Professional Documents
Culture Documents
Building The Knowledge Base
Building The Knowledge Base
Learning Objectives
To gain an understanding of the need for research. To explore the differences between domestic and international research. To learn where to find and how to use sources of secondary information. To gain insight into the gathering of primary data. To examine the need for international
management information systems.
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New Parameters
In crossing international borders, a firm encounters parameters not found in domestic business. Examples include:
Duties Foreign currencies and changes in their value Different modes of transportation International documentation Differing modes of operating internationally
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When a firm enters a new international market, the number of changing dimensions increases. Coordination of the interaction among the dimensions is crucial to the international success of the firm for two reasons:
In order to exercise some central control over international operations, a firm must be able to compare results and activities across countries. The firm must be able to learn from its international operations and must find new ways to apply the new lessons learned to different markets.
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Going InternationalExporting
A frequent objective of international research is that of foreign market opportunity analysis. The aim is to utilize a broad-brush approach. Steps to this approach include:
A cursory analysis of general variables of a country. A preliminary evaluation of each individual country. Selection of appropriate markets for in-depth evaluation. Finally, a competitive assessment must be made.
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Going InternationalImporting
When importing, the major focus shifts from supplying to sourcing. Management must identify markets that produce suppliers or materials desired. The importer needs to know:
The reliability of a foreign supplier, The consistency of its product or service quality, The length of delivery time, Government rules and restrictions of the exporting country
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Secondary Data
Secondary data is information that already has
been collected by some other organization. This data should be evaluated regarding the quality of the source, how recent the data is, and the relevance to the task at hand. Because secondary data were originally collected to serve another purpose, they can often only be used as proxy information. Precautions should be taken due to increasing sensitivity to data privacy. Firms must inform their customers of privacy policies.
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Governments
International Institutions
Trade Associations
Service Organizations
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Research Techniques
Interviews Focus Groups
Observation
Surveys
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Delphi Studies
Scenario Building
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Environmental Scanning
Environmental scanning activities
provide continuous information on:
Political, social, and economic affairs internationally Changes of attitudes of public institutions and private citizens Possible upcoming alterations
Two significant methods of environmental scanning are obtaining factual input and content analysis.
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Delphi Studies
Delphi studies are a means for
aggregating the judgements of a number of experts who cannot come together physically. The Delphi technique is particularly valuable because it uses mail, fax, or electronic communication to bridge large distances and therefore makes experts accessible at a reasonable cost.
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Scenario Building
Scenario building involves the identification of
crucial variables and the degree of variation. The possibility of joint occurrences must be recognized. For scenarios to be useful, managers must analyze and respond to them by formulating contingency plans. Through the anticipation of possible problems, managers hone their response capability and in turn shorten response times to actual problems.
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