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ASSESSMENT TASK 3 - BUSINESS STRATEGY

Due Date: 25 August 2014, Monday.


Word Limit: 1,000 words without bibliography.
Question E!"#ain t$e %o##o&in' statement
"The only difference between strategic planning for your domestic
market and an international market, is dealing with currency and
language differences".
Ans&er
() Introdu*tion) Business expansion requires the onte!plation o" a
nu!ber o" "ators. #hese "ators o"ten "or! the part o" the o$erall greater planning
proess. As re"leted in the state!ent in question, be"ore explaining it, we need to
disuss "ew rele$ant i!portant "ators suh as strategi planning, do!esti and
international !ar%et. &inally, i!pat o" urreny issues and language di""erenes will
be disussed. All these are on"erred in the subsequent paragraphs:
a) W$at is Strate'i* +#annin' , A syste!ati proess o" en$isioning
a desired "uture, and translating this $ision into broadly de"ined goals or
ob'eti$es and a sequene o" steps to ahie$e the! ()eb &inane *n, 2014+.
*n other words, strategi planning is a set o" state!ents desribing the
purpose and ethial ondut "or an organi,ation together with the spei"i
strategies designed to ahie$e the targets set "or eah o" these (-xeuti$e
.onsultany /er$ie, 2014+.
-) W$at is a Domesti* Mar.et , *t is the part o" a nation0s !ar%et that
represents the syste!s o" trading seurities o" entities loated within that
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nation (*n$estor )ords, 2014+. 1o!esti Mar%eting is onerned with
!ar%eting praties within the !ar%eter2s ho!e ountry (/al!an, 2011+. #his
in$ol$es the o!pany !anipulating a series o" ontrollable $ariables, suh as
prie, ad$ertising, distribution, and the produt, in a largely unontrollable
external en$iron!ent that is !ade up o" di""erent eono!i strutures,
o!petitors, ultural $alues, and legal in"rastruture within spei"i politial or
geographi ountry boundaries (Adler, 2011+
*) W$at is an Internationa# Mar.etin' , Aording to A!erian
Mar%eting Assoiation, International Marketing is the multi-national
process of planning and executing the conception, prices, promotion
and distribution of ideal goods and serices to create exchanges that
satisfy the indiidual and organi!ational ob"ecties# (/al!an, 2011+. #his
in$ol$es the o!pany operating aross se$eral !ar%ets in whih not only do
the unontrollable $ariables di""er signi"iantly between one !ar%et and
another, but the ontrollable "ator in the "or! o" ost and prie strutures,
opportunities "or ad$ertising, and distributi$e in"rastruture are also li%ely to
di""er signi"iantly (Adler, 2011+.
/) Di%%eren*es -et&een Domesti* and Internationa# Mar.etin') Beyond the
language and urreny related di""erenes a!ong do!esti and international
!ar%eting as told in the state!ent, there are a nu!ber o" di""erenes between the
do!esti and international !ar%eting suh as (Adler, 2011+ :
a) 1o!esti !ar%eting is the prodution, pro!otion, distribution, and sale
o" goods and ser$ies in a loal !ar%et while international !ar%et is the
prodution, pro!otion, distribution, and sale o" goods and ser$ies in a global
!ar%et (3runert, 2014+.
-) 1o!esti !ar%eting requires lesser "inanial resoures while
international !ar%eting requires huge "inanial resoures. Again, issues
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in$ol$ing priing, unsuitable produts or tehnology, and tax e$asion are
o!!on proble!s in international !ar%eting (4uliase!, 2011+.
*) *nternational !ar%eting is !ore hallenging and requires !ore
o!!it!ent "ro! the o!pany beause o" the unertainty and di""erenes in
laws and regulations in the global !ar%et while do!esti !ar%eting deals only
with the laws and regulations o" one ountry (4ohnson, n.d.+.
d) 1o!esti !ar%eting deals only with one set o" onsu!ers while
international !ar%eting deals with di""erent types o" onsu!ers with di""erent
tastes (/al!an, 2011+.
e) *n do!esti !ar%eting, the o!pany an ha$e the sa!e poliies and
strategies while international !ar%eting requires di""erent strategies in the
pro!otion o" their produts (5a!!ond, n.d.+.
%)
3) Im"a*t o% 0urren*1 Issues on Internationa# Mar.etin')
(1+ E*onomi* Ris.. #he eono!i ris% o!es "ro! the inability o" a
ountry to !eet its "inanial obligations. #he hanging o" "oreign6in$est!ent
or7and do!esti "isal or !onetary poliies. #he e""et o" exhange6rate and
interest rate !a%e it di""iult to ondut international business (8%olo, 2009+.
(2+ 2inan*ia# Ris.. #his area is a""eted by the urreny exhange rate,
go$ern!ent "lexibility in allowing the "ir!s to repatriate pro"its or "unds outside
the ountry. #he de$aluation and in"lation will also i!pat the "ir!0s ability to
operate at an e""iient apaity and still be stable. Most ountries !a%e it
di""iult "or "oreign "ir!s to repatriate "unds thus "oring these "ir!s to in$est its
"unds at a less opti!al le$el. /o!eti!es, "ir!s0 assets are on"isated and
that ontributes to "inanial losses (8%olo, 2009+.
3) Im"a*t o% Lan'ua'e Di%%eren*es on Internationa# Mar.etin')
4(5 #he di""erenes in language so!eti!e pose a serious proble!, e$en
neessitating a hange in the brand na!e. &or instane, .he$rolet2s brand
na!e :o$a in /panish !eans ;it doesn2t go<. *n so!e languages, =epsi6
>
.ola2s slogan ;o!e ali$e< translates as ;o!e out o" the gra$e< (/al!an,
2011+.
4/5 *dio!s in$ol$e ;"igures o" speeh< that !ay not be used, literally
translated, in other languages. &or exa!ple, baseball is a predo!inantly
:orth and /outh A!erian sport, so the notion o" ;in the ball par%< !a%es
sense here, but the ter! does not arry the sa!e !eaning in ultures where
the sport is less popular (=erner, n.d.+.
6) Re*ommendations to 78er*ome 0urren*1 and Lan'ua'e Di%%eren*es)
a) Mar%ets and usto!ers are di""erent and hene the pratie o"
!ar%eting should be "ine6tuned and ad'usted to the loal onditions o" a gi$en
ountry. #he !ar%eting !an !ust understand that eah person is di""erent
and so also eah ountry whih !eans that both experiene and tehniques
obtained and suess"ul in one ountry or ountries (Adler, 2011+.
-) As ountries engage in international business transations, any
%nowledge o" "oreign languages would play a !a'or ad$antage in a$oiding
!isunderstandings and "rition (/al!an, 2011+.
*) #he ad$ertising will ha$e to be translated, not 'ust into the generi
language ategory (e.g., =ortuguese+ but also into the spei"i $ersion spo%en
in the region (e.g., Bra,ilian =ortuguese+. (8asionally, "oreign language ads
are deliberately run to add !ystique to a produt, but this is the exeption
rather than the rule+ (=erner, n.d.+.
9) 0on*#usion) As told in the state!ent under onsideration, the urreny and
language di""erenes ha$e a signi"iant i!pat than the other proble!s in ase o"
international !ar%eting. But "ro! the abo$e disussion, other peripheral proble!s
are also e$ident. 5ene, it an be said that, the state!ent :The only difference
between strategic planning for your domestic market and an international
market, is dealing with currency and language differences# is not entirely
orret. 5owe$er, the reo!!endations !entioned abo$e should be addressed to
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!a%e a suess"ul business expansion plan "ro! do!esti !ar%et to international
!ar%et.
T$T%& '(( )$*+, -./&0+I12 I1T*+0/TI$1 %1+
/$1/&0,I$1
W7RKS 0ITED
Adler, 4. (2011, August 1?+. Business Fundamentals. @etrie$ed August 15, 2014,
"ro! www.nx.org: http:77nx.org7ontents7d?db?0>6d>164a46be1A6
d2AB>4?B>bA0C4.>:5?
-!elda, M. (2011, 8tober 12+. Difference Between Domestic and International
Marketing. @etrie$ed August 15, 2014, "ro! www.di""erenebetween.net:
http:77www.di""erenebetween.net7business7di""erene6between6do!esti6and6
international6!ar%eting7
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-xeuti$e .onsultany /er$ie. (2014+. Definition of Strategic Planning. @etrie$ed
August 15, 2014, "ro! www.si!ply6strategi6planning.o!: http:77www.si!ply6
strategi6planning.o!7de"inition6o"6strategi6planning.ht!l
3runert, 4. (2014+. Global and Domestic Marketing. @etrie$ed August 15, 2014, "ro!
http:77business.lo$eto%now.o!7:
http:77business.lo$eto%now.o!7wi%i73lobalDandD1o!estiDMar%eting
5a!!ond, M. (n.d.+. Global Marketing vs. Multi-Domestic Marketing. @etrie$ed
August 15, 2014, "ro! http:77s!allbusiness.hron.o!7:
http:77s!allbusiness.hron.o!7global6!ar%eting6$s6!ultido!esti6!ar%eting6
2>529.ht!l
*n$estor )ords. (2014+. Domestic Market. @etrie$ed August 15, 2014, "ro!
www.in$estorwords.o!:
http:77www.in$estorwords.o!715427do!estiD!ar%et.ht!l
4ohnson, ). (n.d.+. Difference Between International & Domestic Business Strategic
Planning. @etrie$ed August 15, 2014, "ro! www.ehow.o!:
http:77www.ehow.o!7aboutD?>0>?0ADdi""erene6do!esti6business6
strategi6planning.ht!l
4uliase!. (2011, :o$e!ber 20+. !e Problems of Global Marketing. @etrie$ed
August 15, 2014, "ro! www.artilesbase.o!:
http:77www.artilesbase.o!7publi6relations6artiles7the6proble!s6o"6global6
!ar%eting65>9>?AA.ht!l
?
8%olo, /. (2009, 4uly 1?+. "isks in International Business. @etrie$ed August 15,
2014, "ro! www.e,ineartiles.o!: http:77e,ineartiles.o!7E@is%s6in6
*nternational6BusinessFidG1>>1B02
=erner, H. (n.d.+. International Marketing. @etrie$ed August 15, 2014, "ro!
www.onsu!erpsyhologist.o!:
http:77www.onsu!erpsyhologist.o!7internationalD!ar%eting.ht!l
/al!an, M. (2011, 4une 0>+. #otes for MB$. @etrie$ed August 15, 2014, "ro!
www.the!banotes"oryou.blogspot.o:
http:77the!banotes"oryou.blogspot.o!7201170?7de"inition6o"6international6
!ar%eting.ht!l
)eb &inane *n. (2014+. Strategic Planning. @etrie$ed August 15, 2014, "ro!
www.businessditionary.o!:
http:77www.businessditionary.o!7de"inition7strategi6planning.ht!l
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