Parami International University

Master’s in Business Administration

Course Name: BUS 402 –International Business Environment

Assignment

Submitted to; Submitted by;

Daw Nyein Nyein Hlaing Wint Yee
Khaing
Batch – 5
Date of Submitted

10 /12 / 2023

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Table of Content
Pages
1. Introduction:…………………………………………………………..3
2.Answer for question 1………….……………………………………....4
3.Answer for question 2………………………………………………….6
4.Answer for question 3…………………………………………………..9
5.Answer for question 4…………………………………………………..12

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Introduction:

Multinational organizations (MNEs) have to balance the need for global integration with
local responsiveness in nowadays’s worldwide commercial enterprise environment.It is
important to strike this cautious stability with a view to completely make the most
enterprise opportunities and efficiently penetrate the marketplace. Established in 2020,
Makro is a Dutch international brand of warehouse groups that has grown to become a
major force in the large commercial-to-business market Retailers, accommodation,
restaurants, caterers and service providers include Makro members registered access to
all of them - including one outlet.

Despite the precise challenges posed by using the COVID-19 pandemic, Macro has
acquired the award for his capability to manage and respond to converting occasions.
Notably, Makro took domestic awards from the 2021 Retail Asia Awards: Home Retailer
of the Year and Luxury Store of the Year. These achievements demonstrate Macro’s
commitment to providing excellent customer service in these challenging times, and
adapting to changing customer needs

The macro website will be maintained to give us a better understanding of the company's
operations and strategy, including macro marketing strategies related to its corporate
profile and business activities, geographic expansion strategies, efforts to maintain their
originality industry and culture Within our capacity, we will be able to provide ambitious
recommendations, open doors for growth and help the company remove obstacles in its
global operations.

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Macro perspective on global merger and local response in Warehouse Club
market

The multinational enterprise (MNE) of the future faces the difficult task of balancing
local responsiveness with global integration. Balancing this delicate balance requires
careful organizational and strategic planning. This article will examine how global retail
giant Makro has managed the sales and operations management of its warehouse units,
particularly in Asia, and will also address how best to balance these pressures.

Balancing global integration and nearby responses:

Two key requirements, local responsiveness and international integration, require layout
that captures the satisfactory capabilities of each methods. Global integration goals to
lessen prices, growth efficiency, and standardize across markets; On the other hand,
nearby reaction calls for adaptation to particular cultural, regulatory, and patron choices.

The excellent institutional framework for coping with these problems is often thought of
as transnational. The transnational procedure takes under consideration local variations,
facilitating the easy drift of world issues and strategies. Recognizing the benefits of
crucial networks for performance, this structure additionally gives the flexibility to adapt
to neighborhood and regional groups or precise marketplace conditions

Macro’s Warehouse Clubs: A Case Study in Asia:

Makro, a well-known international retailer, is on warehouse teams around the world,

including many in Asia. The organization has deliberately adopted a transnational
framework to meet the conflicting demands of global integration and local adaptation.

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Worldwide Integration:

Makro uses standardized technologies and processes to ensure global integration in its
warehouse group operations. IT systems, supply chain logistics, and inventory
management are all optimised for worldwide effectiveness and economy. Makro benefits
from procurement advantages, economies of scale, and centralised decision-making for
specific strategic areas by doing this.

Local response:

Macro at the same time recognizes the value of local responsiveness, especially in Asian
markets. The business adapts its supply chain and marketing programs to each region’s
unique cultural and economic characteristics. For example, Macro has prioritized local
sourcing, income-driven pricing strategies, and culturally sensitive promotional
campaigns in some Asian countries

Adjustments to the regulatory environment:

Macro claims to be aware of the unique regulatory framework found in Asian countries.
Macro adapts its business processes to local laws and standards due to significant
changes in compliance processes. This fosters good relations with local authorities and
also assures compliance.

Customer Process:

Macro knows how important it is to understand regional customer preferences and adjust
accordingly. To understand local needs and preferences, Makro invests in market research
in Asia, where consumer behavior can differ significantly from Western markets and then
adapts marketing campaigns to each market’s culture and meet different social
circumstances.

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Future multinationals will need to strike a balance between local responsiveness and
global integration. Makro’s program of managing warehouse clusters in Asia provides an
insightful case study for this delicate balance. Macro maintains flexibility to address local
market conditions by adopting international organizational structures through better
integration of global operations. The business’s commitment to understanding and
adapting to cultural, regulatory, and consumer dynamics is a good example of how to
succeed.

Strategic Considerations in Geographic Expansion and Collaborative

Arrangements: A Case Study of Makro

To ensure success, multinational enterprises (MNEs) expanding into new geographic

locations must conduct a thorough analysis of a variety of factors. This essay looks at the
factors that Makro took into account when deciding where to expand, as well as the main
justifications and cooperative agreements that Makro used in the global market.

Considerations in Allocating Among Geographic Locations:

Market Potential and Demand:

Makro conducts a thorough evaluation of the demand and marketplace ability in

prospective geographic areas. This entails a thorough exam of purchasing power,
purchaser behaviour, and monetary indicators. Makro is capable of pinpoint regions with
robust increase capacity and unmet demand for its warehouse membership model by
means of having a thorough know-how of market dynamics.

Cultural and Regulatory Landscape:

The regulatory and cultural surroundings play a crucial function in Makro's boom plan.
Makro makes positive to alter its advertising and marketing and operational techniques to
conform to neighborhood customs and choices through being touchy to cultural

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variations. In order to make sure a seamless and compliant entry into new markets,
coping with various regulatory environments simultaneously necessitates a thorough
knowledge of local laws and compliance necessities.

Infrastructure and Supply Chain Efficiency:

Makro evaluates viable locations' supply chain abilities and infrastructure. Effective
distribution and logistics systems are important to Makro's warehouse golf equipment'
fulfillment. The reliability of the neighborhood supply chain, the accessibility of
suppliers, and the state of the transportation infrastructure all play a role in figuring out
where Makro must increase its operations.

Competitive Landscape:

Makro reveals areas where it could reap a aggressive advantage by using analysing the
competitive landscape. Makro is able to strategically position itself by understanding the
blessings and disadvantages of its current competitors and providing specific price
propositions in every place.

Economic and Political Stability:

For Makro, political and financial balance are essential factors. Putting cash into areas
with strong political and monetary climates lowers operational dangers and will increase
the long-term viability of the organisation's operations in new areas.

Collaborative Arrangements inside the International Marketplace:

Joint Ventures:

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Makro regularly participates in joint ventures as a form of cooperative agreement. Makro
can take advantage of the abilities and enjoy of its local partners by means of forming
partnerships with nearby groups. Joint ventures permit greater seamless marketplace
access due to the fact that nearby companions make contributions hooked up networks,
consumer behaviour insights, and regulatory compliance.

Strategic Alliances:

Makro regularly makes use of strategic alliances with vendors, providers, and other
commercial enterprise companions as a part of its worldwide enlargement plan. These
partnerships decrease limitations to access, increase Makro's operational performance,
and provide get entry to to nearby resources. Working collectively with properly-installed
competition inside the marketplace hurries up Makro's enlargement into new areas.

Franchising:

Makro may decide to apply franchising as a cooperative version, letting regional business
owners run franchise locations. This method encourages neighborhood ownership and
entrepreneurship similarly to expediting growth. Due to their familiarity with the
neighborhood marketplace, franchisees help Makro adjust its commercial enterprise
version to in shape the needs of the vicinity.

Technology and Knowledge Transfer:

Technology and knowledge transfer are additional components of collaborative

arrangements. Makro works with regional partners to exchange industry knowledge, best
practices, and technology innovations. This helps local economies and capacities grow in
addition to providing benefits to Makro.
Makro's plan to expand geographically takes competitive positioning, infrastructure,
regulatory environments, cultural quirks, and market dynamics into careful account.
Makro leverages local resources and expertise through cooperative agreements like joint

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ventures, strategic alliances, and franchising to ensure a successful and long-lasting
presence in a variety of international markets. Makro can effectively navigate the
intricacies of conducting business globally and adjust to the distinct challenges and
opportunities associated with each geographical location thanks to this strategic
approach.

Sustaining Core Culture and Structure: Makro's Coordination and Control

Mechanisms in International Expansion

As they grow internationally, multinational enterprises (MNEs) like Makro face a great
challenge in maintaining a consistent organisational culture and structure. This essay
examines how Makro maintains its fundamental structure and culture while utilising
control and coordination systems to guarantee a successful global presence.

Sustaining Core Culture and Structure:

Cultural Consistency:

Makro values cultural coherence in all aspects of its global operations highly. Employees
around the world are given clear communication about the company's mission, vision,
and core values. Consistent training regimens and internal communication campaigns
guarantee that staff members comprehend and accept the common cultural ethos,
cultivating a feeling of inclusion and congruence with the organization's overall
objectives.

Leadership Development:

To build a group of leaders who exemplify the company's principles, Makro funds
leadership development initiatives. Makro makes sure that leaders at all levels understand
the company culture and are able to communicate these values to their teams by

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developing talent and promoting from within. This strategy aids in preserving cultural
unity even as the business grows internationally.

Globalization with localization:

It is important to set the community, but the macro still maintains the original culture.
The business adapts its traditional approach to regional traditions, customs and business
practices. This neighborhood technique ensures that the center Makro way of life remains
intact and provides the flexibility needed to connect to communities and markets.

Integration and implementation:

Focused selection making for key tasks:

Makro uses a centralized decision-making process for its core activities, which requires
alignment and alignment with international standards. There are central control
mechanisms for things like technology infrastructure, major strategic decisions and
branding. This assures that the essential elements of the macro business model are
consistently implemented.

Decentralized operation for local optimization:

Macro recognizes the advantages of presenting the nation in a few concurrent regions.
Local managers are given the freedom to make strategic selections in their unique market.
Thanks to this decentralized structure, Macro can regulate to neighborhood differences in
sales, supply chain and customer interactions, all even as keeping usual manage through
regular analysis and operations by means of studies

Technologies that enable parallel processing:

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Makro uses ultra-modern era to coordinate its international operations. Communication
and control are easily driven through included information structures, actual-time records
analytics, and networks. This allows a coordinated approach to international advertising
sports by means of assuring that policy or commercial enterprise changes are effectively
communicated at some stage in the business enterprise.

Performance Analysis and Analysis:

Macro makes use of performance metrics and periodic opinions to ensure that every
overseas branch is aligned with organizational goals. Key overall performance indicators
(KPIs) exist, and these metrics are often used to assess overall performance. This lets in
Macro to refine regions of energy and development, which shape the premise for strategic
change and permit the enterprise to keep normal manipulate of the gaining knowledge of
system

Multicultural Training:

Macro invests in move-cultural training programs to allow powerful programming across

cultures. This assures that cultural variations may be identified and valued through
employees at all stages, growing a cooperative surroundings wherein groups can
collaborate successfully to acquire commonplace desires.

The strategic mixture of decentralized management and using pervasive strategies used
usually for local adaptation permits for the retention of its center lifestyle and structure in
the 19th century because it developed across the world. Macro keeps its organizational
subculture as a unifying pressure throughout cultures by means of understanding go-
cultural priorities, leveraging technology, and investing in leadership improvement Macro
strategic planning and management, at the same time as on balance, it units him up for
lengthy-time period success in an ever-changing international market .

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Macro challenges and suggestions in handling Myanmar’s enterprise
coverage

With its complicated and various enterprise surroundings, encompassing social and fabric
elements, political and legal structures, cultural phenomena, monetary forces and
geographical affects, operating in Myanmar affords precise demanding situations no it's
miles crucial to remember those demanding situations if Macro presents a qualified
representative Do and offer unique recommendation on how to take advantage of
possibilities and overcome obstacles to foreign corporations working in Myanmar.

Macro Challenges in Myanmar:

Political and Legal Issues:

International groups face fundamental challenges due to Myanmar’s political instability

and evolving felony system. Changes in government regulations and policies will have an
impact on enterprise practices, marketplace get entry to, and average business pastime.
Macro wishes to manage those uncertainties by means of staying abreast of regulatory
changes and keeping relationships with neighborhood authorities.

Cultural sensitivity:

Myanmar’s cultural range requires attention of the technique. Gaining community accept
as true with and acceptance requires expertise and adhering to cultural norms. Failure to
accomplish that effects in misconnection and lack of macro balance. These challenges
can be mitigated with the aid of growing cultural sensitivity schooling programs for
employees and ensuring the usage of neighborhood advertising strategies.

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Economic forces:

The economic environment in Myanmar is changing, variables such as inflation,

exchange rate fluctuations, income inequality can affect consumer choice and spending
Te economy footnotes, adjust pricing strategy accordingly and more in-depth market
research to get the most affordable products in the region

Landscape Impact:

With its geographical diversity and infrastructure, Myanmar presents supply chain
management and allocation challenges. Macro needs to invest heavily in a reliable
logistics system, possibly using regional agreements to better address complex
geographical conditions

Lifestyle factors:

The social dynamics of Myanmar with its diverse population and linguistic background
from urban and rural areas requires a standardized approach to customer engagement. To
ensure inclusion and capture a wider market, Makro needs to tailor its marketing and
customer service strategies to appeal to a diverse customer base.

Recommendations for Makro:

Establish community partnerships:

To efficaciously navigate Myanmar’s complicated political and prison surroundings,

Macro should remember alliances with regional groups. Working with well-set up
companies can assist a business enterprise better capture local nuances, facilitate market
get right of entry to, and provide insight into regulatory modifications.

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Investing in cultural training:

Makro have to offer its personnel with an extensive cultural schooling software to cope
with culturally applicable problems. This will reduce the opportunity of cultural mistakes
and enhance the superb relationships set up with neighboring groups, allowing body of
workers to approach distinctive cultures with respect and understanding.

How to personalize the deliver chain:

Considering Myanmar’s economic growth, Makro desires to adapt its selections to nearby
enchantment and affordability. It could be simpler for the agency to react to adjustments
in the economy by way of providing different products at different costs, deliberating
local preferences, and evaluating the marketplace on a normal basis.

Strategic territorial expansion:

To conquer the geographical demanding situations, Makro desires to devise its expansion
strategically, taking into account the complexity of logistics. When infrastructure and
mobility skills are analyzed, possibly in partnership with local providers, the supply chain
will be extra efficient.

Local Business Strategies:

Makro needs to adjust its marketing policies to take into account the living conditions in
Myanmar. This includes capturing both urban and rural consumer behavior, multilingual
product marketing and region-specific promotions Such localized strategies can provide
brand consumption role and motivation have improved.

Makro need to put into effect a complete strategy that takes into account political, legal,
cultural, financial and geographical factors to effectively navigate Myanmar’s

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complicated enterprise environment. Makro can successfully address the constraints of
Myanmar’s dynamic market via forming local partnerships, allocating sources for cultural
schooling, enhancing supply chain, increasing strategically and marketing techniques a
intended use is managed. Thanks to this complete method, Makro can hold a sturdy, long-
term presence in this diverse and converting enterprise surroundings.

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