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Culture and Global Channel Decisions

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Besides institutional differences (such as Laws), why does culture matter with respect to global channel decisions?

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1. Besides institutional differences (such as Laws), why does culture matter with respect to global channel decisions?

Not only are the risk factors underlying the mode of entry largely contingent on the nature of the foreign environment, but these environmental forces also influence the development of marketing strategies and global channel decisions. Decision making for expansion into global markets is strategically similar to the decision-making process guiding domestic marketing endeavors. More specifically, four marketing strategy variables product, price, distribution, and promotion need to be as systematically addressed in the context of international marketing as they are in formulating domestic marketing strategies. What is different about international marketing, however, is the environment in which marketing decisions must be made and the influence that environment has in shaping marketing strategies. The principal components of the global, international marketing environment include cultural, political, legal, ...

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Besides institutional differences (such as Laws), this solution explains why culture matters with respect to global channel decisions.

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This case analysis is designed to encourage you to analyze the distribution strategies of two multinational firms selling related products in Africa, with a focus on cultural issues related to those strategies.

Case Assignment
Compare and contrast the distribution decisions of multinational corporations Coca-Cola and Nestlé in Africa. In particular conduct research and identify significant cultural issues which would be relevant to the development of those strategies.

Stanford D, (2010, November). Africa: Coke's Last Frontier. Business Week,1. Viewed on May 22, 2011, at http://www.businessweek.com/magazine/content/10_45/b4202054144294.htm

Stanford D, (2010) Coca-Cola's Last Unquenched Market. Businessweek.com Viewed on May 22, 2011 at http://feedroom.businessweek.com/?fr_story=d66edbc2f051289497ef3807443fe3db83330116

Burros M and Warner M, (2006) Bottlers Agree to a School Ban on Sweet Drinks, New York Times, May 4. Viewed on May 22, 2011 at http://www.nytimes.com/2006/05/04/health/04soda.html

Rasooldeen M, (2010) Soft drinks to be banned in hospitals. ARAB NEWS Jun 29. Viewed on May 22, 2011 at http://arabnews.com/saudiarabia/article75037.ece

Anon, (n.d.) Nestle invests in manufacturing, distribution in Africa. Viewed on May 22, 2011 at http://www.reliableplant.com/Read/25433/Nestle-invests-manufacturing-distribution

Maritz J, (2010). Nestlé to boost operations in Africa. July 5. Viewed on May 22, 2011 at http://www.howwemadeitinafrica.com/nestle-to-boost-operations-in-africa/2316/

Wilson S (2008). Coca Cola distribution chain can save lives in Africa. Viewed on May 22, 2011 at http://tech.blorge.com/Structure:%20/2008/07/30/coca-cola-distribution-chain-can-save-lives-in-africa/

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