Ethical Dilemmas Facing Multinational Corporations in Their Marketing of Goods and Services Abroad - Coursework Example

Ethical dilemmas facing multinational corporations in their marketing of goods and services abroad Introduction The organizations worldwide face a number of challenges when they decide to go global. This is a common problem that they face since they do not have any prior knowledge or understanding of the new territory that they will do their business from. However what best they can do is to find out and research the strengths and weaknesses of this area and hence upon getting the much needed knowledge, base their theories and strategies in a much more effective and efficient manner. This will help one and all to better understand what the new territory, region or country offers the business and the people associated with it. The best thing is that the benefits and disadvantages are determined even before the organization goes the global way and thus it saves itself from embarrassment which it might face without having proper knowledge and adequate research within it. The significant thing here is to get prepared and be ready for what is to come in the future as concerns to the organization that we are talking about here. (Beckman, 1967) The ethical concerns rose in the wake of marketing of goods and services abroad remains one of the most talked about concerns and this is highlighted within the length of this paper. Management of Goods and Services The ways and means that are usually taken care of whilst managing the goods and services abroad are aplenty and it is only up to the top management within a company that the same can be handled in a several different methods. They are the ones to decide as to what is the real manner in which the firm’s goods and services would be handled as well as who will head the respective departments, lead the business strategic units and act as legal and media representatives of the said business. The business, as marketers say, exists to satisfy its target audience through fulfilling a need courtesy its products and/or services or a combination of the both, the same being true in case of a retail outlet which sells gasoline to local consumers, thus giving in petrol plus extra services in the form of window cleaning, fuel gauge checks and so on and so forth. (Kelley, 1973) A company or an organization needs sound management framework at its top so that the staff and the employees working at different levels feel at ease with the job as well as the working environment. This indeed is very important as it builds long-term credibility of the organization that it cares about its employees and not just the customers and in cases profits and revenues only. (Korzeniowski, 2001) Reasons for Marketing of Goods and Services Abroad International businesses with regards to marketing of goods and services get introduced in different nations due to other reasons as well. This could be due to their interest and potential in the growth environment of the new country which could have a good impression on the target audiences of the new country. However the ethical foundations need to be kept under a check for all the right reasons. This increases the sales potential of the organization’s products and/or services and in the end everyone is a winner. (Dunning, 2001) However the local organizations face a lot of problems in the whole setting since these are the ones who have a cut down on their share of spending and revenue coming from the similar set of target audiences. Furthermore, there is a race to cut through the clutter and make the organization heard amongst the different firms which are present with respect to their own respective offerings, goods and services. (Muhammad, 1996) The mergers and alliances are made with different companies with respect to the marketing of various goods and services in different nations of the world and hence they are forced to come into a region where they never thought of even entering in the past. (Barr, 2000) This is made more discouraging by the fact that this new company which is entering an alien market has to face challenges much like the companies which are already in the business and are facing problems on a regular basis. (Galbraith, 2000) Therefore it would not be wrong here to state that the initial basis is wrong for these new entrants and hence they have to face pressure right from the very beginning which is a serious concern for them. The ethical theory is thus highlighted in a manner which was unheard of in the past. Since the mergers and alliances are held so as to make the goods and services available to a select set of audience, the need is to find out what will make the organization stand out from the pressure that it has to deal with, with the passage of time. Then there is the discussion of the different conglomerates and international franchises for the sake of marketing of goods and services which make their entry into a nation so that they could capture the relevant market. The incentives that these international concerns bring are endless since they bring a touch of internationalism to the whole retail and marketing environment and not only that but also provide the mannerism for smooth and professional conducting of other firms present within the industry. However these conglomerates, mergers and franchises worry about the idea that their name and image could be diluted in terms of marketing of goods and services abroad if they are not welcomed in the new territory or if there are political, legal and cultural pressures in the line of their operations. (Applbaum, 2004) What best these organizations would like is to have an easy sailing so that they could build on their global image and competitive ability and not be caught up within the political and cultural issues. However this varies from country to country and could be very different as and when we speak of a variety of nations. The bottom line is to understand the country better and more than anything else, to understand what the business is like and in what capacity it would reach the right target audiences and thus provide them with the needs that they want them to be fulfilled. The manner in which the marketing of the goods and services would be had is thus a very significant consideration. (Wells, 1998) Economic Boom and the Ethics Talk It is a fact that the world economy has grown in recent years. International trade of goods and services has been the motivating force behind it. But with the more recent technological developments as well as reduced trade blockades, growth in trade is definitely on the rise. Developing counties have also stepped on this bandwagon, extracting the best out of their own respective economies through trade internationally as well as locally - within the country. The integration of trade into the world economy has really proved helpful for the developing countries as they can promote economic growth, development as well as poverty reduction within themselves. World trade has been increasing at an average rate of six percent for the last 20 years, which is twice the rate of world output. The integration of the world economy with the help of trade of goods and services has lifted the living standards of the people within these developing nations, which is a positive sign. (Lipsey, 2002) However for the trade to occur in the first place, it is very significant to understand what goes behind to actually make supply chain management possible. With the introduction of marketing of goods and services within a new country, many unseen things start to take place. (Sawai, 1999) However all these need to be ethical to be termed as right from the onset of things. People have a chance to interact with this new business and earn innovative and stable yet better means of livelihood. The growth is there for each and everyone to see for themselves, be that in the field of research, jobs, better services in the respective fields (of business) and not to forget the overall well-being of the society which is in direct proportion with the smooth functioning of the business. Foreign presence brings about new and unknown delegates to the country who impart their style of working and knowledge prevalent abroad. It would not be wrong here to suggest that this change is a sign in the right direction, at least for a country, which is not so developed. Developing countries can take a leaf out of this and learn to live shoulder to shoulder with the developed ones, as a minimum in the field the business is investing in. The growth objective of goods and services which can be summarized here of any company with overseas presence is for providing better and inexpensive services. The company can live on this very issue with pride and dignity. No matter how strong the opposition is within a region or how violent the rivalry is amongst the competitors, the company can only make it big if it sticks with its pre-set objectives of serving the region and its customers with all its might and not gaining profits and sums at their expense. It is very easy to get new customers and clients but indeed a very difficult suggestion to sustain with those people, for good. Growth within the marketing of goods and services abroad takes place indefinitely within a company but it is up to the people who carry out this process of growing to check and see how this procedure is coming along lately and how it would turn out to be in the future, with more and new competitors at the end of the road. The Establishment of a Marketing Scenario A major point in the entrance of a business in a pre-set marketing scenario is by forming strategic alliances of goods and services. It can help in the global expansion of companies and also account for newer and better services’ condition for the customers and clients in everyday market, be it in any possible field of marketing of goods and services. Many companies are moving towards these strategic alliances with different partners ranging from a regional background to one of an international setting. It serves as a key tactic for stipulation of new and relatively unfamiliar markets plus it is assured that a higher level of knowledge is transported between the people involved in order to set up a sound and unassailable business. (Foss, 2005) Strategic alliances of goods and services are the key and hold a significant role in the expansion of markets in an unfamiliar territory. Without them, the chances of the business falling back towards failure are too obvious and risk is great. Risk within such a business is worth taking but companies of international praise hesitate and think twice or maybe several times before going on such a spree. (Kasper, 1999) It has to be also kept in mind that if a business goes alone and tries new markets then there is a possible chance of moving away if not immediately then for sure after sometime. Cost factors also come into play if the business thinks of going alone in the foreign market and with it; it is quite too understandable that risk is great. (Steiner, 2001) Huge sums can be spent without any due rewards if the company tries to make it big alone because the big fish in the market present can easily take over the reigns of the particular brand or business and handover it a token of gratitude. Considerable money can be spent like this and after all this the company would look up to its different franchises for help, either in the form of fiscal or market position one. The strategic alliances thus formed can both be in the form of local as well as regional partners. (Lowe, 2004) Conclusion In the end, the firms understand that they could earn so much more if they invest within different nations of the world. This could be due to their future thinking and visionary policies. (Mason, 1994) However what they forget is that in the search of getting to the right people, are they missing the relevant target audiences within the present markets? This question needs to be answered so that one can have a proper perspective of the issue that is present in the current times. (Benton, 1994) The motivation could be to earn as much in terms of revenue as possible or it could be in the form of having a sound base from where the organization can bring in more incentives for itself when it compares itself with the different organizations working under the same industrial zone. This could be a point which could have give enough confidence to this organization and hence raise its standards immediately, thus forcing it to reach out to newer and unexplored markets across the different world regions. (Kay, 1995) Bibliography APPLBAUM, Kalman. (2004). The Marketing Era: From Professional Practice to Global Provisioning. Routledge BARR, Pamela S. (2000). 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