Company can reduce the profit toincrease sales. Increase in profits by increasing sales.3 ConclusionIn addition to the overseas market in Malaysia, I suggest the Wildhorse company to enter the overseas market in India by international dealers. Wildhorse automobile company through the investigation into the more successful entry into the overseas market, I hopes Wildhorse Company have a better future.4 Reference。
【实用资料】HND国际营销导论.doc

Individual ReportInternational Marketing: An introductionOutcome 1 and 2Candidate Name:Candidate Class:Candidate SCN:Table of contents1 Introduction (3)2 Findings (3)2.1 Explain Wildhorse Automobile entering international markets reasons (3)2.2 Two sources of information that Wildhorse Automobile (4)2.3 Key opportunities and threats associated with entry international market (5)2.4 Wildhorse Automobile would use to select which markets to enter (7)2.5 The modes of market entry available to Wildhores Automobile (8)2.6 The most appropriate method for Wildhorse Automobile to entry market错误!未定义书签。
3 Conclusion (12)4 Reference (13)1 IntroductionThis report describes the Wildhorse Automobile to enter the overseas market. This report consists of six parts. Reported the contents of the package wild horse why enter the international market. Wild horse company identified two markets to enter the source of information. Of the wild horses. What methods of automobile companies to enter the overseas market. Select the appropriate methods to enter the overseas market and evaluate the criteria you use in marketing. Wild horse car companies choose the right way to enter the overseas market. The wild horse of the car to assess the standard of your marketing in the market.2 Findings2.1 Explain Wildhorse Automobile entering international markets reasonsInternational marketing is the application of marketing principles in more than one country, by companies overseas or across national borders. International marketing is based on an extension of a company’s local marketing strategy, with special attention paid to marketing identification, targeting, and decisions internationally.China's production costs rise, the price of the Wildhorse Automobile’s car prices will lead to a decline in sales. Therefore, the wild horse car companies should look for the production of low-cost overseas countries.National policy restrictions on the country's resources. Company responds to the government's policy. So Wildhorse Automobile company to build factories in overseas countries.The Wildhorse Automobile company products due to ecological causes of poor sales.Ecological factors influence the production efficiency of the company. So company's products are sold overseas.The Wildhorse Automobile Company in order to compete with rivals. Wildhorse Automobile Company to increase the share of overseas markets and enhance the company's influence. Wildhorse Automobile Company to expand overseas markets.2.2 Two sources of information that Wildhorse AutomobileCompany research methods include primary research and secondary research. Companies can use secondary research ways to gather information. The advantages of secondary research includes convenient save money and research staff do not need to have too much experience. But secondly research information with uncertainty.Companies can be used through two international organizations to do secondary research.The European Union was founded in November 1, 1993. EU to set up Brussels. EU official website: Europa.eu The EU's aim is the establishment of internal borders by a space, strengthen coordination to develop and establish the eventual introduction of a unified currency Economic and Monetary Union economic, social, and promote balanced economic and social development of Member States through the implementation of the Common Foreign and Security Policy. EU car emissions has strict criteria. European Emissions Directive certification stands for non-road mobile machinery emissions certification, the English translation of "Emissions From Non-road Mobile Machinery", referred to as "NRMM". China's auto exports to Europe need to reduce automobile exhaust emissions. China's auto exports emissions must comply with EU vehicle emission standardsInternational Organization for Standardization be called for short is ISO. ISO was founded in 1946. ISO official website: /iso/home.html. ISO's purpose is: to promote worldwide development of standardization to facilitate international exchange of goods and mutual assistance and to expand cooperation in intellectual, scientific, technological and economic aspects. ISO's headquarters in Geneva, Switzerland. ISO / TS16949-2002 the International Automotive Task Group (IATF) in ISO9001: 2000 quality management system based on the combination of the requirements of the international automotive industry, automotive production, enacted in 2002, the service member organization of international quality system requirements standard. China's automobile companies supporting plant requirements more stringent, requiring high quality, but also requires the supplier to strictly control costs and improve efficiency. TS16949 provides a unified can develop quality management system model for the automotive industry. Chinese auto companies continue to deepen the implementation of continuous improvement, strengthen defect prevention, reduction of variation and waste, will make the management system more optimized, so that auto companies in the market competition continued to maintain a competitive advantage.The overseas car website includes . The overseas magazines includes <Auto motor and sport> is from Germany and <Automotive News> is from America. Wildhorse Automobile Company can include information from foreign website and magazines.2.3 Key opportunities and threats associated with entry international market Primary research should pay attention includes:Primary research includes local policy local economy and local culture, Companies should be familiar with the culture of the target country is conducive to the acquisition of the target country information. It is convenient for the company to understand the local culture and communicate with the local people. The government policy of thetarget country can affect the development of the enterprise. To understand local policies can avoid the loss of enterprises. The target country's economy will directly affect the income of the residents of the target country. The company produces the car that is suitable for the target country through the local economic level. The company's cars go more smoothly into the target country.The wildhorse automobile company can obtain the information in these 3 public places. For example, the office of the parking lot, car wash shops, toll stations. Companies from the office of the parking lot to get information, the company can understand the popular car models and the use of. Get information from the car wash shop, the company can get the popular car price information to record. Companies produce the most attractive cars through the acquisition of information. Companies can collect information from the toll station, the company can know the different car charges, speed and performance of a car running, you can find a long-distance car running models, which is conducive to the company's car sales.External environment includes six factors, divide into political, legal, social, natural, technological and economic.Politics, including the government's energy conservation and emission reduction policies, foreign policy and vehicle control policy.Economy includes per capita income, unemployment, consumption level.Society, including population, local education level and the proportion of local population age.Technology includes technical workers, technical optimization and updating of traditional technologies.Nature, including air pollution, natural disasters and waste of resources.The law includes local laws to protect local car companies.The opportunity of Wildhorse Automobile Company in the overseas market includes:Technological: Target country’s government requires imported cars meet the standards of energy conservation. So target country has high demand for new energy vehicles. Chinese auto companies have great development in the new energy. China's auto can exports to target countries. Technology can help Wildhorse Automobile company increase sales.Economy: the target country's economic recovery, the target country's employment rate rises, the target country's public demand for the car increases. So the public demand for cars is working in the target country. Chinese cars have price advantage, which is conducive to the sale of the target country.The technical threat of Wildhorse Automobile Company to enter the overseas market includes:Social: Developed countries car brand is good in target country public’s heart. But, Chinese car brand has bad impression in target country public’s heart. Bad impression of brand can influence Chinese automobile efficiency in target country. "Made in China" in a part of the foreign market impression is inferior, China needs to change the impression of the brand. Promotion of brand image can promote the sales of Chinese automobile brand.2.4 Wildhorse Automobile would use to select which markets to enter1.When a company to overseas market need do market research. The researchincludes primary research and secondary research. Secondary research’s way includes collect information from a variety of reliable sources. At this stage such techniques can be used.2.Screen the collected information using set criteria, e.g. as in the BusinessEnvironmental Risk Intelligence (BERI) index.3.Select top-scoring countries or region4.Apply secondary screening criteria using data from markets and the business, e.g.market attractiveness/competitive advantage(GE matrix)5.Select best country (ies) and region(s) to enter.6.Prepare an international marketing plan/strategy6.1 The selection of the most appropriate entry mode6.2 The selection of the most appropriate target markets6.3 The selection of an appropriate marketing mix suited to the country and targetmarket.2.5 The modes of market entry available to Wildhores Automobile1)The InternetThe popularity of Internet computers and mobile phones has shortened the distance between people and improve people's working efficiency, which is good for international marketing. Internet makes international payments more convenient. The advantages of the international network of the buyer and the seller including security and fast. The Internet can monitor logistics, make logistics more secure, and promote trade between countries.2)Exporting (Direct and Indirect)Direct exports can enable enterprises to quickly sell their products in the international market at a very small start-up cost, in terms of fixed assets does not require or requires only a small amount of investment, so there is little risk. In the initial exploratory export, on the basis of previous success, the enterprise by increasing the export volume of export lines and enter the new international market, so as to gradually increase the export volume. Direct export can enable enterprises to accumulate a lot of international experience, so that enterprises in the process of internationalization of the more far away.Indirect export may be a good way for enterprises to enter the international market for the first time. Manufacturers need only a little knowledge of foreign or foreign markets, but also because of this, it has separated the manufacturers from foreign markets. Indirect exports reduce the risk.3)Contractual AgreementContract mode is a non-equity contract signed between the enterprise and the target country, the former patent, technology, experience, management, human resources and other intangible assets for the latter to use, and from the latter to obtain economic benefits to share. Contract is a way to enter the foreign market through the output of knowledge and technology. Contract mode mainly includes: license mode, franchise mode and project contracting mode, etc.Entry modes of international marketingWays to enter the international market include international agent, licensing, franchising, joint venture, turnkey projects, and strategic alliance. Detailed three ways to enter the overseas market. Three ways includes international agent, licensing, and franchising.International agent: International export agency is a method for a company to employoverseas agents to promote international sales. Agents have no title to the goods. Agents only charge a commission. International agent take less investment and get less money.The advantages of international agent includes international agent have expensive knowledge and experience of market. Little investment required and low political risk. The disadvantage of international agent includes international agent may lack commitment and motivation. International agent may be too small to exploit the whole market. And this method may be inefficient for large markets.Franchising: Franchising is the owner of the franchise is in the form of contractual agreement, which allows the franchisee to use its name, trademark, proprietary technology, product and operation management experience to engage in business activities. Franchising Take less capital investment, and get the amount of money earned moderate.The advantages of franchising includes high level of control, highly motivated business contact with market knowledge, money. And franchising can give protection of patents. The disadvantage of franchising includes problems with local legislation, high cost of marketing package to support franchisees. Cost and time involved in finding good franchisees.Licensing: Licensing is authorized to operate, charge to allow others to use their own brand of commercial operation mode in the specified time. Licensing in international market take less investment and get less return.The advantages of licensing includes a prolonged depreciation of a target country’s currency may also swing a manufacturer from export to licensing. Licensing overcomes the problem of high transportation cost, which make the export of some products non-competitive in target markets. Political risk is lower than with equity investments. Many host government favour licensing over foreign investment as a way to get technology.The disadvantage of licensing includes lack of control by the licensor over the marketing plan and programme in the target country. Risk of creating a competitor in third markets or even in the manfacturer’s home market. Armed with the licensors technology, the licenses may become a formidable competitor in world markets. Absolute size of income from a licensing arrangement as compared to that from exporting to, or investing in, the target country.2.6 The most appropriate method for Wildhorse Automobile to entry market Wildhorse Automobile Company have chosen the Malaysian market. Wildhorse can chose India market. India's political stability leads to social stability. India is Asia's anchor economy. India's economy is developing very fast. India's per capita income increased. Indian employment is rising, and the demand for cars is increasing. Due to the economic development of India, the road becomes better. More Indians are willing to drive.Wildhorse Automobile Company can choose an international agent in India. India's automotive industry has a great degree of development. Wildhorse Automobile Company can choose an international agent in India. India's automotive industry has a great degree of development. Wildhorse Automobile Company looking for international agents to sell the car is relatively low cost. Agents have shop facilities and sales of car service personnel so wild horse car companies can save costs. Wildhorse Company's human involvement is low in India market. The company needs to pay for the international agent to sell cars. The company has limited control for international agent. India local agents to understand the political economy and culture of India. Wild horse car companies through the agents can accelerate the sales of cars, agents to help the wild horse car companies to improve the speed of the occupation of overseas markets. So India agents can help companies reduce risk. But the Wildhorse Automobile Company's profits are low. Wildhorse Automobile Company need to bear the costs including agency fees, customs duties, transportation costs, and production and management costs. Wildhorse Automobile Company can reduce the profit toincrease sales. Increase in profits by increasing sales.3 ConclusionIn addition to the overseas market in Malaysia, I suggest the Wildhorse company to enter the overseas market in India by international dealers. Wildhorse automobile company through the investigation into the more successful entry into the overseas market, I hopes Wildhorse Company have a better future.4 Reference。
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International Marketing: An IntroductionOutcome 1 and 2DG6M 34Candidate name: Gou lingGroup: International tradeClass: E-6Candidate ID: 105141386Contents1.0 Introduction------------------------------------------------------------------P32.0 The reason for PK Electrics entering international markets ----------P33.0 The sources of information for PK Electrics before enter international markets ---------------------------------------------------------------------------P44.0 The opportunities and threats for entering into international markets -------------------------------------------------------------------------------------P55.0 The process used by PK Electrics to select apposite markets --------P66.0 Available modes of market entry for PK Electrics ---------------------P77.0 The most appropriate method and the criteria of market entry for PK Electrics --------------------------------------------------------------------------p8 8.0 Conclusion-------------------------------------------------------------------P8 Bibliography--------------------------------------------------------------------P101.0 IntroductionThis report is writing for otcome1 and 2. PK Electrics is a company produces cables, switches, sockets and light fittings. It was set up in 1987 in Zhejiang, China. In the prime stage, it is just a local supplier, now it has grown into a national supplier. It has three factories in Zhejiang and has an idea of entering international market at present. And there are some problems about international market entry for PK Electrics has to face and solve, include the reason, the sources of information, the key opportunities and threats, the process of markets selection, Available modes of market entry, The most appropriate method and the criteria etc. And those all are the topic of this report.2.0 The reason for PK Electrics entering international marketsThere are mainly four reasons.Firstly, the market in Chinese Electrics industry is saturation, this will cause fierce competition, high cost of production, shortage of managerial and technical skills, and many regulation. For PK Electrics there are so many supplier provide cables, switches, sockets and light fittings to market, its sell amount growing slower than before, may caused by the fierce competition. For more Market space and profit, international market entry is a good choice.Secondly, it is depends on market-related factors. Reflected in competitors already there or planning to go and can not to be at a disadvantage, untapped markets provide new opportunities. Economy globalization make the global smaller and smaller, many company has already do their business all over the world, they enter Chinese market, and other country markets, they are the powerful opponents, so for exist PK Electrics should expand its business, because over the last two years, the rate of growth has begun to decline with sales rising 5% and profits by 2% last year, this maybe caused by competition. And as China joining WTO affect our economy, Chinese firm can get more chance to enter international market, PK Electrics should expand its business into other country before more Chinese firms do the same. And PK can occupy oversea untapped markets, and get its new opportunities.Thirdly, the production-related factors involved close proximity to raw materials, availability of resources, advanced technology. For PK Electrics, it can learn advanced technology from the oversea firms.Fourthly, cost-related factors relate to two aspects, it is cheaper to manufacture goods in a foreign country tan to export sometimes; and two major deciding factors, work force wage, capital and transportation. Work force abroad is cheaper than china in some areas, like Africa. And consideration about lower interest rates, appropriate exchange rates, convenient transportation, PK Electrics can enter international markets to again its sell amount.3.0 The sources of information for PK Electrics before enter international marketThere are two sources of information. Fi rms can use these to assess the countries’ market.Primary sources are information get straightly from target country in detail. This way is verbose, it have a high cost, take a long time, but can get the accurate information for specific products. It can be achieved by three ways. Trade fair is display product to the public, so firms can get orders. Trade mission is the firm dispatch staff to the target countries and set up an office provides information about product and firm and service after purchase. PK Electrics can choose trade fair for it’s provide information directly, and low cost. And PK can also choose trade mission for provide more perfect service and build good prestige.Secondary sources are information get from some medium immediately, they are exist already but may be sweeping, and home country can collect them as a base of Primary sources. There are many sources, first, WTO website; it provides basic information and trade policy of member countries. Second, Hoovers online is a database of business, PK can analysis the attraction of each market, and survey the competition of Electrics industry in a market. Third, economist intelligence unit provide the new economy information of many country, like economic outlook, venture capital,political stability, industry sectors, business culture, tourism, e-commerce and so on. It is a good Information source for PK. Fourth, organization for economic cooperation and development provide the information of4.0 The key opportunities and threats for entering into international marketsIn the matter of political factors, if the government is stable is important, it will affect the long-term dealings of firm. The firm should consider the relationship between home market government and potential market government. Firms also have to think about the potential country’s ideology, like if there is a free market economy, and the informal relationships. The political risk can be caused by three reasons, the industry level, the company level and the national-level risk. In the national-level risk, problem can be caused by changes in foreign trade policies, for PK Electrics, the change of this aspect is China join in the WTO, it’s a opportunity, also a threat, it’s a platform for firms.As for legal factor, a country’law system determines the rules of doing business, firms should consider this Influence factor, like the domestic legal system, the structure of company law, local laws. The protectionist policies may cause a big hard for firms’ product export; there are two forms of protectionist policies, tariff barriers and non-tariff barriers, non-tariff barriers involved import quotas, import license, embargo, refund policy, undervaluing currency, and anti-dumping duties on imports, regulations and procedures. For PK Electrics, if the tariff is too high, it’s not the right time to enter the international market, and if there is safety certification of Electrics product, it can be an extra requirement.Let’s see the economic factors; it partly depends on human resources, the size and growth of the population, immigration trends, age distribution, urbanization, and capabilities. For PK Electrics, the index number of GDP, GNP should be considered, and a large number of populations are an opportunity, also a threat; it can be a big market before it doesn’t have a high rate of unemployment. And a important factor isthe monetary exchange rates, it can make a deficit of doing business, for PK Electrics, it should use a hard currency to accounts.In the matter of technical factors, a lack of technology will make sell goods and satisfy customer difficult. It can be divided into four parts, transportation infrastructure, communication infrastructure, technological factors, and commercial infrastructure. According to the case, PK should pay attention to the different requirement of the electrical appliance and voltage, for example, the shape of plug and foot of bulb.As for socio-cultural factors, one country’s cultural resolve the requirements of the product and business contact in a market. Like the language, nationalism, time and punctuality, personal space, hand gestures and so on. For PK Electrics, it is necessary that change its trademark, Product name and packaging to the language of target country, and Adapt to their custom.And according to the case, PK Electrics has its own Competitive advantage; its price-based promotions can attract customers, and it has a good reputation for its low price, good quality and customer service.5.0 The process used by PK Electrics to select apposite markets There are two processes to select apposite markets, PLEST, Porter’s five forces. The PLEST is the first process, it checkout the external environment, analysis target country comprehensive situation. Then firms should use Porter’s five forces checkout the internal environment, analysis internal market competition environment and attraction, it’s the secondary Screening.Porter’s five forces involve potential entrants, suppliers, buyers, substitutes. For PK Electrics, there is not too much bargaining power of customer, because the cost and price of electric product is low enough. But the threat of new entrants is exist; it is easy to enter Electric industry for its low technology and cost. Threat of substitute’s products is less, because there are no product can replace electric goods. Competitive rivalry within this industry is fierce for there are too much producers. Power ofsuppliers isn’t strong for the low cost of raw material.After these two processes, firm can chose the most appropriate country market to enter. And firm should draw up its own distribution strategies on the basis of particular situation. There are four parts of strategies, product, pricing, place, and promotion.6.0 Available modes of market entry for PK ElectricsThere are two kinds of modes of market entry.Exporting is the initial stage of enter international market, it is the one commonly used. And for some country, it may be the only entry mode available. It includes two sides. In direct exporting, the export is not involved in the actual export process; it is replaced by a third party. Export house are firms that facilitate exporting on behalf of the producer. The three types are confirming houses that provide credit to customers for producer, export merchants that act as export principals, they buy goods from producers and sell them to other countries, and manufacturers’ export agents are a home organization, it get commission by sell goods abroad for producers as an agent. PK Electrics can choose one of those for low risk and cost, but low understand of the demand of international market. Piggybacking known as one producing organization use its international marketing channels to sell another producer’s goods with their goods together. The carrier can be a simple transporter, an agent, or a merchant for rider. PK Electrics can be a rider of one producing organization, sell its cables, switches, sockets with a kind of electric goods of carrier, by this way, although rider have no control of price, promotion and place and lack market contact, it undertake minimal risk, no previous experience required and limited commitment. Direct export is a method may have no intermediary; sales are made directly to abroad customer by producer. A common form is via-commerce on the internet. It can be sales to final user, PK Electrics can chose it for total control, all the profit and getting more information from customer, but it undertake high risk and cost. Agents is an overseas firm hired to help a sales contract between the exporter and their customer, it earn the commission,and don’t have goods. For PK Electrics, it has low political risk and little investment required.Overseas production is more deeply mode. When a firm wants more stable, long-term solutions and profitable of their business, it will choose this method, producing goods abroad. Franchising is involved franchisor and franchisee and a contract between them, the contract set a rule that franchisee can sell goods and use trademark, operation and management way by pay franchisor money. PK Electrics can choose it for low cost and risk and high control. Contract manufacture is a firm in a high-cost country reaches agreement with a low-cost manufacturer to produce goods. It is low risk and cheap labor but high cost for PK Electrics. Direct foreign investment means home firm set up factory overseas. It has a number of forms, joint ventures, international acquisitions or wholly-owned subsidiary. This method can have high control, and get more information from customer but high cost for PK Electrics. Turnkey contracts are a firm builds an operation and manages it for a stipulated period. This mode is suitable for large capital projects, such as hospital, plants, and airports. It is not suitable for PK Electrics.7.0 The most appropriate method and the criteria of market entry for PK ElectricsThe most appropriate method is agents; using this method PK Electrics can have medium control of business, put into low cost, have low risks and high speed, and a good level of commitment, because the agents have expensive knowledge and experience of market. The criteria are based on five key factors, cost, commitment, control, speed, and risks.8.0 ConclusionThose are all expound of outcome1-2 with the case PK Electrics, there are mainly six points. First, the reason for PK Electrics international markets entry, second, the sources of information for PK Electrics before international markets entry, third, theopportunities and threats for entering into international markets for PK Electrics, fourth, the process used by PK Electrics to select apposite markets, fifth, available modes of market entry for PK Electrics, sixth, the most appropriate method and the criteria of market entry for PK Electrics.BibliographyInternational Marketing: An Introduction (Version 2), Beijing: China time economy, July, 2009.International Marketing: The Mix (version 1), Beijing: China time economy, January, 2007.//。