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Chapter 12 Entrepreneurship by Zubair A Khan.

Chapter 12 Entrepreneurship by Zubair A Khan.

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Published by Zubair A Khan
Chapter 12 Entrepreneurship by Zubair A Khan.
Chapter 12 Entrepreneurship by Zubair A Khan.

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Published by: Zubair A Khan on Mar 27, 2010
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Chapter 12 - Global Marketing Strategies For Entrepreneurs
 Nothing Sucks Like an Electrolux”-Scandinavian Translation of English Product Slogan“Pepsi Bring Your Ancestors Back from the Grave”-Chinese Translation of “Pepsi Comes Alive”
Learning Objectives
Students will be able to:1.Explain why "going global" has become an integral part of entrepreneurs marketingstrategies.2.Describe the principal strategies for going global.3.Explain how to build a thriving export program.4.Discuss the major barriers to international trade and their impact on the global economy.5.Describe the trade agreements that will have the greatest influence on foreign trade into thetwenty-first century.
Instructor’s Outline
I.
Introduction
A.
Introduction:
1.
It is no longer a surprise to entrepreneurs that they face global competition in themarketplace.
2.
The new economic world order is the result of the interaction of dynamic forces.
a)
Culture, politics, and the basic social fabric of nations are evolving atunprecedented pace as change is facilitated by technology and challenged byglobal economic and competitive forces.
 b)
Twenty-first century entrepreneurs recognize that the markets of today aresmall in comparison to the market potential of tomorrow.
c)
The world market for goods and services continues to expand fueled by aglobal economy, which welcomes consumers with new wealth.
3.
Global business is accepted as a natural phenomenon, and new entries join daily.
a)
The tools of global business are not beyond the reach of any entrepreneur.
II.
Why Go Global?
A.
Reasons
1.
Failure to cultivate global markets can be a lethal mistake for modern businesses,whatever their size.
a)
Increasingly, small businesses will be under pressure to expand intointernational markets, to consider themselves businesses without borders.
2.
The Benefits
a)
Offset sales declines in the domestic market.
 b)
Increase sales and profits.
c)
Extend their products' life cycle.
d)
Lower manufacturing costs.
e)
Improve competitive position and enhance reputation.
240
 
241
Section IV Small Business Marketing Strategies
f)
Raise quality levels.
g)
Become more customer oriented.
3.
Becoming a global entrepreneur does require a modification in the mindset of thefirm.
a)
Success in the global economy also requires:
(1)
constant innovation
(2)
staying nimble enough to use speed as a competitive weapon
(3)
maintaining a high level of quality and constantly improving it
(4)
 being sensitive to foreign customers’ unique requirements
(5)
adopting a more respectful attitude toward foreign habits and customs
(6)
hiring motivated, multilingual employees
(7)
retaining a desire to learn constantly about global markets
4.
The entrepreneur needs to prepare by asking and answering the followingquestions:
a)
Is there a profitable market in which our firm has the potential to be successfulfor an extended period of time?
 b)
Does our firm have the specific resources, skills and commitment to succeedin this venture?
c)
Are there pressures domestically that are forcing the firm to seek globalopportunities?
d)
Do we know the culture, history, economics, value system, etc., of thecountry(s) which we are considering?
e)
Is there a viable “exit strategy” if the conditions change or the new venture isnot successful?IN THE FOOTSTEPS OF AN ENTREPRENEUR Blasting Their Way into International MarketsSUMMARYEngineered Demolition, a family business with 20 employees that operates in a unique nichemarket that spans the globe: explosive demolition. The Minneapolis-based company is one of  just a handful of businesses worldwide that uses implosion to destroy old buildings inmetropolitan areas to make way for new ones. Chong and Kelly spend a great deal of timeeducating clients about the implosion process, dispelling the misconceived images people haveof debris shooting out for hundreds of yards from the work site. After studying the blueprints of the target building, Engineered Demolition workers plan the blast, emphasizing four keyelements: the direction of the fall, how straight the fall is, the material structure of the building,and the proximity and location of adjoining buildings.As one might imagine, implosion is a highly specialized field that requires extensive training.Both Kelly and Chong hold blaster's licenses valid in the United States and internationally.Engineered Demolition currently averages about 75 jobs a year, but business is doubling aboutevery four years. Chong says that the number of jobs from international customers is increasingrapidly. Currently, about one-third of the company's contracts come from international clients.Although used for years in the United States and Canada, demolition by implosion has caught on
 
2
. Describe the principal strategiesfor “going global”
Chapter 12 -
 
Global Marketing Strategies For Entrepreneurs
242
in Asia, Europe, and Latin America only recently. Performing an implosion in these countries ismore difficult because of the time required to get the necessary permits. As their internationalclientele increases, Chong and Kelly have learned to be more sensitive to their customers'cultural preferences and customs.Engineered Demolition is actively pursuing business in European markets. Chong was one of 22women who participated in a recent Women in Trade mission to Europe led by the U.S.Commerce Department. The exposure has already paid off. Not long after Chong returned fromthe trip, Engineered Demolition landed one of its most unusual jobs in Europe. Not only areChong and Kelly successful, but they also love their work.1.What factors are contributing to the growth of Engineered Demolition's international business? Which countries should the company target? Why?
Answer
 
-
A growing need for a specific service that serves a niche market. A reputation for quality and safety--i.e. doing the job right--and their sensitivity to national cultural issuesrelated to the service they provide.2.Work with a team of your classmates to brainstorm ways that Engineered Demolition canlocate international customers.
Answer
- Students' responses will vary but should take the Web, direct mail to constructionand architectural firms, large city governments, etc., into consideration.
III.
STRATEGIES FOR “GOING GLOBAL”
A.
Introduction
1.
Entrepreneurs have a variety of strategic options to choose among.The principal strategies are:
a)
The World Wide Web
 b)
trade intermediaries
c)
 joint ventures
d)
foreign licensing
e)
franchising
f)
counter-trading
g)
 bartering, exporting
h)
the establishment of international locations
2.
Whatever the single or combination of strategic options, theentrepreneur selects the mindset of the organizations leadershipmust be broadened.
3.
Becoming a global business depends on instilling a global culture throughout theorganization that permeates everything the company does.
4.
An entrepreneur must understand the needs of the customers in the newmarketplace.
a)
See Figure 12.1.IN THE FOOTSTEPS OF THE ENTREPRENEUR Overcoming Barriers Online

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