International Business Management - Essay Example

International Business Management International Business Management International business is a dynamic environment owing to completion and markets globally. There is a need for a company to have a strategy for the different levels of international economy where a firm operates to surmount challenges in the global environment (Devinney et al., 2010, pp. 12). This study aims at discussing the global, international, transnational, and multi domestic strategies of and respectively. Global Strategy: Samsung Samsung has operations in over 80 countries, employs more than 370,000 people, and is the leading revenue generating company in the information technology market since 2009. The company is the largest manufacturer of smart phones and mobile phones and has a globally popular Samsung Galaxy line. In 2012, Samsung remained the leading global player in the television business for the seventh consecutive time, was the first in the mobile phone business with 397 million units shipped, and had a 25% hold of the global market getting increased revenues of $ 178 billion, a 20% increase. In the first quarter of 2014, the company shipped 85 million Smartphone units surpassing the combined amount of Apple, Huawei, Lenovo, and LG who are the next four supplies. The main reason for the choice of Samsung as a global business is that it offers a wide range of products fitting different budgets, sizes, and shapes for each consumer (DELIOS & BEAMISH, 2004). These products range from Galaxy S5 to Samsung Galaxy K zoom that has an optical zooming lens, the only Smartphone in the market with the feature and other products for every consumer to choice from depending on their need and abilities. The firm aims at meeting all the needs of the consumers through a wide range of product offerings for the consumers. The main limitation of the global strategy is that there is high standardization of products limiting the ability to meet the needs of people who have differing tastes and preferences as tastes, preferenc3es, economic status, and social condition cannot be equal global. International Strategy The company chosen for the discussion on international strategy is Starbucks with the reason being the high growth rate it expanded to different areas to have operations in over 60 countries, 170,000 stores and revenues were 13.29 billion, 1.38 billion in profits and employed 149,000 employees in 2012. This rate of expansion and success shows a successful company in the international market, giving the need for an understanding of the international strategy employed in the company. The reason for the choice of Starbucks as an international business is that the company in its early stages had plans for cross border stage overcoming the fear of international business by use of cross border integration (HILL, 2005). Starbucks has made alliances through joint ventures and other alliances for the development and success in the international market especially in United States and Canada. Starbucks uses these alliances as a means of understanding the international market to tailor products offered in these international markets to the needs and requirements of the people. An example is the 1996 alliance between Starbucks and Pepsi-cola that allowed Starbucks to sell its products in bottles form in North America (Gilbert, 2008). The alliances also help Starbucks to overcome challenges that come with different cultures and practices in different countries of operation through incorporating these differences in their business and that can only be possible by cooperation with local organizations (Conklin, 2006). The main limitation for future development is a fall in the customer experience due to an increase in number of stores lowering the ability to differentiate itself from other companies. Transnational Strategy: Nokia Nokia ranks among the best manufacturers of mobile devices globally. The company has a market share of more than 40 percent and sales beyond 50 billion Euros showing its success and significance. Nokia provides functional and stylish phones in the Latin America, North America, Africa, Europe, and Asia Pacific. Despite the operations of Nokia globally, I considered it as a transnational company due to an emphasis on having a great understanding the differing tastes and needs of the consumers globally. Nokia has a group of designer, sociologists, and researchers who traverse the continent to get the views of the people in terms of needs, specifications, and improvement opinions, functionality of Nokia devices, and needs that fit their locations (Steinbock, 2001). These views and feedback from the customers in different locations and differing tastes are then incorporated in the devices made by Nokia according to the location to meet the needs of the customers. This makes the customers in a specific region have a product tailored for them for example power saving Nokia phones tailored for regions where access to electricity is a problem in Africa and some parts of Asia (Steinbock, 2001). The main disadvantage f this strategy is that a product tailored for a give region cannot be sold in a different region due to the different requirements that differ with region. Multi domestic Strategy: McDonalds Since the opening of McDonalds in 1955 in Des Plaines, Illinois it has grown to have over 31,000 restaurants in the world with operations in 119 countries. Over 1.5 million people are employed at Starbucks and operations are done in six continents. The reason for the choice of McDonalds as a multi domestic company is that the company adjusts to the cultures of the given country it operates. An example is the India branch where it is 100 percent vegetarian with burgers and all other products beef free owing to Hinduism, the Indian religion, where cows are held as sacred (Luchtman & Maclean, 2000). In Philippines, the company has adapted to the culture of the community and has been in a position to serve rice burgers (Luchtman & Maclean, 2000). The disadvantage of this strategy is the inability to be successful in future where a given country will have people from different religions, cultures, beliefs, and practices who may not have a common culture. Whether the conceptual situation offers a solution The conceptual situation taken by the companies offers a solution as depicted by the success showed by the four companies tailoring their business to different conceptual situation of global, international, transnational, and multi domestic. Tailoring the business to a certain conceptual situation and working for that achievement offers a solution to the business sustainability, success, and profitability needs (Venkateswaran, 2012). ReferencesTop of Form CONKLIN, D. W. (2006). Cases in the environment of business: international perspectives. Thousand Oaks, Sage Publications. DELIOS, A., & BEAMISH, P. W. (2004). International business: an Asia pacific perspective. New Jersey, N.J., Prentice Hall. DEVINNEY, T. M., PEDERSEN, T., & TIHANYI, L. (2010). The past, present and future of international business & management. Bingley, UK, Emerald. GILBERT, S. (2008). The story of Starbucks. Mankato, MN, Creative Education. HILL, C. W. L. (2005). International business: competing in the global marketplace. Boston, McGraw-Hill/Irwin. LUCHTMAN, K., & MACLEAN, B. N. (2000). International business McDonald's. Hazel Crest, IL, MacLean Media. Bottom of Form STEINBOCK, D. (2001). The Nokia revolution the story of an extraordinary company that transformed an industry. New York, AMACOM. VENKATESWARAN, N. (2012). International business management. New Delhi, New Age International. Read More