Understanding of the Bradley's View - Coursework Example

Explain Your Understanding of This View and Provide Examples to Reinforce Your Arguments Table of Contents Introduction 3 Discussion 4 References 14 Introduction The present market scenario has intensified with the increasing competition owing to different factors that include globalisation and advent of new technologies. Globalisation and innovative technologies together have facilitated companies in conducting businesses in international locations. The diversification of business operations in overseas markets is identified to have both positive as well as negative aspects on a company. In this respect, globalisation and technological advancement have assisted companies in performing different operations in overseas markets with better availability of resources and growth opportunities. Subsequently, companies are able to conduct operations in a sustainable as well as profitable manner. On the other hand, companies conducting operations in diversified overseas locations are recognised to face complexities in terms of decision making, communication and management of operations among others. The complexities in business operations generally arise due to different factors that include organisational culture, consumer behaviour and competitors (Chen & Harris, 2007; Kayworth & Liedner, n.d.). In this regard, companies operating in overseas market segments are required to be effective in adopting appropriate strategies with the aim of ensuring that business operations are conducted smoothly and profitably. Companies should adopt an appropriate international marketing strategy, so that products and/or services are offered in accordance with the market demand. Contextually, companies implementing appropriate international marketing strategies are facilitated with the opportunity of performing operations in efficient manner while ensuring economies of scale manner (Sheth & Malhotra, 2010; Onkvisit & Shaw, 2009). Respectively, the essay focuses on the suggestion made by Bradley (2005, p. 9) which claims that “Larger companies locate their production activities according to the dictates of the market. Decision-making is dispersed throughout the company, irrespective of location, and the entire company is held together as a complex information system”. Discussion Globalisation and technological advancement are two important aspects based on which companies are able to conduct their operations in international market segments with better sustainability as well as profitability. In international market segments, companies conducting business operations are provided with adequate opportunities and are faced with substantial challenges. Companies with the aim of internationalising business operations in overseas market segments are recognised to face different issues due to complex, volatile as well as unknown business environment. In this regard, companies that expand business in overseas market are confronted with numerous environmental issues relating to social, cultural, economic and legal environment (Doole & Lowe, 2008; Godley, 2001). The social environment of a country plays an important role in the operations of multinational corporations (MNCs), as the MNCs are required to be aware as well as adhere with the social norms and policies for providing products and/or services in accordance with the requirements and preferences of customers. Additionally, MNCs are also needed to be effective in adopting appropriate ‘Corporate Social Responsibility’ (CSR) policies or objectives, as CSR policies in the current context are regarded as vital for the development of a business and a society as a whole. Subsequently, social aspect prevailing in the host country facilitates MNCs to acquire suitable information relating to behaviour and purchasing pattern of consumers (Doole & Lowe, 2008; Petzer & et. al., 2008). The cultural factors are important for MNCs operating in different international market segments, as cultural aspects influence management functions and business operations to a large extent. Cultural differences are mainly witnessed in the area of languages. Language differences are an important consideration in cultural differences. In addition, language differences are also identified to have significant impact on different factors such as decision making, market operations, advertisement and brand name among others. For instance, Coca Cola Company faced severe challenges in the marketing of its products in the market segments of China. Additionally, General Motors in the Spanish markets with its brand ‘Nova’ also faced the problem of language differences. MNCs are faced with such issues due to different perception of brand name in different meanings (Gaung & Trotter, 2012; Doole & Lowe, 2008). The legal environment of an overseas market is also recognised to increase the complexities of business operations due to the differences in the policies and laws of the home and host country. Additionally, companies in different international locations are also faced with the issue of product acceptability. For instance, MG sports car faced with the challenge of complying with different legislative laws and the failure to which led to the closure of the company (Tian & Borges, 2011; Doole & Lowe, 2008). The economic environment is also determined to pose different threats for companies operating in overseas markets. Economic factors are important consideration for MNCs to make effective decisions relating to business operations (Ghauri & Cateora, 2011; Doole & Lowe, 2008). In this respect, companies operating in different overseas market segments are identified to face with the challenges of effectively expand its business in the overseas market. The challenges are generally faced in the area related to diversification of the decision making procedure in different business segments and departments. Moreover, MNCs are also faced with different international environment issues for ensuring that marketing operations are performed in accordance with the preferences as well as needs of the customers. The different environmental issues in international market segments are also accountable for changing organisational structure and strategic formulation procedure. Correspondingly, the changes in the operation procedure and organisational structure are also responsible for complicating the procedure of decision making (Antunes & et. al., 2013; Tichy, 2012). Companies operating in different international locations are facilitated with the opportunity of conducting business operations with better availability of required resources, labour, investment opportunities and consumer preferences. In addition, internalisation of business operations also assists MNCs in having better logistic services as well as communication technologies. MNCs having such advanced technologies are also offered with the opportunity of conducting business operations in an efficient and sustainable manner. Subsequently, companies are required to adopt effective international marketing strategies for ensuring the business decisions are made in accordance with the needs and preferences of customers. In addition, business operations based on international marketing strategies also assist in conducing different operations relating to marketing, production and supply with better infrastructural facilities. Companies with efficient infrastructural facilities are able to improve production and delivery services. In this respect, companies are required to develop an efficient business environment, so that business decisions are made appropriately and accordingly (DHL, 2013; Chung, 2006; Solberg & Durrieu, 2006). International marketing strategies of companies operating in overseas market segments are required to be based on an effective communication system. In this regard, companies are identified to develop an information system with the aim of ensuring that management is able to formulate as well as implement effective decisions relating to the market operations, so that products and/or services offered in the overseas market segments meet the satisfaction level of customers. Subsequently, the development of an efficient information system within an organisation aids in developing a better coordination in the operations as well as streamline the work process. Additionally, the development of an effective communication system also assists in minimising complexities and reducing operational and administrative cost related with the operation of the business in the diverse market segment. However, companies operating in worldwide market segments are identified to face certain challenges in aligning business operations and accomplishing business objectives of the parent company at home and subsidiary in the host country. The challenges are faced due to complexities in aligning the information system within different departments of the parent company and its subsidiary located in overseas market (Dolatabadi & et. al., 2013; Wongkorsub & Chevamongkol, 2011; Stoian, & Rialp-Criado, 2010; Bradley, 2005). In this respect, Rammer & Schmiele (2008) noted that companies implementing effective technologies are able to build a better coordinated communication network with the business processes, so that management and different departments of a company are able to make effective decisions. Subsequently, companies implementing an effective information system are able to conduct operation in a competitive manner. In addition, the implementation of information system aids companies in procuring raw materials and supplying finished products and/or services in accordance with market demand and requirements of customers (Rammer & Schmiele, 2008). In a similar perspective, the study conducted by Rodriguez & et. al. (2010) signified that the development of an effective information system within companies operating on a global context is facilitated with a better understanding of the market scenario and business conditions in different operational regions. Correspondingly, information system within an organisation assists it in managing risk as well as knowledge effectively. Companies with the assistance of communication are able to predict the market scenario effectively and based on which risks can be identified and assessed. Accordingly, the market risks are needed to be mitigated for better performance of a business (Rodriguez & et. al., 2010; Ilheu, 2009; Viswanathan & Dickson, 2006). According to Best (n.d.), the communication system within a company also facilitates different departments in having a better knowledge about the price, benefits, needs, availability and support with respect to market and consumer information. Moreover, the development of the information system will also assist in minimising language barriers and other culture related issues, so that conflicts within a company between management and employees can be mitigated. In this respect, overcoming barriers arising from language differences assist companies in providing products and/or services on the basis of the needs as well as preferences of customers (Best, n.d.). Based on the study of Freelander (2009), it can be recognised that in international marketing strategy, communication plays an important role in enhancing business performances. The formulation of international strategies on the basis of communication system aids in enhancing the brand value of companies with respect to their brand image and value system. In addition, formulation and implementation of strategies by large companies having production activities on a global context assist in better promotion of products and/or services, which in turn improves their sustainability in the long run Gomez & Valenzuela, 2010; Freelander, 2009; Hanssens, 2002). Subsequently, the article published by Narotama University (2014) signified that companies operating in international market segments are required to develop information system based on ‘Marketing Information System’ (MkIS). In this respect, development of international marketing strategies with the assistance of MkIS facilitates in ensuring that marketing operations are conducted based on information obtained from marketing research. MkIS is dependent on various factors that include equipment, market information and people. The management having appropriate information regarding the market segments in relation to consumer demand, price and competitors are facilitated with effective decisions making process. The main objective of MkIS is to assist management of companies in making appropriate decisions based on which products and/or services are to be offered in the market segments for meeting the satisfaction level of the customers (Narotama University, 2014; Hosami & et. al., 2013). Additionally, the article published by Narotama University (2014) revealed that management with the aid of MkIS is facilitated with reliable information relevant to the business environment, market requirements, organisational structural requirements and industry dynamics among others. Subsequently, companies conducting business operations with relevant market information and availability of resources are recognised to develop production activities on the basis of marker needs (Narotama University, 2014; Hakhu & et. al., 2012; Goni, 2008; Luigi & Simona, n.d.). According to Ismail (2011), companies with the assistance of MkIS have important information relating to internal as well as external operations. MkIS facilitates in having better control and planning of operations, so that marketing activities are conducted in accordance with market demands. Decision making procedure is also identified to be made efficient, so that international strategies are implemented in an efficient way. In this context, companies based on suitable international strategies are able to conduct operations successfully in alignment with desired policies, objectives and tactics between the home and host country organisation ((Ismail, 2011; Laitinen, 2009; SAGE, 2007). In this regard, Lee & Trim (2008) argued that companies by adopting appropriate MkIS are able to develop an effective organisational culture. Organisational culture aids in building beliefs and values within a company on the basis of which employees conduct operations in accordance with business goals and objectives along with market requirements. In this respect, integrating different cultures within a company also aids in ascertaining the sustainability of companies in different market segments. Organisational culture is an important aspect for the success of a business in overseas markets. For instance, Japanese companies are identified to focus on customer services and to meet the satisfaction level of customers, the organisational culture is based on comparative cultural indebtedness. On the other hand, Korean companies are also determined to develop their business objective on the basis of customer service. In this context, Korean companies develop organisational culture on the basis of parent company regulations and policies. In addition, both Japanese and Korean companies are recognised to develop a transparent organisational culture for meeting the market demands and effective satisfaction of customers (Sarah, 2009; Lee & Trim, 2008; Pearson Canada Inc., n.d.). According to the study conducted by Grubor (2009), companies in order to operate successfully in the global market segments implement ‘Global Marketing Decision Support Systems’. The systems provide companies with adequate information relevant to market segments. In this context, companies with the implementation of the systems are able to have reliable information about market segments. Additionally, Grubor (2009) argued that formulation of international strategies is dependent on knowledge relating to target market segments. Thus, management of companies with the assistance of high quality data with respect to market information are able to ascertain that business operations are conducted with enhanced competitive advantages. The decision making procedure of the management is also made effective and based on which products and/or services are provided in the market segments. The business operations of companies in overseas markets are based on prices, customers’ requirements and competitors among others (Grubor, 2009; Littler & et. al., 2000). Conclusion Based on the above discussion, it can be comprehended that the present market scenario has become competitive due to two important factors that include globalisation and technological advancement. The aforementioned factors are identified to change the market scenario to a large extent. In addition, the changes in the market scenario have raised different complexities for companies operating in overseas market segments. However, the aforementioned factors are also recognised to provide different opportunities for companies in performing its business operations with better innovative technologies, integrated supply chain network and ideal market entry opportunities in different markets segments. Thus, it can be affirmed that globalisation and technological advancement have acted in a both positive and negative manner. Respectively, it can be ascertained that MNCs with the assistance of appropriate market strategies are able to ensure that business operations are conducted in accordance with marketing needs. In this respect, companies are required to different factors while conducting business operations in overseas market segments that include consumers’ behaviour, preferences of customers, prices of products and/or services and competition level. Moreover, companies are also required to have effective MkIS, so that operations are performed with better analysis of the targeted markets. Subsequently, management of companies with the assistance of MkIS are facilitated in making effective decisions relating to the appropriate strategies that are to be implemented for better performance and sustainability in the long run. In this respect, companies are also facilitated with the opportunity of ascertaining that business operations are conducted in accordance with the needs as well as preferences of the customers. Subsequently, it can be recognised that companies relies on market information relating to price, availability of products and/or services and competitors for developing appropriate international marketing strategies. Thus, the statement proclaiming that large companies conduct business operations in overseas markets based on the market information can be duly justified and validated. References Antunes, I. & et. al., 2013. The Impact of National Cultures on International Marketing Strategy and Subsidiary Performance of Portuguese SME’s. The international Journal of Management, Vol. 2, Iss. 3, pp. 38-45. Best, R. J., No Date. International Marketing. International Markets and Globalization. [Online] Available at: http://rogerjbest.com/img/InternationalMarketing.pdf [Accessed October 20, 2014]. 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