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Management decision in a foreign market

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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?

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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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Globalization Expansion and Strategy Decisions

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Globalization Expansion and Strategy Decisions

Main Scenario:
In this main scenario, you work for a mid-size US company that manufactures domestically and markets lighting products (i.e. different types of lamps: portable battery lamps, arc lamps, filament lamps etc). The company you work for has no international manufacturing or vendors and does not outsource. To your management team, make several strategy decisions (best alternatives) for your company in a report which details the compiling information gather in each of the three part scenarios below.

Your 3 scenario parts to investigate:

Part 1:
Your management team is considering investing in a foreign country and has requested a report regarding the attractiveness of alternative countries based on the potential return of FDI. Accordingly, the ranking of the top 25 countries in terms of FDI attractiveness is a crucial ingredient for your report. A colleague mentioned a potentially useful tool called the "FDI Confidence Index" which is updated periodically.
Using this index (and other information gathered), make a recommendation to the management team of 5 possible countries for your company to make an investment in and why.

Link for the FDI Confidence Index below in red:
http://www.atkearney.com/index.php/Publications/foreign-direct-investment-confidence-index.html

Link investment markets Article by AT Kearney:
http://www.businessweek.com/globalbiz/content/mar2010/gb2010035_430768.htm

Based on the FDI Confidence Index, I selected these five countries: China, India, Brazil, Indonesia and France although the last two countries I am not so sure are a good choice (these may be replaced for this response if necessary).

Part 2:
Management is using your recommendations and wants you to evaluate the specific countries for this direct investment. They have decided to pursue international expansion opportunities in one of your five recommended countries. To achieve economies of scale, management is aiming toward a strategy of minimum local adaptation.
Focusing on your five recommendations and using the Countries section of globalEDGE (select Countries on the main menu), prepare a summary that features those aspects of the product [you chose] where standardization will simply not work and adaptation to local conditions will be essential and why.

Using this information make a recommendation to your management team of which would be the best two countries to pursue and why.
Link for Countries section of globalEDGE:
http://globaledge.msu.edu/Global-Insights

Part 3:
Due to the current global economic crisis, your management team would also like you to investigate exporting options to your five recommended countries. Since this would be a new venture for your company, you will need to research resources that provide guidance for companies that wish to expand their markets through exporting. globalEDGE provides links to these under a category called "Trade Tutorials". Identify three such sources recommended by globalEDGE and provide a brief description of the services available for new exporters through each of these sources. Recommend one to your management team.

Three recommended by globalEDGE:
1. globalEDGE Export Tutorials (I would recommend this one to the management team).
2. globalEDGE Online Course Modules
3. globalEDGE: Glossary of International Business Terms
Links to globalEDGE Trade Tutorials:
http://globaledge.msu.edu/Global-Resources/Trade-Tutorials

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