Political Challenges in

operating Global
A practical approach - Doing business across
borders – first lessons
• “Change Your Mindset” - First and foremost - so that you can appreciate
the new country’s culture, their language, customs and laws. Remember,
going forward you will be regularly working with cross cultural teams,
people with diverse nationalities face to face or virtually. the ability of the
company to achieve global localisation or ‘Glocalisation’ i.e. the ability to
be an insider or a local company and still reap the benefits of global
operations. Think global and act local is the meaning of Glocalisation and
to be successful in international marketing, companies must have the
ability to think global and act local.
• I call them “Environmental Factors”- These needs to be studied, researched
and addressed in the home country first.
• International Marketer tools - Develop global awareness and sensitivity to
view the globe as the market place to do and close business successfully.
Developing global awareness – simple steps
• OBSTACLES - Be ready to confront many types of obstacles with a
degree of optimism and willingness to learn.
• KNOWLEDGE - Develop knowledge of the global market specifically in
terms of the changing social, political and economic trends.
• RELATIONSHIP - As the selected International Manager develop the
habit of networking and relationship building in other countries.
What have been the past stages
• 1970s – “standardization versus adaptation”
• 1980s – “global integration versus local responsiveness”
• 1990s – “global integration versus local responsiveness”
• 2000s - The trend back toward localization is caused by the new
efficiencies of customization made possible by the Internet and
increasingly flexible manufacturing processes.
• Scenario Today - From the marketing perspective customization is
always best. As global markets continue to homogenize and diversify
simultaneously, the best companies will avoid the trap of focusing on
country as the primary segmentation variable.
What is Global Market Orientation
• A Global company that is successful is due to the fact that they have
be able to develop marketing plans that strives for standardisation
wherever it is cost and culturally effective. Eg: McDonald’s.
• To become a successful global player, study the common consumer
characteristics and behaviour.
• Then apply key segmentation variables across countries and regions.
Stages to start the process
• Phase 1: Preliminary Analysis and Screening – Matching Company and
Country Needs.
• Phase 2: Adapting the Marketing Mix to Target Markets.
• Phase 3: Developing the Marketing Plan
• Phase 4: Implementation and Control
Good trade opportunities and protectionism
• International trade is good for both developed and developing
countries across the globe.
• Free international markets help underdeveloped countries become
self-sufficient , that there is a lot of talk about free trade without
barriers.
• Have we succeeded in this – No, but it possible with controlled and
equitable reduction in trade barriers so that the consumer (end user)
should benefit.
Importance of culture in global marketing
• Culture is the single most important aspect that a foreign marketer
should consider before thinking of entering a new country and start
preparing marketing plans and strategies.
• Your marketing plans and strategies does not fully cover or address
the country’s business customs, political situation and changing legal
requirements.
Global challenge – change your management
style
• Information and competition or relationship building and transaction
cost reduction.
• What about environmental consideration which can significantly
affect the attitudes, behavior and out look of the foreign
businessman.
• An outsider is always an outsider and his business is always going to
be foreign. Motivation and adaptation is the key to success in a
foreign soil.
Is political environment a concern
• Very much so. The foreign firm must strive to make its activities
politically acceptable or it may be subject to a variety of politically
managed harassment.
• Try selling a toothpaste made in Israel in any of the Middle East Arab
countries. Very simple, you will pay with your like.
• How to lessen political vulnerability: JV’s, Increasing investor base,
planned domestication, etc.
International marketer to address legal issues
in the host country
• The varying legal system of the world and their effect on business
setup and transactions can be a minefield.
• Protection of intellectual property rights, enforcement of antitrust
legislation.
• New to the legal debacle is the internet which actually creates a new
set of legal entanglements which needs to be addressed on an
ongoing manner.
• Solution - To run a successful marketing and business in an overseas
market, one need to be equipped with a group of competent counsel
from home and the host country.
Is Market research important
• Please remember that in a foreign market, seeking information about
customer attitudes is culturally very different and conditioned.
• While seeking information, the international marketer needs to
ensure that the respondent’s privacy is not offended.
• Gathering information – Many foreign markets have inadequate
and/or unreliable bases of secondary date which is going to be a
challenge.
• Solution – Use multiple methods, triangulation, include decision
makers to interact with customers in foreign land.
Which markets to tap –
developed/developing countries?
• A big challenge today - In today’s ever expanding world trade with
varying needs and wants one needs to grab the opportunity at the
earliest.
• As an International Marketer you must be able to react to market
changes rapidly and to anticipate new trends within constantly
evolving market segments that may not have existed in the recent
past. As they say – smell an opportunity.
• Marketers must focus on devising marketing plans designed to
respond fully to each level of economic development. In this regard, it
is best to seek new business opportunities in the so called emerging
markets.
Is Emerging Markets an answer
• It is a well known fact seen since the last 15 years that fast developing
markets (BRICS) are experiencing rapid industralisation and a fast
growing consumer market (The Indian Middle Class).
• These markets present excellent new opportunities for foreign
investment. Wal Mart is very strong in China with 50 units across the
country. Procter & Gamble – present all over the globe. Nestle –
present in about 90 countries, Coca Cola, etc
• Assessing Business potential - The International Marketer must be in
a position to make an assessment of the existing level of market
development and receptiveness within the chosen country.
Global Marketing Management
• Golden Rule – Expanding market opportunities come in with
increased competition for all level of global marketing.
• To maintain a viable position, we need to have a global perspective.
• It essentially requires quality products designed to meet the ever
changing customer needs and rapidly advancing technology.
How to organise the company to face
international competition
• Because organizations need to reflect a wide range of company-specific
characteristics, devising a standard organizational structure is difficult.
• Companies are usually structured around one of three alternatives:
✓ Global product divisions responsible for product sales throughout the
world
✓Geographical divisions responsible for all products and functions within a
given geographical area
✓A matrix organization consisting of either of these arrangements with
centralized sales and marketing run by a centralized functional staff, or a
combination of area operations and global product management
Goals for an International Marketer
• International Marketers - Your goal is to find the just market for your
organisation. You need to address cost containment, customer
satisfaction, facing competition. This means that you need to refine
your company’s international business practices.
• How – By relooking at company goals, undertaking collaborative
relationships, establishing strategic international business alliances,
assist your company management in their strategic planning with
your inputs.
To achieve success in International Marketing
• Identify alternate market entry strategies
• The growing globalisation of markets that gives rise to standardisation
must be balanced and adapted for successful acceptance in a new
marketplace.
• Adaptation – key mantra
Global marketing – Relationship Management
and adaptation
• Communication - Today as we know global communication and
socializing forces have actually fostered a homogenization of values,
needs and tastes in a significant section of the population across all
cultures.
• How do you view a product: Today each product must be viewed in
light of how it is perceived by each culture group which it come in
contact with.
Understanding a product – prime important
• Remember - What is acceptable and comfortable within one group
may be resisted within other group.
• As established product in one culture/country may be an innovation
in an other culture in developing products for foreign markets.
• The end result is “adaptation” to the needs of the consumer in a new
market.
Is International Marketing a good profession
to enter
• YES - Today it is the most sought after assignment:
• Advantages:
1. Excellent pay, perks and promotions
2. Opportunity to travel globally at company expense
3. NRI - Social recognisition
4. Able to develop new friends/business contacts globally
5. Makes you a “Global Coverage Expert”
6. Allows you to learn a foreign language
7. New Job opportunities - Much sought by Multinationals globally.
8. Allows you to deal with people of diverse nationality and cultures
9. Brings new business and opens new markets to the employer thereby helping the
company grow globally, increase profiling and shareholder value.
Global Expansion Challenges – quick summary
• Language, culture and regulations are often difficult barriers.
• Leadership must invest significant time and energy.
• Note: success factors in one country may not translate globally.

• How to overcome them initially: