BattleG-BUSN604 Week#5
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604
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Date
Dec 6, 2023
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docx
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5
Uploaded by genisisshyvon98
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Structure and Culture
Genisis Battle
BUSN604
September 9, 2023
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Structure and Culture
Introduction
Companies must design specific strategies to meet their business goals in today's fast-
paced business environments. Similarly, with globalization, the international culture has become
more relevant as businesses are supposed to develop and market products per the local rules,
regulations, and needs (Ghemawat, 2017). Export Strategy, Standardization Strategy,
Multidomestic Strategy, and Transnational Strategy are among the four main strategies that
businesses use. The significance and use of international culture differ in these four strategies.
Thus, this paper attempts to discuss each strategy and the role of international culture.
Export Strategy and Role of International Culture
While using an export strategy, companies mainly focus on domestic operations.
Nevertheless, to capitalize on the international opportunities, they export some products, but this
export does not mean that the company plans to go global. Furthermore, in export strategy, the
products are not designed by considering the requirements of the international market.
Regarding the role of international culture in this strategy, international culture does not
impact the companies' strategy directly. However, whenever a company plans to export a tiny
portion of products, it becomes imperative to understand the culture of the importing country and
decide the price accordingly. It is essential to mention that in export strategy, the significance of
local culture gets high, and companies must comply with local rules and regulations.
Standardization Strategy Role of International Culture
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Standardization is a strategy where the companies create the same product for the entire
world. They do not make any significant changes in the product design and price. It is essential
to mention that companies consider that this one product can quickly fulfill the needs of the
international world (Gupta & Govindarajan, 2017).
As far as the international culture is concerned, in standardization, culture is one of the
main components while designing the product and marketing it. Generally, big brands with high
market capitalization go for the standardization strategy. Henceforth, these companies primarily
create the products according to the greater interest of the global public.
Multidomestic Strategy Role of International Culture
The companies customize the products in a multi-domestic strategy per local laws,
customs, and tastes. In addition, the main focus is to tailor the product to the local requirements
and gain benefits. Companies can introduce different effects in different regions to match local
preferences (Tien, 2019).
This strategy's cultural aspect is highly relevant because companies only designed the
products for the local market. Therefore, it becomes imperative to conduct comprehensive
research before creating a product. The marketing strategies are also developed after considering
demographics, preferences, and local laws.
Transactional Strategy Role of International Culture
Transactional strategy combines standardization and multi-domestic strategy because, in
this strategy, the companies have pressure to manage the cost and offer products according to
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local preferences. It is worth highlighting that the goal of the strategy is to increase product sales
and capitalize on the market.
International culture is also relevant in this strategy, and the companies should create a
recognizable brand. Additionally, the product can be standardized, but the product must meet the
requirements of the local market. The businesses assess the demand for a product in the local
market first and then offer it, but the product has to comply with the local regulations.
Conclusion
In conclusion, different businesses use different strategies to offer their products
internationally. The strategy is decided as per the nature of the product and demand of it in other
markets. Nonetheless, businesses must not ignore the significance of international culture
because every country has a unique culture and requirements. Ultimately, tailoring the product
and complying with the local regulations will enable the company to succeed.
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References
Ghemawat, P. (2017).
The laws of globalization and business applications
. Cambridge
University Press.
Gupta, A. K., & Govindarajan, V. (2017). Converting global presence into global competitive
advantage. In
International Human Resource Management
(pp. 431-442). Routledge.
Tien, N. H. (2019). Comparative Analysis of Multidomestic Strategy of P&G and Unilever
Corporation.
International journal of foreign trade and international business
,
1
(1), 5-8.