Practical 2 Flashcards
Institutional factors affecting IB
- Political policies
- Laws and Regulations
- Cultural forces
- Economic forces
Physical factors affecting IB
- Geographic
- Demographic
Competitive Environment affecting IB
- Company IB /product strategy
- Company Resources
- Competitors in each market
Geographic factors: Physical
- Location (ex. Fiji vs. Netherlands)
- Weather (ex. Norway vs. Egypt)
- Natural resources (ex. Brazil vs. Luxembourg)
- Geographic barriers (ex. Bhutan vs. Belgium)
- Chance of natural disaster (ex. Puerto Rico vs. Spain)
Demographic factors: Physical
- Population density (ex. London vs. Lisbon)
- Education / literacy (ex. Finland vs. South Sudan)
- Age distribution (ex. Japan vs. Niger)
- Life expectancy (ex. Hong Kong vs. Central African Republic)
Political Policies: Institutional factors
“Rules how a country is governed”
- Political leaning / systems (ex. US vs. France)
- Political / trade disputes (ex. Russia vs. Ukraine, US vs. China)
Legal Policies: Institutional
“Laws and Regulations”
- Domestic laws vs. International Laws
- Legal systems (Civil vs. Common law)
- Law enforcement vs. non-enforcement
Cultural Forces: Institutional
“How people think and behave”
- Values (ex. US vs. Europe)
- Beliefs (ex. New Zealand vs. Saudi Arabia)
- Attitudes / Traditions (ex. Israel vs. Mexico)
Economic Forces: Institutional
“Economic differences between countries”
- Salaries (ex. Switzerland vs. India)
- Currency (ex. Greece vs. Zimbabwe)
Product Strategy: Competative enviroment
- Cost vs. Differentiation strategy (ex. Toyota vs. Tesla)
- Mass vs. Niche market (ex. Zara vs. Gucci)
Resources and experience; Competative enviroment
- Size and resources (ex. Heineken vs. Super-Bock)
- “Being a leader in one country does not mean leadership anywhere else”
Competitors faced in each market:
- Type of competition in each market: international or local?
- Number and strength of competitors
- Market share concentration (ex. Beer in Portugal vs.
Beer in UK)
