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Management decision in a foreign market

I am the marketing manager for a U.S. manufacturer of paper products (including paper plates, paper towels, napkins, toilet paper, and tissues). My company is considering entering the Argentinean market. Consider the following:

-Should the pricing decisions in Argentina be delegated to the local managers? Why or why not?
-Should the advertising message that has been effective in the U.S. be used in Argentina? Why or why not?
-What are some of the considerations that might be taken into account regarding product attributes?

Solution Preview

When it comes to doing business in Argentinean there are many things that need to be considered. Pricing of the products in this new market place is one of them. When it comes to developing a pricing plan in a foreign market there are many new elements to consider. While the local managers in Argentina should be active participants in the pricing decisions they should not have complete control over it. This is because of the many elements that are involved in the overseas venture and how the goals of the new market need to align with and support the goals in the original market. The organization needs to consider the external elements that will affect their pricing strategy like competitive pressures that they will face in the new market, the demand level, legal and governmental restrictions, as well as the foreign exchange supply (Smali & ...

Solution Summary

When venturing overseas with a US based company there are many decisions that need to be made. Some of these decisions will be how to advertise, and what will be the best pricing strategy for the new market. What works for the organization in the US market may not transfer into the foreign market so there are many decisions that need to be considered before the venture is made.

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