Motivation & Cultural Sensitive

Topics: Marketing, International trade, Marketing strategy Pages: 10 (4036 words) Published: February 27, 2013
Critically analyse what factors encourage organizations to internationalise, evaluating which products or services are culturally sensitive when moving into a new market from the home country to the host country With the rapid development of economic globalization, internationalization is becoming the development tendency of lots of organizations as it is becoming increasingly more beneficial to develop organizations’ competitiveness against their competitors (Ebner, 2001). Wilson (2006) states that internationalization provide organizations opportunities to participate in lots of cross-border activities quickly which may make a contribution to not only organizations’ revenue growth, but also their knowledge exchange and capabilities enhancement, thereby internationalization strengthens organizations’ long-term competitiveness. However, organizational internationalisation is a two-edged sword. Organizations may be impacted by some factors in the international environment, products or service which the organizations provided may be culturally sensitive in the host country as different countries have their cultural difference (Czinkota, et al. 2007). Therefore, international environment may influence organizations’ management activity to some extent, especially, the implementation of international marketing strategies and the marketing mix. This essay analyses the detail of different factors encourage organizations to internationalize and explain why and how the factors encourage organizations by using “push versus pull theories”. Meanwhile, it also evaluates the culturally sensitive of products or service in the host country and its influences of different organizations’ international marketing strategies and the implementation of the marketing mix. In the last decades, the term “internationalization” has received significant attention with the development of globalization. Categora (et al., 2010) simply defined internationalisation as a process which organizations increasingly involve their activities in the international market. Buckley (et al. 2008) explained that organizational internationalisation make a contribution to organization’s market expansion in order to marketing product or service across national borderlines or overseas. Therefore, organizations should direct participate in the activities in the local market of the host country. Meanwhile, their managers should consider organizations’ marketing strategy in an international perspective and they may also need to customize market strategies to serve specific target market as their cultural, regional and national are different from one to another (Vignali 2001). Otherwise, it also tests organizations’ transferable skill in order to satisfy customers’ different requirements in the host country. Bradley (2005) stresses “It is not the marketing environment itself that is necessary, but the firm’s ability to cope with it”. Furthermore, there are also some external influences such as trade barrier, competitive pressures and overproduction (BABE International Marketing lecture notes, 2012b). It can be seen that lots of negative factors may prevent or disturb organizations’ internationalising. However, there is still a large number of organizations want to run their business internationally because there are some factors in the host country draw the organizations to internationalise. Blomstermo (et al, 2003) states the initiative encourage organizations to internationalize should be different from one to another; it may be due to their individual matter and supportive by different factors. However, no matter what factors encourage them to internationalize, organizational internationalization management should be based on a specific understanding of organizational overall strategic which is seeking for a more strengthen core competitiveness. For a detail analysis of encourage factors to organizational internationalisation, Gupta (et al. 2008, p68) propose the “push...
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