International Business Management
P r e p a r e d b y : V . H a r i b a b u , M B A .
The international companies learn that the extensionstrategy which will not work all times. Example: Toypet cars, produced inJapan to the U.S.A. but Toypet was met successfully in the U.S.A. so theinternational companies turn into multinational companies when they startresponding to specific needs of the different countries markets regardingproduct, price, and promotion.4.
A global company is one which follows all the followingconditions:-has a global strategy-treats all its activities in the context of a whole-world system-serves global customers with excellence-has a business delivery system highly sensitive to local customers needs-serves local customers with excellence5.
This type of company produces, markets, investsand operates across the world. It links global resources with global marketsfor profit.
International Business Approaches:
International business approaches are similarto the stages of internationalization. Douglas Wind and Pelmutter advocated fourapproaches of international business. Namely,I.
Ethno centric approach,II.
Poly centric approach,III.
Regio centric approach, andIV.
Geo centric approach.
Ethno centric approach:
The domestic companies formulate theirstrategies, their product design and their operations towards the nationalmarkets, customers and competitors if the excessive production more thanthe demand for the product either due to competition or due to changes incustomer preference then company export the same product designed fordomestic markets to foreign markets under this approach.This approach is suitable to the smaller companies.