Censorship, enforced written and unwritten laws, red tape and language hurdles not to mention having and keeping the rights to your own patents and products.
Give examples of 2 U.S companies who may have faced some or all of these issues.
Give examples of 2 U.S companies whose global ventures have gone smoothly.
To what do you attribute these negative and positive results? Country? Multi-national company (MNC) preparedness? Luck of the draw? Support your answers with appropriate theory.
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For a company to effectively put their strategy in place can be determined by how they address the functions and business processes that will support their strategy. It is important to know the size of the customer base and the growth market. Two U.S. companies that have experienced red tape and language barriers are Starbucks and Taco Bell.
Taco Bell first tried to enter the market in Mexico in 2017 at a Mexican market with a food cart with a limited menu. Taco bell had rename menu items because customers did not understand what they was ordering. The consumers did not see the authenticity with the products and the first Taco Bell shut down less than two years after opening.
Starbucks was affected by international trade regulations when exporting and importing goods. Tariffs caused large income transfers and that cost was transferred to the customer. Also employment law affected Starbucks, reduction in the licensing and permit costs in the coffee bean producing countries lowered production costs for farmers.
Both companies continue to do well, but need to take time to find out what the culture, the wants and needs of the country in which they want to do business. also, in order to gain initial success, they may need to look into local partnerships.
Amazon fails in China
Amazon failed to appreciate or decline to exploit is the fact that in China there are still millions of people willing to work for a pittance, and these workers will be available to work for a long time. These highly exploitable workers will always be cheaper available resource. The China local competitors build a better and far cheaper mousetrap where they took advantage of the massive and readily available gig labor pool in a much effective way than Amazon. This let rivals cost effectively use excess local labor and therefore dramatically reduce their delivery costs. The front ends of the competitors’ warehouses were similar, accepting and quickly sorting inbound orders. Amazon problem was in part a product of political/ economic correctness and a little cultural blindness. ( www.inc.com ).
McDonald is an iconic company that expanded globally and the key to their success of the fast-food giant was standardization. Whichever restaurant you shop you can expect a quality meal that always tasted the same at a decent price. The company held tightly held distribution of supplies and strict standards of appearance created a solid brand the golden arches and color scheme became something instantly associated with McDonald’s no matter where you go in the world. International expansion began in 1967 and the company open at least one store in every continent before the end of 1992.
Nike is an Oregon based athletic company and one of the first American companies to outsource most of its manufacturing to Asia. The company was fortunate to have early exposure to operating in foreign locates when they began importing Tiger shoes called Asics. Tiger provided Nike with lots of lessons how to succeed and how to avoid pitfalls which help the company in its nascent efforts to sell Nike overseas. Nike logo has a transcended language where they concentrate on using the logo rather than the name. ( www.airseacontainers.com )