Global marketing management Essay Example | Topics and Well Written Essays - 3000 words - 1

Global marketing management - Essay ExampleFor example, PESTLE doesnt measure the jounce of information, demographics and ethics variables in the macro-environment. Importance of PESTLE can only be realized if it is applied for practical purposes otherwise the model might be viewed as another management utopia. For example, suppose a multinational company X of Europe wants to expand business in a Latin American province but they do not have any knowledge about the environment of the country. The multinational company X can face six variant challenges such as, 1- P- unstable political environment which can disrupt their operation in the country or even create confusion regarding entry strategy, 2- E- pathetic economic growth of the country might result lack of purchasing parity of consumers which negatively affect the demand for the product of company X, 3- S- lack of catch of socio-cultural context of the country can create problem for the company X to design effective product-m arketing strategy and 4- T- lack of technological growth and infrastructural support in the country can hamper the potentiality of internationalization strategy of X. Kaufmann and Van Witteloostuijn (2012) tell that companies can use PEST instead of PESTLE to measure global business environment in those cases where environment and legal proceedings play very little role. Research scholars such as Porter & Siggelkow (2008) and Heijltjes & Van Witteloostuijn (2003) stated that international companies should try to understand the global business opportunities in terms of both macro and micro environmental context. Ghemawat (2004 & 2007) pointed out that ignoring market need musical composition developing globalization strategy is probably the greatest mistake that can be committed by an international company....Another important thing is that there is merely any difference exists between Indonesia, Malaysia and Singapore when it comes to culture and demographic aspect hence followi ng growth strategy in Singapore and Malaysia will befriend IKEA to design product mix in accordance to demand of Indonesian customers. Taking help of the research York of Ying (2005), it can be said that IKEA should design products as per seasonal and communal requirement. For example, offering green shaded article of furniture during Ramjan and Eid al-Fitr would definitely help IKEA to attract Muslim customers. On the other hand, the company should increase the size of the furniture in order to attract family customers in the country. IKEA should offer the assembling and transportation facilities with its furniture products in order to target wealthy Chinese family customers. Recalibration of forward and reluctant integration of the logistics and supply chain activities will definitely decrease value chain operation approach for IKEA. Decrease in value chain cost would help IKEA to follow competitive pricing strategy in order to penetrate in Indonesian furniture market.