The firms engaged in international business have to make different types of decisions. Some of the important decisions are described as follows:
International Business Decision: The first decision a company has to make, of course, is whether to take up international business or not. This decision is based on serious consideration of a number of important factors, such as the present and future overseas opportunities, present and future domestic market opportunities the resources of the company, company objectives etc.
1. Market Selection Decision: The next important step is the selection of the most appropriate market. For this purpose, a thorough analysis of the potentials of the various overseas markets and their respective marketing environments is essential. Company resources and objectives may not permit a company to do business in all the overseas markets. A proper selection of the overseas market(s), therefore, is very important.
2. Entry and Operating Decisions: The next important task after the market selection decision is to determine the appropriate mode of entering the foreign market.
3. Marketing Mix Decisions: The foreign market is characterized by a number of uncontrollable and controllable variables. The marketing mix consists of internal factors, which are controllable. The success of International marketing, therefore, depends to a large extent on the appropriateness of the marketing mix. The elements of the marketing mix should be suitably designed so that may be adapted to the characteristics of the overseas market.
4. International Organization Decision: A company desiring to do direct exporting has also to decide about its organizational structure, so that the exporting function may be properly performed. This decision should necessarily be based on a careful consideration of such factors as the expected volume of export business, the nature of overseas market, product, size and resources and length of its export experience.
International Business Decision: The first decision a company has to make, of course, is whether to take up international business or not. This decision is based on serious consideration of a number of important factors, such as the present and future overseas opportunities, present and future domestic market opportunities the resources of the company, company objectives etc.
1. Market Selection Decision: The next important step is the selection of the most appropriate market. For this purpose, a thorough analysis of the potentials of the various overseas markets and their respective marketing environments is essential. Company resources and objectives may not permit a company to do business in all the overseas markets. A proper selection of the overseas market(s), therefore, is very important.
2. Entry and Operating Decisions: The next important task after the market selection decision is to determine the appropriate mode of entering the foreign market.
3. Marketing Mix Decisions: The foreign market is characterized by a number of uncontrollable and controllable variables. The marketing mix consists of internal factors, which are controllable. The success of International marketing, therefore, depends to a large extent on the appropriateness of the marketing mix. The elements of the marketing mix should be suitably designed so that may be adapted to the characteristics of the overseas market.
4. International Organization Decision: A company desiring to do direct exporting has also to decide about its organizational structure, so that the exporting function may be properly performed. This decision should necessarily be based on a careful consideration of such factors as the expected volume of export business, the nature of overseas market, product, size and resources and length of its export experience.
No comments:
Post a Comment