Wednesday, July 17, 2013

SMU BBA6- BB0027- CROSS CULTRUAL ASPECTS OF BUSINESS

1.     Write a note on specific Vs diffused Culture
Answer: Specific Vs Diffused Culture
A specific culture is one in which individuals have a large public space they readily let other enter and share and a small private space they guard closely and share with only close friends and associates. A diffuse culture is one in which both public and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well. Austria, the United Kingdom, the United States, and Switzerland all are specific cultures, while Venezuela, China and Spain are diffuse cultures. In specific cultures, people often are invited into a person’s open, public space;
individuals in these cultures often are open and extroverted and there is a strong separation of work and private life. In diffuse cultures, people are not quickly invited into a person’s open, public space, because once they are in, there is easy entry into the private space as well. Individuals in these cultures often appear to be indirect and introverted and work and private life often are closely linked.
An example of these specific and diffuse cultural dimensions is provided by the nited States and Germany. A U.S. Professor, such as Robert Smith, Ph.D., generally would be called Dr. Smith by students when at his U.S. University. When shopping, however, he might be referred to by the store clerk as Bob and he might even ask the clerk’s advice regarding some of his intended purchases.
When golfing, Bob might just be one of the guys, even to a golf partner who happens to be a graduate student in his department. The reason for these changes in status is that, with the specific U.S. cultural values, people have large public spaces and often conduct themselves differently depending on their public role. At the same time, however, Bob has private space that is off-limits to the students who must call him Doctor in class. In high diffuse cultures, on the other hand, a person’s public and private life often are similar. Therefore, in Germany,
Herr Professor Doktor Schmidt would be referred to this way at the university, local market, and bowling alley and even his wife might address him formally in public. A great deal of formality is maintained, often giving the impression that Germans are stuffy or aloof. Trompenaars recommends that when those from specific cultures do business in diffuse cultures, they should respect a person’s title, age, and background connections, and they should not get impatient when people are being indirect or circuitous. Conversely, when individuals from diffuse cultures do business in specific cultures, they should try to get to the point and be efficient, learn to structure meetings with the judicious use of agendas and not use their titles or acknowledge achievements or skills.



2.     Explain Eiffel Tower Culture.
Answer: The family culture is characterized by a strong emphasis on hierarchic authority and orientation to the person. The Eiffel Tower culture is characterized by a strong emphasis on hierarchy and orientation to the task. The guided missile culture is characterized by a strong emphasis on equality in the workplace and orientation to the task. The incubator culture is characterized by a strong emphasis on equality and orientation to the person.

Eiffel Tower Culture:
Eiffel Tower Culture is characterized by a strong emphasis on the hierarchy and orientation to the task. Under this organizational cultural, jobs are well defined, employees know what they are supposed to do and everything is co-coordinated from the top. As a result, this culture is steep, narrow at the top and broad at the base, thus the term “Eiffel Tower,” which is constructed in this manner.

The person holding the top position in the Eiffel Tower culture could be replaced at any time and this would have no effect on the work that organization members are doing or on the organization’s reasons for existence. In this culture, relationships are specific and status remains with the job. Therefore, if the boss of an Eiffel Tower subsidiary were playing golf with a subordinate, the subordinate would not feel any pressure to let the boss win. In addition, these managers seldom create off-the-job relationships with their people, because they believe this could affect their rational judgement. In fact, this culture operates very much like a formal hierarchy – impersonal and efficient.

Eiffel Tower cultures most commonly are found in Northwest European countries. Examples include Denmark, Germany and the Netherlands. The way that people in this culture lear and change differs sharply from that in the family culture. When changes need to be made, however, the Eiffel Tower culture often is ill equipped to handle things. Manuals must be rewritten, procedures changed, job descriptions altered, promotions reconsidered and qualifications reassessed.

This same, methodic approach is used in motivating and rewarding people and in resolving conflict. Carefully designed rules and policies are relied on and things are done “by the book.” Conflicts are viewed as irrational and offences against efficiency; criticisms and complaints are handled through channels. 

3.     Discuss business strategy and implications of culture on business strategy.
Answer: Business Strategy
“Strategy” is a term that can be traced back to the Ancient Greeks who used to mean the Chief Magistrate or a Military Commander-in-Chief. If we wish to increase the yield of grain in certain field and on analysis it appears that the soil lacks potash, potash may be said to be the strategic (or limiting) factor.

Business Strategy can be defined as the basic long term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carryin out those goals.

Implications of Culture on Business Strategy
While formulating various business strategies international manager is always influenced by cultural factors which may have long term and short-term perspective. People in countries such as China and Japan generally have longer time horizon than those in Canada and in U.S.A., whereas, Americans will emphasis short Towards term profits, the Japanese are known to be more patient in sacrificing short-term results in order to build for the future with investment, research and development and market share.

Managers who hail from uncertainty avoidance countries are more willing to take risk than their counterparts (i.e., high uncertainty avoidance countries). Managers from Latin American and African countries prefer to do business through non-equity entry mode in order to minimise exposure to risk.

There are also power distance countries such as Arab countries and Japan in which managers observe interpersonal inequality and hierarchy. The manager also has to keep in mind the legal compliance, creating positive culture for employees and creating economic value. Thus people who make decisions and the way they think, feel and act are based on their ingrained societal culture. They bring this context to work and it influences their propensity toward or against certain type of decisions.

4.     Explain Japanese leadership approaches.
Answer: Japan is well known for its paternalistic approach to leadership. Japanese culture promotes a high safety or security need, which is present among home country-based employees as well as MNC expatriates. For example, one study examined the cultural orientations of 522 employees of 28 Japanese-owned firms in the United States and found that the native Japanese employees were more likely to value paternalistic company behaviour than their U.S. counterparts.

Another study found that Koreans also value such paternalism. However, major differences appear in leadership approaches used by the Japanese and those in other locales. Japanese and U.S. managers have a basically different philosophy of managing people. Japanese leadership approach is heavily group oriented, paternalistic and concerned with the employee’s work and personal life. The U.S. leadership approach is almost the opposite. Japanese tend to be more ethnocentric than their U.S. counterparts. The Japanese think of themselves as Japanese managers who are operating overseas; most do not view themselves as international managers. As a result, even if they do adapt their leadership approach on the surface to that of the country in which they are operating, they still believe in the Japanese way of doing things and are reluctant to abandon it.


5.     Mr. Zeeshan is a consultant. One of his client wants to do business in UAE. What suggestions Mr Zeeshan shall give the client?
Answer: Doing Business in (UAE) Arab Countries :
The intense media attention given to continuing conflicts in the Middle East have pointed out that Arab cultures are distinctly different from Anglo cultures. Americans often find it extremely hard to do business in Arab countries and a number of Arab cultural characteristics can be cited for this difficulty. In the United States, it is common to use the cliché “time is money.” In Arab countries, a favourite expression is Bukra insha Allah, which means “tomorrow if God wills.” An expression that explains the Arabs’ fatalistic approach to time. Arabs believe that Allah controls time, in contrast to Westerners, who believe that they control their own time. As a result, if Arabs commit themselves to a date in the future and fail to show up, there is no guilt or concern on their part, because they have no control over time in the first place.

Another Arab cultural belief that generally holds is that destiny depends more on the will of a supreme being than on the behaviour of individuals. A higher power dictates the outcome of important events, so individual action is of little consequence. Another important cultural contrast between Arabs and Americans is that of emotion and logic. Arabs often act based on emotion; in contrast, those in an Anglo culture are taught to act on logic. Many Arabs live in unstable environments where things change constantly, so they do not develop trusting relationships with others. Americans, on the other hand, live in a much more predictable environment and develop trusting relationships with others. Business meetings typically conclude with an offer of coffee or tea. This is a sign that the meeting is over and that future meetings, if there are to be any, should now be arranged.
Other useful guidelines for doing business in Arab cultures include :
(1) It is important never to display feelings of superiority, because this makes the other party feel inferior.
(2) One should not take credit for joint efforts. A great deal of what is accomplished is a result of group work and to indicate that one accomplished something alone is a mistake.
(3) Much of what gets done is a result of going through administrative channels in the country. It often is difficult to sidestep a lot of this red tape and efforts to do so can be regarded as disrespect for legal and governmental institutions.
(4) Connections are extremely important in conducting business. Well-connected business people can get things done much faster than their counterparts who do not know the ins and outs of the system.
(5) Patience is critical to the success of business transactions.
(6) Important decisions usually are made in person, not by correspondence or telephone. This is why an MNC’s personal presence often is a prerequisite for success in the Arab World.


6.     Visit the site http://www.geert-hofstede.com / and have a look at the cultural dimensions of india. http://www.geert-hofstede.com/hofstede_india.shtml. Write a short note based on the observations.
Answer: If we explore the Indian culture through the lens of the 5-D Model, we can get a good overview of the deep drivers of Indian culture relative to other world cultures.
India scores high on this dimension, 77, indicating an appreciation for hierarchy and a Top – Down Structure in society and Organizations. If one were to encapsulate the Indian attitude, one could use the following words and phrases : dependent on the boss or the power holder for direction, acceptance of un-equal rights between the power-privileged and those who are lesser down in the pecking order, immediate superiors accessible but one layer above less so, paternalistic leader, management directs, gives reason / meaning to ones work life and rewards in exchange for loyalty from employees. Real Power is centralized even though it may not appear to be and managers count on the obedience of their team members. Employees expect to be directed clearly as to their functions and what is expected of them. Control is familiar, even a psychological security,  and attitude towards managers are formal even if one is on first name basis. Communication is top down and directive in its style and often feedback which is negative is never offered up the ladder.

India, with a score of 48 is a society with clear collectivistic traits. This means that there is a high preference for belonging to a larger social framework in which individuals are expected to act in accordance to the greater good of one’s defined in-group(s). In such situations, the actions of the individual are influenced by various concepts such as the opinion of one’s family, extended family, neighbors, work group and other such wider social networks that one has some affiliation toward. For a collectivist, to be rejected by one’s peers or to be thought lowly of by one’s extended and immediate in-groups, leaves him or her rudderless and with a sense of intense emptyness. The employer/employee relationship is one of expectations based on expectations – Loyalty by the employee and almost familial protection by the Employer. Hiring and promotion decisions are often made based on relationships which are the key to everything in a Collectivist society.

India scores 56 on this dimension and is thus considered a masculine society. Even though it is mildly above the mid range in score, India is actually very masculine in terms of visual display of success and power. The designer brand lable, the flash and bling that goes with advertising one’s success, is widely practiced. However, India is also a spiritual country with millions of deities and various religious philosophies. It is also an ancient country with one of the longest surviving cultures which gives it ample lessons in the value of humility and abstinence. This often reigns in people from indulging in Masculine displays to the extent that they might be naturally inclined to. In more Masculine countries the focus is on success and achievements, validated by material gains. Work is the center of one’s life and visible symbols of success in the work place are very important.

India scores 40 on this dimension and thus has a medium low preference for avoiding uncertainty. In India there is acceptance of imperfection; nothing has to be perfect nor has to go exactly as planned. India is traditionally a patient country where tolerance for the unexpected is high ; even welcomed as a break from monotony. People generally do not feel driven and compelled to take action-initiatives and comfortably settle into established rolls and routines without questioning. Rules are often in place just to be circumvented and one relies on innovative methods to “bypass the system”. A word used often is “adjust” and means a wide range of things, from turning a blind eye to rules being flouted to finding a unique and inventive solution to a seemingly insurmountable problem. It is this attitude that is both the cause of misery as well as the most empowering aspect of the country. There is a saying that “nothing is impossible” in India, so long as one knows how to “adjust”.

The Indians score 61, making it a long term, pragmatic culture. In India the concept of “karma” dominates religious and philosophical thought. Time is not linear, and thus not as important as to western societies which typically score low on this dimension. Countries like India have a great tolerance for religious views from all over the world – Hinduism is often considered a philosophy more than even a religion; an amalgamation of ideas, views, practices and esoteric beliefs. In India there is an acceptance that there are many truths and often depends on the seeker. Societies that have a high score on Long Term Orientation, typically forgive lack of punctuality, a changing game-plan based on changing reality and a general comfort with discovering the fated path as one goes along rather than playing to an exact plan.

Thursday, July 11, 2013

SMU BBA5- BB0025- E Commerce

Bachelor of Business Administration-BBA Semester V
BB0025 – E Commerce – 2 Credits
(Book ID: B0035/B0104)
Assignment (30 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.2 a. What are the different elements of E-C applications? [5 Marks]
A1 E-commerce business applications abound the market. Across the Internet, there are numerous businesses and service providers that are rolling out and offering e-commerce business applications to different users. Because the Internet is a venue where suppliers and distributors are meeting to conduct business transactions, e-commerce business applications are aimed at both suppliers and consumers.
For suppliers: Business-to-business transactions are facilitated online. B2B transactions, as they are called, comprise of activities between two businesses. The most usual players are suppliers and distributors, who are the main players in B2B setups. E-commerce business applications were primarily and initially developed, designed and made for such business players.
Suppliers are the firms that develop, manufacture and produce goods and services. They come out with products that are to be rolled up and sold across the market. Distributors serve as the intermediaries between suppliers and the end consumers. Distributors have the resources and the ability to connect and interact with end consumers for actual sales and purchase transactions of goods and services. Thus, suppliers and distributors need to operate conveniently, accurately and effectively. That is where e-commerce business applications should set in.
E-commerce business applications are specific computer programs and actions that are designed facilitate smoother flow of trades between the two. As always, there is a need to make sure suppliers and distributors are connected and are regularly coordinated. Different e-commerce business applications are designed and made to cater to the varied needs and requirements of both suppliers and distributors. 
For end consumers: If e-commerce business applications are useful for suppliers and distributors, they are also very useful when consumers are involved. In businesses, consumers are the heart and the bloodline of operations because they are the buyers and the providers of sales and revenues. Suppliers and distributors enter B2B activities because they aim to please and cater to the needs and requirements of consumers.
Thus, it would be safe to assert that e-commerce business applications are also beneficial to the consumers. The most usual illustrations and demonstrations of the use of e-commerce business applications to consumers are the emergence and rise of business websites that sell products and services. With the use and integration of e-commerce business applications, such online presences and businesses are made more effective and more useful. End consumers would also find the site more interesting and functional, and would likely move to finally take action.
Good features: If you are buying or securing e-commerce business applications services, you should make sure they are the best in the market. There are common and basic features of good e-commerce business applications. You should always target those that are clearly offering and providing good services and features to the market.  It is just logical that e-commerce business applications are useful and beneficial to all users; suppliers, distributors and consumers. Functions of commands and icons are useful and are highly commendable. Good e-commerce business applications are also easily available and accessible in the market. The usefulness of such computer programs can never be underestimated and underrated especially in the current status of the market, where there are just too many players and the competition is just out of control.
Since the underlying principles of the digital and physical marketplaces are the same, there are a number of lessons you can take from one to the other.
Here are four key elements of e-commerce drawn from the needs of brick-and-mortar businesses and enhanced by technology.
Online Storefront - The Product Manager
The online storefront is your digital place of business.  As with any business you want to customize it to fit your customers’ buying habits, your chosen branding, and the logistical needs of your business.  A product manager lets you enter, store, and share information on products, pick what data is visible to customers, and generally manage the informational aspects of the shopping experience.
To design this well you need to think like a customer.  How can they see what they’re getting?  Pictures, certainly help, but they’re not the only way to learn about a product.  What do other people think of it, has it won any awards, how does it stack up against other products and services?  Customers are going to want to make these sorts of comparisons.  If you want them to stay on your site, you need to find a way that makes it easy for them to do so.
Building an Order - The Shopping Cart
There are a number of ways for customers to build their orders, but the most common is the shopping cart.  A shopping cart integrates with a storefront so that shoppers can add items to their purchase list without ever leaving the product pages.  It also gives shoppers a way to see what they’re planning to order and make changes before completing the sale. The shopping cart software handles everything from when you first indicate you want an item through submitting your delivery address with one exception - the exchange of funds.
However, in settings where you do not need to build an order, like for charitable giving, or single product stores, it is possible to remove the traditional shopping card screens from the user’s experience while retaining all it’s functionality.
Payment - The Merchant Gateway
The merchant gateway serves the same function as the electronic card reader in the checkout line at your favorite brick and mortar store.  It creates a secure online connection to confirm the availability of funds, initiates an electronic transfer, and creates a record of the transaction.  The more reliable merchant gateways also build in safety precautions like address confirmation to cut down on fraudulent purchases. Because much of the information required for the merchant gateway is also used for the shopping cart (amount, address, and so forth) it is important that your shopping cart software is compatible with your merchant gateway.
Fulfillment - Return of the Product Manager and Shopping Cart
Just as the Product Manager lets you store and display information for the shopper, it also lets you enter and retrieve information necessary for filling an order (such as product numbers, vendors, and handling instructions).  This information is handed off to the Shopping Cart software, which can then generate an order form or report that includes all necessary information from every product in the order.
More sophisticated and integrated systems can take this process a step further and automatically generate purchase orders for any additional stock you need.


b. Explain the different layers of OSI reference model [5 Marks]
Ans. The OSI Reference Model
The OSI model is based on a proposal developed by the International Standards Organization as a first step towards international standardization of the protocols used in the various layers. Its main objectives were to:
* Allow manufacturers of different systems to interconnect equipment through a standard interfaces.
* Allow software and hardware to integrate well and be portable on different systems.
The principles that were applied to arrive at the
seven layers are as follows:
* Each layer should perform a well-defined function.
* The function of each layer should be chosen with an eye toward defining internationally standardized protocols.
* The layer boundaries should be chosen to minimize the information flow across the interfaces.
* The set of rules for communication between entities in a layer is called protocol for that layer.
ScreenHunter_160 Feb_ 18 17_27.jpg
The Physical Layer
* The Physical layer coordinates the function required to carry a bit (0s and 1s) stream over a physical medium.
* It defines electrical and mechanical specifications of cables, connectors and signaling options that physically link two nodes on a network.
The Data Link Layer
* The main task of the data link layer is to provide error free transmission.
* The data link layer provides the functional and procedural means to transfer data between network entities and to detect and possibly correct errors that may occur in the physical layer.
The Network Layer
* The network layer ensures that each packet travels from its sources and destination successfully and efficiently.
* The Network Layer deals with packets of data.
The Transport Layer
* The basic function of the transport layer is to accept data from the session layer, split it up into smaller units if need be, pass these to the network layer, and ensure that the pieces all arrive correctly at other end.
* Furthermore, all this must be done efficiently, and in a way that isolates the upper layers from the inevitable changes in the hardware technology. Transport layer provides location and media independent end-to-end data transfer service to session and upper layers.
The Session Layer
* The session layer allows users on different machines to establish sessions between them.
* A session allows ordinary data transport, as does the transport layer, but it also provides enhanced services useful in some applications.
* A session might be used to allow a user to log into a remote timesharing systems or to transfer a file between two machines.
The Presentation Layer
* The presentation layer is concerned with the syntax and semantics of the information transmitted.
* In order to make it possible for computers with different representations to communicate, the data structure to be exchanged can be defined in an abstract way, along with a standard encoding to be used “on the wire”. The presentation layer manages these abstract data structures and converts from the representation used inside the computer to the network standard representation and back.
The Application Layer
* The application layer is the OSI layer closest to the end user. It means that both the OSI application layer and the user interact directly with the software application.
* Application layer supports functions that control and supervise OSI application processes such as start/maintain/stop application, allocate/deallocate OSI resources, accounting, and check point and recovering.


Q.3 Summarize the future directions of E-commerce. [10 Marks]
A3 The one constant is change, and in the area of an e-business strategy, this is certainly the case. You can see that the need for staying current on technology is the basis of your future e-business strategy. Often companies find themselves using the technology that the market offers to meet the latest customer needs within their organization. You can find the latest information on the ASP industry from the Web sites listened in previous articles in this series and the industry site WebHarbor.com is another excellent source of information on the ASP industry. For industry-specific information and details the direction of technologies, consider attending an IDC conference once or twice a year on the ASP industry to keep current with the latest technology
In an industry where change is the only constant, predicting what lies around the corner is anyone’s guess. In the last two years we’ve seen consumer trends like mobile device adoption, the proliferation of broadband internet and social media change forever the way consumers interact with retailers and brands. As the latest new trends continue to go mainstream in 2012 – like video commerce, floating profiles, location based marketing and intelligent commerce device apps – retailers and brand direct companies face a harsh reality. It’s no longer a matter of keeping up anymore; it is likely a key to staying in business.

The big question for retailers and brand direct companies isn’t, therefore, how to second-guess the future, but rather how best to future proof their commerce platform to cope with whatever the ‘next big thing’ of tomorrow turns out to be. Consumers are the guide; they will choose their own path and you need the correct tools and commerce partner to keep up with their fickle mind set.

Clearly, selecting a platform capable of integrating future social and technological advances will be key. So as online commerce teams race to deliver engaging yet consistent user experiences across all touch points that capture the mind and wallet share, they are not restricted and will have the ability to innovate at the speed of consumer trends. That means working with a platform that makes it easy for them to reconfigure their environment as often as they need to create truly intelligent promotions, optimise all touchpoints and exploit this inbuilt flexibility to effectively pursue any future direction their purchasing communities might take.

Time equals money

Right now web content management, product content management, channel analytics, customer experience management, A/B testing, and achieving seamless order management across the entire multi-channel business and all the interaction touch points is proving essential to staying competitive. That’s a big ask for today’s commerce team, which is under intense time and resource pressures.

So maximising brand performance increasingly depends on the ability to act and react quickly. And that’s why retailers and brand direct companies increasingly need more than just the lowest cost solution, they need a platform that powers innovation ‘on the fly’ and makes it easy to master multiple functions across multiple touch points – including product content management, search engine optimisation, checkout and payment, order management and shipping, multiple websites and localisation, social media and more – with ease.  And all without the need for time consuming or complex programming skills.

Agility has become the name of the game. Whether that’s the ability to instantly tailor the storefront to increase relevance and conversion ratios, optimise online mobile device experience for targeted audience segments, or gaining real-time analytics across all touch points to establish what works best where – and why. Online commerce is no longer a secondary strategy, it is the primary and therefore requires a primary solution partner.

Future proofing your commerce strategy

So in this new mobile and social reality, standing still is not an option, and those online retailers that can adapt and innovate at speed will be best positioned to not just survive but thrive and grow in market as well as into new markets.

The question becomes what is the right investment for moving forward with right tools and services to keep pace. And do you wish to rent, own or completely outsource commerce operations and technology.

Choosing a ‘one size fits all’ platform from a super vendor like IBM for example, might seem a safe bet that’s pretty low risk. But on closer inspection, is this really the case? First it generally requires a commitment to roll all your technology to theirs in order to achieve the desired benefits. This creates the kind of “big bang” approach to conversion that is seldom on time, on budget and delivers the desired results before the target has actually changed. Thus resulting in a huge investment and company wide distraction to deliver something that may no longer be relevant.

You end up with a bloated commerce environment that is highly complex to manage, limited in agility and difficult to fine tune to the individual and unique commerce challenges of your business units, geographical regions and evolving business partner relationships, But they will have achieved their objective which a “technology addition” to their products which is hard to quit.

As we’ve seen, staying fit to compete in the future will require agility at every level – and that includes into the back office and beyond to logistics, delivery and after sales services which need to work hand-in-hand with the commerce platform itself.

The ‘one size fits all’ platform approach is simply no longer nimble enough to support the agile commerce approach retailers and brand direct companies need to remain competitive and “top of mind” with consumers and purchasers. A better approach is a cost-effective eco-system of specialist partners that can deliver both the scale and genuine value-add commerce teams and revenue officers need, opening the way strategies that span touch points, business models, geographical locations, complexity of catalogue and transactional volumes.


So look for a commerce partner who has a long history of delivering an agile core coupled with the partnerships and client base to know what the trends are, be constantly evaluating trends and how to react to them and is not committed to anything other than commerce success. One that offers multiple ways to pay for your commerce strategy and has the right fit of services and support if you have a five or 500 person commerce team. Then you will be able to concentrate on delivering YOUR strategy for business success, not spending all your time dealing with your technology.

SMU BBA5- BB0024- INTRODUCTION TO INTERNATIONAL MARKETING

Feb/Spring 2013  

Bachelor of Business Administration-BBA Semester 5  
BB0024– Introduction to International Marketing - 4 Credits
(Book ID: BO103)
Assignment (60 Marks)
   Note: Each question carries 10 Marks. Answer all the questions. 

Q.1 Name and explain with suitable examples, three reasons why international marketing is more challenging than domestic marketing.
Ans. International marketing is more challenging than domestic marketing because the scope is much wider - in essence, when a company or individual markets on an international scale, they are marketing to the entire world, rather than a specific country. Since the scope is global, the cost of reaching out to consumers is much higher. However, the Internet Age has made it possible for international marketers to run advertising campaigns without the usual costs of global marketing. Examples of typical international marketing initiatives (on t     he
• Television Commercials (often, these are dubbed into different languages; sometimes, different commercials will be filmed to suit different cultures.
• Website-based marketing
• Search Engine Optimization Marketing (attracting more web traffic by getting strong Google rankings, etc.)
• Billboard campaigns (these billboards will use strong images and brand logos to get attention in different countries.

National marketing has many of the same elements; however, its scope is narrower, and its                          identities, it may be easier to market to nations than to market globally. Often, when a global campaign is planned, a company or individual will hire an ad agency to create and manage an ad campaign. In the case of Internet companies who market to clients all over the world, this sort of ad agency may not be mandatory. 

In fact, in the digital age, it can be quite easy to amalgamate national and international marketing campaigns on the World Wide Web. For example, SEO (search engine optimization) techniques can be used to attract Web traffic from all over the world, and this sort of marketing can be more inexpensive than traditional international marketing tactics. In a sense, the Internet has bridged the gap between international and national marketing.

Q.2. What are the relative advantages and disadvantages of standardization and adaptation? Explain with suitable examples.
Ans. Standardization is the process by which a company makes it methods, especially its production processes, uniform/identical throughout its organization. Whereas for adaptation, a company would change their methods such as the price, promotion, packaging and/or the product itself in order to fit the needs and preferences of the market or a particular country. Adaptation occurs when any element of the marketing strategy is modified to achieve a competitive advantage when entering a foreign market. 
The advantages of standardization is the consistency of the product throughout the world and the cost savings from having identical the product. Standardization helps cut costs when the company produce the same products and reuse the established marketing and distribution systems where the company gets economies of scare benefits in production and buying. It also helps improve communication and performance.
The advantages of standardization is that it helps cuts costs by lowering installation costs, reducing need to maintain large inventories, and lowering maintenance costs thus also allows a company to take advantage of economies of scale when purchasing supplies. It helps improve the management and design with less customization needed, enabling interchangeability of components, and provides practical application of expert knowledge enhancing operability and improves performance. 
The disadvantage of standardization is the loss of uniqueness. If a company builds up a customer base that serves a specialized market, standardizing its processes may mean it loses some of its former customers. Another disadvantage is the loss of responsiveness where when a company expands into a new market there may be cultural differences which leads to different taste and likings of the market. 

Q.3 Suggest five different ways in which India could improve its image as an exporter in international markets, explaining why?
Ans. In India, the various procedures that are followed in the process of export of goods start right from the time of receipt of an indent from abroad till the shipping documents are negotiated and sales proceed is realized. The various procedure usually followed for the export of goods at different stages are as follows:
1. Quotation and Indent An exporter gives a quotation or an offer for sale to the foreign buyer. It is usually in the form of a Pro forma Invoice. Pro forma invoice or quotation gives:
1. Name and Address of the buyer or consignee.
2. Description of goods to be sold.
3. Price
4. Condition of sale
5. Other provisions such as delivery schedules, payments terms, escalation clause due to rising prices/costs, etc.

2. Shipping and Credit Enquiry The exporter may have to arrange for booking of shipping space in advance of actual sending of goods. Usually the exporter hands over this responsibility to a shipping and freight broker who is specialized in this work. He possesses full knowledge of the various shipping lines and gives expert advice to which line is cheaper.

3. Placing the Goods on Board the Ship After having received back the two copies of shipping bill and one copy of the Application to exporter, the shipper makes arrangements to place the goods on board the steamer. He has to hand over one copy of the shipping bill at the dock while the goods are taken in.

4. Mate’s Receipt The Captain of the ship or the Mate, who is the assistant, cannot allow the shipping of the goods unless the shipper presents to either of them a copy of the shipping bill and the shipping order. The Mate issues a receipt after examining the packing and counting of the packages. This receipt is called the “Mate’s Receipt”. If the Mate is not satisfied with the packing of the goods a remark to that effect is made on the receipt

5. Insurance While the work connected with the shipping of the goods is being carried out, the exporter makes arrangement with some Marine Insurance Company for insuring the goods to safeguard them against marine risks. Usually the goods are insured for the amount which covers not only the value of the goods but also a reasonable profit (generally 15 per cent of the value of the goods) and reasonable expenses expected to be incurred in the event of the loss or destruction of the goods by the perils of the sea.

Q.4 Name five different characteristics of the economic environment that need to be analyzed by international marketers and their implications for international marketing strategy.
Ans. The economy of a country is a major part of each company’s macro-environment. In addition, besides purely economic factors such as the economic system or the existing industrial sectors, a modern society is strongly characterized by its human, technological and natural resources. A marketer serving international markets or planning to go international is confronted with a greater number of such economic environments. The international marketer first has to determine the various characteristics of the economic environment which are relevant for company’s business. Having determined the relevant factors of influence from the economic environment, the marketer will need to analyze their current state in the country markets under consideration.
Characteristics of economic environment: Population: The total population of a country, its growth rate, the distribution of age groups within the population and the degree of urbanization are of interest to many international marketers. The size of a potential local product-market is a key element in its viability. The distribution of age groups in a country is closely related to the demand for certain products, and the degree of urbanization represents concentration of potential customers.
Size and Growth Many international marketers are interested in rapidly developing markets in China and India which together represent some 70 percent of Asia’s population and about 40 percent of the population of the world. The size of the population and its rate of growth affect a society’s ability to progress economically and provide for the future.
Immigration Population growth could also be due to immigration. For example, between 1980 and 1990 almost 9 million immigrated into the USA. This inflow represented 39 percent of total population growth for that decade. For the international marketers, this means the creation of new markets or the growth of traditionally less important niches. Immigrants bring considerable job skills and investment capital.
Age Distribution The age composition of a population may also be of interest to international marketers. As people become older, new markets emerge among older age groups. For example, retirement villages have become popular in the USA, Australia and Spain. The need for home-care services for elderly people is growing and both retirement funds and retirement age insurance are booming.
Urbanization This term urbanization refers to the proportion of a population that lives in cities. The degree of urbanization in a society is of interest to international marketers because it represents concentration of potential customers.  Also, urban areas are centers of industrial productivity and economic growth.



Q.5 Describe any two aspects of the current Indian legal environment and its implications for international marketers entering the Indian market for the first time.
Ans. Ans. An entrepreneur has to take into account the basic regulatory requirements of the country in order to ensure sustainability of the profits and productivity of his/her business. The most important regulation relates to the environment. The environmental regulatory requirements envisage a wide legislative framework covering every aspect of environment protection. Broadly, it includes the emission standards for air, noise, water, etc. Separate set of laws for emission of hazardous wastes have also been enacted. Every industry has to abide by these guidelines and parameters for environmental protection. 
An organization for its smooth and effective functioning, must ensure health and safety of its employees. The major legislation relating to Occupational Health and Safety in India are:- the Factories Act, 1948; the Mines Act, 1952 and the Dock Workers (Safety, Health & Welfare) Act, 1986. The Directorate General of Mines Safety (DGMS) and the Directorate General of Factory Advice Service and Labor Institutes (DGFASLI) are the two field organisations of the Ministry of Labour and Employment in the area of occupational safety and health in mines, factories and ports.
Besides, the Government of India has taken steps like, announcing a competition policy, enacting Competition Act, 2002 and setting up of Competition Commission of India, in order to ensure a healthy and fair competition in the market economy. These aim to prohibit the anti-competitive business practices, abuse of dominance by an enterprise as well as regulate various business combinations like mergers and acquisitions.
For regulation of the export and import of goods and services an entrepreneur has to abide by the Foreign Trade (Development and Regulation) Act, 1992 and the EXIM policy announced by the Government from time to time. The Ministry of Commerce and Industry is the most important organ concerned with the promotion and regulation of the foreign trade in India. The Ministry has an elaborate organizational set up to look after the various aspects of trade. Within the Ministry, the Department of Commerce is responsible for formulating and implementing the foreign trade policy. 


Q.6 Select a product of your choice to be introduced in the US market. What are the cultural factors that would have to be considered in developing a marketing strategy for this product?
Ans. Hundreds of patents are issued by the United States Patent Office daily, with thousands issued each year. With so many new products being created, a strong marketing plan can be the difference between being just another patent holder and being in a successful business with a new commercial product. For some, the invention may be easier to develop than the marketing plan let that stop you. A step-by-step approach will help you connect the dots between the effectiveness of your product and why people will want to buy it.
Step 1
List what the competition offers and for what price. If you can find what type of market share your competition has, include this in your evaluation. Of course, a new product is often than other things on the market, but locate the products that are as close to yours as possible.
Step 2 Define your ideal customers whether they are seniors looking for a mobile scooter or families with home security needs. Your customer base will have an innate need or desire for your product--although they may not realize it yet.
Step 3
Separate yourself from the competition. For your customers to choose your product, you will need to clearly define how it is better or different from anything else on the market and why it is worth the money. While the differentiation may be an extensive discussion in a marketing plan, establish a tag line or commercial-length synopsis.
Step 4
Establish a budget for your marketing campaign: low, medium or high. A low budget may start with trade show attendance and small regional press releases to maximize each dollar. As your budget grows, you can add newspaper and magazine ads, and with yet higher budgets, consider adding television or radio spots.
Step 5
Choose what avenues you plan to use to market your new product based on your budget ability. Determine what geographical regions you want to target first.
Step 6
Test your product in your market. Don’t roll the entire marketing campaign out just yet--you may need to make adjustments. Take a small part of the budget and select one area to bring the marketing out in.
Step 7
Adjust your marketing campaign based on what the test market results demonstrated. This may be using new tag lines, alternating packaging or enlarging an ad.
Step 8
Roll the campaign out full force. Monitor your campaign as it goes on to make demographic or strategy modifications.