INTERNATIONAL BUSINESS AND TRADE

Activity 1: Global Companies

ANILAO, ELIJAH JOYCE M.

AQUINO, ERIKA JOY L.
MARAÑO, DONITA MAE P.
MERCADO, ANGELO T.
RESTITUTO, EVE JEREMY Q.
BSA III
C073 TTH 9:00 - 10:30

PROF. ROMERICO A. ALVAREZ

Adviser
ACTIVITY 1: Select a country that has at least 3 global companies – discuss thoroughly the
characteristics of said companies. Then identify three companies in the Philippines and their
products/brand that can have the potential to be world class companies. Also discuss thoroughly
how it can be done.

JAPANESE GLOBAL COMPANIES

Japan is known to be one of the most advanced countries in the world, and for what
reason? Technology. Technology is one of the key elements in any industry that can cause any
company’s advantage over their competitors, both domestically and internationally, in terms
creating products and delivering services. In Japan, their technology advancements and high-tech
inventions are their solutions to the problems that their country is facing. Therefore, they are
surely recognized as one of the world’s leading tech-giants, because they utilize everything that
technology can offer to innovate their country, and at the same time, create things that are
compliant to global standard solutions and are priced appropriately for the features that it offers.
Japan mostly excels in the Automotive Industry, their cars and motors are all engineered using
the most advanced and high-technology materials and machines; hence, creating the best fanciest
and most useful features in a car that clients want to have. However, their excellence in any type
of industry shall be acknowledged too, because Japan also holds the most number of
international conglomerates that even rank in the top 200 in Forbes magazines.

TOYOTA MOTORS

Toyota Motor Corporation is a Japanese multinational automotive manufacturer and was

recognized in December 2019 as the tenth largest company in the world by Revenue. In every
type of business, their main goal is to obtain profit, and revenues are the biggest and most
integral part of obtaining profits a Japan was able to achieve that and was even one of the top 10
companies in the world revenue-wise.

What makes Toyota Motors a global company?

1. Capability – a global company must be capable, first of all, to produce the products and
services that are globally acclaimed and Toyota Motors is exactly that. Their country’s
technology allows them to be more-than-capable in producing the best automotive
products; hence, allowing them to produce cars that fits a global variety of demands.

2. Reach – “reach” in this matter, is defined as the scale of audience or clients that a
company can grasp. Toyota is able to attract clients from all over the world because of,
mainly, their technology again, this time the internet. Social media plays a huge part in
showcasing their cars and designs to people all over the world, usually they announce car
shows through their social media accounts, online publications, and other forms of online
platforms that can surely reach any person in the world. Their products also appeal
 internationally because cars are basically an essential in our times now; also adding the
fact that fancy high-tech features of cars amaze any type of person, whether or not they
like cars in general, because sometimes high tech features are undeniably eye-catching
and picks at one’s curiosity.

3. Skills and expertise – these characteristics are essential for a company to be globally
acclaimed and Toyota Motors expresses these at a very commendable scale, it shows in
their cars alone. The level of skill and expertise that they devote when manufacturing a
new car feature is top-notch; all the cars they manufacture are very meticulously studied
and created for the best benefit of their clients.

4. Understands global standards – Toyota Motors definitely understands what people

want in their cars or they manufacture something that clients will probably want as well;
they know what the people like both locally and internationally, which makes them a
very formidable competitor in the automotive industry, because they somehow know
what people want and need. They understand what they need to deliver to any type of
client and that is what gives them the advantage and the seat they have in the global
competition of companies.

MITSUBISHI COMPANIES

Mitsubishi is a conglomerate, a group of autonomous Japanese multinational companies

in a variety of industries. It is composed of three entities:

 Mitsubishi Bank (now a part of the Mitsubishi UFJ Financial Group)

The bank is one of the largest and oldest banks in Japan and has expanded in New York
and London back in 1920; it also combined with The Bank of Tokyo now they are known
as the MUFG Bank and is actually the largest bank in Japan.

 Mitsubishi Corporation
It is Japan’s largest trading company and a member of the Mitsubishi Keiretsu. At 2019,
this corporation employs over 80,000 people and has seven segments.

 Mitsubishi Heavy Industries

It is a multinational engineering, electrical equipment and electronics company
headquartered in Tokyo, Japan. The MHI’s automobile department is the predecessor of
the Mitsubishi Motors and is one of the core companies of the Mitsubishi Group. MHI
includes:

 Mitsubishi Motors (automotive)

 Mitsubishi Atomic Industry (nuclear power)
  Mitsubishi Chemical (chemical industry)
 Mitsubishi Hitachi Power Systems (power generation division)
 Nikon Corporation (optics and imaging)

Mitsubishi Corporation is a global integrated business enterprise that develops and operates
businesses together with its offices and subsidiaries in approximately 90 countries and regions
worldwide, as well as a global network of around 1,700 group companies.

What makes Mitsubishi Companies a global conglomerate?

1. Capability – as mentioned previously with Toyota Motors, Japan is a capable country

because of their technological advancements, in extension, the companies as well are
capable. Mitsubishi is one of the oldest conglomerates in Japan, and they are serving
globally with their products from different industries. Their companies are capable of
providing the needs of clients all over the world because their number one advantage is
their technology, with this they are able to do anything that is beyond manpower’s reach.

2. Knowledge – Mitsubishi has become large as it is now because of the knowledge of the
founders, all of its success today, the roots of it are all from its founders, who
manufactured and engineered items that are helpful to their country’s problems.
Combining technology and their knowledge, it allows them to be able to produce
something that the global audience wants. And without knowledge, there would not have
been innovated products and services even if there is technology.

3. Staff – Mitsubishi staff are undeniably the best of the bests, they hire employees who
have globally competitive skills because they add to the company’s good image and
excellent products and services. Also, the staff of the conglomerate are basically the cells
of a human body, without them, this company would not have been conglomerate-giant
that it is now because their globally competitive staff is what makes their companies
move and operate all over the world.

4. Skills and expertise – skills and expertise of the employees or movers in the company is
one of the most crucial elements in a global company, because this is what clients need
from companies, skilfully and expertly made, products and services because these types
of outputs give the best and top-tier quality.

5. Understanding the global market –Mitsubishi understands the requirement to service

customers with global standard solutions; they provide products and services that cater to
the preferences of people not just locally but also internationally. They make products
that are not only useful to their locals but they try to create products and provide services
that are appropriate for a global market as well.
 6. Appropriate pricing – Mitsubishi products and services may be a bit pricey because of
their brand name, but these are reasonably priced since the quality they provide is indeed
reasonable for its prices.

7. Diversified – because the MC is a conglomerate playing in different types of industries,

this allows them to reach different markets, the more diversified a business is, the more
chances that it will reach a global audience, or make profits on a global-scale.

SONY CORPORATION

Sony Corporation is a Japanese multinational conglomerate corporation which is among

the Worldwide Top 20 Semiconductor Sales Leaders and third-largest television manufacturer in
the world. Sony Corporation is engaged in business through its four operating segments –
Electronics (including video games, network services and medical business), Motion pictures,
Music and Financial Services.

Sony's principal business operations include:

 Sony Pictures Entertainment – a subsidiary of Sony which produces, acquires and

distributes filmed entertainment through multiple platforms worldwide. Formerly known
as Columbia Pictures Entertainment Inc.

 Sony Computer Entertainment - established on 1993 in Japan which engages in the

design, research, development, production and sales of hardware and software related to
PlayStation platforms.

 Sony Music Entertainment - originally founded in 1929 as an American Record

Corporation, renamed as Columbia Recording Corporation then later on acquired by
Sony Corporation in 1966. As of 2020, Sony Music Entertainment is the second largest
record company behind Universal Music Group.

 Sony Mobile Communications (formerly Sony Ericsson) - a multinational

telecommunications company resulted from the joint venture of Sony Corporation and
Ericsson.

 Sony Financial Holdings - a holding company for Sony’s financial services business
which includes both life and non-life insurances, online banking, credit card settlement
and venture capital
What makes Sony Corporation a global company?

There are four success factors that helped Sony’s ascent to global supremacy
in the consumer electronics sector and they are:

1. Visionary leadership - Sony is a classic case to prove the strategic importance of a

visionary leader in carrying a brand to dizzying heights. Sony’s management team
along with the CEO was responsible to create an environment that nurtured
experimentation and innovation. Sony was also one of the early Asian brands to
recognize the importance of branding, which was again supported and lead by the
management team.

2. Religious zealous to innovation - Innovation defined the brand character of Sony.

Sony grew to global prominence due to its ability to constantly create products before
other companies could conceptualize them. Sony also possesses the ability to sense the
hidden consumer demand and create an entire product category through its innovative
products. For instance, when Walkman was introduced, there was no existing market for
portable music but it went ahead to became a very successful innovation. Sony’s
innovative culture will help differentiate the company from its competitors for a very
long time.

3. Pioneer advantage - Given the innovative edge, Sony emerged as the pioneer in
almost every sector that it was operating in. Being the first mover (or inventor) in
many cases, Sony has a great leeway in defining the rules of the game. In addition, the
brand image was enhanced every time a competitor imitated Sony as it became an
indirect way to accept Sony’s leadership position.

4. Human capital - The greatest asset of Sony is of its human capital, especially its
engineers which make up the R&D department. Their constant innovation is crucial
for a consumer electronic firm which specializes in audio-visual equipment and aim to
generate higher profit margin to cover the higher cost needed for its primary and support
activities. Subsidiaries are well established in many parts of the world which give Sony
hands-on knowledge of the local market. Being an international corporation, Sony also
has good access to talents and brings them into the company.
GLOBALIZING PHILIPPINE COMPANIES

For the longest time, the Philippines has been stereotyped as a principal source of cheap
labor. Indeed, we have exported many of our people abroad. These days, it is not surprising to
hear about an Asian company taking over long-standing companies in the West. Based on a 2017
survey conducted by PwC/Isla Lipana for the Management Association of the Philippines, 45%
of the CEOs in the Philippines said they were keen on expanding to overseas markets.

SAN MIGUEL CORPORATION

San Miguel Brewery Inc. (SMB) is the largest producer of beer in the Philippines, with
nine out of ten beer drinkers preferring its brands. San Miguel Beer was first produced by La
Fabrica de Cerveza de San Miguel, an upstart brewery in the heart of Manila that began its
operations in 1890. It received the Royal Grant from the Spanish king to brew beer in the
Philippines, then a colony of Spain. In 1963, the brewery was renamed San Miguel Corp. (SMC)
to reflect its growing ventures into food and packaging. As the beer business grew at a steady
pace, it provided the foundation from which SMC expanded its interests from food, beverage and
packaging, to power, oil and infrastructure. 

SMC has long been expanding its traditional businesses outside the Philippines,
particularly in Southeast Asia and other parts of the region. San Miguel, to date, is still among
the most well-known Philippine brands.

Product of SMC that can have the potential to be world class

San Miguel Pale Pilsen

San Miguel Pale Pilsen is a pale, golden lager with a rich, full-bodied flavor. Its smooth,
full-flavored taste complements its pleasant aroma, making it a perfectly balanced beer. It has a
unique heritage of bringing people together, nourishing true friendships for over a hundred years.

This product has the potential to be a global product because of its unique sensory
qualities such as taste, aroma, texture, flavor, and sensation in the mouth, that makes it distinct
from other beers. The fact that this product has shown a tradition of excellence for having
received numerous International Quality Awards makes it more capable of being a global
product. The awards received by San Miguel Pale Pilsen include more than 75 Monde Selection
Awards (the most prestigious international award-giving body for finished food and beverage
products), Australian International Beer Awards and other product quality and excellence
awards.

This product was also recognized throughout the years by various international and local
trade and industry, media and consumer organizations, like the World Beer Championships in
the US, 7-11, Reader’s Digest, and the HK Trade and Industry. This recognition also renders
Pale Pilsen to be capable of being a global product.

Discuss thoroughly how this product can become world class

The conventional wisdom is that beer is a local business. Despite many attempts, only
few beer brands have made a successful transition from local to global. The stakes are high as
those that succeed are viewed as the world’s best providers of beers. The key to the global
success of these businesses lies within their effective strategy and ability to market their products
to almost all countries or commonly known as“global marketing”. With an effective use of
global marketing, the Pale Pilsen beer of San Miguel can potentially have a place in global trade
and therefore a more extensive market reach for Pale Pilsen. Among the global marketing
strategies that can be used by SMC includes the following:

 Product – a product’s print label is as important as the beer itself. It communicates many
things including the brand name, alcohol content and other pertinent information. Hence,
if SMC wants Pale Pilsen to globally succeed it is important to consider how label design
should be done. The use of native language in the label of Pale Pilsen beer is also an
important factor to consider.

 Price – price of a product vary from market to market. But regardless of the price, in
each market around the world there was a pocket of similar consumers that would still
buy Pale Pilsen beer because of effective benchmark of the product.

 Place – how the product is distributed is different from country to country. There are
countries that prohibit drinking beer; for instance, alcohol is completely banned in
Yemen as it is believed to be against the principles of Islam. These differences in culture
should also be considered by SMC if they want to globally succeed.

 Promotion – this will account for the biggest expense in San Miguel’s marketing budget
if they want Pale Pilsen and their other beverages go global. This will include exposure to
global market using advertisements in social media and other platforms.

As of today, the SMC has only six breweries in the Philippines and six in Asia: Two in
China, one in Hong Kong, one in Thailand, one in Vietnam and another in Indonesia but plans
are underway to invest up to $150 million in setting up a new beer brewery in Los Angeles,
California, to cater to growing demand for its beer products in North America.
 BENCH

Bench is a Philippine retail clothing and lifestyle brand which began in 1987 when the
chief innovator or the founder Ben Chan, (who is also the founder of Suyen Corporation, now the
Philippines’ largest global brand) got the opportunity to start with a small store selling men’s T-
shirts at a local department store. Later, Bench started to multiply into more than thousand
outlets beyond the Philippines providing affordable and quality products not only to Filipinos but
also consumers from different parts of the world with shops in San Francisco, Bahrain, Saudi
Arabia, Japan, Dubai, Myanmar, and different cities in China.

For being the number one brand of men’s apparel, Bench has grown to include a ladies’
line, fragrances, underwear, snacks, and a wide array of other lifestyle products. Today, Bench is
known as a consistent provider of functional and fun casual wear. It is recognized for having a
trend-purveying product that also considers comfort and reliability as its utmost priority. The
brand has now built a worldwide network of outlets, reaching as far as the Middle East, China,
and the United States.

Product of Bench that can have the potential to be world class

Bench as a brand

With Bench’s t-shirts, tank tops, trousers, jackets, denim jeans, underwear, bags,
accessories, footwear, fragrances and cosmetics, Bench becomes the country’s most successful
lifestyle brand

The brand has the potential to be global because their apparel can build one’s outfit and
entire wardrobe from there. Their t-shirt is universal, worn by both genders and ages, and it is not
just a staple but a statement. It has its own creative vibe and creative risks in packaging, stores
and advertising. Also, the brand stands for an entire vision and specifically for the Filipino
lifestyle. According to the founder, Bench exports not just products or raw materials but a brand
as a whole. The brand has the capability to enter the foreign market by infusing a Filipino flavor
to its design but still making it globally adaptable. It is the marketing feat since it is one thing to
sell in a domestic market, being a different ball game overseas alongside the world’s best and
biggest brands.

Aside from showcasing what is trendy, the brand is also putting an effort incorporating
social relevance with its merchandise. In 2010, the brand significantly alters the industry by
becoming the first local brand to use bamboo fiber in its Envi Line. While the fabric from
bamboo is more durable and comfortable, in a very sustainable source, it also utilizes less energy
and water and is easier to grow and harvest in contrast to cotton.

Their capability to be a global brand is evident as it has already won in retailing,

advertising and marketing. Amid the 25th anniversary activities, Bench received Agora Award
for Export Marketing for building itself as a “maverick” brand. The Philippine Marketing
Association recognized its operations in 62 branches outside the Philippines.

Discuss thoroughly how this product can become world class

A transition for a company to go global is not immediate. Also, the dynamics of the
apparel industry are dramatically changing. It is important for a company to consider staying
relevant and have exciting innovations to provide a sufficient large-scale fashion demand.
Opportunities for a global expansion are infinite and alluring to enter to a global market
potentiality. Thus, if companies take a strategic approach to evaluate and understand both risks
and costs, it would reap the benefits of a successful globalization initiative. One of the effective
marketing strategies that Bench can consider to provide a critical aspect of taking a product
successfully to a global market include these following key factors:

 Product – as bench is in the clothing industry, it is important to establish and offer

unique and exceptional quality products that target different type of customers. Bench
should consider offering quality products with affordable prices that would target all
demographic divisions – gender, age, socioeconomic status that would make them a
market leader in the fashion and retail industry.

 Price – price can be affected by the cost of production and marketing. It also varies from
market to market. There is a great disparity between social classes about what is deemed
a luxury, and bench is greatly aware of their market with their prices on lower rage.
Hence, they should manage to have a good quality that exceeds prices, having a
prominent brand name and manage to transcend into the middle upper-class.

 Place – placement and distribution of products in a global marketing perspective must

also consider the product’s positioning in the market place. Retail stores may be the
significant place that Bench products can be sold because these are strategically located
and accessible in various markets around the world.

 Promotion – is costly for a company but is one crucial component of the global
marketing that global marketers must decide to introduce their products globally. Bench
was once boosted their growth by enlisting some of the world’s most popular and well-
known celebrities as its brand ambassadors. Continuing this strategy would create more
awareness for a fashion brand, offering exceptional quality products at affordable prices.

Today, Bench was on its way to global retailing with established stores is Dubai, Bahrain,
Lon Angeles, Riyadh, Xian, and. Guangzhou. As the recipient of various awards in retailing,
marketing and advertising locally and internationally, Bench continues to prosper and win the
game by its continuous innovations.
 BOUNTY AGRO VENTURES, INC.

Bounty Fresh Foods, Inc. (BFFI) and Bounty Agro Ventures, Inc. (BAVI) are companies
under the privately-owned Bounty Fresh Group of Companies (BFGC) in the Philippines. BFGC
is the only fully-integrated poultry firm continuously investing in company-owned facilities
which includes GP farms, PS farms, hatcheries, dressing plants, feed mills, and cool-cell broiler
complexes in the country. It is also the first firm to employ the single-stage commercial broiler
hatchery incubation system (eggs grouped according to development stage and to be incubated
together).

BAVI’s retail brands include Chooks-to-Go, Uling Roasters, and Adobo Connection. The

company also distributes dressed chicken products in supermarkets, wet markets, hotels, and
restaurants outside Metro Manila under the Bounty Fresh Chicken brand. In 2017, BAVI became
the first Filipino poultry company to produce Zero Antibiotics Chicken using the No Antibiotics
Ever chicken technology. The company was named Most Innovative Company of the Year by
the Asia CEO Awards in 2018, and was given a Gold Accreditation from Investors in People for
its outstanding people management practices in 2019.The company’s processing plants have
been conferred by the National Meat Inspection Service (NMIS) as the best and cleanest
processing plants in the country with consistent Triple A ratings. 

  Brand that can have the potential to be world class

 Bounty Fresh Chicken

Bounty Fresh Chicken is a brand under Bounty Fresh Food Inc. and Bounty Agro
Venture Inc. that supplies dressed chicken to various hotels, restaurants, institutional food
companies, and supermarkets. When it comes to producing quality poultry products, Bounty
Agro-Ventures Inc. is acknowledged as one of the best in its industry, not just in the Philippines,
but also in Asia, as evidenced by its 2009 Asian Livestock Award for outstanding contribution to
the livestock industry.The firm is consistent with its initial strategy to target the bulk buyers of
chicken, preferring to expand its business in step with their demand.
 Bounty Fresh begun with just a 10 percent share in the market in 2002 when it started
producing vacuum packed whole chicken and chicken parts. In 2009, the company won the
Asian Livestock Industry Award for Best Poultry and Livestock Company, the first in the
country to achieve that prestigious recognition. By the year 2013, it has been accredited by the
Korean Quarantine Inspection Agency and started shipping chicken to South Korea the following
year. At the present, it is fast gaining additional market share due in part to marketing campaigns
to bring the brand closer to the buyers.The brand continuously grow to create world-class
products (vacuum-packed dressed whole bird, Chooks-to-Go, and processed meats). The
qualities of the product such as the distinct moist and tender goodness of Bounty Fresh Chicken
are what consumers look for as they prepare anything from grilled chicken breast to the Filipino
favorite, adobo.

Bounty Fresh is also known for leveraging advanced technology to revolutionize the
broiler chicken production industry in the Philippines. Its state-of-the-art processing plants have
even been conferred by the National Meat Inspection Service (NMIS) as the best and cleanest
processing plant in the country. These awards help secure Bounty Fresh Chicken’s position as a
trusted household brand known for superior quality, taste, texture and freshness. A top company
official said Bounty Fresh is keeping its plan to establish presence in 10 foreign markets over
the next 10 years. So far, the company is in three foreign locations, namely New Zealand,
Indonesia, and Malaysia.

Discuss thoroughly how this product can become world class

Chicken is one of the most consumed meats in Southeast Asia and on other parts of the
world, thus, it was a great step towards success for a company to entrench itself in the business
of poultry production. Consumers today are faced with an overwhelming number of choices
about purchasing their food, and, once that decision is made, then they must choose which brand
of chicken to buy. With so many different food options, Bounty Fresh Chicken needs to make
their products stand out in the marketplace and ensures that they are effectively communicating
their “unique selling position.Bounty Fresh Chicken must take not only new, but also very
familiar, products and differentiate them from competitors’ products by communicating the
product’s rareness, exceptional quality, origin or other unique characteristics. Perception is the
leading driver of consumers’ trial and first purchase of a product, so things like appearance and
packaging can help captivate the senses. The company must also improve its distribution
channels to reach a larger market, not only within our country.

BAVI has a nationwide business network with branches in key cities and distributorships
across the country. The company is fully supported by hundreds of broiler contract farms, dozens
of hatcheries, feed mills, poultry processing plants and  processed meats plants. The facilities are
closely supervised and monitored, creating a highly efficient supply chain in poultry
integration. These processes adds value to the enterprise by organizing and providing technical
assistance to each part of the supply chain, ensuring that the business interests of each part of the
chain are reasonably served.Given the company’s technology and advanced facilities, it help in
providing high quality products to the public and ensure that health and safety measures in
handling and storing the produce are well implemented. Though expanding into other countries
is not easy due to some differences and limitations, what their company and the brand should do
is adjust their practices that would complement a certain country’s culture, regulatory and
business environment.