Practical obstacles like taste can be difficult to predict, in terms of how entrenched they may be, unlike simply adopting to bowing rather than shaking hands on a business trip. Dealing with local corruption is also hard to fully explain in an educational seminar for managers going to work abroad, versus advice on how to dress so as not to offend the local population. Subway is perhaps the best example of how to positively adapt to local needs and tastes. In contrast, Domino's as a product was to some degree stymied by the nature of being a chain pizza business. On one hand, it was flexible enough to take into consideration some local needs, including daily rhythms of life, a belief in feng shui, and simple weather conditions that affected delivery logistics. But the fact that the Italian conception of pizza was different than that of most Americans, in terms of Domino's cheesy, sweet approach to the food, there was no way that it could have become acceptable, unless perhaps it had chosen to market its offerings as a product as American as the Big Mac, rather than a cousin of the Neapolitan delicacy. Subway had more flexibility as a chain...
After all, Domino's heavily promote its Brooklyn -style pizza -- not Neapolitan pizza -- even in America. But simply boasting that it sold pizza, especially if its price point was not very low in comparison to local Italian offerings, was ineffective. This strategy did not take into consideration local pride in the product, or the expectation of Italians for a different type of sauce, texture of bread, and sauce-to-cheese ratio.
These can create significant management problems due to the impact of different cultures, taxation and pricing, the complexity of choosing the optimal structure for international business, high political risks and many other issues. The specifics of financial planning is determined by the following problems, including volatility in exchange rates, particularly the national taxation, revaluation of currencies, possible difficulties with the export of funds from abroad, problems with in-house transfer pricing,
International Business Environment Outline and critically discuss the criteria by which they judge whether or not a country is stable. International businesses faces a number of risks when they decide to operate overseas. Their ability to make sound investment decisions and to address those risks is directly related to the stability of the country in question. Firms therefore need to develop mechanisms for measuring stability before making the decision to enter a
The localization strategy into Vietnam is also characterized by the fact that it ensures higher levels of business diversification for the company, which in fact serves the number one rule of investments -- portfolio diversification. This in essence means that, through the penetration of the Vietnamese market, the company would increase its sources of revenues and it would decrease its dependency on the more traditional manufacturing plants. Finally, the localization strategy
International Business South Korea International Business South Korea: Introduction and Business Potential South Korea is the 12th largest economy in the world. It has made tremendous growth in all manufacturing, industrial, and services sectors to become economically and technologically strong. Due to rapid economic growth and positive governmental behavior, South Korea has become an attractive target country for foreign corporations for their international business expansion strategies (Central Intelligence Agency, 2013). However, these foreign
International Business The Effect of National Culture on the Choice of Entry Mode Foreign direct investment has increased dramatically over the last couple of decades and this trend has been studied. However, it is argued that the entry model form many of these investments has not been studied with the same rigor. It is commonly thought the composition of national cultures on Hofstede's scale and the distance between the two cultures influences
International Business 5 Pertinent Topics The Cultural Effect on International Business Description Political Issues Affecting International Business Description Regional Economic Integration AND INTERNATIONAL Business Description Impact of Exchange Rates on International Business Description Corporate Strategy in International Business Description An Analysis of International Business Today No one can dispute the fact that the world economy is increasingly globalizing as we move into the 21st century. As this internationalization of business grows, there is an increasing challenge being faced to deal with cultural
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