1 - internationalisation of the company

Question 1

Globalisation definition

Answer 1

Trend that allows companies to work with interdependencies between different people, companies, allowing them to have more independency

Question 2

Globalisation result

Answer 2

reduced risk & increased dependency

Question 3

Global marketing allows a company to

Answer 3

upgrade their audience from a domestic level to a global level. In global marketing the company promotes the brand in a worldwide sense.

Question 4

International marketing appears when

Answer 4

an organisation decides to be self-independent in their promotional strategies which means the organisation will have different strategies in each market

Question 5

Differences between GLOBAL marketing VS INTERNATIONAL marketing

Answer 5

1. OFFERING:
   Global (company provides same product/service everywhere); International (company tailors to the specific market)
2. PERSONNEL
   Global (staff working at HQ, produce a strategy valid on a global basis); International (staff works in country of origin, different skills in each country)
3. BUDGET
   Global (budget approved by global HQ); International (budget approved by different subsidiaries)
4. PROMOTION TACTICS
   Global (organisations try to have the same tactics all around the world); International (all advertising & promotional materials are tailored for each specific market)
5. AUTONOMY
   Global (strategy is set by HQ with no chance to customise); International (each subsidiary has autonomy to adapt to market)
6. USE OF SOCIAL
   Global (companies have a unique social profile for every media channel); International (each company has its own media channels)
7. CUSTOMER ENGAGEMENT
   Global (more difficult than in international marketing because when working in the different markets, the company has more communication tactics)
8. ADVERTISING
   Global (ads are done on a worldwide basis and usually by a single entity); International (decision is to work with different agencies in each country)
9. R&D
   Global (R&D is done on a global basis, meaning it doesn’t necessarily fit the needs of the different markets); International (research is designed for market itself)

Question 6

Keys to globalisation

Answer 6

1. Start with strategy, not tactics: every decision needs to be taken on a long-term basis;
2. Understand the culture: refers to the way that we identify the different segments; understanding the culture will allow us to communicate better with customers and prepare sales messages
3. Identify the competitive edge: related to the manner in which the company differentiates itself from others

Question 7

International competitiveness

Answer 7

1. Measures the relative cost and value of country exports
2. Concept determined by:
   S-term factors
   Inflation
   Exchange rates

  L-term factors
             Education
             Institutions
             Healthcare
             Level of corruption
             Macroeconomic aspects
3. By evaluating the factors above, we can tell how competitive a country is 
4. Research which is the most competitive country (index)

Question 8

Reasons why a company goes international

Answer 8

1. First mover advantage
   - To get all the benefits of being first
   - Being first means the company doesn’t need to worry about competition
2. Potential for growth
   - Usually companies decide to start locally, small and then grow by the foundation they have set up
3. Small home market
   - Happens when the demand is smaller than what the company needs
   - I don’t have enough customers
4. More customers
   - Doesn’t necessarily mean the local market is small, just means I can reach even more customers
5. Discourage local competitors
   - If I want to have more benefits than competitors, I might decide to go international and using this as a competitive advantage in local market

Question 9

This global marketing strategy strives to achieve the slogan

Answer 9

‘think globally but act locally’ through dynamic interdependence between headquarters and subsidiaries.