Week 5 International Business Responses

International Business Responses:

Discussion One: Tiana’s Post As the Team Leader managing the export strategy for a consumer electronics product, I have conducted research on the unique characteristics of the four P's in the selected foreign target market of Japan. Japan is a technologically advanced country with a high standard of living, making it an attractive market for our product.

Product: In Japan, there is a high demand for advanced technology and innovative products. Consumers are known for their preference for high-quality and reliable products. This means that our product must be of high quality and offer advanced features to meet the needs of the Japanese market. It is also important to note that there is a high degree of product customization in Japan, which means that our product should be adaptable to the Japanese market's unique needs.

Price: Japan has a high cost of living, which means that our product's price point may need to be adjusted to meet the local market's affordability levels. Japanese consumers are willing to pay a premium price for high-quality products, but they are also known for being price-sensitive. It is important to research the local market and competitors' pricing to determine the appropriate price point for our product.

Place: Japan has a well-developed distribution network with a focus on convenience and efficiency. Our product's distribution channels should be strategically located in key urban centers and offer easy accessibility for consumers. Additionally, Japanese consumers prefer shopping in-person, and e-commerce is still in its early stages. Therefore, we should prioritize establishing a strong retail presence in Japan.

Promotion: Japanese consumers are heavily influenced by advertising and marketing campaigns. Social media platforms such as Twitter, Instagram, and YouTube have become increasingly popular in recent years. Therefore, it is important to create engaging social media campaigns that resonate with the local market's culture and preferences.

In terms of niche markets, Japan has a large elderly population, which presents an opportunity for us to cater to their specific needs with our product's design and features.

An example of a marketing error in Japan is the case of McDonald's introducing the "McDonald's Rice" burger, which failed to appeal to the local market's taste preferences. To avoid similar challenges, we will conduct extensive market research to understand the local market's needs and preferences before launching our product in Japan.

An example of a global marketing campaign that utilizes CSR to promote the global firm's image is Unilever's Sustainable Living Plan. This campaign aims to reduce environmental

impact, improve health and wellbeing, and enhance livelihoods. Unilever has been successful in aligning its CSR efforts with its business strategy and creating a positive impact on society while building its brand image globally.

Discussion One: Jacob’s Post What are the unique characteristics of the four P’s in your selected foreign target market?

Product: The product in the form of a 3rd party logistics firm is a service. The United Kingdom has ample 3rd party service providers and a strong market in place that is steadily growing. For a strong product in this market the firm needs to provide a level of differentiation to be successful.

Price: In a well established market of a industrialized country – market rates in the form of paid carriage in transportation is often very fluid and updates daily based on market capacity (market needs versus transportation capacity). Firms need to be well verse in studying market trends and recognizing the impact of macro and micro variables on the service provided.

Place: The majority of 3PL services are conducted via a computer screen and telephone. Placement is not directly critical outside of the need for sales people/service salesmen to be able to reach out directly (and effectively) to potential customers.

Promotion: Marketing is a powerful avenue for attracting eyeballs and pocket books to a businesses services. In the U.K. social media marketing is a strong platform.

Does your target market have niche markets inside of the target market that will provide additional marketing opportunities?

Yes, in the realm of logistics there are numerous different methods of transportation. (Air, land, sea) Within those modes of transportation are specific or specialized carriage methods (Deep sea vessel, railcar, truck transportation etc.). Within each of these market niches is an option or avenue for potential marketing opportunity.

Share examples of marketing of a similar product or service in your selected foreign market

Below is an image found on a 3PL firms website that provides 3PL services in the United Kingdom.

Find and share an example of a marketing error in your foreign market and describe how you will ensure your team does not face similar challenges.

The U.K. has an organization called the advertising standards authority. Essentially this agency regulates marketing and advertising in the U.K.

While the tragedies they navigate are often more offense than errors – they do manage the overall direction of advertising in the region. Below is an example of an error in the British market from a logistics firm that was banned by the U.K. ASA.

The team will avoid such errors through doing due diligence and reviewing advertising campaigns from all perspectives. Additionally a regional expert on locality nuances would be helpful.

Find and share an example of a global or international marketing campaign that utilizes corporate social responsibility (CSR) to promote the global image of the global firm.

John Deere has a campaign “We’re running for a world where people and planet prosper” focusing on a ‘green’ perspective. The entire focus of the campaign is to push protecting the planet and enhancing sustainability of land across the globe. The link to their advertising landing page:

Discussion Two: Christopher’s Post As a multinational company (MNC) opening a new operations service hub in Shanghai, the international HR team has to put together the hiring process for both transition team assignments and those that will be permanent positions in China."Global sustainability, which is defined as the ability “to meet the needs of the present without compromising the ability of future generations to meet their needs" (Peng, 2023). The Division Head for Asia Pacific has asked us to use a “Geocentric Approach” in preparing the hiring process. In this discussion, we will explore the pros and cons of hiring host-country nationals (HCNs), third-country nationals (TCNs), or parent-country nationals (PCNs), two strategies to minimize expatriate failure, current compensation systems in China (Shanghai specifically), and how compensation will impact the hiring process. We will also research the practices of layoffs versus across-the-board pay cuts in China. Pros and cons of hiring HCNs, TCNs, or PCNs: HCNs are local people who are familiar with the language, culture, and customs of the country where the company is located. Hiring HCNs has several advantages such as lower labor costs, a better understanding of local regulations, and cultural sensitivities. HCNs can also help to build good relationships with the local community, which can be an advantage in doing business in China. However, there may be some disadvantages such as a lack of international experience and knowledge of the company's global policies and practices.

TCNs are people who are citizens of a third country other than the country where the company is located or the country of the parent company. Hiring TCNs has the advantage of bringing a diverse range of skills, knowledge, and experiences to the company. They can also provide a bridge between the parent company and the host country, helping to transfer knowledge and skills. However, there may be some disadvantages such as higher labor costs and difficulties in obtaining work visas. PCNs are people who are citizens of the parent country of the company. Hiring PCNs has the advantage of ensuring that the company's global policies and practices are followed consistently. They can also bring a wealth of international experience and knowledge of the company's culture and values. However, there may be some disadvantages such as higher labor costs and difficulties in adapting to the local culture and language.

Two strategies that would minimize expatriate failure: Expatriate failure is a significant concern for companies that hire employees to work overseas. It is the premature return of an expatriate employee to their home country. One way to minimize expatriate failure is to provide cultural training to employees before they move overseas. This training can help employees to adapt to the new culture and avoid misunderstandings that can lead to conflict or mistakes. Another strategy is to

provide ongoing support to expatriates and their families. This support can include language training, counseling, and help with housing and schooling. Current compensation systems in China (Shanghai specifically) and how compensation will impact the hiring process: Compensation systems in China vary depending on the type of company, industry, and location. In Shanghai, the cost of living is high, and wages are generally higher than in other parts of China. Some companies offer additional benefits such as housing allowances, medical insurance, and retirement plans to attract and retain employees. Compensation will impact the hiring process, as it is one of the most critical factors that employees consider when deciding whether to accept a job offer. Companies that offer competitive compensation packages are more likely to attract and retain top talent. Practices of layoffs versus across-the-board pay cuts in China: During times of economic downturn, some companies may need to reduce their workforce or cut salaries to reduce costs. In China, the labor laws require companies to follow specific procedures when laying off employees, including providing written notice and severance pay. Across-the-board pay cuts are less common in China, as they are often seen as unfair and can lead to low morale and reduced productivity. Companies may consider alternative

Discussion Two: Samuel’s Post Greetings Class,

Pros and Cons of Hiring Host-Country Nationals (HCNs), Third-Country Nationals (TCNs), or Parent-Country Nationals (PCNs):

1. Host-Country Nationals (HCNs): Pros include local market knowledge, language skills, cultural familiarity, and potentially lower compensation costs. Cons may include potential language barriers with other team members, lack of international experience, and limited exposure to different management practices.

2. Third-Country Nationals (TCNs): Pros may include familiarity with the company's culture and practices, flexibility in adapting to a new environment, and potential cost savings compared to hiring parent-country nationals. Cons may include potential language barriers in the host country, challenges in obtaining work permits, and potential issues related to cultural adaptation.

3. Parent-Country Nationals (PCNs): Pros may include familiarity with the company's policies and practices, international experience, and potential ease of communication with headquarters. Cons may include higher costs associated with relocation and compensation, possible language and cultural barriers in the host country, and difficulties adapting to local business practices.

Strategies to Minimize Expatriate Failure:

1. Pre-departure and Cross-cultural Training: Providing comprehensive training to expatriates before their assignment, including language and cultural activity, can help them better understand and adapt to the local environment.

2. Ongoing Support and Mentoring: Assigning mentors or providing ongoing support to expatriates during their assignment can help them navigate challenges, adapt to the local culture, and address any work-related or personal issues that may arise.

Compensation Systems in China (Shanghai): Compensation systems in China, including Shanghai, can vary depending on the industry, job level, and company size. China has a complex and evolving compensation landscape with a mix of fixed and variable components, including base salary, bonuses, benefits, and social insurance contributions. It is essential to conduct thorough research and work with local experts to ensure compliance with local laws and regulations and develop a competitive compensation package in the local market.

Practices of Layoffs versus Across-the-Board Pay Cuts in China: Layoffs and pay cuts in China can be influenced by various factors, including economic conditions, industry regulations, and company policies. Layoffs are generally subject to strict rules in China, and companies must follow specific procedures and obtain government approvals. Across-the-board pay cuts may be seen as a less common practice in China, and companies are expected to follow local laws and regulations related to compensation adjustments

Professor’s Response to My Original Post:

I really did like your ideas here on hiring these different groups hcn versus pcns but as you read this article on HR best practices can lead to better expat experiences why is this a good article to learn to help expats do better? Dr Steve https://www.shrm.org/resourcesandtools/hr-topics/global-hr/pages/hr-best-practices- canlead-to-better-expat-experience.aspxLinks to an external site.