2011. [2] This is evident in the sense that upper management does not hire or delegate responsibility to an individual because they best exemplify the host or home countries opinions. The major disadvantage of this nature is it can restrict career mobility for both local as well as foreign nationals, neglect headquarters of foreign subsidiaries and it can also bring down the chances of achieving synergy. A Conceptual Model of International Marketing Strategy in relation to standardisation vs. adaptation has been introduced by Theodosiou and Leonidou (2003). According to BrandAsset Valuator model, energized differentiation and relevance, the two pillars of brand equity combine to determine what is called brand ________. Brand ________ are devices that can be trademarked and serve to identify and differentiate the brand. International Human Resource Management has a wider concept and scope of operation and working as compared to domestic Human Resource Management. [2] On the other hand, there are also forces that push an organization to the geocentric notion of managing a multinational corporation (MNC). The international HR manager must hire the candidates not only with the required skills but also with the ability to adapt to the culture of the other country. First it focuses on helping students become more seasoned and polished public speakers, and second is its emphasis on ethics in communication. Appraising an expatriate is a complex task as there is active involvement of the home country supervisor and the host country supervisor. It is important to note that this essay has presented discussion of standardisation vs. adaptation argument mainly with disregard to industry-specific factors, and in real-life business environment the extent of standardisation or adaptation is different for each industry. The brand name of New Zealand vodka 42BELOW refers to both a latitude that runs through New Zealand and the percentage of its alcohol content. Sarah is at which level of the BrandDynamics Pyramid? Attitudes and Actions of Headquarters towards HR, International Recruitment and Selection Policy, Role of HR in Maintaining Ethical Policies & Behaviour, What is Performance Management System (PMS)? Adaptation strategy offers advantages of meeting differences of local markets at various levels, and in this way achieving greater levels of customer satisfaction. Marketing mix can be explained as the particular combination of marketing variables offered to a market at any point in time (Cole, 2004, p.xiv), and these marketing variables include product, price, place and promotion. With respect to the "six brand building blocks," brand ________ describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it. [3] Lastly is that the "treating of each market as unique may lead to the duplication of facilities. Clarity, relevance, distinctiveness, and consistency are factors that influence the ________ multiplier of the brand value chain. This is followed by critical analysis of adaptation strategy as an effective customer-orientation strategy by referring to relevant real-life business case studies. The brand caters to an elite clientele whose satisfaction with the brand has always been evident. Less cost is incurred in hiring the natives of the host country. Your email address will not be published. The benefit of this mind set is that it overcomes the shortage of qualified managers in the anchoring nations by migrating them from home countries. [2] As stated previously this is because different markets, regions, and countries require distinctive ways of approaching them. The term "Homo sapiens", the name of our species, comes from the Latin meaning ________. If a consumer who is trying to decide between alternatives believes that a particular brand delivers acceptable product performance and can be shortlisted, she is in the ________ level of the BrandDynamics Pyramid. 7. Two advantages of ________ are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company. This framework addresses the way strategic decisions are made and how the relationship between headquarters and its subsidiaries is shaped. According to BrandAsset Valuator model, esteem and knowledge, the two pillars of brand equity together create brand ________, a "report card" on past performance and a current indicator of current value. The top management in host countries is also posted from the parent company so that the culture of the unit remains in line with the parent country. Marketing Management "[3] This basically restricts the company for mass production of its products, as they are forced to manufacture its products with the local preferences being the priority of production. Creativity, historically known as The (World) Church of the Creator, is an atheistic ("nontheistic") white supremacist religious movement which espouses white separatism, antitheism, antisemitism, scientific racism, homophobia, and religious and philosophical naturalism.Creativity calls itself a "white racialist" religion and it has been classified as a hate group by the Southern According to Young and Rubicam's BrandAsset Valuator, a brand's ________ measures how well the brand is regarded and respected. Managing such an organisation need quick decision making and continuous monitoring of all functions across the globe. A ________ consists of all products original as well as line and category extensions sold under a particular brand. These changes may be political, economical, social or technological; nevertheless, relevant business processes may be subjected to modifications in order to eliminate or at least to minimise negative impacts of these changes. If a 1-year Treasury bond yield is 5% and a 2-year Treasury bond yields 7%, what is the 1-year interest rate that is expected for Year 2? Ethnocentric Approach Instituting careful health and safety practices, informing employees of potentially hazardous conditions and taking responsibility for occupational disease and stress related illness traceable to working conditions. The crucial critical concept of ethnocentrism in international organizations is the current policy that recruits from the home country are hired, and trained for key executive position in the organization. This in turn could cause a lack of flexibility and local responsiveness. The authors of the present review were charged with determining whether these practices are supported by scientific evidence. Development theory A third approach, suggested by Abbot and Wallace is that of reconceptualisation in which existing sociological studies and theories are reworked to fully incorporate the experiences of women; and any future research is to be rejected unless it can explain the experiences of both men and women fully. Establishing common systems in all locations, including accounting, distribution, marketing and management information systems. In India agitations in Maruti, Honda etc in the recent past were examples of this approach. The fact that instant messaging is based on a new set of symbols show us that ______. The dominant values of U.S. culture include __________. According to Ries and Trout, Cadbury suffered from ________ when the company allowed its brand to become diluted by putting their name on such variants as mashed potatoes, powdered milk, and soups, apart from chocolates and candies. Modern businesses are granted with vast opportunities in terms of revenue maximisation through entering new markets. The Relationship of Policy to Strategy. [2] The firm's subsidiaries are thus neither satellites nor independent city states, but parts of a whole whose focus is on worldwide objectives as well as local objectives, each part making its unique contribution with its unique competence. From Ethnocentric to Geocentric Orientation: In the 1950s and 1960s, MNCs adopted an ethnocentric outlook; that is, the orientation of the foreign operation was based on that of the parent company. According to P.V. Adam is not very familiar with the latter and does not hesitate in choosing Maytag. Decisions by Nike strategic management to increase the level of adaptation of its marketing message for international markets might negatively affect its core brand identity compromising its chances for further growth. According to the model, the degree of standardisation or adaptation is impacted by antecedent factors which have external and internal characteristics. The managers work well in all the neighboring countries within the geographic region of the business. Types of study. Inter region transfers and managing expatriate becomes the quite critical activity of Human Resource Management. societies that are oriented towards the past will heavily rely on historical data for making a prediction of future HR needs. Fundamentally there have been different approaches to International Human Resource Management. EPG model Economic anthropology Another effective illustration of this strategy can be observed in marketing of Unilevers Dove brand of soaps. Companies should evaluate all legs of the EPG model before implementing a strategy, as all companies differ in international strategy among industry and region. The major drawback of this mind set is that it results in cultural short-sightedness and does not promote the best and brightest in a firm. The distinction between high culture and popular culture is based mostly on ________, c. the social standing of the people who display the cultural pattern, c. a perspective recognizing the cultural diversity of the United States and promoting equality of all cultural traditions, c. judging another culture using the standards of your own culture. The practices and policies of headquarters and of the operating company in the home country become the default standard to which all subsidiaries need to comply. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Which of the following is a defensive criterion for choosing brand elements? Calculate this yield using a geometric average. EPG Model is an international business model including three dimensions ethnocentric, polycentric and geocentric. The ________ determines the marketing program's ability to affect the customer mindset and is a function of the quality of the program investment. BENGAY aspirin, Cracker Jack cereal, Frito-Lay lemonade, and Fruit of the Loom laundry detergent are examples where consumers' ________ dictated that the extensions were inappropriate for the brand. Apart from broad policies which are framed by the corporate at Parent country, all operational policies are decided at a local level. Approaches. What was the net income? Multinational Corporations (MNCs): Meaning, Origin One is a Maytag product, while the other is a newly imported South Korean brand. ________ are rules about everyday, casual living; _________ are rules with great moral significance. There has to be a fit between the management approach and the culture of the host country. For example, standardisation is often criticised for neglecting unique aspects of local culture in foreign markets. In its focus on bottom-line financial value, the ________ approach often overlooks the "option value" of brands and their potential to affect future revenues and costs. "[7], Management is unable to have total control over the company in the host country because it is found that "local nationals have a better understanding and awareness of national market conditions, more so than home office personnel. Regardless of any degree of information, we may have available, it is clear that there are many grey areas. Concept test of plots using surveys, testing of marketing campaigns, sneak previews, and tracking studies are all examples of market research techniques. International companies must strive to achieve the appropriate balance between global and local HR systems and practices. In Ethnocentric Approach, the key positions in the organization are filled with the employees of the parent country. Identify the four pillars of brand equity, according to BrandAsset Valuator model. High level of effectiveness of monitoring the outcome of marketing communications also contributes to efficiency of standardisation strategy (Chung et al., 2012). The company opened its theme park in Hong Kong in 2005 applying standardisation strategy to a great extent, through duplication of its theme parks in California and Paris. Standardisation can focus on core competitive advantage of the brand and it allows for a consistent and strong brand to be developed across all markets (Donelly, 2009, p.150). In accordance with the BrandAsset Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario? 22, Issue 1, 2013, Korotkov, N., Occhiocupo, N. & Simkin, L. (2013) Simulated test marketing in emerging markets: the need to re-think Marketing Intelligence & Planning Vol.31, Issue 7, 2013, Mitchell, R., Hutchinson, K. & Bishop, S. (2012) Interpretation of the retail brand: an SME perspective International Journal of Retail & Distribution Management, Vol.40, Issue 2, 2012, Perlmutter, H.V. Maslow's hierarchy of needs is an idea in psychology proposed by American psychologist Abraham Maslow in his 1943 paper "A Theory of Human Motivation" in the journal Psychological Review. 26, Issue: 4/5, 2009. Differences in relevant government legislations and conditions of consumption of products and services can be mentioned as additional factors supporting the adoption of adaptation strategy. An ethnocentric attitude views ones own culture as not only better than other cultures but as normal or natural. This perspective makes all other cultures abnormal and unnatural (or at least weird). Ethnocentric approach is one of the international recruitment method in which all positions for international business around the globe are filled from parent country. However, due to significant cultural differences between Hong Kong and West, the financial performance of Disneyland in Hong Kong has been well below the expectations. At the same time, the company uses adaptation through introducing Maharaja Mac in India, Mc Arabia in Middle East, and Mc Nuggets with chilli garlic sauce in China (Schumpeter, 2011). Marketing Question and Answer:- Q. A brand ________ is a specialized group of consumers and employees whose identification and activities focus around the brand. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page. Starbucks uses social-media engagement to respond, listen to and connect with fans, which is important to them because it builds loyalty, which is one aspect of the ________ pillar of the BrandAsset Valuator. Mark feels that Shell delivers on its promises to supply the best gasoline possible to the public. Thus, ensuring efficient use of human resources by building strong culture and informal management channels. [2] Secondly, there is a large number of customers available to MNC's internationally that require a geocentric approach in order to be effectively targeted. [2] There is also the feeling from host countries that receive disproportionate reimbursement from international profits that only fuels the lack of trust toward big corporations felt by political leaders of host countries. Ethnocentric attitudes can be seen in the organizations communication process. These red-lacquered soles and high stilettos of Louboutin distinguish him from other designer shoe brands. When a firm uses an established brand to introduce a new product, it is called a brand ________. Korotkov et al. This approach is especially suitable for countries with certain financial, political and cultural constraints. Maslow subsequently extended the idea to include his observations of humans' innate curiosity. With this approach, the company seeks for markets abroad that share the same characteristics as the local market so that the marketing strategy does not have to be adapted. Such companies are able to compete on cost basis with the local companies as well. Our BA (Hons) Business Management BA Degree has subject pathways at stage two and three allowing you to specialise in your area of interest. With the centralized approach, the training originates at the headquarters and than corporate trainers travel to the subsidiaries, and often adapt to local situations. When Sarah was asked why she had chosen the new shower gel, she said she bought it because a friend recommended it. In another country within the same company, the same HR might just be viewed as a transactional personnel department that handles administrative work. Some companies may have Asia as a region while some other MNC may have the Asia Pacific as one region. [1] These three dimensions allow executives to more accurately develop their firm's general strategic profile. As a part of human culture, religion is an example of _____. This argument can be justified by mentioning the case study of Disneyland Co. Different attitudes towards companys involvement in international marketing process are called international marketing orientations. International managers can hire candidates from the three countries parent country, host country and third country depending upon the requirement and suitability. ", According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. [2], There is no international firm today whose executives will say that ethnocentrism is absent in their organization. "Marketing of the company's products are organized on a country-by-country basis, and marketing research is conducted independently in each country. Moreover, Schmidt et. From a marketing management perspective, which of the following brand equity drivers is most applicable in the given scenario? This is more in the case of management of Human Resources. For instance, there is the loss of national sovereignty when one nation is dominated by another this can lead to a loss in economic and political nationalism. What is accepted as a permissible way of treating employees in the United States, the home country, may not be acceptable to Chinese employees, in the host country. ", According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. For example, Red Bull can in North American market is designed in red, silver and blue colours. [2] Organizations that portray ethnocentrism usually identify themselves with the nationality of the owner. Unique aspects of local culture may have huge impacts on the perception of each component of the marketing mix in general, and the marketing message in particular. Low speed of implementation of adaptation strategy in practice marks one of the main disadvantages of this strategy (Poulis and Poulis, 2013). Assume that all dividends declared were actually paid. [2], It is the overall goal of geocentrism to form a collaborative network between headquarters and subsidiaries; this arrangement should entail a set of universal standards that can thus be used as a guideline when attacking key business decisions. In this approach, organisations have local people are recruited at senior positions. In accordance with the BrandAsset Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario? The exercises, activities and policies of the functioning company in the native country becomes the default standard to which all subsidiaries need to abide by. Wikipedia al. Mission, vision, objectives are formulated by the MNCs at their headquarters and the same is to be followed by the host company. In other words, global businesses pursuing standardisation strategy are able to respond to changes in individual markets to a lesser extent compared to local businesses or businesses using adaptation strategy.

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