DEFINE AND EXPLAIN INTERNATIONAL BUSINESS
STRATEGY
International business strategy refers to plans and actions that guide
commercial activities between companies in different countries. The goal
is to leverage core strengths by expanding into new foreign markets to
increase profits. Companies like McDonald's, Microsoft, and Walmart
pursue international strategies.
Key elements often remain controlled from company headquarters, like
R&D, branding and manufacturing. But local subsidiaries may adapt
products and do light assembly to suit that country's consumers. Expertise
in areas like hotel management allows international chains to grow
successfully.
However, centralized control can hinder responding to varying local
preferences. Firms emphasizing customization can gain advantage. For
example, Carrefour struggled in the U.S. market compared to more
localized retailers.
Developing a Training Strategy for International Business
IT, telecom and other markets are now highly global. Many hardware and
software firms operate internationally, as do merged telecom providers.
Free trade policies, open markets and advancing
transportation/communication technologies enable this globalization.
Firms and employees must adapt to stay competitive. But training
departments often remain provincial. Transforming perspective can
significantly benefit the organization.
Where to Begin
First, a small diverse team should map company-wide goals to
internal/external training objectives. This impacts areas like marketing,
HR, product training and support. Scope assessment identifies
globalization opportunities and localization requirements for effective
deployment.
Securing "buy-in" across the organization is key. Executive advocates
support budget and organizational changes. Local advocates provide
insights on culture and language.
Benefits
Globalization, though difficult to quantify initially, reduces time-to-market.
Faster deployment increases learning effectiveness and supports goals
sooner. Decreased latency also improves product and customer support
teams. Costs should be shared across the organization.
For learners, despite English skills, native language improves concept
retention, reducing confusion and ambiguity. Adaptation also occurs faster
when family members are linguistically/culturally prepared.
Components of Effective Pre-Departure Training
There are many possible components, like culture awareness, preliminary
visits, language preparation, spouse/family inclusion and repatriation
issues. Comprehensive programs use techniques such as films, role plays,
case studies and complete family training.
Cultural Awareness helps deal with workplace challenges. Preliminary
visits assess suitability and aid adjustment. Language skills, though
ranked lower by Anglo firms, enable better negotiation, access and
effectiveness.
Family inclusion is vital - spouse dissatisfaction causes most failures.
Repatriation preparation eases transition and retention back home.
Aspects of Expatriate Training
With growing expatriation, cross cultural training is increasingly vital. It
covers areas like business etiquette, communication norms, conflict
resolution, and management. Though "learned on the job", basic
familiarity aids early effectiveness.
Training reduces relocation risks and negative impacts of "culture shock".
It emphasizes coping strategies when feeling vulnerable. Over 80% of
multinationals provide some cross cultural preparation, though often not
mandatory.
Comprehensive programs use films, books, role plays, case studies and
host country visits to build understanding. Language skills enable better
task performance and cultural adjustment. Preliminary trips also help
selection and adjustment.
Cultural Differences
Globalization means more cross-cultural contact. Differing perspectives on
appearance, expression, etc. can cause problems interpreting actions,
predicting behavior, and managing conflicts. This impacts profitability.
Culture Assimilators and Cross-Cultural Understanding
Culture assimilators effectively provide information to facilitate relations
with a target culture. Studies across various trainee populations and
cultures show improved adjustment and interaction.
However, culture assimilators haven't been tested for longer-term
immersion without prior target culture exposure. This research aims to
address that gap.
Theoretical Background
Attribution theory considers how people explain others' motivations and
actions, like scientists analyzing causes and effects. Attributions depend
on norms, roles and consequences seen in a situation. Discrepancies can
cause conflicts.
Isomorphic attributions occur when someone attributes another's behavior
to the same causes the other does. This appreciation facilitates
understanding.
